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19700.0
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2022-08-19 00:00:00 UTC
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Is the Worst Over for Tech Stocks & ETFs?
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AAPL
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https://www.nasdaq.com/articles/is-the-worst-over-for-tech-stocks-etfs
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nan
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nan
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(1:30) - Who Was The Big Tech Winner This Earnings Season?
(4:45) - Is Apple Overexposed To China?
(7:00) - Breaking Down Tesla’s Recent Movement
(9:10) - What Do These New Acquisitions Mean For Amazon?
(12:00) - What Emerging Tech Themes Have The Best Outlook?
(14:05) - What Are The Biggest Risk As a Tech Investor Right now
(15:30) - ETFs to Keep On Your Radar
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Gene Munster, managing partner at Loup Ventures, about his outlook for tech stocks and top picks. Gene is a well-known tech expert, and his firm is the index provider for the Innovator Loup Frontier Tech ETF LOUP.
The world’s biggest tech companies reported their results late last month and despite very difficult macroeconomic environment, results were better than feared.
Further, inflation is showing some signs of peaking, suggesting a slower path of interest-rate increases in the months ahead, which is good for tech stocks.
Mega-cap tech stocks have rebounded strongly since late July. Amazon AMZN has surged over 20%, while Apple AAPL, Microsoft MSFT and Alphabet GOOGL are up more than 10%.
Apple derives about 18% of its revenue comes from Greater China and is exposed to rising geopolitical tensions. Gene believes that the tech giant is in the process of reducing its reliance on China.
Tesla TSLA has surged almost 50% from its May Bottom. Electric vehicle and renewable energy stocks also got a boost from the Inflation Reduction Act, which provides 370 billion to combat climate change.
The LOUP ETF invests in technology companies that are leading the next wave of innovation. TakeTwo Interactive Software TTWO, Advanced Micro Devices AMD and ASML ASML are its top holdings.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
ASML Holding N.V. (ASML): Free Stock Analysis Report
TakeTwo Interactive Software, Inc. (TTWO): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Innovator Loup Frontier Tech ETF (LOUP): 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.
|
Amazon AMZN has surged over 20%, while Apple AAPL, Microsoft MSFT and Alphabet GOOGL are up more than 10%. Apple Inc. (AAPL): Free Stock Analysis Report Further, inflation is showing some signs of peaking, suggesting a slower path of interest-rate increases in the months ahead, which is good for tech stocks.
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Amazon AMZN has surged over 20%, while Apple AAPL, Microsoft MSFT and Alphabet GOOGL are up more than 10%. Apple Inc. (AAPL): Free Stock Analysis Report TakeTwo Interactive Software TTWO, Advanced Micro Devices AMD and ASML ASML are its top holdings.
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Apple Inc. (AAPL): Free Stock Analysis Report Amazon AMZN has surged over 20%, while Apple AAPL, Microsoft MSFT and Alphabet GOOGL are up more than 10%. (14:05) - What Are The Biggest Risk As a Tech Investor Right now (15:30) - ETFs to Keep On Your Radar Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Gene Munster, managing partner at Loup Ventures, about his outlook for tech stocks and top picks.
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Apple Inc. (AAPL): Free Stock Analysis Report Amazon AMZN has surged over 20%, while Apple AAPL, Microsoft MSFT and Alphabet GOOGL are up more than 10%. (14:05) - What Are The Biggest Risk As a Tech Investor Right now (15:30) - ETFs to Keep On Your Radar Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Gene Munster, managing partner at Loup Ventures, about his outlook for tech stocks and top picks.
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19701.0
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2022-08-19 00:00:00 UTC
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US STOCKS-Wall Street ends down as yields rise; indexes post weekly losses
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-down-as-yields-rise-indexes-post-weekly-losses
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains.
Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows.
U.S. Treasury yields rose, with the benchmark 10-year note US10YT=RR nearly hitting 3%, after Germany reported record-high increases in monthly producer prices.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
"The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average .DJI fell 292.3 points, or 0.86%, to 33,706.74, the S&P 500 .SPX lost 55.26 points, or 1.29%, to 4,228.48 and the Nasdaq Composite .IXIC dropped 260.13 points, or 2.01%, to 12,705.22.
All three major indexes registered losses for the week. The S&P 500 fell about 1.2% and the Nasdaq slid 2.6% in their first weekly declines after four weeks of gains. The Dow lost about 0.2% for the week.
After notching its worst first half since 1970, the S&P 500 has bounced some 16% from its mid-June low, fueled by stronger-than-expected corporate earnings and hopes the economy can avoid a recession even as the Fed hikes rates.
Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight inflation at a four decade-high.
Focus next week may be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Meme stock Bed Bath & Beyond Inc BBBY.Oplunged 40.5% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
The S&P banking index .SPXBKfell 2.1% after recent gains.
Shares of Deere & Co DE.N ended slightly higher, even after it lowered its full-year profit outlook and said it has sold out of large tractors as it grapples with parts shortages and high costs.
Volume on U.S. exchanges was last at 10.01 billion shares in one of the lowest volume days of the year.
Declining issues outnumbered advancing ones on the NYSE by a 6.06-to-1 ratio; on Nasdaq, a 3.59-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 43 new highs and 93 new lows.
(Reporting by Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed in New York, Editing by Shounak Dasgupta, Arun Koyyur and Deepa Babington)
((caroline.valetkevitch@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.
|
Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
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19702.0
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2022-08-19 00:00:00 UTC
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After Hours Most Active for Aug 19, 2022 : GERN, BAC, VCSH, KGC, VTWO, FTI, NYMT, AAPL, AVDX, MPW, COTY, VICI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-19-2022-%3A-gern-bac-vcsh-kgc-vtwo-fti-nymt-aapl-avdx-mpw
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -12.25 to 13,230.65. The total After hours volume is currently 89,977,786 shares traded.
The following are the most active stocks for the after hours session:
Geron Corporation (GERN) is +0.06 at $2.29, with 7,011,401 shares traded. As reported in the last short interest update the days to cover for GERN is 8.281687; this calculation is based on the average trading volume of the stock.
Bank of America Corporation (BAC) is -0.03 at $35.45, with 4,004,611 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Vanguard Short-Term Corporate Bond ETF (VCSH) is -0.0129 at $76.61, with 2,800,002 shares traded. This represents a 1.9% increase from its 52 Week Low.
Kinross Gold Corporation (KGC) is +0.02 at $3.54, with 2,797,897 shares traded. As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
Vanguard Russell 2000 ETF (VTWO) is +0.08 at $78.60, with 2,343,048 shares traded. This represents a 19.34% increase from its 52 Week Low.
TechnipFMC plc (FTI) is unchanged at $8.47, with 1,976,930 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.08. As reported by Zacks, the current mean recommendation for FTI is in the "buy range".
New York Mortgage Trust, Inc. (NYMT) is -0.015 at $2.93, with 1,944,252 shares traded. NYMT's current last sale is 90% of the target price of $3.25.
Apple Inc. (AAPL) is -0.2 at $171.32, with 1,913,653 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 $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
AvidXchange Holdings, Inc. (AVDX) is unchanged at $8.42, with 1,723,408 shares traded. As reported by Zacks, the current mean recommendation for AVDX is in the "buy range".
Medical Properties Trust, Inc. (MPW) is +0.05 at $16.00, with 1,274,212 shares traded. MPW's current last sale is 88.89% of the target price of $18.
Coty Inc. (COTY) is unchanged at $7.50, with 1,182,941 shares traded.COTY is scheduled to provide an earnings report on 8/25/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is -0.01 per share, which represents a -9 percent increase over the EPS one Year Ago
VICI Properties Inc. (VICI) is unchanged at $34.62, with 1,152,633 shares traded. As reported by Zacks, the current mean recommendation for VICI 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 -0.2 at $171.32, with 1,913,653 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for GERN is 8.281687; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.2 at $171.32, with 1,913,653 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 89,977,786 shares traded.
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Apple Inc. (AAPL) is -0.2 at $171.32, with 1,913,653 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 89,977,786 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.2 at $171.32, with 1,913,653 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
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19703.0
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2022-08-19 00:00:00 UTC
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Charter's (CHTR) Spectrum Expands Footprint in Wisconsin
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AAPL
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https://www.nasdaq.com/articles/charters-chtr-spectrum-expands-footprint-in-wisconsin
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nan
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nan
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Charter Communications’ CHTR Spectrum has announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI
Spectrum is offering its Internet gig services throughout the buildout area. For the rural household, Spectrum is offering Internet services with a download speed of 1 Gbps, while for small and medium-sized businesses, the company is providing Internet connectivity services with download speeds of 300 Mbps, 600 Mbps and 1 Gbps.
Charter is also offering its Spectrum mobile services to customers using its internet services along with phone services through Spectrum Voice. This will provide unlimited calling in the United States, Canada, Puerto Rico and Mexico with up to 28 popular calling features, including Call Guard, which helps blocking unwanted automated calls.
Additionally, Spectrum is delivering its TV services across Wisconsin with more than 200 HD channels and access to 85,000 on-demand movies and shows. Using the Spectrum TV App, viewers can also stream content across other platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV along with Spectrum Originals.
Spectrum’s recent unveiling of advanced communications services in Marathon County, WI is in line with its recent strategy of making investments to extend gigabit broadband networks to unserved communities across U.S. and win customers as the first mover in these areas.
Charter Communications, Inc. Price and Consensus
Charter Communications, Inc. price-consensus-chart | Charter Communications, Inc. Quote
Expansion of Footprint in WI to Aid Top-Line Growth
CHTR experienced slow top-line growth in the second quarter of 2022. It reported revenues of $13.598 billion, which increased 6.2% on a year-over-year basis.
CHTR’s shares have dwindled 29.7% in the year-to-date period compared with the Zacks Cable Television industry’s fall of 24.5%.
Growth slowed down due to lower new activation of internet users. CHTR had 30.253 million Internet customers in the second quarter of 2022, up 2.1% year over year. Charter lost 21K Internet customers in the last reported quarter.
Also CHTR lost 226,000 video customers in the second quarter with the market being mostly saturated. The space is dominated by big streaming service providers like Netflix NFLX and Amazon Prime Video, which are heightening the competition for Charter to grab a decent market share.
Netflix has been spending aggressively on building its original content portfolio and the company is still enjoying its leading position in the streaming industry. It is the most prominent competitor of CHTR in the video-streaming space.
CHTR has collaborated with Comcast CMCSA to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will provide CHTR with Comcast’s Flex and hardware, helping it attract new customers to counter competition.
As viewers stream from other platforms on Spectrum TV app, CHTR will benefit from its strategic offering of Apple TV services to its customers.
Apple TV+ has recently broken records with 52 Emmy Award nominations across 13 titles and has boosted its total number of Emmy Award nominations by more than 40 percent year over year in under three years since its global launch.
The availability of Apple TV along with other streaming platforms on its TV app will help Charter ward off competition from Netflix and Amazon. As of Jun 30, 2022, CHTR had 32.124 million total customer relationships, up 1.1% year over year.
Charter’s strategy to invest $5 billion in constructing a fiber-optic network buildout will help provide broadband access to approximately one million customer locations across 24 states in the coming years. This, in turn, is expected to expand this Zacks Rank #3 (Hold) company’s customer base extensively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Using the Spectrum TV App, viewers can also stream content across other platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV along with Spectrum Originals. Apple Inc. (AAPL): Free Stock Analysis Report The space is dominated by big streaming service providers like Netflix NFLX and Amazon Prime Video, which are heightening the competition for Charter to grab a decent market share.
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Using the Spectrum TV App, viewers can also stream content across other platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV along with Spectrum Originals. Apple Inc. (AAPL): Free Stock Analysis Report Charter Communications’ CHTR Spectrum has announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI Spectrum is offering its Internet gig services throughout the buildout area.
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Using the Spectrum TV App, viewers can also stream content across other platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV along with Spectrum Originals. Apple Inc. (AAPL): Free Stock Analysis Report Charter Communications’ CHTR Spectrum has announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI Spectrum is offering its Internet gig services throughout the buildout area.
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Using the Spectrum TV App, viewers can also stream content across other platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV along with Spectrum Originals. Apple Inc. (AAPL): Free Stock Analysis Report CHTR had 30.253 million Internet customers in the second quarter of 2022, up 2.1% year over year.
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19704.0
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2022-08-19 00:00:00 UTC
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Wall Street ends down as yields rise; S&P 500 posts weekly loss
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AAPL
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https://www.nasdaq.com/articles/wall-street-ends-down-as-yields-rise-sp-500-posts-weekly-loss
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains.
The benchmark 10-year U.S. Treasury yield climbed to an almost one-month high near 3%. Megacaps Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell, putting pressure on the S&P 500.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
"The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
According to preliminary data, the S&P 500 .SPX lost 55.14 points, or 1.29%, to end at 4,228.37 points, while the Nasdaq Composite .IXIC lost 258.35 points, or 1.99%, to 12,707.00. The Dow Jones Industrial Average .DJI fell 294.77 points, or 0.86%, to 33,704.50.
Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight inflation at a four decade-high.
Focus next week may be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Meme stock Bed Bath & Beyond Inc BBBY.O plunged as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
Bank shares .SPXBK also fell after recent gains.
(Reporting by Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed in New York, Editing by Shounak Dasgupta, Arun Koyyur and Deepa Babington)
((caroline.valetkevitch@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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Megacaps Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell, putting pressure on the S&P 500. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Megacaps Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell, putting pressure on the S&P 500. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
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Megacaps Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell, putting pressure on the S&P 500. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Megacaps Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell, putting pressure on the S&P 500. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains. The benchmark 10-year U.S. Treasury yield climbed to an almost one-month high near 3%.
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19705.0
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2022-08-19 00:00:00 UTC
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FAANG Stocks Are Hot Again: Which Do Analysts Favor Most?
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AAPL
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https://www.nasdaq.com/articles/faang-stocks-are-hot-again%3A-which-do-analysts-favor-most
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nan
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nan
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In this piece, we'll use TipRanks' Comparison Tool to look at three FAANG stocks — AAPL, GOOGL, AMZN — that Wall Street is pounding the table on, with "Strong Buy" ratings and price targets that still imply solid gains from current levels. The comparison indicates which FAANG stock to buy, according to analysts.
FAANG stocks have been in rally mode ever since the broader stock market formed a bottom in June. Many firms within the exclusive cohort have been viewed as rather defensive amid the recent barrage of volatility. While the powerful tech behemoths aren't immune to the impact of a steep economic downturn, they seem better equipped to take further market share away from their competitors.
Undoubtedly, the FAANG group has found ways to adapt to difficult times. Though the coming recession could be the falling tide that lowers all boats across the S&P 500, my bet would be that the best-in-breed firms, like those within FAANG, will be the ones that better themselves most as job cuts and cutbacks on investment become the new norm.
While I don't view FAANG as the market's "new defensives," I do think they're in great shape to continue acting resilient over the coming weeks and months. This market is beginning to show signs that it's okay with higher interest rates if it means pushing inflation off of its incredibly elevated peak.
Apple (AAPL)
Apple has been the hottest of the FAANG cohort of late, surging more than 33% off its June low. Undoubtedly, the iPhone maker is showing signs of taking share away from rivals. As the world slips into a recession, Apple seems well-equipped to offset macro headwinds as it continues moving into the turf of rivals, not just in smartphones but across other product categories and services.
Morgan Stanley analyst Erik Woodring recently noted that Apple has more stable products relative to competitors. He's right. With such a powerful ecosystem of many loyal users, Apple can raise prices in a big way without its customers putting up too much fuss. In an era of high inflation, Apple's top-tier pricing power is paying major dividends. Just ask Warren Buffett, who took another big bite out of AAPL stock in the second quarter.
For the second quarter, Apple saw demand shipments slip 9%. Still, global demand couldn't be more robust, with Apple's global phone share rising to 17% in Q2 from 14% over the same quarter a year prior.
Apple continues to flex its muscles, and I find it hard to believe a mild recession will stop recent momentum in its tracks. Looking ahead to 2023, a recession may be in the cards. That said, the firm could be poised to unveil its mixed-reality headset.
Undoubtedly, it's been such a long time since Apple delivered such a shocker at its keynote. Though the headset is no longer a surprise, given the rumor mill has been spinning for years now, I wouldn't at all be shocked to see shares rally as the design and additional details are released.
Indeed, Apple may have the keys to the metaverse, making it an exciting time to be a shareholder.
Like the Oracle of Omaha, Wall Street analysts just can't get enough of AAPL stock, which has 23 Buys, four Holds, and one Sell. The average Apple price target of $182.79 implies just 4.7% upside potential over the year ahead. Given the magnitude of the recent run, though, Apple stock seems overdue for some price target upgrades.
Alphabet (GOOG)(GOOGL)
Alphabet stock has enjoyed a much more muted bounce off June lows, now up around 16%. The company is fresh off a better-than-feared quarter that actually fell short of analyst expectations. For Q2 2022, Google's per-share earnings came in at $1.21, just shy of the average analyst estimate of $1.27.
Despite the rare bottom-line fumble, investors have been much more forgiving of the name. Google Cloud really flexed its muscles for the quarter. As the secular trend in the cloud continues, it's likely that Google's Cloud business can continue helping the stock weather any further macro storm. Sometimes secular trends are just far stronger than mild macro headwinds.
Alphabet's Q2 revenues came in just shy of $70 billion, up 12.6% year-over-year on a constant-currency basis. Advertising — a segment that's caused quite a bit of investor nail-biting in recent months — remained robust, up 11.6% year-over-year.
Though YouTube has hit a bump in the road, I still view it as head and shoulders above peers in the social space. Undoubtedly, the video platform remains a preferred entertainment option among many within the Generation Z (Zoomers) cohort.
As the worst of the recession sets in, we may see Alphabet's ad growth reaccelerate. For now, Alphabet remains one of the cheaper FAANG stocks at this juncture at 22.3 times trailing earnings.
Wall Street continues to praise Alphabet stock, with 32 analysts rating the name as a Buy while only two analysts rate it a Hold. Google's price forecast of $142.63 puts the upside potential comes in at 18.9%.
Amazon (AMZN)
Amazon is the e-commerce darling that blew away expectations in its second quarter. Undoubtedly, many investors and analysts may have underestimated the retail behemoth's staying power in the post-Bezos era. CEO Andy Jassy has proven a capable leader, and he's ready to propel the e-commerce darling to the next level.
As the consumer recession sets in, retail may be in for a slump. Still, Amazon has shown that AWS (Amazon Web Services) is the new star of the show, with AWS growth surging by 33%. As a cloud frontrunner, Amazon arguably has the most room to run as the secular trend in the cloud continues through the coming period of economic slowness.
Further, Amazon's forward-looking projects seem most exciting, as the company looks to increase its disruptive force amid rising interest rates. Higher rates have curbed reinvestment in growth among many cash-strapped small firms in the tech space. With such deep pockets and the ability to sustain steep losses across various forward-thinking business segments, Amazon is arguably one of the best growth stocks to own in this environment.
The firm's logistics and fulfillment push could bolster its payments business and help Amazon spread its wings of disruption further. Simply put, the FAANG behemoth is better-positioned than most to grow in a recession, mild or severe.
Wall Street still loves Amazon stock while it's off 22% from its highs, with 39 Buys and just one Hold. The expected upside for the year ahead comes in at 24%, as Amazon's price target is $176.04.
Conclusion
FAANG stocks are magnificent companies that may be key to succeeding in a 2023 mild recession. Of the three stocks mentioned, Wall Street expects the greatest gains from Amazon stock over the next year.
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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In this piece, we'll use TipRanks' Comparison Tool to look at three FAANG stocks — AAPL, GOOGL, AMZN — that Wall Street is pounding the table on, with "Strong Buy" ratings and price targets that still imply solid gains from current levels. Apple (AAPL) Apple has been the hottest of the FAANG cohort of late, surging more than 33% off its June low. Just ask Warren Buffett, who took another big bite out of AAPL stock in the second quarter.
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In this piece, we'll use TipRanks' Comparison Tool to look at three FAANG stocks — AAPL, GOOGL, AMZN — that Wall Street is pounding the table on, with "Strong Buy" ratings and price targets that still imply solid gains from current levels. Apple (AAPL) Apple has been the hottest of the FAANG cohort of late, surging more than 33% off its June low. Just ask Warren Buffett, who took another big bite out of AAPL stock in the second quarter.
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In this piece, we'll use TipRanks' Comparison Tool to look at three FAANG stocks — AAPL, GOOGL, AMZN — that Wall Street is pounding the table on, with "Strong Buy" ratings and price targets that still imply solid gains from current levels. Apple (AAPL) Apple has been the hottest of the FAANG cohort of late, surging more than 33% off its June low. Just ask Warren Buffett, who took another big bite out of AAPL stock in the second quarter.
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In this piece, we'll use TipRanks' Comparison Tool to look at three FAANG stocks — AAPL, GOOGL, AMZN — that Wall Street is pounding the table on, with "Strong Buy" ratings and price targets that still imply solid gains from current levels. Apple (AAPL) Apple has been the hottest of the FAANG cohort of late, surging more than 33% off its June low. Just ask Warren Buffett, who took another big bite out of AAPL stock in the second quarter.
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19706.0
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2022-08-19 00:00:00 UTC
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US STOCKS-Wall Street falls with megacap stocks; S&P 500, Nasdaq set for weekly losses
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-with-megacap-stocks-sp-500-nasdaq-set-for-weekly-losses
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 19 (Reuters) - U.S. stocks were sharply lower on Friday thanks to a fall in megacap stocks and rising U.S. bond yields, putting the S&P 500 and Nasdaq on track to snap a four-week winning streak.
The benchmark 10-year U.S. Treasury yield climbed to an almost one-month high near 3%. Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
"The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average .DJI fell 299.61 points, or 0.88%, to 33,699.43, the S&P 500 .SPX lost 55.57 points, or 1.30%, to 4,228.17 and the Nasdaq Composite .IXIC dropped 255.13 points, or 1.97%, to 12,710.21.
Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight four decade-high inflation.
Focus next week may be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Shares of Deere & Co DE.N were near flat after it lowered its full-year profit outlook and said it has sold out of large tractors as it grapples with parts shortages and high costs.
Meme stock Bed Bath & Beyond Inc BBBY.O plunged 41% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
Bank shares .SPXBK also fell after recent gains.
Declining issues outnumbered advancing ones on the NYSE by a 6.65-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 29 new lows; the Nasdaq Composite recorded 31 new highs and 80 new lows.
(Reporting by Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed in New York, Editing by Shounak Dasgupta, Arun Koyyur and Deepa Babington)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500. By Caroline Valetkevitch NEW YORK, Aug 19 (Reuters) - U.S. stocks were sharply lower on Friday thanks to a fall in megacap stocks and rising U.S. bond yields, putting the S&P 500 and Nasdaq on track to snap a four-week winning streak. "The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500. The benchmark 10-year U.S. Treasury yield climbed to an almost one-month high near 3%. The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
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19707.0
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2022-08-19 00:00:00 UTC
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10 Best Fidelity Funds to Buy Now
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AAPL
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https://www.nasdaq.com/articles/10-best-fidelity-funds-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
In turbulent times, investors would be well served considering the best Fidelity funds to buy now. Primarily, Fidelity represents an organization with a well-earned reputation for viability and stability.
According to the U.S. Census Bureau, our population grew at 0.1% in 2021, the slowest rate since the founding of the nation. While so much talk exists in the media about labor and inflation, prior paradigms always featured a rising population level. In contrast, we could be facing declining demographic trends, which inherently bolster the best Fidelity funds to buy now.
Put another way, we’re navigating uncharted territory so we’re making things up as we go along.
Another factor to consider with the best Fidelity funds to buy now is their diversity. Investors can gain exposure to various markets and themes. Further, if any one individual holding lags, others can potentially lift up the fund.
Given the variability of this environment, here are some ideas to consider for the best Fidelity funds to buy now.
FXAIX Fidelity 500 Index Fund $148.96
FSPHX Fidelity Select Health Care Portfolio $28.07
FLGEX Fidelity Large Cap Growth Enhanced Index Fund $27.08
FDVLX Fidelity Value Fund $14.50
FBCG Fidelity Blue Chip Growth ETF $25.74
ONEQ Fidelity Nasdaq Composite Index ETF $49.85
FENY Fidelity MSCI Energy Index ETF $21.94
FCPI Fidelity Stocks for Inflation ETF $32.40
FOCPX Fidelity OTC Portfolio $15.48
FDVV Fidelity High Dividend ETF $39.49
Best Fidelity Funds: Fidelity 500 Index Fund (FXAIX)
Source: Shutterstock
A mutual fund that tracks the S&P 500, buying into the Fidelity 500 Index Fund (MUTF:FXAIX) represents a market wager on America. If you follow the advice of the Oracle of Omaha Warren Buffett, you’ll know that he urged investors to never bet against America. The FXAIX fund allows you Buffett fans to put your money where your mouth is.
One of the best Fidelity funds to buy now for the long haul, the FXAIX doesn’t pull any punches. Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Combined, these three companies feature a market capitalization of nearly $6.3 trillion. For context, that’s about half of China’s entire GDP.
Better yet, the FXAIX is cheap to own, featuring a net expense ratio of 0.02% and a management fee of 0.015%, which are well below their respective category averages.
Fidelity Select Health Care Portfolio (FSPHX)
Source: metamorworks / Shutterstock
A major factor bolstering the best Fidelity funds to buy now is that they allow investors to buy into trends as opposed to single stocks. Moving forward, easily one of the biggest trends is healthcare. With baby boomers retiring en masse, healthcare demands will almost surely rise. As well, the growing threat of deadly diseases incentivizes the biotechnological and pharmaceutical industries to continue research and development initiatives.
Therefore, if you’re looking for the ultimate in buy-and-hold ideas, the Fidelity Select Health Care Portfolio (MUTF:FSPHX) mutual fund represents an excellent choice. Its top three holdings are UnitedHealth Group (NYSE:UNH), Boston Scientific (NYSE:BSX) and Eli Lilly (NYSE:LLY).
Finally, FSPHX represents a good deal relative to category averages. Its net expense ratio of 0.67% and management fee of 0.52% are below the respective averages of 1.18% and 0.72%.
Fidelity Large Cap Growth Enhanced Index Fund (FLGEX)
Source: iQoncept / Shutterstock
According to the prospectus for the Fidelity Large Cap Growth Enhanced Index Fund (MUTF:FLGEX), the FLGEX normally invests at least 80% of assets in common stocks included in the Russell 1000. This index is market-cap weighted, designed to measure the performance of the large-cap growth segment of the equities sector.
Its top three holdings mimic that of the aforementioned Fidelity 500 Index Fund. Utilizing quantitative analytics to find the best high-growth opportunities among the largest players in the game, the FLGEX concentrates most its focus on the technology sector, representing 42.4% of all holdings. Next up is consumer cyclical at nearly 16% and communication services at 9.5%.
As with the other best Fidelity funds to buy now, the FLGEX is relatively cheap. Its net expense ratio of 0.39% and management fee (also 0.39%) are significantly below their respective category averages.
Fidelity Value Fund (FDVLX)
Source: FrankHH / Shutterstock.com
On the opposite end of the growth equation is of course value. Sure enough, the Fidelity Value Fund (MUTF:FDVLX) lets you know right off the bat what it’s all about. The beauty here is that the FDVLX focuses largely on lesser-known entities. While such a strategy is typically higher risk, investors enjoy the benefit of exposure to promising enterprises.
Currently, the mutual fund’s top three holdings are Antero Resources (NYSE:AR), Hess (NYSE:HES) and Cenovus Energy (NYSE:CVE). In terms of sector weighting, the FDVLX is more balanced than other funds, with the heaviest allocation belonging to industrials at 19.4%. Energy (14%) and consumer cyclical (13.4%) round out the top three sectors.
Following in line with the theme of comparative solid deals, the net expense ratio of 0.79% and the management fee of 0.65% are below their respective category averages of 1.05% and 0.68%.
Fidelity Blue Chip Growth ETF (FBCG)
Source: Shutterstock
Many investors may prefer ETFs over mutual funds. One of the main differences is that generally speaking, mutual funds are actively managed while ETFs are passively managed. In turn, the latter may feature superior cost structures.
For those that are seeking higher-growth opportunities with some of the biggest names in business, the Fidelity Blue Chip Growth ETF (BATS:FBCG) may be an appropriate idea. The ETF’s top three holdings are the usual suspects: Apple, Microsoft and Amazon. However, FBCG also features popular names like Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
In terms of weighting, FBCG concentrates the most in tech at 41.7%, followed by consumer cyclical (25.4%) and healthcare (7.5%). The major drawback, though, is that FBCG is a tad expensive with an expense ratio of 0.59%. The category average is 0.55%.
Fidelity Nasdaq Composite Index ETF (ONEQ)
Source: Shutterstock
Though the tech sector presents some of the most exciting public companies, it’s also among the riskiest. Often tied to an aspirational narrative, firms that lead in innovative ideas can also spectacularly fail. That’s one reason why the Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) cuts an interesting figure. By distributing the risk across multiple tech names, ONEQ investors can focus on themes rather than individual business plans.
As with the other best Fidelity funds to buy now, ONEQ runs with the biggest companies in the U.S. with its top four holdings: Apple, Microsoft, Amazon and Tesla. At the same time, ONEQ varies its exposure, which include companies like Meta Platforms (NASDAQ:META) and PepsiCo (NASDAQ:PEP).
What people will undoubtedly appreciate is that ONEQ is attractively priced. Featuring an expense ratio of 0.21%, it’s well below the category average of 0.55%.
Fidelity MSCI Energy Index ETF (FENY)
Source: PopTika / Shutterstock
Despite all the political talk about going green, the harsh reality is that hydrocarbon energy sources will likely be relevant for decades to come. The issue comes down to capacity factors. While wind and solar draw plenty of attention, their capacity factors – essentially their measurement of reliability – are 35.4% and 24.9%, respectively. On the other hand, natural gas has a capacity factor of 56.6%.
Further, geopolitical tensions imply that energy demands will likely boom again. Therefore, it’s time to advantage the lull in the sector and consider the Fidelity MSCI Energy Index ETF (NYSEARCA:FENY).
FENY’s top three holdings are Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP). Further, the ETF features an expense ratio of only 0.08%, well below the category average of 0.43%. Therefore, it’s a viable candidate for the best Fidelity funds to buy now.
Fidelity Stocks for Inflation ETF (FCPI)
Source: stockwerk-fotodesign / Shutterstock
Say what you want about the consumer price index easing slightly to 8.5%, to borrow the Wall Street Journal’s language. Regular folks don’t live and breathe by indices and other lofty gauges. Instead, if prices are high at the grocery aisle and the gas pump – and wages aren’t keeping up – consumers are likely to complain. In other words, nothing much has changed.
Given the possibly nasty and protracted battle with inflation that we have before us, the Fidelity Stocks for Inflation ETF (BATS:FCPI) makes plenty of sense. The ETF focuses on public companies that tend to do well during inflationary cycles. Therefore, aside from Apple and Microsoft, the FCPI includes Marathon Oil (NYSE:MRO) and Nucor (NYSE:NUE) among its top holdings.
About the only drawback is that FCPI is somewhat pricey. Featuring an expense ratio of 0.29%, it’s not that far removed from the category average of 0.42%.
Fidelity OTC Portfolio (FOCPX)
Source: iQoncept / Shutterstock.com
Going back to mutual funds, this segment has a reputation for highlighting safe-but-boring names. However, the Fidelity OTC Portfolio (MUTF:FOCPX) proves that sometimes, mutual funds can dial up the spiciness. The FOCPX fund mostly focuses on companies either listed on the Nasdaq exchange or the over-the-counter market.
To be fair, OTC-listed securities don’t always mean penny stocks. Several reasons exist why certain companies prefer their shares to be traded in the pink sheets. Mainly, it comes down to the cost structures associated with listing on a proper exchange. Still, the FOCPX brings some intriguing ideas to the table, even though its core holdings represent the usual suspects.
In terms of fees, the FOCPX is somewhat of a mixed bag. On the net expense ratio side of things, it pings as 0.8%, below the category average of 1.01%. However, the management fee of 0.66% is higher than the category average of 0.62%.
Fidelity High Dividend ETF (FDVV)
Source: iQoncept/shutterstock.com
Finally, to round out this list of the best Fidelity funds to buy now, investors ought to consider the Fidelity High Dividend ETF (NYSEARCA:FDVV). According to its prospectus, the FDVV is “designed to reflect the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.”
Its top two holdings of Apple and Microsoft are not surprising; other names among the best Fidelity funds to buy now feature them. However, to presumably bolster the dividend portion of its objective, the FDVV features Exxon Mobil and Chevron as its No. 3 and No. 4 holdings.
However, those seeking shelter from the inflationary storm will have to pay a bit of a premium. The expense ratio of this dividend ETF is 0.29%. While below the category average of 0.38%, it leans on the higher end of the spectrum.
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 10 Best Fidelity Funds 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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Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Utilizing quantitative analytics to find the best high-growth opportunities among the largest players in the game, the FLGEX concentrates most its focus on the technology sector, representing 42.4% of all holdings. Fidelity Stocks for Inflation ETF (FCPI) Source: stockwerk-fotodesign / Shutterstock Say what you want about the consumer price index easing slightly to 8.5%, to borrow the Wall Street Journal’s language.
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Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). FXAIX Fidelity 500 Index Fund $148.96 FSPHX Fidelity Select Health Care Portfolio $28.07 FLGEX Fidelity Large Cap Growth Enhanced Index Fund $27.08 FDVLX Fidelity Value Fund $14.50 FBCG Fidelity Blue Chip Growth ETF $25.74 ONEQ Fidelity Nasdaq Composite Index ETF $49.85 FENY Fidelity MSCI Energy Index ETF $21.94 FCPI Fidelity Stocks for Inflation ETF $32.40 FOCPX Fidelity OTC Portfolio $15.48 FDVV Fidelity High Dividend ETF $39.49 Best Fidelity Funds: Fidelity 500 Index Fund (FXAIX) Source: Shutterstock A mutual fund that tracks the S&P 500, buying into the Fidelity 500 Index Fund (MUTF:FXAIX) represents a market wager on America. Fidelity Large Cap Growth Enhanced Index Fund (FLGEX) Source: iQoncept / Shutterstock According to the prospectus for the Fidelity Large Cap Growth Enhanced Index Fund (MUTF:FLGEX), the FLGEX normally invests at least 80% of assets in common stocks included in the Russell 1000.
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Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). FXAIX Fidelity 500 Index Fund $148.96 FSPHX Fidelity Select Health Care Portfolio $28.07 FLGEX Fidelity Large Cap Growth Enhanced Index Fund $27.08 FDVLX Fidelity Value Fund $14.50 FBCG Fidelity Blue Chip Growth ETF $25.74 ONEQ Fidelity Nasdaq Composite Index ETF $49.85 FENY Fidelity MSCI Energy Index ETF $21.94 FCPI Fidelity Stocks for Inflation ETF $32.40 FOCPX Fidelity OTC Portfolio $15.48 FDVV Fidelity High Dividend ETF $39.49 Best Fidelity Funds: Fidelity 500 Index Fund (FXAIX) Source: Shutterstock A mutual fund that tracks the S&P 500, buying into the Fidelity 500 Index Fund (MUTF:FXAIX) represents a market wager on America. Fidelity Large Cap Growth Enhanced Index Fund (FLGEX) Source: iQoncept / Shutterstock According to the prospectus for the Fidelity Large Cap Growth Enhanced Index Fund (MUTF:FLGEX), the FLGEX normally invests at least 80% of assets in common stocks included in the Russell 1000.
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Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). FXAIX Fidelity 500 Index Fund $148.96 FSPHX Fidelity Select Health Care Portfolio $28.07 FLGEX Fidelity Large Cap Growth Enhanced Index Fund $27.08 FDVLX Fidelity Value Fund $14.50 FBCG Fidelity Blue Chip Growth ETF $25.74 ONEQ Fidelity Nasdaq Composite Index ETF $49.85 FENY Fidelity MSCI Energy Index ETF $21.94 FCPI Fidelity Stocks for Inflation ETF $32.40 FOCPX Fidelity OTC Portfolio $15.48 FDVV Fidelity High Dividend ETF $39.49 Best Fidelity Funds: Fidelity 500 Index Fund (FXAIX) Source: Shutterstock A mutual fund that tracks the S&P 500, buying into the Fidelity 500 Index Fund (MUTF:FXAIX) represents a market wager on America. The FOCPX fund mostly focuses on companies either listed on the Nasdaq exchange or the over-the-counter market.
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19708.0
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2022-08-19 00:00:00 UTC
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Alphabet's New YouTube Service Could Mean Monster Growth for These Two Stocks
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AAPL
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https://www.nasdaq.com/articles/alphabets-new-youtube-service-could-mean-monster-growth-for-these-two-stocks
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nan
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nan
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Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube is reportedly launching a marketplace for video streaming services and is in talks with other entertainment companies about participating in the platform. The one-stop streaming shop would allow consumers to subscribe to various services, similar to streaming hubs already offered by Amazon, Apple, and Roku. Referred internally as a "channel store," the Alphabet offering has been in development for 18 months and will create a space for consumers to browse a collection of third-party streaming services subscribable directly through the YouTube app. Consumers will be able to easily compare services by browsing the app icons of participating streaming platforms.
The new YouTube service has the potential to substantially boost AMC Networks (NASDAQ: AMCX) and Comcast (NASDAQ: CMCSA), whose more minor streaming offerings would benefit from being part of a platform that already has billions of users.
Are AMC Networks and YouTube a match made in heaven?
On August 5, AMC Networks' stock fell 15% when the company reported less-than-stellar second-quarter earnings results. The company's streaming services, which include AMC+, Acorn TV, Sundance Now, Shudder, IFC Films, HIDIVE, and Allblk, shined as their combined subscriptions grew by 10.8 million in the second quarter of 2022, and AMC Networks shared that it is on track to hit 20 million to 25 million members by 2025. However, these figures were overshadowed by a slip in operating income, which fell 22% year over year.
Additionally, the entertainment company's revenue of $738 million in the quarter decreased by 4%, with its normalized streaming revenue rising by 36%. AMC Networks' domestic operations net revenue fell by 2.8% over the year to $621.1 million, while its International & Other segment's net revenue followed the same trend by slipping 9% to $125.8 million.
The one saving grace in the company's second-quarter report rested on the shoulders of its streaming business. AMC Networks has seen growth in the streaming industry by offering niche services. For example, AMC+ is home to prestige TV series such as Breaking Bad, Mad Men, and The Walking Dead, Shudder caters to horror fanatics, HIDIVE is for anime fans, Acorn TV provides a wealth of British content, and Sundance Now offers an extensive library of independent films.
AMC Networks' streaming strategy of launching several smaller platforms to pull fans in from different genres would greatly benefit from YouTube's coming marketplace. The immense popularity of streaming titans such as Disney and Netflix means they don't stand to gain much by sharing a portion of their revenue to participate in YouTube's channel store. However, YouTube's 2.6 billion users could significantly boost AMC Networks' smaller services.
Should Comcast join in?
Like AMC Networks, Comcast delivered subpar second-quarter results, with investor panic over a loss in subscribers tanking the stock by 13% from July 27 to July 29. A decline of 10,000 residential subscribers, leaving a total of 29.8 million, marked the first time Comcast saw a loss in the area and made its gain of 10,000 broadband members for a total of 2.3 million seem inconsequential.
Before the earnings release, the company had expected to add 84,000 subscribers in the second quarter. Its current third quarter is doing little to stymie investor disappointment, as Comcast reported losing 30,000 broadband subscribers in July. CEO Brian Roberts attributed the losses to a rise in fixed wireless internet options but expects mobile substitution to "eventually stabilize." Moreover, the company's streaming business also left little for investors to rally around, as Comcast's Peacock service saw zero growth; its subscriptions remained at 13 million.
The shining light in Comcast's second quarter was its entertainment business in studios and theme parks, where revenue grew 5% to just over $30 billion and net income increased 14% to $4.5 billion.
As Comcast's business moves steadily away from cable and possibly broadband, streaming will become an increasingly important source of revenue. The company has succeeded with its free ad-supported option on Peacock, with 53.5% of its user base choosing the cost-effective tier. However, the company is still working toward growing its paid subscriptions. With immensely popular titles such as The Office, Brooklyn Nine-Nine, and Parks and Recreation, Peacock would benefit considerably from joining YouTube's streaming marketplace, as the service would put more eyes on the platform, and its content could no doubt take it from there.
An opportunity for investors
As it stands, AMC Networks and Comcast stock are not attractive buys. Both companies stumbled in the second quarter, with their stocks losing steam at the start of August. However, both companies stand to gain a lot by committing to partnerships with YouTube if they result in featuring their streaming services on the platform's coming channel store.
Investors should keep an eye out for news of either of these companies joining YouTube's streaming marketplace. Only time will tell, but AMC Networks and Comcast would potentially enjoy a considerable boost in subscribers and revenue if they strike deals.
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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. Dani Cook 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, Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast 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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Referred internally as a "channel store," the Alphabet offering has been in development for 18 months and will create a space for consumers to browse a collection of third-party streaming services subscribable directly through the YouTube app. The immense popularity of streaming titans such as Disney and Netflix means they don't stand to gain much by sharing a portion of their revenue to participate in YouTube's channel store. With immensely popular titles such as The Office, Brooklyn Nine-Nine, and Parks and Recreation, Peacock would benefit considerably from joining YouTube's streaming marketplace, as the service would put more eyes on the platform, and its content could no doubt take it from there.
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The company's streaming services, which include AMC+, Acorn TV, Sundance Now, Shudder, IFC Films, HIDIVE, and Allblk, shined as their combined subscriptions grew by 10.8 million in the second quarter of 2022, and AMC Networks shared that it is on track to hit 20 million to 25 million members by 2025. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast 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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Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube is reportedly launching a marketplace for video streaming services and is in talks with other entertainment companies about participating in the platform. The new YouTube service has the potential to substantially boost AMC Networks (NASDAQ: AMCX) and Comcast (NASDAQ: CMCSA), whose more minor streaming offerings would benefit from being part of a platform that already has billions of users. The company's streaming services, which include AMC+, Acorn TV, Sundance Now, Shudder, IFC Films, HIDIVE, and Allblk, shined as their combined subscriptions grew by 10.8 million in the second quarter of 2022, and AMC Networks shared that it is on track to hit 20 million to 25 million members by 2025.
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On August 5, AMC Networks' stock fell 15% when the company reported less-than-stellar second-quarter earnings results. Moreover, the company's streaming business also left little for investors to rally around, as Comcast's Peacock service saw zero growth; its subscriptions remained at 13 million. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Netflix, Roku, and Walt Disney.
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19709.0
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2022-08-19 00:00:00 UTC
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3 Top Stocks That Just Went on Sale
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https://www.nasdaq.com/articles/3-top-stocks-that-just-went-on-sale-3
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Both market dips and extended downturns give investors a chance to get into stocks that may have previously felt too pricey to buy. Over the past year, many such opportunities have been provided. Investors should think of those opportunities as though their favorite store has a sale.
Right now, there are three stocks that have dropped sharply from recent highs that can provide investors with a diverse mix while owning investor-friendly, solid businesses. One offers immediate diversification with proven management that can be trusted. Two others are great businesses in different retail segments that provide reliable income and plenty of future potential for shareholders.
1. Berkshire Hathaway
Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) doesn't just give an investor exposure to sectors ranging from industrial manufacturing and energy generation to insurance and various equity investments. Buffett also uses its massive cash-flow generation to buy back his own shares.
In fact, Berkshire has bought more of its own stock in recent years than any other company. But some of those share repurchases are paid for with dividends earned from Berkshire's meaningful stakes in a diverse set of successful companies, some of which are shown below.
METRIC APPLE CHEVRON AMERICAN EXPRESS COCA-COLA BANK OF AMERICA
Approximate percentage of company owned 5.5 8.2 20 9.2 12.5
Data source: Berkshire Hathaway 13-F filing dated Aug. 15, 2022 and company 10-Q filings.
But there are plenty of reasons to invest in Berkshire just for its own operating business, too. The company reported a 39% year-over-year jump in operating earnings in the second quarter. It's trading at a price-to-book value (P/B) ratio of about 1.4. While that level is close to a long-term average for the shares, the stock traded with a P/B as high as 1.6 earlier this year, and it is trading at 1.3 times forward book value based on expectations for the current quarter, according to Barron's.
2. Garmin
Garmin (NYSE: GRMN) is another company trading at a discount to recent levels. Shares in the maker of popular GPS devices used in a multitude of outdoor activities have been down 40% over the last year. That is partly due to the company paring back its revenue growth forecast for 2022. Management now sees revenue relatively flat compared to the prior year, when it initially expected 10% growth. But that comes after a surge in growth over the last several years.
GRMN Revenue (TTM) data by YCharts.
Its valuation, as measured by the price-to-earnings ratio, also has dropped below where it has been trading over much of the past five years. Garmin's sales surged during the peak of the pandemic as consumers moved in droves to embrace outdoor activities, including boating, running, hiking, and camping. While the surge in sales during that pandemic era is now leveling off, the company's sales were on a steadily increasing path prior to that time, too.
The recent flattening of that revenue growth likely represents more of a normalization of its growth rate. Additionally, the company attributed the 7% year-over-year second-quarter decline in sales from its marine segment "primarily due to supply chain constraints that limited our ability to satisfy all demand for our products."
So demand remains strong, and short-term headwinds should abate. Garmin also pays a reliable dividend, which recently yielded 2.75%. That is supported by cash flow as well as a pristine balance sheet with no debt that has $2.9 billion in cash and current and non-current marketable securities as of June 25, 2022. That makes now a good time to buy Garmin, especially after the price has come down from recent highs.
3. Target
Like that of Berkshire Hathaway, the stock of Target (NYSE: TGT) has bounced off recent lows. But it is still down over 20% year to date, as the company warned after its first quarter that margins were going to drop sharply in the near term as it discounted many items to correct a problem with inventory.
Working to manage a difficult supply chain situation, the company built up inventory just as consumer tastes were changing. The company said that it expected its operating margin rate to drop to just 2% in the second quarter. That's compared to an already disappointing 5.3% in the first quarter and 9.8% in the 2021 first quarter.
The actual operating margin turned out worse than expected at just 1.2% when the company recently reported its second-quarter results. But Target said it made important progress with its inventory adjustment plan, and it stuck to its operating margin projection of about 6% for the back half of the year.
Target CFO Michael Fiddelke explained the strategy more clearly, as reported by CNBC. Fiddelke stated, "If we hadn't dealt with our excess inventory head-on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential. While our quarterly profit took a meaningful step down, our future path is brighter."
Target is a Dividend King that raised its payout another 20% earlier this year. Investors that want to take a longer-term strategy similar to the company itself should take a look at Target stock while it is on sale.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Howard Smith has positions in Apple, Berkshire Hathaway (B shares), Garmin, and Target. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Garmin, and Target. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Garmin's sales surged during the peak of the pandemic as consumers moved in droves to embrace outdoor activities, including boating, running, hiking, and camping. Additionally, the company attributed the 7% year-over-year second-quarter decline in sales from its marine segment "primarily due to supply chain constraints that limited our ability to satisfy all demand for our products." Fiddelke stated, "If we hadn't dealt with our excess inventory head-on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential.
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Berkshire Hathaway Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) doesn't just give an investor exposure to sectors ranging from industrial manufacturing and energy generation to insurance and various equity investments. Approximate percentage of company owned 5.5 8.2 20 9.2 12.5 Data source: Berkshire Hathaway 13-F filing dated Aug. 15, 2022 and company 10-Q filings. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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In fact, Berkshire has bought more of its own stock in recent years than any other company. While that level is close to a long-term average for the shares, the stock traded with a P/B as high as 1.6 earlier this year, and it is trading at 1.3 times forward book value based on expectations for the current quarter, according to Barron's. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Garmin Garmin (NYSE: GRMN) is another company trading at a discount to recent levels. The company said that it expected its operating margin rate to drop to just 2% in the second quarter. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them!
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19710.0
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2022-08-19 00:00:00 UTC
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ByteDance's Douyin teams up with Alibaba's Ele.me in mini programme push
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https://www.nasdaq.com/articles/bytedances-douyin-teams-up-with-alibabas-ele.me-in-mini-programme-push
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BEIJING, Aug 19 (Reuters) - ByteDance's Douyin and Alibaba-owned 9988.HK Ele.me said on Friday they have agreed on a collaboration that will see the food delivery app establish a presence on Douyin, as the Chinese short video app builds its ecosystem.
Ele.me would be one of the biggest players to date that Douyin, the Chinese equivalent of TikTok, has brought into its mini-programme platform that it launched some two years ago.
"Douyin's open platform is an important bridge that Douyin uses to connect users with business partners," Douyin chief executive Kelly Zhang Nan said in a joint statement.
Chinese "super-apps", including Tencent Holding's 0700.HK WeChat and Ant Group's Alipay, have made forays into the mini-programme field as they aim to create their own ecosystems to keep users engaged.
WeChat, China's ubiquitous messaging app, said its average daily active users for mini programmes hit 450 million in 2021. In general, mini programmes look and operate much like apps on Apple Inc's AAPL.O iOS and Google's GOOGL.O Android operating systems but they are less data intensive.
Douyin counts more than 600 million daily active users.
A person familiar with the matter said that Douyin's mini programmes were different to those of other players as they were mainly powered by the app's recommendation algorithm, meaning that users would be recommended services based on their use of the app.
Ele.me is China's second largest food delivery platform after Meituan 3690.HK.
Douyin last year started allowing its users to place takeout orders directly via livestreams. The deliveries are handled by restaurants or delivery riders hired by another service.
Douyin does not employ delivery riders.
(Reporting by Yingzhi Yang and Brenda Goh; Editing by Robert Birsel)
((Yingzhi.Yang@thomsonreuters.com; +861056692133;))
The views and 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 general, mini programmes look and operate much like apps on Apple Inc's AAPL.O iOS and Google's GOOGL.O Android operating systems but they are less data intensive. Ele.me would be one of the biggest players to date that Douyin, the Chinese equivalent of TikTok, has brought into its mini-programme platform that it launched some two years ago. Chinese "super-apps", including Tencent Holding's 0700.HK WeChat and Ant Group's Alipay, have made forays into the mini-programme field as they aim to create their own ecosystems to keep users engaged.
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In general, mini programmes look and operate much like apps on Apple Inc's AAPL.O iOS and Google's GOOGL.O Android operating systems but they are less data intensive. BEIJING, Aug 19 (Reuters) - ByteDance's Douyin and Alibaba-owned 9988.HK Ele.me said on Friday they have agreed on a collaboration that will see the food delivery app establish a presence on Douyin, as the Chinese short video app builds its ecosystem. WeChat, China's ubiquitous messaging app, said its average daily active users for mini programmes hit 450 million in 2021.
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In general, mini programmes look and operate much like apps on Apple Inc's AAPL.O iOS and Google's GOOGL.O Android operating systems but they are less data intensive. BEIJING, Aug 19 (Reuters) - ByteDance's Douyin and Alibaba-owned 9988.HK Ele.me said on Friday they have agreed on a collaboration that will see the food delivery app establish a presence on Douyin, as the Chinese short video app builds its ecosystem. "Douyin's open platform is an important bridge that Douyin uses to connect users with business partners," Douyin chief executive Kelly Zhang Nan said in a joint statement.
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In general, mini programmes look and operate much like apps on Apple Inc's AAPL.O iOS and Google's GOOGL.O Android operating systems but they are less data intensive. WeChat, China's ubiquitous messaging app, said its average daily active users for mini programmes hit 450 million in 2021. Ele.me is China's second largest food delivery platform after Meituan 3690.HK.
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19711.0
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2022-08-19 00:00:00 UTC
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The Best Warren Buffett Stock to Buy With $300 Right Now
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https://www.nasdaq.com/articles/the-best-warren-buffett-stock-to-buy-with-%24300-right-now-0
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It's common to see the blind leading the blind when it comes to stocks, and a lot of stock "advice" should be taken with a grain of salt. But when Warren Buffett talks -- whether literally or through his stock moves -- it'll at least do you some good to listen. If I have $300 to invest right now, I'm looking no further than Cupertino, California. There's a reason Buffett's Berkshire Hathaway (NYSE: BRK.A) has over 40% of its portfolio of publicly traded stocks there.
No signs of slowing down
With over $2 trillion in market cap, Apple (NASDAQ: AAPL) is the most valuable company in the U.S. (it was the first U.S. company to cross $3 trillion). And it didn't get there by luck. For decades, Apple has been one of the top players in the technology space, and there's no reason to believe that'll change any time soon. Great management, second-to-none brand loyalty, and innovation at the forefront -- it's hard to lose with that recipe.
Like many stocks, 2022 hasn't been the kindest to Apple, with the stock down close to 6% year to date (as of August 12), even after rallying more than 30% since its June lows. Still, Apple has proven to produce long-term returns that not many companies have been able to replicate.
It's bigger than the iPhone
Not to sound dramatic, but there are very few products that have ever changed the course of humanity quite like the iPhone. It's undoubtedly Apple's bread and butter, accounting for just under half of its net sales. In the third quarter of 2022, Apple brought in $83 billion in revenue (up 2% year over year), with over $40 billion coming from the iPhone alone -- more than double what it made from all its service businesses combined.
Apple's reliance on the cash cow that is the iPhone likely won't change in the foreseeable future, but its growth potential won't rely on it; it'll rely on its move into financial services.
Watch out, banks
Apple first dabbled in the finance space when it announced Apple Pay in 2014 and then took it one step further when it launched Apple Card in 2019. However, its recent entry, Apple Pay Later -- a move into the growing Buy Now, Pay Later space -- is shouting to the industry that it's ready to make its mark.
Apple Pay Later lets you split purchases into four equal payments over six weeks with no fees or interest, but the feature itself isn't the most important part. What's really important with Apple Pay Later is that Apple will underwrite and fund the loans -- something it's never done before.
Apple partnered with Goldman Sachs (NYSE: GS) to approve applications and fund loans for the Apple Card, but now it's trying to cut out the middleman and use the one advantage no bank in the country has: Its phones are in more than 100 million people's pockets in the U.S. As the finance space changes with the emergence of fintech, who better to hit the ground running than one of the most technologically innovative companies the world has ever seen?
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Goldman Sachs. 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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No signs of slowing down With over $2 trillion in market cap, Apple (NASDAQ: AAPL) is the most valuable company in the U.S. (it was the first U.S. company to cross $3 trillion). Apple Pay Later lets you split purchases into four equal payments over six weeks with no fees or interest, but the feature itself isn't the most important part. Apple partnered with Goldman Sachs (NYSE: GS) to approve applications and fund loans for the Apple Card, but now it's trying to cut out the middleman and use the one advantage no bank in the country has: Its phones are in more than 100 million people's pockets in the U.S. As the finance space changes with the emergence of fintech, who better to hit the ground running than one of the most technologically innovative companies the world has ever seen?
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No signs of slowing down With over $2 trillion in market cap, Apple (NASDAQ: AAPL) is the most valuable company in the U.S. (it was the first U.S. company to cross $3 trillion). There's a reason Buffett's Berkshire Hathaway (NYSE: BRK.A) has over 40% of its portfolio of publicly traded stocks there. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Goldman Sachs.
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No signs of slowing down With over $2 trillion in market cap, Apple (NASDAQ: AAPL) is the most valuable company in the U.S. (it was the first U.S. company to cross $3 trillion). Watch out, banks Apple first dabbled in the finance space when it announced Apple Pay in 2014 and then took it one step further when it launched Apple Card in 2019. Apple partnered with Goldman Sachs (NYSE: GS) to approve applications and fund loans for the Apple Card, but now it's trying to cut out the middleman and use the one advantage no bank in the country has: Its phones are in more than 100 million people's pockets in the U.S. As the finance space changes with the emergence of fintech, who better to hit the ground running than one of the most technologically innovative companies the world has ever seen?
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No signs of slowing down With over $2 trillion in market cap, Apple (NASDAQ: AAPL) is the most valuable company in the U.S. (it was the first U.S. company to cross $3 trillion). There's a reason Buffett's Berkshire Hathaway (NYSE: BRK.A) has over 40% of its portfolio of publicly traded stocks there. What's really important with Apple Pay Later is that Apple will underwrite and fund the loans -- something it's never done before.
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19712.0
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2022-08-19 00:00:00 UTC
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These Are the 16 Stocks Warren Buffett Has Bought in 2022
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https://www.nasdaq.com/articles/these-are-the-16-stocks-warren-buffett-has-bought-in-2022
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It's been a trying year for Wall Street professionals and everyday investors. Since the year began, the broad-based S&P 500 declined as much as 24% from its all-time closing high. Meanwhile, the tech-heavy Nasdaq Composite has fared even worse, with a peak-to-trough plunge since its record-closing high in November of 34%.
While bear market declines are known for sending nervous investors scurrying to the sidelines, they're just the opportunity successful money managers use to pounce. Just ask Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett has been a busy bee during the first half of 2022
Despite an incredible amount of volatility in the first half of the year, the Oracle of Omaha has put tens of billions of dollars in Berkshire's capital to work in over a dozen stocks since 2022 began. We know this because Berkshire Hathaway is required to file Form 13F with the Securities and Exchange Commission (SEC) on a quarterly basis. A 13F is a filing that allows investors an under-the-hood look at what the brightest money managers with at least $100 million in assets under management were buying, selling, and holding during the previous quarter.
With two 13F filings under his belt through June, here are all 16 stocks Warren Buffett has bought in 2022, as well as the aggregate shares purchased this year.
Occidental Petroleum (NYSE: OXY): 188,366,460 shares purchased (through Aug. 8, 2022)
Chevron (NYSE: CVX): 123,195,113
HP (NYSE: HPQ): 104,476,035
Paramount Global (NASDAQ: PARA): 78,421,645
Citigroup (NYSE: C): 55,155,797
Activision Blizzard (NASDAQ: ATVI): 53,743,029
Ally Financial (NYSE: ALLY): 30,000,000
Celanese (NYSE: CE): 9,156,714
Apple (NASDAQ: AAPL): 7,666,765
Formula One Group (NASDAQ: FWON.K): 5,603,705
Floor & Décor (NYSE: FND): 3,936,291
McKesson (NYSE: MCK): 3,198,344
Markel (NYSE: MKL): 467,611
RH (NYSE: RH): 353,453
General Motors (NYSE: GM): 7,122,641 net shares sold (2,045,847 purchased in Q1, 9,168,488 sold in Q2)
Berkshire Hathaway: 4,402 BRK.A shares and 6,850,133 BRK.B shares
What's plain as day from the Oracle of Omaha's buying activity in 2022 is that he's confident about four sizable bets.
Tech is king (sort of)
Although Wall Street has been leery of tech stocks in recent months, Warren Buffett has continued to plow money into the sector.
During the first six months of the year, Buffett and his investing team purchased more than 7.6 million shares of the largest publicly traded company in the United States. Berkshire Hathaway's stake in Apple accounted for a whopping 42.6% of its nearly $372 billion of invested assets, as of the closing bell on Aug. 16, 2022. While tech is king within Buffett's portfolio, it's a statement that comes with an asterisk, because it's really all about Apple.
As I've previously pointed out, Apple has pivoted its exceptional branding and customer loyalty into a launchpad for its high-margin subscription services push. Services has consistently grown by a double-digit percentage for Apple, and should allow the company to better manage the revenue peaks and troughs associated with product replacement cycles.
Buffett and his team also took the time to add to their stake in gaming company Activision Blizzard as well during the second quarter. Activision is a rare investment for the Oracle of Omaha and his investing team in that it's purely an arbitrage play. Microsoft made an all-cash offer of $95 per share to acquire Activision in January, yet shares of the company have been mostly stuck between $74 and $81 as regulators ponder whether to allow the deal to go through.
Image source: Getty Images.
Financials are still a favorite long-term bet
There's no sector of the market the Oracle of Omaha is more comfortable putting his company's money to work in than financial stocks. Specifically, Buffett has been investing in a handful of new bank-stock holdings in 2022: Citigroup and Ally Financial.
Why bank stocks? The simple answer is they're boring moneymakers over the long run, and that's just the type of investment Warren Buffett loves. Even though recessions are an inevitable part of the economic cycle, periods of expansion last significantly longer than contractions and recessions. Long-winded expansions are what allow banks to grow their loans and deposits, which in turn lets them return capital to shareholders via dividends and/or share buybacks.
What makes bank stocks like Citigroup and Ally Financial especially intriguing at the moment is the Federal Reserve's monetary policy shift. With the U.S. inflation rate hitting a four-decade high of 9.1% in June 2022, the nation's central bank has no choice but to get extremely aggressive with rate hikes to tame skyrocketing prices. The end result for banks is a sizable increase in the yields they'll net on their outstanding variable-rate loans. Even if delinquencies rise, the consumers and businesses paying higher yields on these outstanding variable-rate loans should allow earnings to grow for banks.
As one added bonus, Citigroup and Ally Financial are both trading below their respective book values, which makes both intriguing value plays.
Energy stocks have never been more popular with Buffett
At no point since the start of the century have energy stocks comprised such a large percentage of Berkshire Hathaway's investment portfolio. Since the year began, more than 188 million shares of Occidental Petroleum and north of 123 million shares of Chevron have been purchased by Buffett's company.
For Warren Buffett to be making such a massive bet on the oil and gas sector, he would have to be of the opinion that energy commodity prices will remain elevated for years to come. This certainly isn't a far-fetched idea with major energy companies substantially reducing their capital investments during the COVID-19 pandemic and Russia's invasion of Ukraine complicating an already challenged global supply chain. With no immediate fix to global supply issues, elevated oil and gas prices could very easily benefit upstream providers for years to come.
It just so happens that Chevron and Occidental are also integrated oil and gas companies. "Integrated" companies operate midstream and/or downstream assets, in addition to drilling and exploration. Midstream companies oversee transmission pipelines and storage, which often run on transparent and predictable fixed-fee or volume-based contracts. Meanwhile, downstream assets, such as refineries and chemical plants, benefit when crude oil prices fall. With lower input costs, downstream assets can generate better margins and somewhat hedge upstream drilling weakness.
With Big Oil often delivering big dividends, the sector looks like a solid bet in a high-inflation environment.
Buffett's own company remains his top bet
However, Warren Buffett's favorite stock to buy over the past four years isn't going to show up on the company's 13F filing. Rather, investors have to sift through the company's quarterly report to find its share buyback activity.
Through the first half of 2022, Warren Buffett and right-hand man Charlie Munger have overseen the purchases of 4,402 shares of the company's Class A shares (BRK.A) and 6,850,133 Class B shares (BRK.B). All told, more than $62 billion has been deployed since July 2018 to repurchase Berkshire Hathaway's common stock.
The "Why?" here is simple: Buffett and Munger believe their company is undervalued and are more than willing to bet on themselves to outperform over long periods of time. Warren Buffett loves cyclical companies and dividend stocks -- two categories that tend to grow in value and create wealth for long-term shareholders.
Something else to note is that buying back stock usually has a positive effect on perceived value for businesses with steady or growing net income. If a company's share count decreases over time, steady or growing profit should lead to rising earnings per share. This can make a publicly traded stock more fundamentally attractive to the investing community.
10 stocks we like better than Berkshire Hathaway (B shares)
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Ally and Citigroup are advertising partners of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Markel, Microsoft, and RH. The Motley Fool recommends McKesson 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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Paramount Global (NASDAQ: PARA): 78,421,645 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 53,743,029 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,156,714 Apple (NASDAQ: AAPL): 7,666,765 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Markel (NYSE: MKL): 467,611 For Warren Buffett to be making such a massive bet on the oil and gas sector, he would have to be of the opinion that energy commodity prices will remain elevated for years to come. This certainly isn't a far-fetched idea with major energy companies substantially reducing their capital investments during the COVID-19 pandemic and Russia's invasion of Ukraine complicating an already challenged global supply chain.
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Paramount Global (NASDAQ: PARA): 78,421,645 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 53,743,029 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,156,714 Apple (NASDAQ: AAPL): 7,666,765 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Markel (NYSE: MKL): 467,611 The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Markel, Microsoft, and RH. The Motley Fool recommends McKesson 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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Paramount Global (NASDAQ: PARA): 78,421,645 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 53,743,029 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,156,714 Apple (NASDAQ: AAPL): 7,666,765 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Markel (NYSE: MKL): 467,611 General Motors (NYSE: GM): 7,122,641 net shares sold (2,045,847 purchased in Q1, 9,168,488 sold in Q2) Berkshire Hathaway: 4,402 BRK.A shares and 6,850,133 BRK.B shares What's plain as day from the Oracle of Omaha's buying activity in 2022 is that he's confident about four sizable bets. Buffett's own company remains his top bet However, Warren Buffett's favorite stock to buy over the past four years isn't going to show up on the company's 13F filing.
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Paramount Global (NASDAQ: PARA): 78,421,645 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 53,743,029 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,156,714 Apple (NASDAQ: AAPL): 7,666,765 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Markel (NYSE: MKL): 467,611 Berkshire Hathaway CEO Warren Buffett. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them!
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19713.0
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2022-08-19 00:00:00 UTC
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Zacks Value Investor Highlights: Chevron, Occidental Petroleum, Apple, Activision Blizzard and Amazon
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AAPL
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https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-chevron-occidental-petroleum-apple-activision-blizzard
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nan
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nan
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For Immediate Release
Chicago, IL – August 19, 2022 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1969891/what-did-buffett-buy-during-the-summer-bear-market
What Did Warren Buffett Buy During the Summer Bear Market?
Welcome to Episode #294 of the Value Investor Podcast.
(0:30) - Learning From Warren Buffett During A Stock Market Sell Off
(4:00) - 13F Breakdown: What Was Berkshire Hathaway Buying?
(14:50) - What Positions Did Warren Buffett Sell?
(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The second quarter 13-Fs are out and we now know what Berkshire Hathaway, led by Warren Buffett, were buying, selling, or not buying or selling, during the quarter.
Just a reminder, that the 13-Fs are filed within 45 days after the end of the prior quarter. By the time we get them, the trades are already "old."
But the filings still give us insight into what Buffett is doing with the massive Berkshire Hathaway portfolio.
Chevron and Occidental Petroleum: Did the Buying Continue?
1. Chevron (CVX)
Berkshire Hathaway went all in on the oil stocks in the first quarter, when it added to it's existing position in Chevron buying over $20 billion in shares.
Chevron became the fourth largest position in the portfolio.
In Q2, it dove in again and added another 1% position. Berkshire now owns 8.2% of the company, or 161.4 million shares.
Chevron is yielding 3.6%. Based on the number of shares owned by the end of Q2, Berkshire should get a minimum dividend payout of $229.2 million on Sep 12.
2. Occidental Petroleum (OXY)
Berkshire also continued to add to its Occidental Petroleum position buying $1.4 billion. It now owns nearly 30% of the company if you include the warrants.
Because it is such a large shareholder, Berkshire must disclose its new purchases within 48 hours instead of waiting until the 13-F period. It has also been buying in Q3, in July and August, as the shares have fallen.
Over the last 3 months, shares of Occidental Petroleum are down 7%.
Is this a buying opportunity in Chevron and Occidental Petroleum this year?
Did Buffett Buy More Apple?
3. Apple (AAPL)
Apple is Berkshire Hathaway's largest equity position with 894.8 million shares worth about $122.3 billion.
Buffett only entered into the position in the first quarter 2016. He has sold some shares over the years in order the cut the weighting of the position but in the second quarter, he actually bought another 3.88 million shares as Apple sold off.
Apple pays a dividend, currently yielding 0.5% but Berkshire owns so many shares it recently received a $208 million dividend payout.
Apple shares have rallied 16% in the last month.
Are the shares now too hot to handle?
Arbitrage and Amazon
4. Activision Blizzard (ATVI)
At the Berkshire Hathaway annual meeting Warren Buffett admitted he was doing an arbitrage trade on the Activision Blizzard/Microsoft deal that was announced earlier this year. Berkshire already had a position in Activision when the deal was announced, but added to it again in the second quarter.
Microsoft bid $95 a share and Activision Blizzard is trading around $80 right now.
If the deal closes, Berkshire will get the difference which is known as the "arbitrage."
Berkshire now owns 8.3% of Activision Blizzard.
Should you be doing arbitrage on Activision Blizzard too? There's risk if the deal doesn't go through.
5. Amazon (AMZN)
Berkshire shocked the world in 2019 when it reported that it had bought shares of Amazon in the first quarter of that year. Buffett had to reassure shareholders that there was actual "value" in the shares.
By June 2022, Amazon shares had sunk 38% on the year. Was Berkshire finally going to add to its small position?
But no, Berkshire did NOT buy in the second quarter. Shares have rallied 25% in the last month so they're not as cheap as earlier this summer.
Did Berkshire miss out on a buying opportunity in Amazon?
What Else Did Berkshire Hathaway Buy and Sell, or not, in the Second Quarter?
Tune into this week's podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her own personal portfolio.]
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): 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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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple (AAPL) Apple is Berkshire Hathaway's largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple (AAPL) Apple is Berkshire Hathaway's largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple (AAPL) Apple is Berkshire Hathaway's largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Apple (AAPL) Apple is Berkshire Hathaway's largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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19714.0
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2022-08-19 00:00:00 UTC
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Taiwan says it has not been informed of 'Chip 4' meeting
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AAPL
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https://www.nasdaq.com/articles/taiwan-says-it-has-not-been-informed-of-chip-4-meeting-0
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nan
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Writes through and adds Japan, S.Korea comments
TAIPEI, Aug 19 (Reuters) - Taiwan said on Friday it has not been informed about a so-called 'Chip 4' meeting that would include it, the United States, South Korea and Japan but added the island has always cooperated closely with the United States on supply chains.
South Korean foreign minister Park Jin has said Seoul is expected to attend a preliminary meeting of the four which have major chip manufacturers, describing the gathering as U.S.-led.
He did not elaborate on what would be discussed.
The timing, location and other details of the meeting have yet to decided, said a South Korean official who was not authorised to speak to media and declined to be identified.
Taiwan's economy ministry said in a statement to Reuters late on Thursday it did not yet have any relevant information about the meeting.
"In past exchanges and dialogue between Taiwan and the United States, the United States did propose similar ideas, but there was no specific content at the time," it added.
Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier.
It has been keen to show the United States, its most important international backer at a time of rising military tensions between Taipei and Beijing, that it is a reliable friend and supplier as a global chip crunch affects auto production and consumer electronics.
Asked about the meeting, Japan's Cabinet Secretary for Public Affairs Noriyuki Shikata said semiconductors are a “very strategically important industry” for Japan and that “in due course, there may be better cooperation among the countries.”
(Reporting by Ben Blanchard; Additional reporting by Rocky Swift and Joyce Lee; Editing by Edwina Gibbs)
((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 is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. South Korean foreign minister Park Jin has said Seoul is expected to attend a preliminary meeting of the four which have major chip manufacturers, describing the gathering as U.S.-led. It has been keen to show the United States, its most important international backer at a time of rising military tensions between Taipei and Beijing, that it is a reliable friend and supplier as a global chip crunch affects auto production and consumer electronics.
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Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. Writes through and adds Japan, S.Korea comments TAIPEI, Aug 19 (Reuters) - Taiwan said on Friday it has not been informed about a so-called 'Chip 4' meeting that would include it, the United States, South Korea and Japan but added the island has always cooperated closely with the United States on supply chains. "In past exchanges and dialogue between Taiwan and the United States, the United States did propose similar ideas, but there was no specific content at the time," it added.
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Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. Writes through and adds Japan, S.Korea comments TAIPEI, Aug 19 (Reuters) - Taiwan said on Friday it has not been informed about a so-called 'Chip 4' meeting that would include it, the United States, South Korea and Japan but added the island has always cooperated closely with the United States on supply chains. Asked about the meeting, Japan's Cabinet Secretary for Public Affairs Noriyuki Shikata said semiconductors are a “very strategically important industry” for Japan and that “in due course, there may be better cooperation among the countries.” (Reporting by Ben Blanchard; Additional reporting by Rocky Swift and Joyce Lee; Editing by Edwina Gibbs) ((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 is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. Writes through and adds Japan, S.Korea comments TAIPEI, Aug 19 (Reuters) - Taiwan said on Friday it has not been informed about a so-called 'Chip 4' meeting that would include it, the United States, South Korea and Japan but added the island has always cooperated closely with the United States on supply chains. South Korean foreign minister Park Jin has said Seoul is expected to attend a preliminary meeting of the four which have major chip manufacturers, describing the gathering as U.S.-led.
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19715.0
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2022-08-19 00:00:00 UTC
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POLL-Taiwan July export order growth seen slowing on cooling demand
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-july-export-order-growth-seen-slowing-on-cooling-demand
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nan
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
Orders median forecast +3.6% y/y (prior month +9.5%)
Data due Monday, Aug 22, 4:00 p.m. (0800 GMT)
TAIPEI, Aug 19 (Reuters) - Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday.
The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier. Forecasts ranged for an expansion of between 1.1% and 7.5%.
The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April. Orders shrank 5.5% from a year earlier to $51.9 billion, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
But they returned to growth in May and June. In June orders went up 9.5% from a year earlier to $58.83 billion.
The government has predicted July orders to be between 0.4% and 3.1% higher than the year before.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O.
The data for July will be released on Monday.
(Poll compiled by Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard; Editing by Jacqueline Wong)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +3.6% y/y (prior month +9.5%) Data due Monday, Aug 22, 4:00 p.m. (0800 GMT) TAIPEI, Aug 19 (Reuters) - Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday. The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April.
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The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +3.6% y/y (prior month +9.5%) Data due Monday, Aug 22, 4:00 p.m. (0800 GMT) TAIPEI, Aug 19 (Reuters) - Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday. The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April.
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The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +3.6% y/y (prior month +9.5%) Data due Monday, Aug 22, 4:00 p.m. (0800 GMT) TAIPEI, Aug 19 (Reuters) - Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday. The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier.
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The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier. The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April.
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19716.0
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2022-08-19 00:00:00 UTC
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Alphabet (GOOGL) Adds Features to Upgrade Wear OS Google Camera
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-adds-features-to-upgrade-wear-os-google-camera
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nan
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Alphabet’s GOOGL division Google is consistently introducing innovative features to the Wear OS to strengthen its footprint in the wearable space.
Reportedly, GOOGL updated Google Camera for Wear OS with a Material You redesign. This serves as a testament to the above-mentioned fact.
The recent redesign shows a hamburger button at the top of the screen. Users can tap on it to get the rear or front-facing camera or enable the ‘3-sec timer’ option.
Moreover, the shutter button is at the bottom of the screen to let users clearly see the subject before taking the picture.
Courtesy of this recent breakthrough, Alphabet aims to provide an enhanced experience to smartwatch users.
This is likely to expand GOGGL’s reach among its target consumers, thereby driving top line in the days ahead.
Evidently, this will help Alphabet win the confidence of investors in the near and the long term.
Shares of GOOGL have been down 17% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 20.9%.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
GOOGL Ups the Ante Against AAPL & GRMN
Riding on this latest move, Google ups its game against Apple AAPL and Garmin GRMN, which are also making concerted efforts to deliver an improved user experience.
Recently, Apple introduced to bring a built-in camera in Apple Watch Series 8, which will be fitted in the smartwatch’s digital crown. The capability will let users point at an object and take a snap of it. AAPL has lost 1.9% in the year-to-date period.
Users of Garmin Forerunner 255 and 955 smartwatches can take a picture by controlling the phone camera shutter option from their smartwatch. GRMN users can do so with the phone app named Camera Remote Watch, which they can avail from the iPhone App Store or Google Play Store. GRMN’s shares have been down 27.2% in the same time frame.
Google Solidifies Smartwatch Efforts
Nevertheless, Google’s growing efforts to strengthen its Wear OS are expected to continuously gain a competitive edge over its peers.
Apart from the latest move, Alphabet is preparing to provide streaming support to its customers using the YouTube Music app for Wear OS.
GOOGL added Google Maps to Wear OS watches. Also, its deepening focus on improving battery life and health features of smartwatches holds promise.
Alphabetrecently ended the quest for its long-awaited smartwatch by introducing Google Pixel Watch at its I/O developer conference. The watch runs on Wear OS software and is powered by Fitbit’s technology.
The above-mentioned endeavors are expected to help GOOGL expand its presence in the booming smartwatch market.
The underlined market is witnessing significant growth on the rising adoption of smartwatches, as it offers numerous customer requirements like time schedules, fitness tracking, music and other features in a single device.
Per a Facts and Factors report, theglobal smartwatch market is expected to hit $97.5 billion by 2028, witnessing a CAGR of 21.5% from 2022 to 2028.
Zacks Rank & Stock to Consider
Currently, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). Investors interested in the broader technology sector can consider ASE Technology ASX, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASE Technology has lost 19.9% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL): Free Stock Analysis Report
Garmin Ltd. (GRMN): Free Stock Analysis Report
ASE Technology Holding Co., Ltd. (ASX): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote GOOGL Ups the Ante Against AAPL & GRMN Riding on this latest move, Google ups its game against Apple AAPL and Garmin GRMN, which are also making concerted efforts to deliver an improved user experience. AAPL has lost 1.9% in the year-to-date period. Apple Inc. (AAPL): Free Stock Analysis Report
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote GOOGL Ups the Ante Against AAPL & GRMN Riding on this latest move, Google ups its game against Apple AAPL and Garmin GRMN, which are also making concerted efforts to deliver an improved user experience. AAPL has lost 1.9% in the year-to-date period. Apple Inc. (AAPL): Free Stock Analysis Report
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote GOOGL Ups the Ante Against AAPL & GRMN Riding on this latest move, Google ups its game against Apple AAPL and Garmin GRMN, which are also making concerted efforts to deliver an improved user experience. AAPL has lost 1.9% in the year-to-date period. Apple Inc. (AAPL): Free Stock Analysis Report
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote GOOGL Ups the Ante Against AAPL & GRMN Riding on this latest move, Google ups its game against Apple AAPL and Garmin GRMN, which are also making concerted efforts to deliver an improved user experience. AAPL has lost 1.9% in the year-to-date period. Apple Inc. (AAPL): Free Stock Analysis Report
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19717.0
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2022-08-18 00:00:00 UTC
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Warren Buffett's Buying Spree Winding Down: Good News for Investors?
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-buying-spree-winding-down%3A-good-news-for-investors
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Warren Buffett backed up the truck and began loading up on stocks earlier this year. He and his investment team led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to buy oil stocks, financial stocks, entertainment stocks, and more.
Berkshire spent more on stocks in the first quarter of 2022 than it has in years. But now Buffett's buying spree appears to be winding down. And that could be good news for investors.
Losing steam
To be sure, Buffett did buy some stocks in the second quarter. Berkshire's 13F filing with the Securities and Exchange Commission revealed that the giant conglomerate bought shares of nine companies.
However, Buffett and his investment managers didn't initiate any new positions in Q2. Instead, the only buying they did was to add shares of companies already in Berkshire's portfolio. The three largest purchases increased Berkshire's stakes in Occidental Petroleum (NYSE: OXY), Ally Financial (NYSE: ALLY), and Paramount Global (NASDAQ: PARA).
Importantly, Berkshire spent a sharply lower amount investing in stocks in the latest quarter. In Q1, the company invested a whopping $51 billion. In Q2, the amount invested plunged to only $6.2 billion.
But Buffett and company also sold some stocks, including complete exits from positions in Verizon and Royalty Pharma. As a result, Berkshire's net purchases in Q2 totaled around $3.8 billion -- much lower than the net purchases of $41.5 billion in the previous quarter.
Inverse correlation
Why is Buffett's buying spree winding down good news for investors? There's an inverse correlation to some extent between Buffett's enthusiasm about buying stocks and how the stock market is performing. If Buffett isn't buying as much, your stocks are probably delivering solid gains.
This inverse correlation definitely shows up frequently with Buffett's purchases of individual stocks. For example, Buffett stated publicly that he would have bought more shares of Apple (NASDAQ: AAPL) in Q1 if the stock had not started to rebound. Shares of the tech giant fell in Q2, though -- and Buffett gobbled up even more of Berkshire's largest holding.
Ally Financial and Paramount Global -- two of Berkshire's three biggest purchases in Q2 -- also saw their stocks sink last quarter. This no doubt made the stocks much more appealing to Buffett.
We can see the inverse correlation in another way by looking at Berkshire Hathaway's cash and short-term investments compared to the S&P 500's performance. The company's cash stockpile grew when Buffett wasn't buying as many stocks and declined when he was investing heavily.
BRK.B Cash and Short Term Investments (Quarterly) data by YCharts
Note that Berkshire's cash stockpile decreased during the Great Recession of late 2007 through mid-2009. It also decreased earlier this year as the S&P 500 fell. However, during the long bull market that followed the Great Recession, Berkshire's cash position increased significantly.
Quality over quantity
Buffett isn't likely to complain very much that his buying spree is tapering off. When he doesn't find valuations as attractive, it usually means that many of the stocks in Berkshire's portfolio are performing well.
Despite the lower investing activity, Buffett will still probably continue scooping up some stocks in the coming quarters. Even if the stock market begins a strong new bull market, the legendary investor could see some stocks that he likes.
But Buffett always focuses on quality over quantity. The stocks that Buffett buys for Berkshire won't always be ones that small investors will especially like. But when he loads up on a given stock, whether it's Occidental Petroleum or Apple, you can bet that it's a high-quality pick.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Buffett stated publicly that he would have bought more shares of Apple (NASDAQ: AAPL) in Q1 if the stock had not started to rebound. Berkshire's 13F filing with the Securities and Exchange Commission revealed that the giant conglomerate bought shares of nine companies. The company's cash stockpile grew when Buffett wasn't buying as many stocks and declined when he was investing heavily.
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For example, Buffett stated publicly that he would have bought more shares of Apple (NASDAQ: AAPL) in Q1 if the stock had not started to rebound. He and his investment team led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to buy oil stocks, financial stocks, entertainment stocks, and more. The three largest purchases increased Berkshire's stakes in Occidental Petroleum (NYSE: OXY), Ally Financial (NYSE: ALLY), and Paramount Global (NASDAQ: PARA).
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For example, Buffett stated publicly that he would have bought more shares of Apple (NASDAQ: AAPL) in Q1 if the stock had not started to rebound. He and his investment team led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to buy oil stocks, financial stocks, entertainment stocks, and more. There's an inverse correlation to some extent between Buffett's enthusiasm about buying stocks and how the stock market is performing.
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For example, Buffett stated publicly that he would have bought more shares of Apple (NASDAQ: AAPL) in Q1 if the stock had not started to rebound. Quality over quantity Buffett isn't likely to complain very much that his buying spree is tapering off. The stocks that Buffett buys for Berkshire won't always be ones that small investors will especially like.
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19718.0
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2022-08-18 00:00:00 UTC
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Notable ETF Inflow Detected - QQQ, AAPL, MSFT, META
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-qqq-aapl-msft-meta
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $427.0 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 548,600,000 to 549,900,000). Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.5%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Meta Platforms Inc (Symbol: META) is lower by about 0.8%. For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average:
Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $327.94. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.5%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Meta Platforms Inc (Symbol: META) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $427.0 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 548,600,000 to 549,900,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.5%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Meta Platforms Inc (Symbol: META) is lower by about 0.8%. For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $327.94. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.5%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Meta Platforms Inc (Symbol: META) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $427.0 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 548,600,000 to 549,900,000). For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $327.94.
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Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.5%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Meta Platforms Inc (Symbol: META) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $427.0 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 548,600,000 to 549,900,000). For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $327.94.
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19719.0
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2022-08-18 00:00:00 UTC
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New TV series 'Bad Sisters' tells dark tale through comedy
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AAPL
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https://www.nasdaq.com/articles/new-tv-series-bad-sisters-tells-dark-tale-through-comedy
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nan
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By Hanna Rantala
LONDON, Aug 18 (Reuters) - Actor, comedian and filmmaker Sharon Horgan says her new dark comedy thriller "Bad Sisters" is a celebration of family ties.
Set in Ireland, the 10-episode series centres around the Garvey sisters, a tight-knit fivesome who lost their parents at a young age.
When the husband of one of the sisters suddenly dies, insurers set their sights on the five, discovering that each of them had reason to want to kill the unkind and coercive John Paul, played by Claes Bang.
The series was adapted from the Belgian TV show "Clan" by Horgan, who also stars as one of the sisters alongside Anne-Marie Duff, Eva Birthistle, Sarah Greene and Eve Hewson.
"It's about four sisters who try and rescue their fifth sister from a monstrous relationship. A lot of funny happens off the back of that but really it's about love and family," Horgan, herself one of five siblings, told Reuters on the eve of the show's debut.
Brian Gleeson and Daryl McCormack play the insurance agents and half-brothers Thomas and Matt Claffin who have their own motives to dig deeper into John Paul's death.
The series opens with John Paul's funeral and shifts back in time to reveal his controlling behaviour in the lead up to his death.
Starting out as banter between the sisters, their plans to rid of John Paul gain momentum as the show advances.
"Even if it is funny, it is about a very abusive relationship. So, I hope there's something perhaps in there that can actually say something and resonate with people in a way that could mean something to them," said Bang.
Duff, who plays his wife, Grace, said there was a great sense of responsibility in playing the role.
"I had to invest it with as much integrity as if I were doing a serious drama, because there could be people watching the show, men and women, who are in maybe bullying circumstances for whom it's very powerful and helps them recognise things," she said.
"Bad Sisters" starts streaming on Apple TV+ on Friday.
(Reporting by Hanna Rantala; editing by Richard Pullin)
((Hanna.Rantala@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 Hanna Rantala LONDON, Aug 18 (Reuters) - Actor, comedian and filmmaker Sharon Horgan says her new dark comedy thriller "Bad Sisters" is a celebration of family ties. When the husband of one of the sisters suddenly dies, insurers set their sights on the five, discovering that each of them had reason to want to kill the unkind and coercive John Paul, played by Claes Bang. The series was adapted from the Belgian TV show "Clan" by Horgan, who also stars as one of the sisters alongside Anne-Marie Duff, Eva Birthistle, Sarah Greene and Eve Hewson.
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When the husband of one of the sisters suddenly dies, insurers set their sights on the five, discovering that each of them had reason to want to kill the unkind and coercive John Paul, played by Claes Bang. Brian Gleeson and Daryl McCormack play the insurance agents and half-brothers Thomas and Matt Claffin who have their own motives to dig deeper into John Paul's death. "Bad Sisters" starts streaming on Apple TV+ on Friday.
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By Hanna Rantala LONDON, Aug 18 (Reuters) - Actor, comedian and filmmaker Sharon Horgan says her new dark comedy thriller "Bad Sisters" is a celebration of family ties. When the husband of one of the sisters suddenly dies, insurers set their sights on the five, discovering that each of them had reason to want to kill the unkind and coercive John Paul, played by Claes Bang. The series was adapted from the Belgian TV show "Clan" by Horgan, who also stars as one of the sisters alongside Anne-Marie Duff, Eva Birthistle, Sarah Greene and Eve Hewson.
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A lot of funny happens off the back of that but really it's about love and family," Horgan, herself one of five siblings, told Reuters on the eve of the show's debut. Brian Gleeson and Daryl McCormack play the insurance agents and half-brothers Thomas and Matt Claffin who have their own motives to dig deeper into John Paul's death. "Even if it is funny, it is about a very abusive relationship.
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19720.0
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2022-08-18 00:00:00 UTC
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What Did Buffett Buy During the Summer Bear Market?
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AAPL
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https://www.nasdaq.com/articles/what-did-buffett-buy-during-the-summer-bear-market
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nan
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nan
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(0:30) - Learning From Warren Buffett During A Stock Market Sell Off
(4:00) - 13F Breakdown: What Was Berkshire Hathaway Buying?
(14:50) - What Positions Did Warren Buffett Sell?
(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN
Podcast@Zacks.com
Welcome to Episode #294 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The second quarter 13-Fs are out and we now know what Berkshire Hathaway, led by Warren Buffett, were buying, selling, or not buying or selling, during the quarter.
Just a reminder, that the 13-Fs are filed within 45 days after the end of the prior quarter. By the time we get them, the trades are already “old.”
But the filings still give us insight into what Buffett is doing with the massive Berkshire Hathaway portfolio.
Chevron and Occidental Petroleum: Did the Buying Continue?
1. Chevron CVX
Berkshire Hathaway went all in on the oil stocks in the first quarter, when it added to it’s existing position in Chevron buying over $20 billion in shares.
Chevron became the fourth largest position in the portfolio.
In Q2, it dove in again and added another 1% position. Berkshire now owns 8.2% of the company, or 161.4 million shares.
Chevron is yielding 3.6%. Based on the number of shares owned by the end of Q2, Berkshire should get a minimum dividend payout of $229.2 million on Sep 12.
2. Occidental Petroleum OXY
Berkshire also continued to add to its Occidental Petroleum position buying $1.4 billion. It now owns nearly 30% of the company if you include the warrants.
Because it is such a large shareholder, Berkshire must disclose its new purchases within 48 hours instead of waiting until the 13-F period. It has also been buying in Q3, in July and August, as the shares have fallen.
Over the last 3 months, shares of Occidental Petroleum are down 7%.
Is this a buying opportunity in Chevron and Occidental Petroleum this year?
Did Buffett Buy More Apple?
3. Apple AAPL
Apple is Berkshire Hathaway’s largest equity position with 894.8 million shares worth about $122.3 billion.
Buffett only entered into the position in the first quarter 2016. He has sold some shares over the years in order the cut the weighting of the position but in the second quarter, he actually bought another 3.88 million shares as Apple sold off.
Apple pays a dividend, currently yielding 0.5% but Berkshire owns so many shares it recently received a $208 million dividend payout.
Apple shares have rallied 16% in the last month.
Are the shares now too hot to handle?
Arbitrage and Amazon
4. Activision Blizzard ATVI
At the Berkshire Hathaway annual meeting Warren Buffett admitted he was doing an arbitrage trade on the Activision Blizzard/Microsoft deal that was announced earlier this year. Berkshire already had a position in Activision when the deal was announced, but added to it again in the second quarter.
Microsoft bid $95 a share and Activision Blizzard is trading around $80 right now.
If the deal closes, Berkshire will get the difference which is known as the “arbitrage.”
Berkshire now owns 8.3% of Activision Blizzard.
Should you be doing arbitrage on Activision Blizzard too? There’s risk if the deal doesn’t go through.
5. Amazon AMZN
Berkshire shocked the world in 2019 when it reported that it had bought shares of Amazon in the first quarter of that year. Buffett had to reassure shareholders that there was actual “value” in the shares.
By June 2022, Amazon shares had sunk 38% on the year. Was Berkshire finally going to add to its small position?
But no, Berkshire did NOT buy in the second quarter. Shares have rallied 25% in the last month so they’re not as cheap as earlier this summer.
Did Berkshire miss out on a buying opportunity in Amazon?
What Else Did Berkshire Hathaway Buy and Sell, or not, in the Second Quarter?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her own personal portfolio.]
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): 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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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Welcome to Episode #294 of the Value Investor Podcast. Apple AAPL Apple is Berkshire Hathaway’s largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Welcome to Episode #294 of the Value Investor Podcast. Apple AAPL Apple is Berkshire Hathaway’s largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Welcome to Episode #294 of the Value Investor Podcast. Apple AAPL Apple is Berkshire Hathaway’s largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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(27:40) - Big Takeaways From Warren Buffett’s Market Moves: OXY, CVX, BAC, AAPL, USB, BK, C, ALLY, ATVI, CE, VZ, GM, AMZN Podcast@Zacks.com Welcome to Episode #294 of the Value Investor Podcast. Apple AAPL Apple is Berkshire Hathaway’s largest equity position with 894.8 million shares worth about $122.3 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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19721.0
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2022-08-18 00:00:00 UTC
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Qualcomm planning return to server market with new chip - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/qualcomm-planning-return-to-server-market-with-new-chip-bloomberg-news
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nan
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Aug 18 (Reuters) - Qualcomm Inc QCOM.O is considering a return to the server market with a new chip in a bid to decrease its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan.
Shares of Qualcomm rose nearly 3% in afternoon trading.
The chipmaker is seeking customers for a product stemming from its purchase of Nuvia Inc, the report said, adding that Amazon.com Inc's AMZN.O cloud division, Amazon Web Services (AWS), has agreed to take a look at Qualcomm's offerings.
Last year, the chipmaker acquired Nuvia, a chip startup founded by Apple Inc AAPL.O veterans, with plans to put the firm's technology into its smartphone, laptop and automotive processors. (https://reut.rs/3c6hCte)
Amazon confirmed that it has agreed to take a look at the offering, while Qualcomm said it does not comment on rumors and directed Reuters to its press release when it closed the Nuvia deal in March last year.
San Diego-based Qualcomm in July forecast fourth-quarter revenue below Wall Street targets, bracing for a difficult economy and a slowdown in smartphone demand that could hurt its mainstay handset chip business.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Maju Samuel)
((tiyashi.datta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, the chipmaker acquired Nuvia, a chip startup founded by Apple Inc AAPL.O veterans, with plans to put the firm's technology into its smartphone, laptop and automotive processors. Aug 18 (Reuters) - Qualcomm Inc QCOM.O is considering a return to the server market with a new chip in a bid to decrease its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan. The chipmaker is seeking customers for a product stemming from its purchase of Nuvia Inc, the report said, adding that Amazon.com Inc's AMZN.O cloud division, Amazon Web Services (AWS), has agreed to take a look at Qualcomm's offerings.
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Last year, the chipmaker acquired Nuvia, a chip startup founded by Apple Inc AAPL.O veterans, with plans to put the firm's technology into its smartphone, laptop and automotive processors. Aug 18 (Reuters) - Qualcomm Inc QCOM.O is considering a return to the server market with a new chip in a bid to decrease its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan. The chipmaker is seeking customers for a product stemming from its purchase of Nuvia Inc, the report said, adding that Amazon.com Inc's AMZN.O cloud division, Amazon Web Services (AWS), has agreed to take a look at Qualcomm's offerings.
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Last year, the chipmaker acquired Nuvia, a chip startup founded by Apple Inc AAPL.O veterans, with plans to put the firm's technology into its smartphone, laptop and automotive processors. Aug 18 (Reuters) - Qualcomm Inc QCOM.O is considering a return to the server market with a new chip in a bid to decrease its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan. The chipmaker is seeking customers for a product stemming from its purchase of Nuvia Inc, the report said, adding that Amazon.com Inc's AMZN.O cloud division, Amazon Web Services (AWS), has agreed to take a look at Qualcomm's offerings.
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Last year, the chipmaker acquired Nuvia, a chip startup founded by Apple Inc AAPL.O veterans, with plans to put the firm's technology into its smartphone, laptop and automotive processors. Aug 18 (Reuters) - Qualcomm Inc QCOM.O is considering a return to the server market with a new chip in a bid to decrease its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan. Shares of Qualcomm rose nearly 3% in afternoon trading.
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19722.0
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2022-08-18 00:00:00 UTC
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SPY, DGL: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-dgl%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 15,000,000 units, or a 1.7% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco DB Gold Fund, which added 500,000 units, for a 35.7% increase in outstanding units. Among the largest underlying components of DGL, in morning trading today Invesco Treasury Collateral ETF is trading flat.
VIDEO: SPY, DGL: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco DB Gold Fund, which added 500,000 units, for a 35.7% increase in outstanding units. VIDEO: SPY, DGL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.5%. Among the largest underlying components of DGL, in morning trading today Invesco Treasury Collateral ETF is trading flat. VIDEO: SPY, DGL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 15,000,000 units, or a 1.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco DB Gold Fund, which added 500,000 units, for a 35.7% increase in outstanding units. Among the largest underlying components of DGL, in morning trading today Invesco Treasury Collateral ETF is trading flat.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 15,000,000 units, or a 1.7% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco DB Gold Fund, which added 500,000 units, for a 35.7% increase in outstanding units.
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19723.0
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2022-08-18 00:00:00 UTC
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Taiwan says it has not been informed of 'Chip 4' meeting
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AAPL
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https://www.nasdaq.com/articles/taiwan-says-it-has-not-been-informed-of-chip-4-meeting
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nan
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nan
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TAIPEI, Aug 19 (Reuters) - Taiwan has not been told about a meeting for a new U.S.-led group of major microchip manufacturers, the economy ministry said, adding that the island has always cooperated closely with the United States on supply chains.
South Korea's foreign minister said on Thursday that Seoul is expected to attend a preliminary meeting for the so-called "Chip 4" group.
In a statement to Reuters late on Thursday, Taiwan's economy ministry said "our side does not yet have any relevant information on a notice about the meeting".
"In past exchanges and dialogue between Taiwan and the United States, the United States did propose similar ideas, but there was no specific content at the time," it added.
Taiwan and the United States have always cooperated on supply chain resilience and industrial cooperation, and are important partners, the ministry said.
"If there are follow-up developments in the meetings reported by the media, the government will pay close attention."
It did not elaborate.
Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier.
Taiwan has been keen to show the United States, its most important international backer at a time of rising military tensions between Taipei and Beijing, that it is a reliable friend and supplier as a global chip crunch affects auto production and consumer electronics.
(Reporting by Ben Blanchard. Editing by Gerry Doyle)
((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 is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. TAIPEI, Aug 19 (Reuters) - Taiwan has not been told about a meeting for a new U.S.-led group of major microchip manufacturers, the economy ministry said, adding that the island has always cooperated closely with the United States on supply chains. South Korea's foreign minister said on Thursday that Seoul is expected to attend a preliminary meeting for the so-called "Chip 4" group.
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Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. TAIPEI, Aug 19 (Reuters) - Taiwan has not been told about a meeting for a new U.S.-led group of major microchip manufacturers, the economy ministry said, adding that the island has always cooperated closely with the United States on supply chains. In a statement to Reuters late on Thursday, Taiwan's economy ministry said "our side does not yet have any relevant information on a notice about the meeting".
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Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. TAIPEI, Aug 19 (Reuters) - Taiwan has not been told about a meeting for a new U.S.-led group of major microchip manufacturers, the economy ministry said, adding that the island has always cooperated closely with the United States on supply chains. "In past exchanges and dialogue between Taiwan and the United States, the United States did propose similar ideas, but there was no specific content at the time," it added.
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Taiwan is a major semiconductor producer and home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier. TAIPEI, Aug 19 (Reuters) - Taiwan has not been told about a meeting for a new U.S.-led group of major microchip manufacturers, the economy ministry said, adding that the island has always cooperated closely with the United States on supply chains. South Korea's foreign minister said on Thursday that Seoul is expected to attend a preliminary meeting for the so-called "Chip 4" group.
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19724.0
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2022-08-18 00:00:00 UTC
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3 Stocks That Turned $10,000 Into $100,000 (or More)
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-turned-%2410000-into-%24100000-or-more
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nan
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nan
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The legendary 10-bagger -- a stock that delivers 10 times the return on its purchase price -- remains a fairly rare event in modern markets. And the pandemic drove instability across many different industries, with deep plunges in some sectors and others seeing new interest and investment due to their offerings.
These three companies experienced new highs since the beginning of the global pandemic, making an investment in the last decade truly pay off -- at least, to a certain point. $10,000 invested in Apple (NASDAQ: AAPL) in early 2013 delivered 10-bagger results at recent highs. Likewise, a $10,000 investment in Netflix (NASDAQ: NFLX) shares in mid-2014 at less than $70 soared to over $700 by late 2021. Roku (NASDAQ: ROKU) also saw new highs with its shares hitting $400 versus the $40 they sold for at the end of 2018.
However, what goes up also sometimes goes down -- as it did for two of these stocks. Let's take a closer look at all three -- and see what could be in store for their shares from here.
Apple dominates with innovation, iPhones, and India
The king of the smartphone market continues innovating with each iteration of its popular iPhone line. Accessories and services drive the company's App Store and offerings further into the lifestyles and pockets of consumers. The pandemic may have boosted sales, but Apple continues to perform well even as the global economy has reopened.
At a recent share price of $170, the stock isn't far off its 52-week high of $183. Over the past six months, the smartphone maker has moved roughly in tandem with the S&P 500, outperforming it by 4 percentage points over that period.
Apple may have a catalyst overseas, however. The huge economy of India seems ready to consume Apple products as its smartphone adoption levels take off. The company grew its smartphone shipments to India by 108% year-over-year in 2021, making it one of the fastest growing brands in the region, and Counterpoint Research expects continued growth throughout 2022.
Stay-at-home orders drove Netflix to new heights
Streaming powerhouse Netflix brought entertainment to millions of viewers stuck at home during the depths of the pandemic. It delivered 10-bagger results for many long-term shareholders who got in during the past decade, but Netflix failed to hold onto much of those gains as cities and markets reopened.
The streaming company's stock currently trails the S&P 500 by more than 35 percentage points over the past six months, making it one of the worst performers in the index so far this year.
Some investors may see this dip as a buying opportunity, but the company has yet to assure the broader market of its recovery. Long-term, Netflix has shown great resilience, but a potential recession may limit its growth in the near future.
Roku's pandemic power now wanes
Roku hasn't fared much better than Netflix when it comes to proving itself after recent all-time highs. While there are more Roku devices in homes worldwide than ever, and the company posted total net revenue growth of 18% year over year in its second-quarter 2022 earnings report, the stock continues to lag the S&P 500 by 45 percentage points.
The horizon doesn't seem so bleak for this previous 10-bagger, though. Recent partnerships with Walmart and Paramount could deliver the catalysts that, when coupled with strong earnings growth and guidance, may bring Roku share prices back in line with its previous successes. The company may even reach previous highs if share prices rise to reflect continued success through its partnerships.
The future of home and mobile entertainment
Smart investors know that profits can be made in bear markets, and bear-market investments can generate wealth when the bulls take control. Apple remains in a strong position and could be a dividend leader, while both Netflix and Roku could well stay near lows before seeing a return to previous levels.
Current market conditions provide a great opportunity to get in on these stocks at a much lower price point than during the onset of the pandemic, with its stay-at-home orders and boost to home entertainment. Never try to time the bottom of the market -- instead, focus on quality and long-term potential, especially when a recession could be looming. Consider the overall strength and position of these companies before making a leap during uncertain times.
Find out why Apple is one of the 10 best stocks to buy now
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Nicholas Robbins has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Netflix, Roku, and Walmart Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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$10,000 invested in Apple (NASDAQ: AAPL) in early 2013 delivered 10-bagger results at recent highs. Recent partnerships with Walmart and Paramount could deliver the catalysts that, when coupled with strong earnings growth and guidance, may bring Roku share prices back in line with its previous successes. The future of home and mobile entertainment Smart investors know that profits can be made in bear markets, and bear-market investments can generate wealth when the bulls take control.
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$10,000 invested in Apple (NASDAQ: AAPL) in early 2013 delivered 10-bagger results at recent highs. The company may even reach previous highs if share prices rise to reflect continued success through its partnerships. The Motley Fool has positions in and recommends Apple, Netflix, Roku, and Walmart Inc.
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$10,000 invested in Apple (NASDAQ: AAPL) in early 2013 delivered 10-bagger results at recent highs. While there are more Roku devices in homes worldwide than ever, and the company posted total net revenue growth of 18% year over year in its second-quarter 2022 earnings report, the stock continues to lag the S&P 500 by 45 percentage points. Current market conditions provide a great opportunity to get in on these stocks at a much lower price point than during the onset of the pandemic, with its stay-at-home orders and boost to home entertainment.
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$10,000 invested in Apple (NASDAQ: AAPL) in early 2013 delivered 10-bagger results at recent highs. However, what goes up also sometimes goes down -- as it did for two of these stocks. At a recent share price of $170, the stock isn't far off its 52-week high of $183.
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19725.0
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2022-08-18 00:00:00 UTC
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Is Now the Right Time to Buy Netflix Stock?
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AAPL
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https://www.nasdaq.com/articles/is-now-the-right-time-to-buy-netflix-stock
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nan
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nan
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The introduction of multiple streaming services since 2019 has hit few companies as hard as Netflix (NASDAQ: NFLX). In 2022 alone, the company has lost over a million subscribers. The stock price dropped 35% in a 24-hour period from April 19 to April 20, falling a further 26% by May 11. The company has had a tumultuous year, to say the least; however, recent growth in the stock and future developments could mean Netflix is set to make a comeback in the second half of the year.
Reclaiming losses
A rocky start to 2022 saw Netflix lose a record 200,000 subscribers in the year's first quarter, projecting a further loss of 2 million members in Q2 2022. However, the company reported a more modest loss of 970,000 subscribers in its second-quarter report, primarily driven by the immense success of Stranger Things Season 4, which Netflix released on May 27. The show's popularity aided the company in retaining more than a million members as it restructured its business to better suit the altered landscape of the streaming industry.
Netflix stock has steadily begun climbing again as investors slowly restore their faith in the streaming giant. Over July, the stock rose 28.6% as the company projected it would reach an all-time high of 221.67 million global subscriptions in Q3 2022, bringing an end to the membership declines prevalent throughout the first half of the year.
The first two weeks of August have seen Netflix stock continue its rise, with stock prices increasing 10.1% from August 1 to August 15 -- from $226.21 a share to $249.11. While Netflix investors are laser-focused on subscriber numbers, it is the company's venture into ad-supported services, password-sharing crackdowns, and gaming that will make a more significant impact on revenue.
A promising outlook
Netflix's significant loss of subscribers in Q1 2022 lit a fire under the streaming giant as it realized it had to adapt or die in a market with steep competition such as Disney (NYSE: DIS) and Warner Bros. Discovery. As a result, Netflix has made multiple changes to its streaming strategy in 2022 as it fights to retain its spot at the top.
The company plans to launch an ad-supported tier in early 2023, introducing a desperately needed lower price point. Netflix's current memberships offer the worst value when stacked up against the competition, with its basic tier giving subscribers one standard-definition (480p) stream for $9.99 a month, its standard membership allowing for two simultaneous HD (1080p) streams for $15.49 a month, and the premium tier providing consumers 4K quality video with up to four streams for $19.99 a month.
Meanwhile, Disney+, HBO Max, and Apple's Apple TV+ have all made HD to 4K quality video and multiple streams standard across all of their tiers. Netflix's competitors have raised the bar, with Disney+'s recently announced price hikes still providing more value. As of August 23, premium membership to Disney+ will cost $10.99 per month with no ads, 4K quality video, and up to four streams -- 29% cheaper than Netflix's standard tier. That's also before considering the Dinsey Bundle, which includes Disney+, Hulu, and ESPN+ for $12.99 a month with no ads and is 35% cheaper than Netflix's highest-priced membership.Suffice it to say, Netflix's coming ad-supported service will even the playing field and offer more value to consumers.
Additionally, Netflix has plans to increase its average rate per user (ARPU) by cracking down on password sharing. Going by its recent password-sharing test in Cost Rica, the company could soon charge consumers $2.99 to add an extra household to their membership. In April, Netflix estimated that more than 100 million households worldwide currently use the streaming service without paying. If only half of the password-sharing users were converted to fully paid subscriptions, the company would add $150 million in quarterly revenue.
Is Netflix a buy?
While Netflix's subscriber figures were once the most important metric for investors to gauge the company's success, a shift in the streaming market has made a company's ARPU an increasingly telling data point. For instance, Disney investors recently celebrated the company surpassing Netflix in total subscribers. However, digging into the company's ARPU shows that Disney's streaming revenue is still considerably behind Netflix. In its most recent quarter, domestic Disney+ made 39% as much revenue per user as Netflix, with Disney's ARPU in the Asia Pacific region at $1.20 per month while Netflix's stood at $8.83 per month.
Netflix stock still has a long climb back to where it was a year ago, making its current price an absolute bargain, especially considering the stock will likely continue rising based on its recent moves and coming developments.
10 stocks we like even better than Netflix
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*Stock Advisor returns as of August 11, 2022
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. 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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Over July, the stock rose 28.6% as the company projected it would reach an all-time high of 221.67 million global subscriptions in Q3 2022, bringing an end to the membership declines prevalent throughout the first half of the year. While Netflix investors are laser-focused on subscriber numbers, it is the company's venture into ad-supported services, password-sharing crackdowns, and gaming that will make a more significant impact on revenue. A promising outlook Netflix's significant loss of subscribers in Q1 2022 lit a fire under the streaming giant as it realized it had to adapt or die in a market with steep competition such as Disney (NYSE: DIS) and Warner Bros.
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The first two weeks of August have seen Netflix stock continue its rise, with stock prices increasing 10.1% from August 1 to August 15 -- from $226.21 a share to $249.11. Netflix's current memberships offer the worst value when stacked up against the competition, with its basic tier giving subscribers one standard-definition (480p) stream for $9.99 a month, its standard membership allowing for two simultaneous HD (1080p) streams for $15.49 a month, and the premium tier providing consumers 4K quality video with up to four streams for $19.99 a month. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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Netflix's current memberships offer the worst value when stacked up against the competition, with its basic tier giving subscribers one standard-definition (480p) stream for $9.99 a month, its standard membership allowing for two simultaneous HD (1080p) streams for $15.49 a month, and the premium tier providing consumers 4K quality video with up to four streams for $19.99 a month. While Netflix's subscriber figures were once the most important metric for investors to gauge the company's success, a shift in the streaming market has made a company's ARPU an increasingly telling data point. In its most recent quarter, domestic Disney+ made 39% as much revenue per user as Netflix, with Disney's ARPU in the Asia Pacific region at $1.20 per month while Netflix's stood at $8.83 per month.
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Reclaiming losses A rocky start to 2022 saw Netflix lose a record 200,000 subscribers in the year's first quarter, projecting a further loss of 2 million members in Q2 2022. In April, Netflix estimated that more than 100 million households worldwide currently use the streaming service without paying. That's right -- they think these 10 stocks are even better buys.
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19726.0
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2022-08-18 00:00:00 UTC
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Why I'm Bullish on Apple Stock
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AAPL
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https://www.nasdaq.com/articles/why-im-bullish-on-apple-stock
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nan
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nan
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Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. But investors may change their minds after they take a closer look at the company's underlying cash flow relative to this valuation, as well as Apple's growth opportunities.
While investors will want to do their own due diligence before they buy shares, here are three bullish points about the company to help you get started.
1. Massive cash flow
Apple's free cash flow, which is the cold, hard cash left over after all regular business operations and capital expenditures are taken care of, came in at about $108 billion over the trailing 12 months. This means the stock trades at 28 times free cash flow -- a reasonable if not attractive valuation for a company with a diverse set of products, a loyal customer base, and a long history of disciplined and value-creating capital allocation decisions from management.
Apple's substantial cash flow gives it lots of optionality as to how it goes about creating shareholder value. While some of its cash from operations is reinvested back into the business via capital expenditures, the leftover free cash flow allows the iPhone maker to either pay back dividends, repurchase shares, or do both. Apple, of course, has done both for years. It spent $91 billion repurchasing stock over the last trailing 12 months and it paid out $15 billion in dividends over that same period.
Despite Apple's aggressive capital return program for shareholders, the company still has $179 billion in cash and marketable securities. Further, even when you subtract the company's debt from its cash, it still has a net cash position of $60 billion.
Put simply: Apple is a cash cow.
2. Strong demand
Apple's strong revenue performance during a time of global macroeconomic uncertainty is also impressive. Revenue in the tech company's fiscal third quarter increased 2% year over year -- and that's on top of 36% top-line growth in the year-ago quarter.
However, this growth still understates the demand for Apple's products. Sales were constrained by production in fiscal Q3. "Mac and iPad were so gated by supply that we didn't have enough product to test the demand," said Apple CEO Tim Cook in the company's fiscal third-quarter earnings call. Cook even said that iPhone, the company's largest segment, saw no evidence of weakened demand due to macroeconomic headwinds.
3. Significant growth potential
This final point is, perhaps, the most important. There is one area the company seems to have a lot of room to run: the monetization of its installed base of active devices. Apple management considers its installed base a key growth lever for the company going forward. "[Our installed base of active devices] is the engine for our company and it continues to grow," explained Apple CFO Luca Maestri in the company's most recent earnings call. He also noted that it has reached "an all-time high across every geographic segment, across every product category."
The larger the installed base, the more users the company has the opportunity to monetize with native and third-party services. And Apple is doing just that. "Transacting accounts, paid accounts, paid subscriptions are growing, so the level of engagement continues to grow," said Maestri.
This trend should help Apple's services segment, which represents about a third of the company's gross profit, continue posting double-digit year-over-year growth rates in most quarters for the foreseeable future.
So does Apple live up to its $2.8 trillion market capitalization? I think so. In fact, there's likely a clear path to $3 trillion and beyond. And thanks to share repurchases, the share price could rise at a faster rate than Apple's market cap.
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of July 27, 2022
Daniel Sparks has positions in Apple. His clients may own shares of the companies 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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Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. This means the stock trades at 28 times free cash flow -- a reasonable if not attractive valuation for a company with a diverse set of products, a loyal customer base, and a long history of disciplined and value-creating capital allocation decisions from management. "Mac and iPad were so gated by supply that we didn't have enough product to test the demand," said Apple CEO Tim Cook in the company's fiscal third-quarter earnings call.
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Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. Massive cash flow Apple's free cash flow, which is the cold, hard cash left over after all regular business operations and capital expenditures are taken care of, came in at about $108 billion over the trailing 12 months. It spent $91 billion repurchasing stock over the last trailing 12 months and it paid out $15 billion in dividends over that same period.
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Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. Massive cash flow Apple's free cash flow, which is the cold, hard cash left over after all regular business operations and capital expenditures are taken care of, came in at about $108 billion over the trailing 12 months. "[Our installed base of active devices] is the engine for our company and it continues to grow," explained Apple CFO Luca Maestri in the company's most recent earnings call.
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Given its $2.8 trillion market capitalization, it may be difficult for some investors to wrap their heads around the idea that Apple (NASDAQ: AAPL) stock may be a good buy these days. While investors will want to do their own due diligence before they buy shares, here are three bullish points about the company to help you get started. However, this growth still understates the demand for Apple's products.
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19727.0
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2022-08-18 00:00:00 UTC
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Apple Likely To Launch IPhone 14 On Sept. 7
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AAPL
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https://www.nasdaq.com/articles/apple-likely-to-launch-iphone-14-on-sept.-7
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nan
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nan
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(RTTNews) - Apple Inc. is planning to hold a launch event on September 7 to unveil its latest iPhone 14 line, Bloomberg reported citing people with knowledge of the matter.
The tech major is also expected to roll out its latest version of three Apple Watch models including Series 8. The new products, which also include multiple new versions of Macs, and low and high-end iPads, are likely to reach stores later in September.
As per the report, there would be few changes for standard iPhone 14 models, but the new iPhone 14 Pro line would get updated camera technology and a speedier chip, among others.
In the event, the company will release a total of four iPhone 14 models, including a 6.1-inch iPhone 14, a 6.7-inch iPhone 14 Max, a 6.1-inch iPhone 14 Pro, and a 6.7-inch iPhone 14 Pro Max.
It is believed that a 5.4-inch iPhone mini version is not in the list, as the previous smaller iPhone 12 and 13 mini devices were not sold as expected.
Further, the three Apple Watch models to be unveiled include the new Apple Watch Series 8, an updated Apple Watch SE, as well as an all-new Pro version of the Apple Watch with a larger body and updated design.
Plans for a new low-cost iPad, updated iPad Pro models, a Mac Pro with Apple silicon chips and more are also live, the report noted.
Despite ongoing global supply-chain problems and rising inflation, Apple in its latest third quarter reported $40.67 billion in net sales from iPhone, 3 percent higher than $39.57 billion a year ago. It is nearly half of its total third-quarter net sales of $82.96 billion. In iPhone, the company set June quarter records in both developed and emerging markets.
Meanwhile, net sales from Mac, iPad, as well as Wearables, Home, and Accessories all were down. Mac and iPad were so gated by supply that the company didn't have enough products to test the demand, while Wearables, Home, and Accessories were impacted by a macroeconomic environment.
CEO Tim Cook, during theearnings call stated that at the 15th anniversary of the iPhone, customers continue to find that iPhone remains the gold standard for smartphones with its advanced performance, capability, and ease of use. He sees double-digit growth in customers new to iPhone.
The latest survey of U.S. consumers from 451 Research indicates iPhone customer satisfaction of 98 percent.
The views and 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. is planning to hold a launch event on September 7 to unveil its latest iPhone 14 line, Bloomberg reported citing people with knowledge of the matter. The tech major is also expected to roll out its latest version of three Apple Watch models including Series 8. Mac and iPad were so gated by supply that the company didn't have enough products to test the demand, while Wearables, Home, and Accessories were impacted by a macroeconomic environment.
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In the event, the company will release a total of four iPhone 14 models, including a 6.1-inch iPhone 14, a 6.7-inch iPhone 14 Max, a 6.1-inch iPhone 14 Pro, and a 6.7-inch iPhone 14 Pro Max. Further, the three Apple Watch models to be unveiled include the new Apple Watch Series 8, an updated Apple Watch SE, as well as an all-new Pro version of the Apple Watch with a larger body and updated design. Plans for a new low-cost iPad, updated iPad Pro models, a Mac Pro with Apple silicon chips and more are also live, the report noted.
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As per the report, there would be few changes for standard iPhone 14 models, but the new iPhone 14 Pro line would get updated camera technology and a speedier chip, among others. In the event, the company will release a total of four iPhone 14 models, including a 6.1-inch iPhone 14, a 6.7-inch iPhone 14 Max, a 6.1-inch iPhone 14 Pro, and a 6.7-inch iPhone 14 Pro Max. Further, the three Apple Watch models to be unveiled include the new Apple Watch Series 8, an updated Apple Watch SE, as well as an all-new Pro version of the Apple Watch with a larger body and updated design.
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As per the report, there would be few changes for standard iPhone 14 models, but the new iPhone 14 Pro line would get updated camera technology and a speedier chip, among others. Plans for a new low-cost iPad, updated iPad Pro models, a Mac Pro with Apple silicon chips and more are also live, the report noted. Meanwhile, net sales from Mac, iPad, as well as Wearables, Home, and Accessories all were down.
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19728.0
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2022-08-18 00:00:00 UTC
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2 Top Stocks to Buy During a Bear Market (And It's Not Even Close)
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-to-buy-during-a-bear-market-and-its-not-even-close
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nan
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nan
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While no one likes to see their stocks lose value, it can also create a buying opportunity. The S&P 500 officially entered a bear market a couple of months ago, and when that happens, you can purchase high-quality companies at a discount -- provided you choose wisely and have patience.
Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. With both down for the year, this makes it an opportune time to see if their long-term prospects remain strong.
Image source: Getty Images.
Costco
Costco Wholesale has had a lot of success over the years by executing a simple concept: providing a range of high-quality goods and services at low unit prices. Customers at its warehouses pay annual membership fees to shop there.
But they don't seem to mind. Paid membership continues to increase, finishing the fiscal third quarter (ended May 8) with 64.6 million members, up from 53.9 million for the quarter ended Sept. 1, 2019, before the pandemic began. With renewal rates hovering around 90% for years, it has garnered a loyal membership base, too.
Loyal and growing members have added up to consistently growing profitability. In the most recent quarter, same-store sales (excluding the impacts of foreign currency translations and gasoline prices), increased by 11%. Operating income, despite confronting higher costs that have also affected other retailers, increased by 7.7% to about $1.8 billion.
In a positive sign about its growth prospects, Costco continues to open new warehouses. This year, it has expanded by 14, ending the third quarter with 830 warehouses. Management expected to open an additional 10 in the last quarter of the year.
Apple
Apple has built a loyal following by producing and selling must-have products such as the iPhone, Mac, iPad, and AirPods. It also provides various services, including technical, advertising, and digital content via its App store.
On the surface, Apple didn't have a great quarter. In the fiscal third quarter, ended June 25, revenue grew by 1.9% to nearly $83 billion. Operating income fell by $1 billion to $23.1 billion. But I am optimistic this will prove a temporary blip.
First, iPhone sales, which comprise 49% of Apple's latest quarterly revenue, grew by 2.8% to $40.7 billion. And that should improve as the company reportedly prepares to release its new version. Given people's desire to rush out to buy the latest iPhone, this should prove a boon to sales.
Secondly, services grew by better than 12%, to $19.6 billion. Advertising, cloud, and AppleCare were the primary drivers. These should continue growing quickly. Notably, advertising represents a fast-growing area.
With innovative products and high-quality service offerings, it won't take long before Apple's top line begins experiencing high growth again.
It's encouraging that Costco and Apple continue to execute the strategies that have brought them a lot of success. In Costco's case, it's offering members a value proposition. Apple builds in-vogue products for which people clamor. There's no reason to think that each won't produce long-term sales and profit growth that will get their stock prices trending back up.
10 stocks we like better than Costco Wholesale
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 Costco Wholesale 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 11, 2022
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. The S&P 500 officially entered a bear market a couple of months ago, and when that happens, you can purchase high-quality companies at a discount -- provided you choose wisely and have patience. With innovative products and high-quality service offerings, it won't take long before Apple's top line begins experiencing high growth again.
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Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. There's no reason to think that each won't produce long-term sales and profit growth that will get their stock prices trending back up. 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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Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. Costco Costco Wholesale has had a lot of success over the years by executing a simple concept: providing a range of high-quality goods and services at low unit prices. Paid membership continues to increase, finishing the fiscal third quarter (ended May 8) with 64.6 million members, up from 53.9 million for the quarter ended Sept. 1, 2019, before the pandemic began.
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Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. In a positive sign about its growth prospects, Costco continues to open new warehouses. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Costco Wholesale wasn't one of them!
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19729.0
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2022-08-18 00:00:00 UTC
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Bank of England sets out plans to sell $23 bln corporate bond stockpile
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AAPL
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https://www.nasdaq.com/articles/bank-of-england-sets-out-plans-to-sell-%2423-bln-corporate-bond-stockpile
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nan
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nan
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By David Milliken
LONDON, Aug 18 (Reuters) - The Bank of England set out plans on Thursday to auction off around 200 million pounds ($241 million) of corporate bonds a week from next month, as it moves ahead with its plans to unwind its huge stimulus push of recent years.
The BoE bought nearly 20 billion pounds of investment-grade bonds from non-financial companies under its quantitative easing programme to support the economy and stabilise financial markets after the 2016 Brexit referendum and in the COVID-19 pandemic.
The BoE's Monetary Policy Committee announced in February that it had asked bank staff to design a programme of corporate bond sales that would be completed no earlier than around the end of 2023. The BoE said in May that it aimed to complete the sales by early 2024.
"The sales will be gradual and responsive to prevailing market conditions, consistent with the MPC's instructions to limit disruption to the functioning of the sterling corporate bond market," the BoE said on Thursday.
The sales from the BoE's stockpile of corporate debt are separate to its plans to reduce its 844 billion pounds of government bond holdings by 80 billion pounds over the next year, with further reductions in subsequent years.
Under that plan, the BoE will continue to not reinvest maturing gilts and will sell around 40 billion pounds of gilts in the 12 months from September.
The BoE's corporate bond holdings include sterling debt from companies such as Apple AAPL.O, EDF EDF.PA and Volkswagen VOWG_p.DE.
Last year, after pressure from environmentalists, the BoE said it would use its holdings to nudge companies to cut greenhouse gas emissions faster.
The BoE said on Thursday it expected to hold a corporate bond auction each Tuesday and Wednesday from the week beginning Sept. 19. Companies will be able to apply to buy back their own bonds directly from the BoE from Oct. 17.
Each auction will focus on bonds from a particular business sector, and auctions will cease during quiet periods for the market, including Dec. 8 to Jan. 9.
The BoE will only auction off bonds maturing on or after April 6, 2024.
The BoE's current 19.1 billion pounds of corporate bonds have a nominal value of 14.5 billion pounds.
Excluding the debt which will mature before April 2024, it has bonds with a nominal value of around 13 billion pounds to sell. The 200 million-pound weekly sales target is in nominal terms.
($1 = 0.8286 pounds)
(Reporting by David Milliken and William Schomberg; Editing by Catherine Evans)
((david.milliken@thomsonreuters.com; +44 20 7513 4034;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The BoE's corporate bond holdings include sterling debt from companies such as Apple AAPL.O, EDF EDF.PA and Volkswagen VOWG_p.DE. The BoE bought nearly 20 billion pounds of investment-grade bonds from non-financial companies under its quantitative easing programme to support the economy and stabilise financial markets after the 2016 Brexit referendum and in the COVID-19 pandemic. The BoE's Monetary Policy Committee announced in February that it had asked bank staff to design a programme of corporate bond sales that would be completed no earlier than around the end of 2023.
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The BoE's corporate bond holdings include sterling debt from companies such as Apple AAPL.O, EDF EDF.PA and Volkswagen VOWG_p.DE. By David Milliken LONDON, Aug 18 (Reuters) - The Bank of England set out plans on Thursday to auction off around 200 million pounds ($241 million) of corporate bonds a week from next month, as it moves ahead with its plans to unwind its huge stimulus push of recent years. The BoE's current 19.1 billion pounds of corporate bonds have a nominal value of 14.5 billion pounds.
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The BoE's corporate bond holdings include sterling debt from companies such as Apple AAPL.O, EDF EDF.PA and Volkswagen VOWG_p.DE. By David Milliken LONDON, Aug 18 (Reuters) - The Bank of England set out plans on Thursday to auction off around 200 million pounds ($241 million) of corporate bonds a week from next month, as it moves ahead with its plans to unwind its huge stimulus push of recent years. The sales from the BoE's stockpile of corporate debt are separate to its plans to reduce its 844 billion pounds of government bond holdings by 80 billion pounds over the next year, with further reductions in subsequent years.
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The BoE's corporate bond holdings include sterling debt from companies such as Apple AAPL.O, EDF EDF.PA and Volkswagen VOWG_p.DE. The sales from the BoE's stockpile of corporate debt are separate to its plans to reduce its 844 billion pounds of government bond holdings by 80 billion pounds over the next year, with further reductions in subsequent years. The BoE will only auction off bonds maturing on or after April 6, 2024.
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19730.0
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2022-08-17 00:00:00 UTC
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Single Stock ETFs: A Conversation with Will Rhind, Founder and CEO of GraniteShares
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AAPL
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https://www.nasdaq.com/articles/single-stock-etfs%3A-a-conversation-with-will-rhind-founder-and-ceo-of-graniteshares
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nan
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nan
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L
ast week, I wrote a basic introduction to single stock ETFs for retail traders and investors, after the first few such products began trading in the U.S. They are new here, but not in a global sense, having been available in many European countries for a few years. It struck me that if I wanted to really understand the pros and cons of these products, it would be best to talk to someone with experience in that arena.
To that end, I had a conversation with Will Rhind, the founder and CEO of GraniteShares, a leader in the emerging American single stock ETF market. Will was fresh from having rung the Nasdaq opening bell, a sign of the degree to which the market is already embracing his company’s products. He made time for a conversation that covered the history of his company, the products they offer, the regulatory environment around them, and what the future might hold.
The first thing that struck me about Rhind was that while he was understandably a strong advocate for his products and keen to point out where they could be useful for many people, he wasn’t unaware of the risks associated with them and understood the need for those who use them to understand them too. As he said, his company wants those using GraniteShares single stock ETFs to have a good experience so they will use them again, and the best way to ensure that is to make sure that they understand what these things are about.
His concern focused on retail investors, who may not fully understand them. While the primary use of single stock ETFs is for traders, who can deploy them on an intraday basis, Rhind pointed out that the line between traders and investors is becoming increasingly blurred, and single stock ETFs do have utility for people who wouldn’t class themselves as traders, as long as they understand a few things.
First and foremost, they are either leveraged or inverse products, and those things bring risks that aren’t always present when you simply buy a stock. Leverage is designed to increase returns when something goes your way, but obviously that also means increased losses if they don’t. Inverse funds go up when the underlying instrument, a stock in this case, goes down, but that also means that they go down when the stock goes up. As I said last week, that may seem obvious, but it is worth pointing out all the same.
While this is new to America, it isn’t a new idea. Rhind told me that GraniteShares have products available in the U.K., France, Italy, and Germany, and in many cases, they have been available for a number of years. The company launched with more conventional commodity and index funds as well as single stock funds in 2017 and since then, their single stock ETFs have been through varying market conditions. In Rhind’s opinion, they are most useful during the kind of market we have seen so far this year, with two-way movement and a lot of volatility.
Volatility presents a problem for investors who control their own money and like to actively manage their account. When the market is falling, your hands are tied somewhat. You may know, in your heart of hearts, that the drop will prove to be temporary, but it can be big and worrying all the same, and you feel that you should do something as it falls. In fact, you should, because doing something decreases the chance that you will do the worst thing possible: choke out of good long-term positions at the bottom of a move. The problem is compounded by the fact that if you sell your TSLA, for example, at or near the bottom, you can get caught up in the wash when you try to buy it back.
An inverse single stock ETF such as GraniteShares’ Tesla offering, TSLI, enables you to hedge, rather than cut, that position. As with all hedges, you hope to lose money on the hedge itself, because that means that the rest of your portfolio is making money. Just having it in place, however, gives you peace of mind.
I asked Rhind why the leverage on their long products, currently available on TSLA, COIN, and AAPL, was as conservative as it is, with TSL being 1.25x, CONL 1.5x, and AAPB the most, but still with only 1.75x. He told me it was part by choice, to offer a gentle introduction to these products, but also the result of regulatory requirements. The effect, though, was a suite of products with quite conservative leverage, and that suits GraniteShares just fine for now.
Single stock ETFs are here to stay. Leverage ranging from 1.25 to 1.75X allows traders and investors to get used to them without a massive increase in their risk exposure. It provides a stepping stone for those who want to employ leverage but aren’t ready for the amount involved in, say, options trading.
It was an interesting conversation with a man who has been involved with ETFs since their early days in the early 2000s, and who understands the market better than most. One thing that we definitely agreed on was that over the next few years, single stock ETFs will become a big part of the investing landscape, with a lot more offerings slated for launch. Traders and investors owe it to themselves to understand what they are about and how they work, so even if you don’t get directly involved, you should start tracking TSL, CONL, AAPB, and the inverse Tesla offering TSLI so as to better understand their potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I asked Rhind why the leverage on their long products, currently available on TSLA, COIN, and AAPL, was as conservative as it is, with TSL being 1.25x, CONL 1.5x, and AAPB the most, but still with only 1.75x. ast week, I wrote a basic introduction to single stock ETFs for retail traders and investors, after the first few such products began trading in the U.S. To that end, I had a conversation with Will Rhind, the founder and CEO of GraniteShares, a leader in the emerging American single stock ETF market.
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I asked Rhind why the leverage on their long products, currently available on TSLA, COIN, and AAPL, was as conservative as it is, with TSL being 1.25x, CONL 1.5x, and AAPB the most, but still with only 1.75x. ast week, I wrote a basic introduction to single stock ETFs for retail traders and investors, after the first few such products began trading in the U.S. An inverse single stock ETF such as GraniteShares’ Tesla offering, TSLI, enables you to hedge, rather than cut, that position.
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I asked Rhind why the leverage on their long products, currently available on TSLA, COIN, and AAPL, was as conservative as it is, with TSL being 1.25x, CONL 1.5x, and AAPB the most, but still with only 1.75x. ast week, I wrote a basic introduction to single stock ETFs for retail traders and investors, after the first few such products began trading in the U.S. While the primary use of single stock ETFs is for traders, who can deploy them on an intraday basis, Rhind pointed out that the line between traders and investors is becoming increasingly blurred, and single stock ETFs do have utility for people who wouldn’t class themselves as traders, as long as they understand a few things.
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I asked Rhind why the leverage on their long products, currently available on TSLA, COIN, and AAPL, was as conservative as it is, with TSL being 1.25x, CONL 1.5x, and AAPB the most, but still with only 1.75x. ast week, I wrote a basic introduction to single stock ETFs for retail traders and investors, after the first few such products began trading in the U.S. As he said, his company wants those using GraniteShares single stock ETFs to have a good experience so they will use them again, and the best way to ensure that is to make sure that they understand what these things are about.
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19731.0
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2022-08-17 00:00:00 UTC
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7 Stocks That Are Still Hedge Fund Favorites
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AAPL
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https://www.nasdaq.com/articles/7-stocks-that-are-still-hedge-fund-favorites
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many of the hedge fund favorites are technology companies, my analysis of the most popular stocks among the 40 largest hedge funds shows. Additionally, the top five hedge funds in 2022 hold widely followed names like Coca-Cola (NYSE:KO).
The media tends to closely cover the stocks that are most widely owned by hedge funds, making those equities popular among retail investors. And after the market rebounded for four straight weeks this summer, investors may want to copy the trades of top hedge funds in order to avoid missing out on the market’s rebound .
The stocks whose grade is in green have the best prospects.
In the quantitative table above, six of the seven firms receive high ratings on quality and growth. Although Uber (NYSE:UBER) has poor grades, the stock still bottomed in the low $20s.
In the smartphone market, Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) have strong growth prospects, so hedge funds cannot risk leaving those stocks out of their portfolios.
Although inflation is causing some consumers to reduce their spending on certain items, they are unlikely to avoid upgrading their smartphones. Still, consumers may delay buying the latest Apple iPhone.
But such behavior will only prevent Apple’s profit from increasing for one or two quarters. In the interim, the vast majority of iPhone users will likely continue to buy apps, listen to Apple Music, and subscribe to Apple TV.
BABA Alibaba $90.57
AAPL Apple $175.67
KO Coca-Cola $65.12
NFLX Netflix $243.00
NVDA Nvidia $185.20
QCOM Qualcomm $149.25
UBER Uber Technologies $30.80
Alibaba Group (BABA)
Source: BigTunaOnline / Shutterstock.com
Alibaba (NYSE:BABA) is still a hedge fund favorite despite its growth slowdown and its potential delisting from the NYSE \.
Alibaba, however, has alternatives. For example, the company may list its shares on the Hong Kong Stock Exchange, enabling the current holders of BABA stock to convert their holdings to shares listed in Hong Kong.
Softbank (OTCMKTS:SFTBY) is planning to sell its shares of Alibaba. Softbank will use contracts to exit its position over time. As a result, the risk of it unloading the stock too quickly will be minimized, reducing the chances of the share price dropping when Softbank sells its BABA stock.
Softbank needs to raise cash because it invested in many illiquid start-up companies.
Apple (AAPL)
Source: mama_mia / Shutterstock.com
Apple (NASDAQ:AAPL) stock bottomed at around $130 in early summer. Apple reportedly told its suppliers to make 90 million of its newest iPhone, the iPhone 14.
Apple enjoys strong brand recognition and customer loyalty. After the prices of its supplies rose due to inflation, Apple will probably raise iPhone prices. For example, it could keep iPhone 13 prices at their current levels even after it launches the iPhone 14. After launching new iPhones in the past, Apple has cut the prices of its older models.
This year, investors should expect the company to raise the prices of its new iPhone by up to 15% versus last year’s new models. Apple’s stores are always packed, suggesting that there is strong demand for the company’s Macbooks, iPads, and smartphones.
In its fiscal third quarter, Apple’s revenue climbed 2% year-over-year to $83 billion,, and it generated earnings per share of $1.20.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Coca-Cola (NYSE:KO) reported that its net revenue climbed 12% YOY in Q2. Its global unit case volume grew by 8% YOY. For the full year, the company expects revenue growth of 12%-13%.
CEO James Quincey said that Coca-Cola has accelerated its growth by dominating the industry, while the firm is growing its market share.
While inflation is squeezing consumers’ purchasing power in some parts of the world, in countries like China and Southeast Asia, inflation is only running at around 3% annually. Still, as consumers reprioritize their spending habits, they are not reducing their purchases of Coca-Cola’s products, its CEO reported.
Coca-Cola has a favorable sales mix and, to cope with inflation, it has increased its prices. The company will pass its increased costs onto its customers. Coke’s price hikes will, however, be minimal because it has hedged its exposure to the commodities that it uses.
Coca-Cola will also sustain its profitability by focusing on its productivity. For example, it may seek to develop closer relationships with its key suppliers.
Netflix (NFLX)
Source: Riccosta / Shutterstock.com
Netflix (NASDAQ:NFLX) reported that it had lost 970,000 net subscribers in Q2. That was better than its previous guidance of a loss of 2 million net subscribers.
CEO Reed Hastings said that the company had developed strong content. Its successful shows included Ozark and Stranger Things. In addition, the company used marketing to slow the decline of its customer base while improving its service.
The owners of NFLX stock are accepting the fact that the linear growth of the demand for streaming has ended. In the next few years, Netflix needs to optimize its price changes in order to minimize the turnover of its customers .
It also must create better content to deter customers from canceling their subscriptions. In the second half of the year, the company expects to generate stronger growth, in-line with its usual seasonal trends.
NVIDIA (NVDA)
Source: Shutterstock
NVIDIA (NASDAQ:NVDA) preannounced weak Q2 sales. The semiconductor firm reported preliminary Q2 revenue of $6.7 billion, compared to its previous guidance of $8.1 billion. The shortfall was primarily a result of lower-than-expected gaming revenue.
NVDA stock fell, only to snap back subsequently. Hedge funds are betting that the company’s price cuts will re-kindle the demand for its products.
During the pandemic and the cryptocurrency boom, retailers sold Nvidia graphics cards for more than double the suggested retail price. When the pandemic lockdown ended and crypto prices fell, their prices also slumped.
Hedge funds are betting that Nvidia’s sales will rebound after Q2. Chances are better that the sales will grow after Q1 of 2023, but investors cannot predict how soon the excess supply of Nvidia’s products will be cleared.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) provided Q4 revenue guidance of between $11.0 billion and $11.8 billion. The lower guidance overshadowed its strong Q3 revenue which jumped 37% YOY to $10.9 billion.
On the company’searnings conference call CFO Akash Palkhiwala said that elevated uncertainty in the global economy and the impact of anti- Covid measures in China would slow the company’s orders in the second half of 2022. Conversely, the gross margins of Qualcomm’s CDMA technology will increase in the second half. In addition, many handsets will have more of Qualcomm’s processors.
Qualcomm has growth drivers in the 5G market. Although the firm lowered its 5G unit sale guidance, it will increase the average selling price of its 5G products.
Another growth driver for Qualcomm is the radio frequency front-end market. The RF segment is expanding because automotive Internet of Things and Wi-Fi systems need Qualcomm’s RF offerings. Qualcomm has over $900 million of RF front-end design wins with automotive companies.
Patient investors should hold QCOM stock for the long- term.
Uber Technologies (UBER)
Source: NYCStock / Shutterstock.com
Uber Technologies (NYSE:UBER) posted all-time high gross bookings. of $29.1 billion in Q2, as its gross bookings surged 33% YOY. The ridesharing company’s revenue soared 105% YOY to $8.07 billion.
But Uber lost a massive $2.6 billion in Q2, including a $1.7 billion loss generated by its investments in other firms. However, its Monthly Active Platform Consumers (“MAPCs”) increased a robust 21% YOY to 122 million.
For Q3, Uber expects gross bookings of $29 billion to $30 billion and EBITDA, excluding certain items, of $440 million to $470 million. To meet the guidance, Uber’s investments will have to pay off.
For example, it relaunched its shared ride concept, UberX Share. Past aggressive investments pushed Uber ahead of the competition. Now, however, its end market is weaker, so Uber must curtail its investments. It will need to leverage its platform advantages to stay ahead of its peers.
On the date of publication, Chris Lau 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.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.
The post 7 Stocks That Are Still Hedge Fund Favorites 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 smartphone market, Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) have strong growth prospects, so hedge funds cannot risk leaving those stocks out of their portfolios. BABA Alibaba $90.57 AAPL Apple $175.67 KO Coca-Cola $65.12 NFLX Netflix $243.00 NVDA Nvidia $185.20 QCOM Qualcomm $149.25 UBER Uber Technologies $30.80 Alibaba Group (BABA) Source: BigTunaOnline / Shutterstock.com Alibaba (NYSE:BABA) is still a hedge fund favorite despite its growth slowdown and its potential delisting from the NYSE \. Apple (AAPL) Source: mama_mia / Shutterstock.com Apple (NASDAQ:AAPL) stock bottomed at around $130 in early summer.
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In the smartphone market, Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) have strong growth prospects, so hedge funds cannot risk leaving those stocks out of their portfolios. BABA Alibaba $90.57 AAPL Apple $175.67 KO Coca-Cola $65.12 NFLX Netflix $243.00 NVDA Nvidia $185.20 QCOM Qualcomm $149.25 UBER Uber Technologies $30.80 Alibaba Group (BABA) Source: BigTunaOnline / Shutterstock.com Alibaba (NYSE:BABA) is still a hedge fund favorite despite its growth slowdown and its potential delisting from the NYSE \. Apple (AAPL) Source: mama_mia / Shutterstock.com Apple (NASDAQ:AAPL) stock bottomed at around $130 in early summer.
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In the smartphone market, Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) have strong growth prospects, so hedge funds cannot risk leaving those stocks out of their portfolios. BABA Alibaba $90.57 AAPL Apple $175.67 KO Coca-Cola $65.12 NFLX Netflix $243.00 NVDA Nvidia $185.20 QCOM Qualcomm $149.25 UBER Uber Technologies $30.80 Alibaba Group (BABA) Source: BigTunaOnline / Shutterstock.com Alibaba (NYSE:BABA) is still a hedge fund favorite despite its growth slowdown and its potential delisting from the NYSE \. Apple (AAPL) Source: mama_mia / Shutterstock.com Apple (NASDAQ:AAPL) stock bottomed at around $130 in early summer.
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In the smartphone market, Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) have strong growth prospects, so hedge funds cannot risk leaving those stocks out of their portfolios. BABA Alibaba $90.57 AAPL Apple $175.67 KO Coca-Cola $65.12 NFLX Netflix $243.00 NVDA Nvidia $185.20 QCOM Qualcomm $149.25 UBER Uber Technologies $30.80 Alibaba Group (BABA) Source: BigTunaOnline / Shutterstock.com Alibaba (NYSE:BABA) is still a hedge fund favorite despite its growth slowdown and its potential delisting from the NYSE \. Apple (AAPL) Source: mama_mia / Shutterstock.com Apple (NASDAQ:AAPL) stock bottomed at around $130 in early summer.
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19732.0
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2022-08-17 00:00:00 UTC
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Shopify (SHOP) Unveils Collabs to Connect Merchants & Creators
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AAPL
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https://www.nasdaq.com/articles/shopify-shop-unveils-collabs-to-connect-merchants-creators
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nan
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nan
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Shopify SHOP recently introduced Shopify Collabs to connect merchants with creators and develop a new source of sales and marketing channel for different brands, enabling creators to become economically independent.
Shopify’s latest venture to create the Collabs platform helps address the issues faced by creators and different brands.
Per Shopify, the total creator economy is estimated to be worth above $100 billion. However, only 4% of creators create content full-time and earn money from it. As an independent creator, it is difficult to create relationships with brands, build strategic partnerships and monetize their content via branding, promotion and advertising revenues.
Creators who entertain and can influence followers’ buying patterns, have a huge following, especially among the younger lot. They are also known as social influencers.
For merchants and different brands, the creator economic group presents a new way to find probable consumers, particularly at a time when acquiring customers became increasingly difficult and expensive.
How Will This New Platform Aid Shopify?
Shopify’s e-commerce business boomed during the COVID-19 pandemic as global brands and small stores set up online platforms to sell products due to retail market closures.
However, once the economy opened and retail stores started winning back their lost customers, Shopify lost its momentum. Inflation and possible signs of recession aggravated the current market scenario, which slowed down growth in the e-commerce market.
Also, rising inflation surged operating expenses. In the second quarter, non-GAAP operating expenses soared 75.7% year over year to $845.9 million, inducing an adjusted operating loss of $41.8 million.
Shopify Inc. Price and Consensus
Shopify Inc. price-consensus-chart | Shopify Inc. Quote
Shopify shares have plunged 72.3% compared with the Zacks Internet Services industry’s decline of 19% in the year-to-date period.
Nevertheless, Shopify has been investing heavily in research and development, and sales and marketing to create new platforms and forge strategic alliances with major tech companies to generate new services and address the growing trends in the social media marketing space.
Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and the major social media platforms like Twitter TWTR and Meta Platforms’ META Facebook and Instagram.
The recent integration with Apple enables shoppers to use Apple smartphones against the terminal to pay for goods. While this may not be a new feature in retail but Apple’s recent Pay Later installments added a whole new dimension to retail marketing.
The Twitter sales channel allows merchants to connect with consumers directly from their Twitter profiles. SHOP’s integration with Twitter was the very first collaboration with a social media platform and the company is looking to benefit from the growing trend of influence marketing strategy.
Meta Platforms’ Facebook and Instagram are two of the most popular social media platforms among the creators and users alike. Facebook’s short-format videos and reels on Instagram are enjoying increasing popularity among the content creators who can create short content, while users spend more than 20% of their time on these social media platforms. Integration with Meta Platforms will help Shopify address the growing trends and help merchants promote and sell their products via Facebook or Instagram at a much reasonable cost.
Launch of the latest Collabs platform will attract new merchants to the Shopify platform who can in turn, attract new customers by addressing the recent social media marketing trends at a much moderate cost, especially when traditional advertising and branding expenses are skyrocketing due to inflation. Also, the unveiling will make Shopify an ideal commercial platform for creators, which will not only win hordes of customers but also reboost the e-commerce division.
Although the short-term growth prospects look bleak for SHOP under the current market volatility, the recent solution launch and integration with major tech companies will help it generate new revenue sources in the long haul, thus impacting revenue growth positively. This will also add to its shareholders' wealth.
Shopify currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and the major social media platforms like Twitter TWTR and Meta Platforms’ META Facebook and Instagram. Apple Inc. (AAPL): Free Stock Analysis Report For merchants and different brands, the creator economic group presents a new way to find probable consumers, particularly at a time when acquiring customers became increasingly difficult and expensive.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and the major social media platforms like Twitter TWTR and Meta Platforms’ META Facebook and Instagram. Apple Inc. (AAPL): Free Stock Analysis Report Shopify SHOP recently introduced Shopify Collabs to connect merchants with creators and develop a new source of sales and marketing channel for different brands, enabling creators to become economically independent.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and the major social media platforms like Twitter TWTR and Meta Platforms’ META Facebook and Instagram. Apple Inc. (AAPL): Free Stock Analysis Report Shopify SHOP recently introduced Shopify Collabs to connect merchants with creators and develop a new source of sales and marketing channel for different brands, enabling creators to become economically independent.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and the major social media platforms like Twitter TWTR and Meta Platforms’ META Facebook and Instagram. Apple Inc. (AAPL): Free Stock Analysis Report However, once the economy opened and retail stores started winning back their lost customers, Shopify lost its momentum.
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19733.0
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2022-08-17 00:00:00 UTC
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Apple Stock Has Upside Potential and New Gadgets on the Way
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AAPL
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https://www.nasdaq.com/articles/apple-stock-has-upside-potential-and-new-gadgets-on-the-way
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Inflation may have finally peaked, and if so, then this could greatly benefit Apple (NASDAQ:AAPL) stock and its stakeholders.
Also, AAPL stock might get a lift soon as Apple prepares to introduce exciting new tech products.
Everybody wants to hop on the latest trend in the market, it seems. From penny stocks to meme stocks, the dream of multi-bagger gains remains alive in 2022.
Yet, let’s not forget about “old reliable”: Apple, the company that introduced the world to smartphones all those years ago. With a $2.7 trillion market capitalization, Apple remains a tech-market powerhouse that today’s traders shouldn’t put on the shelf.
AAPL Apple $174.48
What’s Happening with AAPL Stock?
Truly, AAPL stock is shaping up to become the comeback kid of 2022. Despite all of the volatility, it might not be much longer before Apple shares break through their 52-week high of $182.94.
At the same time, Apple offers a great mix of value and dividends. Specifically, Apple’s trailing 12-month price-to-earnings (P/E) ratio is quite reasonable, at 27.85.
Furthermore, Apple pays a forward annual dividend yield of 0.56%. Remember, this is about collecting consistent income, not a get-rich-quick scheme.
Let’s get back to basics, though. After all, what made Apple a household name in the first place was the company’s leading-edge products. In that vein, reports have surfaced indicating that Apple’s ready to roll out some blockbuster gadgets soon.
Expect a New Phone, Watch and More from Apple
Reportedly, in anticipated of a rumored release date in September, Apple has already begun recording its iPhone 14 launch event.
It’s even been said (though not confirmed) that Apple will reveal the iPhone 14 and 14 Pro, as well as the Apple Watch Series 8, on Sept. 13.
The new Apple Watch model is rumored to have a new body-temperature sensor, while a new “Pro” model might feature new casing and a larger screen. Yet, there might be something even more groundbreaking in the works.
According to TFI Asset Management analyst Ming-Chi Kuo, Apple could announce its augmented and mixed reality headset as soon as January.
Kuo posted some pages from a report on this, on social media.
The analyst went so far as to declare that Apple’s headset “will be the next revolutionary electronics product.”
This might sound like an exaggeration, but Apple has certainly proven its ability to alter the tech landscape as we know it.
What You Can Do Now
There are many reasons to choose to invest in Apple. The company has a gigantic market cap and offers a strong value, as well as a reliable dividend.
However, the crux of the argument for Apple is the company’s tech products. Time and again, Apple knocks it out of the park with innovative new gadgets.
This puts AAPL stock holders at an advantage, and you can enjoy this advantage by considering a long position in Apple today.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Apple Stock Has Upside Potential and New Gadgets on the Way 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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Also, AAPL stock might get a lift soon as Apple prepares to introduce exciting new tech products. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation may have finally peaked, and if so, then this could greatly benefit Apple (NASDAQ:AAPL) stock and its stakeholders. AAPL Apple $174.48 What’s Happening with AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation may have finally peaked, and if so, then this could greatly benefit Apple (NASDAQ:AAPL) stock and its stakeholders. Also, AAPL stock might get a lift soon as Apple prepares to introduce exciting new tech products. AAPL Apple $174.48 What’s Happening with AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation may have finally peaked, and if so, then this could greatly benefit Apple (NASDAQ:AAPL) stock and its stakeholders. Also, AAPL stock might get a lift soon as Apple prepares to introduce exciting new tech products. AAPL Apple $174.48 What’s Happening with AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation may have finally peaked, and if so, then this could greatly benefit Apple (NASDAQ:AAPL) stock and its stakeholders. Also, AAPL stock might get a lift soon as Apple prepares to introduce exciting new tech products. AAPL Apple $174.48 What’s Happening with AAPL Stock?
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19734.0
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2022-08-17 00:00:00 UTC
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Bed Bath & Beyond leads revival in meme stocks' rally
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AAPL
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https://www.nasdaq.com/articles/bed-bath-beyond-leads-revival-in-meme-stocks-rally
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nan
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By Medha Singh
Aug 17 (Reuters) - Shares of Bed Bath & Beyond Inc BBBY.O jumped 23% on Wednesday, leading a surge in meme stocks again as individual investors continued to dabble in highly shorted shares.
Bed Bath & Beyond has gained in 14 out of the past 15 sessions, helping the home goods company's market value more than quadruple to over $2 billion. The stock was last trading at $25.93 after rising up to $30 earlier in the session.
"It truly is a quality company (but) shares are probably overvalued in the low teens and it is ridiculously overvalued at high $20s," said Jake Dollarhide, chief executive officer at Longbow Asset Management in Tulsa, Oklahoma.
Retail investors net bought $73.2 million worth of the company's shares on Tuesday, the highest single-day purchase in at least five years, according to Vanda Research's retail trade flows data, as a filing showing activist investor Ryan Cohen's long-term call option purchases enthused retail punters.
Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc AAPL.O and Tesla Inc TSLA.O, data from Options Clearing Corp showed.
The resurgence in retail trading comes after a rebound in U.S. stocks that helped the S&P 500 recoup more than half of the benchmark's losses since its June low.
"It's possible for the meme rally to spread since there is a lot of short-term capital entering the market. We've seen the same with Chinese meme stocks over the past few weeks as well," Siddharth Singhai, chief investment officer at New York-based hedge fund Ironhold Capital.
Among others, e-commerce firm Vinco Ventures BBIG.O advanced 32% and meal-kit delivery firm Blue Apron APRN.N rose 8.7%.
About 55% of Bed Bath & Beyond's free float is shorted, an increase of 19% in the past 30 days despite the price surge, according to S3 Partners.
"While short-sellers were squeezed out when BBBY hit $10, $15 and $20 per share, there were other traders who saw (that) as attractive short-side entry points," said S3's Ihor Dusaniwsky.
(Reporting by Medha Singh in Bengaluru, additional reporting by Bansari Mayur Kamdar; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc AAPL.O and Tesla Inc TSLA.O, data from Options Clearing Corp showed. Bed Bath & Beyond has gained in 14 out of the past 15 sessions, helping the home goods company's market value more than quadruple to over $2 billion. We've seen the same with Chinese meme stocks over the past few weeks as well," Siddharth Singhai, chief investment officer at New York-based hedge fund Ironhold Capital.
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Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc AAPL.O and Tesla Inc TSLA.O, data from Options Clearing Corp showed. By Medha Singh Aug 17 (Reuters) - Shares of Bed Bath & Beyond Inc BBBY.O jumped 23% on Wednesday, leading a surge in meme stocks again as individual investors continued to dabble in highly shorted shares. Bed Bath & Beyond has gained in 14 out of the past 15 sessions, helping the home goods company's market value more than quadruple to over $2 billion.
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Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc AAPL.O and Tesla Inc TSLA.O, data from Options Clearing Corp showed. By Medha Singh Aug 17 (Reuters) - Shares of Bed Bath & Beyond Inc BBBY.O jumped 23% on Wednesday, leading a surge in meme stocks again as individual investors continued to dabble in highly shorted shares. Retail investors net bought $73.2 million worth of the company's shares on Tuesday, the highest single-day purchase in at least five years, according to Vanda Research's retail trade flows data, as a filing showing activist investor Ryan Cohen's long-term call option purchases enthused retail punters.
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Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc AAPL.O and Tesla Inc TSLA.O, data from Options Clearing Corp showed. Bed Bath & Beyond has gained in 14 out of the past 15 sessions, helping the home goods company's market value more than quadruple to over $2 billion. Retail investors net bought $73.2 million worth of the company's shares on Tuesday, the highest single-day purchase in at least five years, according to Vanda Research's retail trade flows data, as a filing showing activist investor Ryan Cohen's long-term call option purchases enthused retail punters.
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19735.0
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2022-08-17 00:00:00 UTC
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Better Buy: Unity Software vs. Matterport
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-unity-software-vs.-matterport
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nan
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nan
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Unity Software (NYSE: U) and Matterport (NASDAQ: MTTR) aren't usually considered competitors. Unity's eponymous game engine powers more than half of the world's mobile, console, and PC games. It also provides additional advertising, multiplayer, and analytics tools. Matterport develops 3D spatial scanning software which creates "digital twins" of physical locations and stores them on a cloud-based platform. It also sells 3D cameras, which enable customers to scan their own locations.
But over the past two years, Unity expanded into Matterport's backyard with its own 3D scanning and digital twin tools. Could that strategy, which is part of its broader diversification away from the gaming market, crush Matterport and make Unity a more promising long-term investment?
Image source: Getty Images.
Both companies face near-term headwinds
Unity and Matterport both struggled this year as rising interest rates punished higher-growth companies that failed to hit home runs.
Unity's stock declined more than 60% this year as the growth of its advertising business -- a key component of the Operate Solutions segment which generated 64% of its revenue last year -- stalled out. That slowdown, which partly offset the robust growth of its Create Solutions (gaming engine) business, was likely caused by incompatibilities between its advertising algorithms and Apple's (NASDAQ: AAPL) privacy-oriented iOS update.
Unity is rebuilding its advertising algorithm and trying to accelerate that recovery by buying the ad-tech company ironSource (NYSE: IS). Still, it only expects its revenue to rise 18% to 23% this year. That would represent a significant slowdown from its 44% revenue growth in 2021.
Matterport's stock plunged more than 70% as supply chain disruptions throttled the growth of its products business -- which mainly sells 3D cameras and generated 29% of its revenues last year. Its software platform continued to gain new subscribers, but only 62,000 of its 616,000 subscribers were on paid plans (which allow the cloud-based storage of more than one digital twin) at the end of the second quarter of 2022.
Matterport expects its supply chain disruptions to continue and for its revenue to rise 19% to 24% for the full year. That would represent a slowdown from its 29% growth in 2021, even after factoring in its recent acquisition of the real estate marketing company VHT Studios.
Matterport claims to be the "clear market leader" in the niche market for digital twins, but Unity could gradually catch up by bundling its digital twin services with its other tools. Unity also provides digital twin services for a broader range of architecture, manufacturing, automotive, aerospace, and retail customers -- while Matterport remains tightly tethered to the real estate sector.
Nevertheless, both companies could still profit from the secular expansion of the digital twin market, which could grow at a compound annual growth rate (CAGR) of 39% from 2022 to 2030, according to Grand View Research. Therefore, there could be enough room for both companies to expand their digital twin platforms without trampling each other.
One company has a clearer path toward profitability
Unity and Matterport are both unprofitable by generally accepted accounting principles (GAAP) and non-GAAP measures. But a side-by-side comparison suggests that Unity's net losses, which narrowed on a non-GAAP basis in 2021, are more sustainable than Matterport's losses -- which widened significantly by both measures.
COMPANY (PERIOD)
UNITY (2021)
MATTERPORT (2021)
Revenue
$1.11 billion
$111.2 million
Net Loss (GAAP)
($532.6 million)
($338.1 million)
Net Loss (Non-GAAP)
($61.8 million)
($46.9 million)
Net Profit Margin (Non-GAAP)
(5.6%)
(42.2%)
Data source: Company earnings reports.
Unity expects to achieve breakeven non-GAAP profits in the fourth quarter of 2022, followed by its first full year of non-GAAP profits in 2023. Matterport expects its non-GAAP net loss per share to more than double this year.
Unity believes its growth will stabilize after it reboots its advertising platform and integrates ironSource. Meanwhile, Matterport will likely struggle to convert its free users (which are causing its cloud infrastructure costs to stay elevated) to paid ones even after it resolves its camera production issues.
The valuations and verdict
Unity and Matterport are both growing at similar rates, and their stocks both trade at about 12 times this year's sales. But if we look at the fundamentals, Unity clearly operates the stronger business.
Unity is already the market leader in video games, and it's leveraging that dominance to expand into new non-gaming markets like digital twins. That expansion could ultimately transform into a more diversified cloud-based software company like Adobe. Matterport is still struggling to expand beyond its initial niche, and its lower-margin camera business continues to throttle its revenue and earnings growth.
Unity faces many near-term challenges, but it still has a better shot at a long-term recovery than Matterport. That's probably why it recently rejected an unsolicited bid from Applovin (NASDAQ: APP), suggesting it would be wiser to integrate ironSource and fix its struggling ad business instead.
10 stocks we like better than Unity Software Inc.
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Leo Sun has positions in Adobe Inc., Apple, and Unity Software Inc. The Motley Fool has positions in and recommends Adobe Inc., Apple, Matterport, Inc., and Unity Software Inc. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That slowdown, which partly offset the robust growth of its Create Solutions (gaming engine) business, was likely caused by incompatibilities between its advertising algorithms and Apple's (NASDAQ: AAPL) privacy-oriented iOS update. Unity also provides digital twin services for a broader range of architecture, manufacturing, automotive, aerospace, and retail customers -- while Matterport remains tightly tethered to the real estate sector. Meanwhile, Matterport will likely struggle to convert its free users (which are causing its cloud infrastructure costs to stay elevated) to paid ones even after it resolves its camera production issues.
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That slowdown, which partly offset the robust growth of its Create Solutions (gaming engine) business, was likely caused by incompatibilities between its advertising algorithms and Apple's (NASDAQ: AAPL) privacy-oriented iOS update. Matterport's stock plunged more than 70% as supply chain disruptions throttled the growth of its products business -- which mainly sells 3D cameras and generated 29% of its revenues last year. Revenue $1.11 billion $111.2 million Net Loss (GAAP) ($532.6 million) ($338.1 million) Net Loss (Non-GAAP) ($61.8 million) ($46.9 million) Net Profit Margin (Non-GAAP) (5.6%) (42.2%) Data source: Company earnings reports.
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That slowdown, which partly offset the robust growth of its Create Solutions (gaming engine) business, was likely caused by incompatibilities between its advertising algorithms and Apple's (NASDAQ: AAPL) privacy-oriented iOS update. But over the past two years, Unity expanded into Matterport's backyard with its own 3D scanning and digital twin tools. Unity's stock declined more than 60% this year as the growth of its advertising business -- a key component of the Operate Solutions segment which generated 64% of its revenue last year -- stalled out.
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That slowdown, which partly offset the robust growth of its Create Solutions (gaming engine) business, was likely caused by incompatibilities between its advertising algorithms and Apple's (NASDAQ: AAPL) privacy-oriented iOS update. Unity's stock declined more than 60% this year as the growth of its advertising business -- a key component of the Operate Solutions segment which generated 64% of its revenue last year -- stalled out. Nevertheless, both companies could still profit from the secular expansion of the digital twin market, which could grow at a compound annual growth rate (CAGR) of 39% from 2022 to 2030, according to Grand View Research.
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19736.0
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2022-08-17 00:00:00 UTC
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Nasdaq 100 Movers: ADI, PDD
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-adi-pdd
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nan
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nan
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In early trading on Wednesday, shares of Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, Pinduoduo has lost about 14.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Analog Devices, trading down 4.8%. Analog Devices is lower by about 3.1% looking at the year to date performance.
Two other components making moves today are MercadoLibre, trading down 3.4%, and Apple, trading up 0.7% on the day.
VIDEO: Nasdaq 100 Movers: ADI, PDD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Analog Devices, trading down 4.8%. Analog Devices is lower by about 3.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ADI, PDD The views and 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 early trading on Wednesday, shares of Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, Pinduoduo has lost about 14.4% of its value. And the worst performing Nasdaq 100 component thus far on the day is Analog Devices, trading down 4.8%.
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In early trading on Wednesday, shares of Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. And the worst performing Nasdaq 100 component thus far on the day is Analog Devices, trading down 4.8%. Two other components making moves today are MercadoLibre, trading down 3.4%, and Apple, trading up 0.7% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Analog Devices, trading down 4.8%. Analog Devices is lower by about 3.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ADI, PDD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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19737.0
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2022-08-17 00:00:00 UTC
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Inflation and Market News
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AAPL
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https://www.nasdaq.com/articles/inflation-and-market-news
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nan
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nan
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In this podcast, Motley Fool senior analysts Emily Flippen and Jason Moser discuss:
July's CPI and how lower-than-expected inflation fueled a market rally.
Axon Enterprises posting record revenue in Q2.
Marqeta founder Jason Gardner stepping down as CEO.
Drama between Unity Software, AppLovin, and Ironsource.
The latest from Disney, Upstart Holdings, Sweetgreen and The Trade Desk.
Motley Fool senior analyst Tim Beyers talks with Marsha Barnes, founder & CEO of The Finance Bar, about the mindset traps that can keep people from investing and how to avoid them.
Emily and Jason analyze Nvidia's preliminary earnings announcement, as well as:
Domino's Pizza exiting Italy.
A listener's question about Intel.
Two stocks on their radar: Sonos and Masimo.
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 Axon Enterprise
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*Stock Advisor returns as of August 11, 2022
This video was recorded on August 12, 2022.
Chris Hill: Software, chipmakers, restaurants, inflation, entertainment, and more. It must be Friday. Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Chris Hill. Joining me in studio, Motley Fool Senior Analyst, Emily Flippen and Jason Moser. Good to you see both.
Jason Moser: Hey.
Emily Flippen: Hey there.
Chris Hill: We've got another big week of earnings. We will dip into the Fool mailbag and as always, we got a couple of stocks on our radar. But we begin with the big macro. Inflation moving lower helped push the stock market higher. The national average for the price of gas is now below four dollars a gallon and Wednesday CPI report showed consumer prices up 8.5 percent in July, which is lower than Wall Street was expecting. Don't look now Emily, but the Nasdaq is officially in bull market territory.
Emily Flippen: Well, now that you've mentioned it, Chris, inevitably, next week we're looking at some horrendous news story that's going to push us back down. But for the time being, we can all head into the weekend probably feeling pretty good about ourselves and the economy. Although I will say you should take these numbers with a grain of salt. As you mentioned, that national average price for gas falling below four dollars a gallon that has an outsized impact on our inflation metrics. The majority of the pullback inflation did come from energy, while things like food and housing still remain pretty elevated for the average American consumer and that is certainly taking its toll on companies. When you look at the businesses that have reported earnings over this past quarter, while these are reflective of what's happened in the past, a ton of them have pulled back guidance on expectations for weakening consumer demand, a worst global economy. This is a step in the right direction, but we're certainly not out of the woods yet.
Jason Moser: You know what they say about bear markets, Chris, or just bull markets waiting to happen. Now we are right back to where we want to be at least in the near term. I agree with Emily. I think that this is a great narrative, a great story for the time being. I don't think it means that the rest of the year is just going to be sunshine and lollipops. Essentially the same thing is going on in the world right now that have put us in this position here that we're in right now. My suspicion is this back half of the year is going to be somewhat volatile. That'd be very interesting to see next earnings season how they frame how the holiday season coming up. It does still hurt to go to the grocery store, speaking as someone who goes to the grocery store a lot. I was listening to I think it might have been yesterday's show, maybe it was the day before, but Tim Beyers was talking about how before you could go to the store, he was witnessing this. Go to the store, you get two roast chickens for $10, and now he gets that one roast chicken for nine dollars. Those are real material costs that families are bearing every day. It is nice to see fuel prices take a little bit of a dip there, but it's worth remembering the consumer is still in a tough spot in a lot of ways.
Emily Flippen: Well, I'll tell you what I'm watching. Well, inflation is this a lagging indicator telling us what has happened. I like to look at hiring for businesses because that shows you their expectations for how their business is going to perform in the back half of the year and we've seen hiring actually increase and while a lot of this is for service industries, that's the metric I'm looking at to tell, OK, are businesses expecting things to get better or are they still expecting things to get worse?
Chris Hill: Shares of Disney up this week after a third-quarter report that featured the following headlines, Parks' revenue rose 72 percent, the total number of streaming subscribers to Disney Plus, ESPN Plus, and Hulu is now greater than the total number of Netflix subscribers. Yes, Jason, the price of those services is going higher, so what's the biggest news out of Disney for you?
Jason Moser: I think you summed it up quite nicely there, Chris, next story. [laughs] I think the main focus on Disney clearly has been the streaming operations here recently and that makes sense. It's the newest dynamic, but you said it. Don't sleep on the park side of this business. That's a massive driver that's such a differentiator, and then now it really does look like traffic is coming back and you look at the performance, their revenue up over 72 percent, operating income more than doubled. That really shows how they're able to leverage those massive properties and take advantage of that growing traffic and they're able to raise prices a little bit along the way there as well.
Per capita spending at the domestic Parks up 10 percent versus the third quarter of 2021 up over 40 percent from fiscal 2019 with occupancy rates at their property at 90 percent now. The property hotel is 90 percent. Those things are not cheap. I think it's astounding what they've done with the streaming services in such short order. To have a subscriber base, essentially the size of Netflix has now granted their spreading it across a number of different properties, but don't hate the player, hate the game because that's a big deal, but that's something we've always touted with Disney. All of that IP, those properties that makes a big difference unlike the parks, it's a tremendous differentiator for this business.
Chris Hill: Although they did also take the opportunity to lower their target for 2024, they did pull down that number of how many subscribers they think they're going to have by 2024. In part, I'm assuming because they are raising prices and they have to expect some drop-off.
Jason Moser: Yeah, part of that also was due to the Disney Plus Hotstar product over in India. I think it's an making some bids for content over there that leads them to be a little bit more conservative right now. Honestly, I don't think any of us were really surprised by that. We felt like that 230-260 goal was relatively high. They're pulling back on content, spend a little bit this year just going to spend $30 billion now as opposed to 32 billion. But hey, listen, it's nice to have a company where you can afford to write those checks. I think they're going to continue to do that for the foreseeable future and ultimately getting the streaming operation to profitability by 2024, which is the goal.
Chris Hill: Axon Enterprises reported record revenue in the second quarter. They raised full-year guidance and shares of the security tech company up 10 percent this week. Emily, it's been a challenging past 12 months for Axon, but it seems like they are riding the ship.
Emily Flippen: Well, Axon is in a really interesting position because what they're doing is still transforming what is largely a hardware based company to a subscription style cloud software-based solution and we saw that succeeding in this recent quarter. Part of the reason why the past year has been troubling for Axon is because they're not consistently profitable. They don't consistently generate a ton of cash flow. The market has been hammering these type of growth companies that grow at the sacrifice of their bottom-line profits, but this quarter was actually incredible, not just because they beat earnings guidance and revenue guidance, not just because they raise their guidance for the remainder of the year, but because they actually generated positive operating margin, the largest in their history up over seven percent. They're showing some level of scalability, which is going back to the success of creating these cloud-based solutions. It's no longer just a story about Tasers and body cameras, although those are still growing dramatically for this business, it's a global security suite that serves anybody who's working to protect public interests. That's records management, that's evidenced management, that's dispatch solutions, all of these things, even including VR training, they're getting a lot of traction in the market here.
Chris Hill: Assuming this evolution of the business goes the way they wanted to, will one of the results be the revenue and the profits become more predictable?
Emily Flippen: Exactly. In fact, you heard management for the first time in a while talking about that pathway to free cash flow and profitability and are really clear way in this most recent quarter because I think they're seeing that pathway for themselves clearer than ever. Although I will say this is a company that still wants to heavily invest in their product suite. They want to be the best-in-class and CEO Rick Smith is an eccentric CEO, but certainly a visionary in the sense that he wants Axon to be the best player to genuinely reduce the number of lethal desk that happened from things like police forces, and that's a big mission that's going to require massive capital investment. They see the pathways to profitability, but there are no means going to sacrifice long-term growth for the sake of their bottom-line.
Chris Hill: Marqeta CEO Jason Gardner said he's stepping down because he is not the best person to lead the payment processor through its next stage of growth. Gardner is going to stay on as Chairman of the Board, shares of Marqeta down more than 15 percent this week, Jason. What do you think?
Jason Moser: On the one hand, it does seem like it's a strong reaction to a business that really is performing very well. But by the same token, when you get big turnover in executive leadership in such a short span, we saw the CFO take off a little while back. CEO was leaving, CEO moving over to the Executive Chair. That is a big transition, so it's understandable, at least the concern but generally speaking, again, I'm not losing sleep over the report. Let's talk about the numbers here. Total processing volume of $40 billion was up 53 percent from a year ago. But interestingly, their total payment volume for the three months ending in June of this year, for the three months exceeded the total payment volume for the 12 months ending June 2020. These guys are growing. They're putting a lot of money through that network. Net revenue, $187 million.
That was also up 53 percent from a year ago, gross margin hanging in there at 42 percent. A big point of focus for investors with this company is their reliance or the relationship with block formerly square. Block accounted for 69 percent of net revenue that was up from 66 percent in the first-quarter just a tick there. But you also look at it was 72 percent a year ago. It is down slightly from a year ago and it's also worth remembering, they're going to succeed as block succeeds. When blocks succeeds, that's going to translate to more successful Marqeta. Something to keep an eye on there. The total payment volume from customers, block clearly in that top 5, outside of the top 5, the total payment volume grew at three times the pace of their top 5 customers.
It looks like they're really winning all our fronts there, which is nice to see. Guiding for a third-quarter revenue at 37 percent at the midpoint. They are being a little bit conservative there as new customers are being a little bit more deliberate in how they're investing in their payment programs there. But I mean, you go back to it, the big news there was the founder and CEO Jason Gardner stepping down soon. They're going to begin the search for the CEO and he's going to step over to the Executive Chair role and you said it. He was very transparent about this on the call. This was because he feels like he doesn't have the skill set to take this business to the next level in what is a very nuanced and complicated industry. Frankly, in my book, that's the self awareness you want to see from a CEO that has an opportunity to build a company really capitalize on such a massive market as this one.
Chris Hill: After the break, we've got the latest on software digital advertising, and the business of salad. This isn't one of those other shows. This is Motley Fool Money.
Chris Hill: Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser and Emily Flippen. Unity software second-quarter results got overshadowed by the announcement from AppLovin, a gaming software company in which AppLovin announced an offer to buy Unity software in an all stock deal worth $17.5 billion. Complicating matters is the fact that Unity had previously announced plans to buy one of AppLovin's competitors a company called ironSource. Emily, what is going on here.
Emily Flippen: Honestly, Chris, your guess is as good as Unity's at this point. Although I will say after Unity reported what was a pretty disappointing quarter, they must be feeling like the bell of the ball because not only is there stock-up, but it seems like everybody wants to be Unity's partner. But this deal in particular, may be these strangest acquisition/merger that I've ever seen, which is to say that AppLovin came public with an offer to acquire a company that is effectively larger than them. Allow the CEO of that company to takeover, allow the board of that company to takeover, but to change the name to AppLovin. A good [laughs] way to summarize what's happened is AppLovin came to Unity and said, "Hey, you want to change your name? You can keep everything else but change your name with us." I think it's a pretty clear answer as Unity shareholder myself and as we've seen from the public reaction to this offer, it's doubtful that Unity moves forward with this, especially since they've already announced that nearly $4.5 billion deal to acquire ironSource.
What is interesting though is that Unity has made no public statement about this acquisition to date other than saying that the board is reviewing the deal. IronSource did come out and tell shareholders and employees in an internal memo that they think that their offer and their combination will be more competitive. But this whole situation is so odd. If I had to have my guess as to what's going on behind the scenes is AppLovin went to Unity and said, 'Hey, what do you think about this deal?" Unity probably said, "No we're not interested." Then AppLovin said, "Well, let's see what everyone else thinks." Let's take it public and I think the market has answered that question for AppLovin. I doubt this moves anywhere. But it is certainly helping Unity shareholders this week.
Chris Hill: Shares of Upstart Holdings up nearly 15 percent this week after the FinTech lending platform got a boost from the better than expected news around inflation. Jason, it seems like that because after their second-quarter report and their conference call, seemed like a lot of investors are unsure of what strategy Upstart is trying to execute on.
Jason Moser: I mean, I think that's a fair concern. I think that investors really need the view the reception to this announcement as a tremendous win. I mean, it's a stock that's been taken to the woodshed here for very understandable reasons and we knew really the results coming in for this quarter because they pre-announced it, but the guidance that they offered for the current quarter. I mean, they're targeting $170 million in revenue versus the expectations of close to 250 million at the time. That's a significant downward guide. I think ultimately this is pretty much summed up, but the way that CEO David Gerard started the call. He said, I quote it, "May be natural free to question whether Upstart's AI powered risk models aren't working as designed, but we're confident this isn't the case." I mean, he's starting the call that way. There on the defensive because it's a company that's really lost control of the narrative, so to speak.
You look to a core ago where they were essentially started behaving more like a bank and taking loans onto their balance sheet. Fast-forward to this quarter, they've pivoted back taking action to convert those loans back into cash, puts them in a little bit of a desperate seller situation, ultimately impacted their revenue. I don't think that share repurchases are a wise use of capital at all for a business in this state. I mean, it sends a conflicting message, honestly. It's just a business with a ton of uncertainty right now. I think they need to make sure they keep their balance sheet in the best possible shape for the unknown. If this ends up working out, it ought to work out well for investors. I mean, there was a higher level of risk you're taking on with a company like this. I think it's also worth remembering. This is a little bit more difficult to understand this business. There are a lot of dots to connect with a business like this. Just make sure you feel comfortable connecting those dots in this value.
Chris Hill: As part of its second-quarter earnings announcements Sweetgreen also lowered its guidance for 2022 and said it's laying off five percent of employees. Shares of the salad chain initially fell more than 20 percent, but bounce back to finish the week just about even. Emily, they're trying to be the Chipotle of salad, but at the moment they don't have Chipotle's pricing power.
Emily Flippen: It certainly challenging for Sweetgreen, especially because Chipotle themselves had an incredible quarter. But what's so odd about this report is that the earnings itself, we're not bad at all. But they had to lower guidance pretty substantially and one of the comments management made was that there's a huge drop-off in same store sales. During April and May, same store sales growth was 21 percent. During June and July, it was seven percent. It fell off a cliff. The business is trying to be proactive with guidance here. But the big question mark is, do $15 salads really sell as well as $8 or $9 burritos. I'm not sure if I'm a buyer yet, but I will say just Sweetgreen stock looks a little bit more interesting to meet this week.
Chris Hill: Shares of The Trade Desk up more than 40 percent this week after strong second quarter results and guidance for the third quarter as well. Jason, this comes obviously against the backdrop of more services like Disney and Netflix looking to add advertising platforms.
Jason Moser: Absolutely connected TV for the win. I think this quarter in a nutshell, you look at revenue up 35 percent from a year ago and they saw meaningful growth across really all verticals have spend that the company serves. But it really, it's connected TV that is really driving this trains so to speak. I mean, you've got video representing low 40 percent of the overall business mix, but it continues to pick up more and more share of the overall business mix. They did see a healthy 45 percent boost in operating expenses, but that really is investing in the business and technology behind it. Macro factors that management called out specifically on the call really, it goes back to this ad-supported video on demand. It's this move toward ad-supported streaming. Then this idea that really is a new paradigm or [Alphabet's] Google isn't necessarily calling the shots when it comes to advertising. We've been really used to that narrative for a long time.
But Connected TV is changing at this UID 2.0, which is the alternative to cookies, offering up more personal experiences while protecting consumers, privacy and our data even more so. It really just puts Trade Desk in a very attractive position because they get to work with such a large base of customers. I mean, they just have essentially the largest base of customers in this market. The calling for 28 percent revenue growth this quarter. I think something to keep in mind too, there's some language in the call regarding Netflix and while Netflix partnered up with Microsoft, ultimately, green noted Jeffery Green on the call, noted that once they've done the work on the supply side in regard to Netflix, driving as much demand as possible toward those ad impressions will come next. Netflix is very well-positioned to open their ad inventory on the demand side, which is the Trade Desk, and that's something that really could play out through Trade Desk's financials further down the road.
Chris Hill: Guys, we'll see you later in the show. Up next, how to avoid the mental traps that can keep you from investing. Stay here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Chris Hill. Marsha Barnes is the founder and CEO of the Finance Bar, a company that helps women and couples achieve financial wellness. Motley Fool Senior Analyst Tim Beyers caught up with Barnes recently to talk about how to avoid the mindset traps that can keep people from investing.
Tim Beyers: You talk about, and we had a conversation before this interview, and I asked you a bit about some of the mindset traps that people get caught in when it comes to generating wealth of any kind. That includes things like stock market investing but may include also responsible use of credit. How you think about banking, how you think about credit overall, things like that. Can we talk a little bit about some of the most common mindset traps that you run into in doing this work?
Marsha Barnes: Yeah, absolutely. One of the most common is that oftentimes, let's say you get your first job Tim, or you're someone that you get promoted at work or you change careers, your so income is climbing. But many times the only thing that we're thinking about is, does this job help me to pay my bills? There's not many, emotionally, there's not this feeling of how does this job help me to generate wealth. One of the mindset traps is that just be glad that you have a job and you're able to survive and pay your bills. How many times there are conversation around when we go into different jobs, like how does this job help you build wealth? How will this job allow you to have more time with your family and friends? That's the number one trap that we hear the most of mindset trapping that just be glad that you have a job and you're surviving right now, like the time that we're currently and there's so much topple and news about a recession.
For the average individual, you're just going to freeze up. Stop spending money. Don't spend our money on things that you like, definitely don't invest right now. There's this scare-tactic that all wage drilled into our head, so it's really hard to move beyond this to just say that, just like I pay my bills every month, I should also be paying myself to help me build wealth and to make life a little bit easier for me and my family. That's one of the major mindset traps. Tim and the other is, as I mentioned before, that investing is just not for me. It's for the wealthy, is for the rich person is definitely not for me. I'm just a middle-class individual trying to pay my bills, helping my family out, my parents out, my grandparents out. That's a nice to have. We often look at investing as a nice to have, not a need to have in our life when absolutely, it is something that we need to have. It's just really hard to get beyond what we've heard many years ago. Like you have to have this amount of money to invest. Now at a time where it may not take you much to jump into this. Those are the biggest mindset traps that we really deal with at the Finance Bar.
Tim Beyers: Let's talk about some of the things personally you have learned in doing this work because, how many years has it been now since you founded the Finance Bar?
Marsha Barnes: Oh, that's been about almost seven years now.
Tim Beyers: It's been a while. I imagine there has been some interesting lessons you've learned in that time. Let's talk about that. What have you learned working with people, helping them get on firmer financial footing?
Marsha Barnes: I would say that the feeling really goes away, Tim. That has been the lesson for me, is that financial wellness, financial therapy, financial education, it never goes away. I view it as physically working out. Instead, one thing for money that's true is that it always follows us until the end of our lives. It does not go away. Our income can go up, our income can go down and there's always something to learn. That is what I personally learned. Something else that I've learned, Tim is that there are many ways to earn money that we hadn't been taught. We've been taught, as I've mentioned before, just get a job, be glad you have one and that's it. We often don't think about the many ways to earn money, the way that you want to invest and you still have a bit of fear about using your full-time check.
But what appears like a part-time gig that you have and it's only devoted to wealth generation or building wealth. That's another thing that I've learned it, and so you get beyond those roadblocks. Consider a different way to earn income does specifically, a lot easier for you to invest. There are just so many ways now. Those are two of the biggest lessons that I've learned, but also Tim, building the Finance Bar 100 percent changed my lives. Having an attachment to people, learning about their financial journeys has been both fulfilling. It has been a learning experience for me. You and I have talked about this before, what comes easy for one person mentally does not come easy for the other. That's something that I think it should be a learning lesson for all of us. What may be easy for you to do Tim, may not be easy for me. Those are the three biggest lessons that I've learned along the way personally.
Tim Beyers: Tell me if this is right because you drew a really interesting parallel earlier in this discussion Marsha, about financial management or financial wellness as similar or maybe analogous to working out. I wonder if maybe we could talk through that a little bit because I'm a 50-plus-year-old man, so my idea of working out is getting my steps in and if I do that, I'm good. But do you have, maybe it's habits or a routine when you teach some of this. I want you to fit everything into it because it seems like that's what you're saying is you want to have something that's holistic, that includes how you manage your checkbook, how you manage bills, how you manage your investing, group at all, talk us through some of that may be at a slightly more detailed level.
Marsha Barnes: Sure, so you just mentioned it, Tim. You said that I'm a 50-plus-year-old man and as long as I get my steps in, I'm good. But what you didn't say is that I'm a 50-year-old man and I just won't do anything. You said, as long as I get my steps in. Financial management is very similar if you are making sure that you can do your budget. Tim, if you're making sure that you're managing your debt if you make sure that I'm just giving you an example here that every month I'm committed to purchasing one stock. If I get to a certain point, let's say I have seven different stocks, I'm now committed to watching my portfolio. That is how you simplify financial management. Because as I mentioned, this is something that doesn't go away with money as you learn more, maybe you want to get more detailed into, should I buy more or what is this investment look like for me? That is the goal. Oftentimes we make investing as like this far away mystery land out in space somewhere.
But if we simplify it, my budget to make sure that I have guardrails around my finances a budget is not for deprivation, a budget is just to help you identify that I have everything like it, I'm not going up the road, Tim. My bills are paid, my needs are met. There are some loans in there that I have, I have savings in there. I need to still think for the future. I'm purchasing one stock per month. That's it. Then I'm just going to keep learning. Even if I learn more, maybe my method does not change until I feel like it needs to change. That is how it's very similar to working out. It's just the consistency and a rhythm, but you don't stop. That's the analogy that you mentioned earlier, as long as I get my steps in, so for me, as long as I've purchased the stock per month, I'm good. I don't need to get like it took fancy terms or like China build up this dictionary or an encyclopedia to sound smart. I need to keep it simple because simple plus actionable and taking action gets us results. It's not anything fancy. That is they can say, very similar comparison to physical activity and financial activity or financial management.
Chris Hill: Going up after the break, Domino's stopped selling pizza in the birthplace of pizza. Details next, so stay right here. You're listening to Motley Fool Money.
Marsha Barnes: Of course, my kid is in the right car seat, well, I think he is.
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. 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. NVIDIA doesnt reportearnings until late August, but earlier this week, the graphics chip maker announced preliminary earnings showing second-quarter revenue will be solidly lower than they originally projected and not surprisingly, Jason. Shares of NVIDIA down a bit this week?
Jason Moser: Yes. To define solidly, we mean down 19 percent sequentially. To put some numbers around that, it's not that great of a look, but it is a risk that comes with a business like this when demand for a given sector slows down. We've talked a lot about companies that have pulled a lot of growth forward or the past couple of years. It seems like more and more, virtually every company did write some more than others. But gaming tailwinds of the past couple of years are normalizing a little bit and that's ultimately what this all boils down to. It's the second biggest revenue driver behind datacenter for NVIDIA. They're calling for revenue 2.04 billion.
It would be down 44 percent sequentially. The good thing for NVIDIA is that they are pursuing multiple large market opportunities beyond gaming. If you look at professional visualization, for example, yes, that's down 20 percent sequentially, but you look over a datacenter, which is the largest part of the business, that revenue is set to come in at $3.1 billion, up just 1 percent sequentially, but 61 percent from the year ago. Automotive as well up 59 percent sequentially up 45 percent from a year ago. All things considered to me, this is one of those situations. This isn't a long-term red flag unless you believe that gaming is in secular decline and I don't. To me, this stands out more as a timing thing than, than a fundamental issue that investors should expect to persist with the business, and often times those represent decent opportunities. NVIDIA is a high-quality business for sure.
Chris Hill: The business of Domino's Pizza has been fueled in large part by its international growth. Domino's is sold in more than 80 countries around the world. But this week, one of those countries got crossed off the list when the company announced it is closing each remaining stores in Italy. Emily, it's a pretty big swing for us pizza company to try and compete in the birthplace of pizza.
Emily Flippen: I'm going to entitle this commentary in defense of Domino's. Because I see a lot of news outlets running with this story laughing at Domino's Pizza and I take that personally as a Domino's fan [laughs]. I also spent a semester in foreign, so I'm qualified for my opinion on Italian pizza. I'm asserting, and I will say, I think that this story is being misrepresented. What killed Domino's in Italy was the pandemic. At the time, they are the only person who is really providing effective delivery service prior to COVID. Now once COVID has happened, all of these local mom-and-pop shops, the competition just increased exponentially, making it harder for them to compete for delivery of pizza. But here's what I'll say about Domino's Pizza versus Italian pizza, two different markets. It's like saying that you can have one market for New York style pizza and Chicago style pizza, it's a different consumer who's ordering one or the other. I'm convinced the person who is getting Domino's Pizza and Italy, I'm not quite sure that first and looks like, but I'm convinced that that person was probably not viewing the local mom-and-pop shop as a illegitimate substitute, especially considering that nice, garlicky, buttery crust.
Chris Hill: You can email questions to podcasts@fool.com or your comments on pizza, podcasts@fool.com is the email address to hit. Question from Jonathan, who writes, I've been looking at Intel recently as a buying opportunity. My problem is it's already one of my largest investments. It's currently about seven percent in my 401K portfolio. Personally, I'd be willing to go up to 10 percent. It seems so cheap with the current cost basis around $50 a share. I'm just worried I have blinders on as I love the long-term prospects of the company with their new plants and the government investing in chips, would love to hear your thoughts. Jonathan, thank you for the question. Jason, what do you think?
Jason Moser: Up to 10 percent for one shift companies sounds like an awful lot. I will say that. I mean, Intel certainly has the opportunity to benefit from tailwinds in the segment as we tried to invest more in our chip infrastructure you here domestically. But remember that they are the only player in town. A lot of other companies out there that present a lot of competition in chips, while they're the lifeblood of virtually everything that we do. Stilley, notoriously cyclical industry. I don't know to me, it just seems like a pretty big bet, perhaps unnecessarily.
Emily Flippen: I also think it's a big bet. I will say I like the chip industry, but diversification and a portfolio is key, as well as time horizon and risk tolerance. So all of those should be taken into an investor's portfolio. But I will say there's also a bit of interesting competition from AMD. If somebody is really interested in expanding Chip exposure, they really love this space. They're willing to wait it out and I guess whether the cyclicality of the space maybe consider adding AMD in addition to a business like Intel for maximum exposure.
Chris Hill: Let's get to the stocks on our radar. Our man behind-the-glass, Dan Boyd is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week?
Jason Moser: Well, Masimo, ticker MASI, announced earnings this week as well. They're known primarily for healthcare technology in pulse oximetry, you're measuring the oxygen levels in the blood and inside note, Chris, I saw Masimo equipment in the wild here recently taking my daughters and for their annual checkups. I mean, I know our pediatrician probably thought them in total psycho nerding out at the fact that they had that equipment. But there you go. It was a good quarter consolidated revenue, $565 million, with healthcare revenue growing 17 percent or actually 19 percent in constant currency. The non-healthcare revenue, the consumer side of the business, $208 million. And that really comes back to the Sound United deal. That's the biggest question mark, I think with Masimo right now it was a big deal they made. They're ultimately trying to see exactly what they can do with it. They are making a foray into bio sensing watches, SmartStyle watches, which will learn about more as the year goes on as some interesting behind the scenes litigation there with Apple as well regarding that which could actually work out in Masimo's favor, but we'll learn more about that at our Investor Day in December.
Chris Hill: Dan, question about Masimo.
Dan Boyd: I'm pretty sure we talked about Masimo on the show. But I still always get excited, Chris, when I hear somebody talking about Masimo because I think erroneously that they're talking about Masimo, the fashion brand. I don't know if that's fashion. I just get excited about graphic tees.
Chris Hill: I mean, who doesn't? I'm onboard with graphic tees, if there was a rock solid publicly traded company selling graphic tees, I'd give that a closer look. Emily Flippen, what are you looking at this week?
Emily Flippen: I'm looking at Sonos this week, the ticker is SONO, but it's on my radar this week for a bad reason, the stock is actually down 25 percent after reporting earnings and which management had to dramatically cut its full-year revenue guidance is due to an anticipated pullback in consumer spending. They are, of course, the makers of an at-home sound devices. They do compete a lot with businesses like Amazon and Google in terms of their core products. But I liked their competitive positioning in terms of being built into the houses. They've constantly had above-average product. They did lose their CFO to Axon this week too, which is certainly hurting them as well. But I will say they're trading at around 15 times operating income right now. It's nothing to Scott bad for business that has managed to grow its top line every year since 2004.
Chris Hill: Dan, question about Sonos.
Dan Boyd: Are people still watching TV? I mean, maybe it's because I have a five month old baby at home. But the only time I am ever absorbing entertainment is like late at night on my computer alone. I don't know about Sonos, man. Seems like a bad bet to me.
Emily Flippen: Here's what I will say. It did just get back from Texas where I visited my parents and their new town home, which has this Sonos speakers built-in and they could not stop playing it. There are differing opinions out there Dan.
Chris Hill: Two very different businesses. Dan, you got a stock you want to add to your watchlist?
Dan Boyd: Well, I wish I could add Masimo, the graphic team made her, but so you got to pick between Masimo and Sonos I don't know, just because Jason saw it in the doctor's office. I'm going to go with Masimo.
Chris Hill: Boots on the ground research. There is no substitute people. Emily Flippen, Jason Moser. Thanks so much for being here.
Emily Flippen: Thanks Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Axon Enterprise, Chipotle Mexican Grill, Microsoft, Nvidia, The Trade Desk, and Walt Disney. Dan Boyd has positions in Amazon, Chipotle Mexican Grill, and Walt Disney. Emily Flippen has positions in Axon Enterprise and Unity Software Inc. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Marqeta, Inc., Masimo, The Trade Desk, Unity Software Inc., and Walt Disney. Tim Beyers has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Axon Enterprise, Chipotle Mexican Grill, Domino's Pizza, Intel, Masimo, Microsoft, Netflix, Nvidia, Sonos Inc, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., and Walt Disney. The Motley Fool recommends Marqeta, Inc. and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, 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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Emily Flippen: Well, Axon is in a really interesting position because what they're doing is still transforming what is largely a hardware based company to a subscription style cloud software-based solution and we saw that succeeding in this recent quarter. NVIDIA doesnt reportearnings until late August, but earlier this week, the graphics chip maker announced preliminary earnings showing second-quarter revenue will be solidly lower than they originally projected and not surprisingly, Jason. They're known primarily for healthcare technology in pulse oximetry, you're measuring the oxygen levels in the blood and inside note, Chris, I saw Masimo equipment in the wild here recently taking my daughters and for their annual checkups.
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Emily Flippen has positions in Axon Enterprise and Unity Software Inc. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Marqeta, Inc., Masimo, The Trade Desk, Unity Software Inc., and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Axon Enterprise, Chipotle Mexican Grill, Domino's Pizza, Intel, Masimo, Microsoft, Netflix, Nvidia, Sonos Inc, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., and Walt Disney. The Motley Fool recommends Marqeta, Inc. and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Emily Flippen: I'm looking at Sonos this week, the ticker is SONO, but it's on my radar this week for a bad reason, the stock is actually down 25 percent after reporting earnings and which management had to dramatically cut its full-year revenue guidance is due to an anticipated pullback in consumer spending. Emily Flippen has positions in Axon Enterprise and Unity Software Inc. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Marqeta, Inc., Masimo, The Trade Desk, Unity Software Inc., and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Axon Enterprise, Chipotle Mexican Grill, Domino's Pizza, Intel, Masimo, Microsoft, Netflix, Nvidia, Sonos Inc, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., and Walt Disney.
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Chris Hill: We've got another big week of earnings. Don't spend our money on things that you like, definitely don't invest right now. Because as I mentioned, this is something that doesn't go away with money as you learn more, maybe you want to get more detailed into, should I buy more or what is this investment look like for me?
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19738.0
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2022-08-17 00:00:00 UTC
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3 Stocks to Buy for a Black Swan Market Crash
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-a-black-swan-market-crash
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We can account for regular market corrections and even the occasional bear market like we’re seeing now. However, a black swan market crash is impossible to predict and can have a devastating impact on one’s portfolio.
Black swan events are not fun and they do not simply look like a “sale” in the stock market.
As defined by Investopedia, “a black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight.”
Simply put, a black swan market crash is a destructive outcome with devastating effects. However, over time it does provide savvy, unlevered investors with an opportunity to buy quality stocks at a discount. Let’s look at a handful of stocks investors may want to flock to in a hypothetical black swan market event.
AAPL Apple $173.03
QQQ Invesco QQQ Trust Series $332.28
BRK.B Berkshire Hathaway $306.65
Apple (AAPL)
Source: View Apart / Shutterstock.com
As generic as it may be, Apple (NASDAQ:AAPL) has to be atop our buy list in the event of a black swan market crash. Not only is the company the biggest public company in the world, but it’s the top holding in the S&P 500 and the Nasdaq.
It’s got immense cash flow and robust revenue. In 2021, Apple generated more than $365 billion in sales. It buys back an immense amount of stock and its balance sheet is more powerful than many individual countries. Not to mention, the company’s Services unit continues to hum along nicely.
Its trailing 12-month revenue clocks in at $77.2 billion, while its gross margins are double Apple’s Products unit. Further, Services is growing roughly three times faster than the Products unit.
Put it all together and we have a hugely profitable unit within the company that’s outpacing the growth of its traditional business. That’s how investors justify owning the stock, even at what some investors consider a higher valuation.
Plus, it’s the best-performing FAANG stock in 2022 — and also trumps Microsoft (NASDAQ:MSFT). That shows that even in times of trouble, investors are willing to buy this name.
Invesco QQQ ETF (QQQ)
Source: kenary820 / Shutterstock
It may seem lame for investors to pick an ETF, but if we really do get hit by a black swan market crash, diversity can be our best friend. However, when it comes to picking winners in the ETF world, I really like the Invesco QQQ Trust Series (NASDAQ:QQQ).
Coming into 2022, the QQQ has rallied in 17 of the last 19 years. One of those years was 2008, while the other — 2018 — was a loss of less than 1%. That compares to 15 out of 19 up-years for the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which for the record, is still quite good.
Second, the QQQ outperformed the SPY the last time we did see a black swan event (in 2020). The QQQ suffered a peak-to-trough decline of 30.5% vs. the SPY, which suffered a 35.6% decline.
Further, the QQQ rallied 147.8% off its March 2020 low to its all-time high, while the SPY “only” rallied 119.9%. So not only was there less downside in the QQQ, but there was more upside as well.
The QQQ is up 393% over the last 10 years and 130% over the last five. That compares to five- and 10-year gains of 203% and 73% for the SPY, respectively.
Lastly, its got strong components. Apple holds a 13% weighting, while Microsoft sits at more than 10%. More than 50% of its weighting is in its top 10 holdings and many of these names have strong cash flow and powerful balance sheets.
Berkshire Hathaway (BRK.A, BRK.B)
Source: Jonathan Weiss / Shutterstock.com
Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is a conglomerate comprised of public stocks, private companies and exclusive deals. Berkshire is run by Warren Buffett, Charlie Munger and other prudent managers. Not only would shares of Berkshire be a great deal amid a sharp, broad-market selloff, but Berkshire would go on a buyer spree itself finding the best deals in the market.
Coming into 2022, it had more than $145 billion in cash and short-term investments. As of the most recent quarter, Berkshire still holds more than $100 billion. It’s got enormous businesses in freight, insurance, energy and more. Its public holdings are enormous, while Buffett can negotiate impressive deals regular investors cannot get.
For instance, the 100,000 preferred shares he has from Occidental Petroleum (NYSE:OXY) after helping it orchestrate a takeover of Anadarko Petroleum — valued at $100,000 apiece, or $10 billion in total that pays an 8% annual dividend. Or how about the preferred stock deals it got in companies like Bank of America (NYSE:BAC) or Goldman Sachs (NYSE:GS)?
Berkshire isn’t perfect, but it’s a low-valuation, high-functioning asset to buy on any extreme dips.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Stocks to Buy for a Black Swan Market Crash appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $173.03 QQQ Invesco QQQ Trust Series $332.28 BRK.B Berkshire Hathaway $306.65 Apple (AAPL) Source: View Apart / Shutterstock.com As generic as it may be, Apple (NASDAQ:AAPL) has to be atop our buy list in the event of a black swan market crash. As defined by Investopedia, “a black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. However, over time it does provide savvy, unlevered investors with an opportunity to buy quality stocks at a discount.
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AAPL Apple $173.03 QQQ Invesco QQQ Trust Series $332.28 BRK.B Berkshire Hathaway $306.65 Apple (AAPL) Source: View Apart / Shutterstock.com As generic as it may be, Apple (NASDAQ:AAPL) has to be atop our buy list in the event of a black swan market crash. However, when it comes to picking winners in the ETF world, I really like the Invesco QQQ Trust Series (NASDAQ:QQQ). Berkshire Hathaway (BRK.A, BRK.B) Source: Jonathan Weiss / Shutterstock.com Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is a conglomerate comprised of public stocks, private companies and exclusive deals.
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AAPL Apple $173.03 QQQ Invesco QQQ Trust Series $332.28 BRK.B Berkshire Hathaway $306.65 Apple (AAPL) Source: View Apart / Shutterstock.com As generic as it may be, Apple (NASDAQ:AAPL) has to be atop our buy list in the event of a black swan market crash. Invesco QQQ ETF (QQQ) Source: kenary820 / Shutterstock It may seem lame for investors to pick an ETF, but if we really do get hit by a black swan market crash, diversity can be our best friend. Berkshire Hathaway (BRK.A, BRK.B) Source: Jonathan Weiss / Shutterstock.com Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is a conglomerate comprised of public stocks, private companies and exclusive deals.
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AAPL Apple $173.03 QQQ Invesco QQQ Trust Series $332.28 BRK.B Berkshire Hathaway $306.65 Apple (AAPL) Source: View Apart / Shutterstock.com As generic as it may be, Apple (NASDAQ:AAPL) has to be atop our buy list in the event of a black swan market crash. Second, the QQQ outperformed the SPY the last time we did see a black swan event (in 2020). More than 50% of its weighting is in its top 10 holdings and many of these names have strong cash flow and powerful balance sheets.
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19739.0
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2022-08-17 00:00:00 UTC
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Is Solana the Next Bitcoin?
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AAPL
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https://www.nasdaq.com/articles/is-solana-the-next-bitcoin-0
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There may never be a cryptocurrency like Bitcoin (CRYPTO: BTC). Since its creation back in 2013, Bitcoin has returned an incredible 22,279.89%. And it may not be done yet, with some analysts predicting Bitcoin could eventually hit $1 million by 2030. That would be a more than 40-fold gain from today's price of $24,000.
That said, Solana (CRYPTO: SOL) has the potential to be the next Bitcoin. Since its public launch in 2020, the token is up an incredible 3,260%. In 2021, Solana was one of the hottest cryptocurrencies of the year. But will it ever become an iconic cryptocurrency that is found within almost every investor's crypto portfolio, just like Bitcoin?
What is the unbeatable value proposition?
Just like any good investment, Solana needs a clear value proposition to attract as many investors as possible. Right now, the investment thesis around Solana is that it is a cheaper, faster, and better alternative to Ethereum (CRYPTO: ETH), which is the No. 2 crypto in the world by market capitalization. Solana is a pure proof-of-stake blockchain capable of processing over 65,00 transactions per second with near-zero fees, while Ethereum can only process around 15 transactions per second with high transaction fees.
Image source: Getty Images.
For that reason, users and developers have started to coalesce around the Solana ecosystem. It's just cheaper and more efficient to do just about anything on Solana than it is on Ethereum. That's why media analysts have dubbed Solana an "Ethereum killer." Even after Ethereum completes its much-anticipated merge and tries to adopt a proof-of-stake system, Solana will still have a superior technology platform to Ethereum.
However, for Solana to become the next Bitcoin, it will need an even stronger value proposition. Bitcoin, for example, is "digital gold." This concept is so simple to understand that it has motivated even the youngest crypto investors to buy and HODL (crypto lingo for "hold") for the long term. It's been said Ethereum is "digital oil." This, too, is a remarkably simple and effective way to describe why Ethereum is so important for the crypto world. So what is Solana? Here's one idea: Solana is "digital sunshine."
Where are the Solana supporters?
Another distinguishing feature of Bitcoin is the presence of a cult-like following. Any time the token falls, fans urge Bitcoin supporters to "buy the dip." Any time people ask them where the price of Bitcoin is going, they confidently answer "to the moon." This type of incredible optimism about the future is something that Solana is going to have to capture and retain if it ever hopes to become the next Bitcoin, because that's what will help it bounce back from difficult market conditions. Just as there are Bitcoin maximalists (people who believe Bitcoin is the end-all and be-all of crypto) and Ethereum maximalists, there also need to be Solana maximalists.
And there are already signs of these Solana super-supporters emerging. In 2021, for example, Solana supporters tried to brand the entire summer as "Solana Summer." Or, take Solana's recent launch of an in-real-life (IRL) retail store experience called Solana Spaces in the center of New York City. In many ways, Solana Spaces looks and feels like an Apple Store and it is a first for the blockchain world. So if Solana ever becomes a crypto brand along the lines of a tech brand like Apple, watch out.
What is the killer app?
Finally, to become the next Bitcoin, Solana needs to develop a "killer app" that will set it apart from all other blockchain projects. In the technology world, a killer app is the one product or service that convinces users, developers, and tech entrepreneurs to embrace a particular company. Right now, the most likely choice for a Solana killer app involves non-fungible tokens (NFTs), or digital representations of ownership of art, videos and other media. Since mid-April, Solana NFTs have been a hot topic of conversation. That was when the most popular NFT marketplace, OpenSea, began listing Solana NFTs. But the killer app could also be a new game, a new metaverse creation, or a new decentralized finance (DeFi) offering.
Move over, Bitcoin -- here comes Solana
Obviously, a lot needs to go right for Solana to become the next Bitcoin. However, based on what has already gone right for Solana over the past two years, there's reason to be optimistic about its future.
10 stocks we like better than Solana
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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, and Solana. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This type of incredible optimism about the future is something that Solana is going to have to capture and retain if it ever hopes to become the next Bitcoin, because that's what will help it bounce back from difficult market conditions. In the technology world, a killer app is the one product or service that convinces users, developers, and tech entrepreneurs to embrace a particular company. Right now, the most likely choice for a Solana killer app involves non-fungible tokens (NFTs), or digital representations of ownership of art, videos and other media.
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Right now, the most likely choice for a Solana killer app involves non-fungible tokens (NFTs), or digital representations of ownership of art, videos and other media. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, and Solana. 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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Just as there are Bitcoin maximalists (people who believe Bitcoin is the end-all and be-all of crypto) and Ethereum maximalists, there also need to be Solana maximalists. Move over, Bitcoin -- here comes Solana Obviously, a lot needs to go right for Solana to become the next Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, and Solana.
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There may never be a cryptocurrency like Bitcoin (CRYPTO: BTC). 2 crypto in the world by market capitalization. So what is Solana?
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19740.0
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2022-08-17 00:00:00 UTC
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Will This Brand-New Tax Change Hurt Stock Market Returns?
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AAPL
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https://www.nasdaq.com/articles/will-this-brand-new-tax-change-hurt-stock-market-returns
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Congress recently passed the Inflation Reduction Act, which contains a number of provisions. It aims to raise revenue and combat inflation by implementing a 15% corporate alternative minimum tax, allow Medicare to negotiate prescription drug prices, and increase IRS enforcement on high-income taxpayers. And it plans to invest $437 billion in energy security, climate change, and an extension of the Affordable Care Act.
However, there is one tax change that was added at the last minute that could have a major impact on some of the stocks in your portfolio: a 1% excise tax on corporate stock buybacks.
Image source: Getty Images.
The new tax on stock buybacks
The short version of the new tax is that when most companies buy back shares of their own stock, there will be a 1% tax imposed on the amount spent. In other words, if a company spends $100 million on stock buybacks, it will face a $1 million tax bill. The idea is to discourage buybacks that are solely intended to increase earnings and share prices, and to encourage profits to be spent in other, more productive ways.
There are a few exemptions. For example, REITs (real estate investment trusts) are exempt from the new tax, and the same is true if the repurchased stock is contributed to an employee stock ownership plan or something similar.
Why stock buybacks are a target
Companies buy back shares for a few reasons. As one example, if management thinks its stock is worth more than its current market price, it can be a great use of capital and can help drive long-term value. And from the perspective of earnings, fewer outstanding shares can make it appear that per-share earnings growth is stronger than it actually is.
While stock buybacks certainly have their valid and practical uses, they have been called into question by several key lawmakers in recent years. For example, some in power were hesitant to assist the airlines during the initial COVID-19 shutdowns after it was revealed that these companies had spent billions buying back their own stock instead of building reserves. The general argument from many politicians is that businesses should be spending their profits on their employees, or reinvesting in their growth, rather than simply buying back stock and boosting their share price for investors.
Will your favorite companies stop buying back stock?
This is certainly negative news for companies that buy back stock regularly, but whether it will actually impact the volume of buybacks is another matter.
To be sure, some companies could choose to shift some of their earnings away from buybacks and toward dividends, but it isn't likely to happen on a large scale. After all, the new 1% tax on stock buybacks is the only additional tax due when companies use their profits in this way.
On the other hand, if a company decided to pay dividends instead, investors who own shares in a standard brokerage account could face tax rates as high as 23.8% on that income.
Let's see how this could actually affect a company. Through the first three quarters of its current fiscal year, Apple (NASDAQ: AAPL) generated $79.1 billion in net income and spent $65 billion on stock buybacks. Under the new tax law, the company would pay a $650 million tax on these buybacks -- 1% of the amount.
That $650 million might sound like a big tax bill, and it is. However, it represents an earnings hit of just $0.04 per share for the tech giant. Plus, consider what would happen if Apple were to pay that $65 billion as dividends instead. Assuming an average tax rate of 15% on qualified dividends, its shareholders could get hit with nearly $10 billion in tax bills.
The bottom line is that while the new tax on stock buybacks could certainly cause your favorite companies' earnings to suffer a bit, it is unlikely to significantly change corporate behavior when it comes to capital allocation. Nor is it likely to result in a major drag on long-term stock performance. In short, investors shouldn't panic.
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Stock Advisor returns as of 2/14/21
Matthew Frankel, CFP® 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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Through the first three quarters of its current fiscal year, Apple (NASDAQ: AAPL) generated $79.1 billion in net income and spent $65 billion on stock buybacks. It aims to raise revenue and combat inflation by implementing a 15% corporate alternative minimum tax, allow Medicare to negotiate prescription drug prices, and increase IRS enforcement on high-income taxpayers. The general argument from many politicians is that businesses should be spending their profits on their employees, or reinvesting in their growth, rather than simply buying back stock and boosting their share price for investors.
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Through the first three quarters of its current fiscal year, Apple (NASDAQ: AAPL) generated $79.1 billion in net income and spent $65 billion on stock buybacks. In other words, if a company spends $100 million on stock buybacks, it will face a $1 million tax bill. 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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Through the first three quarters of its current fiscal year, Apple (NASDAQ: AAPL) generated $79.1 billion in net income and spent $65 billion on stock buybacks. However, there is one tax change that was added at the last minute that could have a major impact on some of the stocks in your portfolio: a 1% excise tax on corporate stock buybacks. The new tax on stock buybacks The short version of the new tax is that when most companies buy back shares of their own stock, there will be a 1% tax imposed on the amount spent.
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Through the first three quarters of its current fiscal year, Apple (NASDAQ: AAPL) generated $79.1 billion in net income and spent $65 billion on stock buybacks. The new tax on stock buybacks The short version of the new tax is that when most companies buy back shares of their own stock, there will be a 1% tax imposed on the amount spent. For example, REITs (real estate investment trusts) are exempt from the new tax, and the same is true if the repurchased stock is contributed to an employee stock ownership plan or something similar.
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19741.0
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2022-08-17 00:00:00 UTC
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WhatsApp Desktop App Native To Windows Unveiled
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AAPL
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https://www.nasdaq.com/articles/whatsapp-desktop-app-native-to-windows-unveiled
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(RTTNews) - WhatsApp, an instant messaging app owned by Meta Platforms, has launched a new desktop app for Windows users. The company is also developing an app native to Mac operating systems.
Till now, WhatsApp Desktop users have been using its web-based desktop app i.e., WhatsApp Desktop, or browser-based app, i.e., WhatsApp Web. They were using the old Electron technology.
WhatsApp Web and Desktop are computer-based extensions of the WhatsApp account on one's phone. The messages sent and received by the users are synced between phone and computer, and they can see messages on both devices.
The desktop app has now been rebuilt using native Windows technologies.
In a blog post, WhatsApp said the native apps provide increased reliability and speed, and are designed and optimized for one's desktop operating system. It helps to continue to receive notifications and messages even when the phone is offline.
Previously, WhatsApp for Windows was available as a beta app. Now it is live and Windows users can download it.
For Mac users, WhatsApp desktop app native to Mac operating systems is currently in development. The users can now download beta program for early access and to help the firm with testing.
The company noted that Mac users can use WhatsApp Web in their browser or download web-based WhatsApp Desktop app.
Last week, Meta, the parent of Facebook, Instagram, and WhatsApp, added three more new privacy features to WhatsApp in its bid to enhance control and privacy on the popular messaging app.
The views and 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 a blog post, WhatsApp said the native apps provide increased reliability and speed, and are designed and optimized for one's desktop operating system. The users can now download beta program for early access and to help the firm with testing. Last week, Meta, the parent of Facebook, Instagram, and WhatsApp, added three more new privacy features to WhatsApp in its bid to enhance control and privacy on the popular messaging app.
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Till now, WhatsApp Desktop users have been using its web-based desktop app i.e., WhatsApp Desktop, or browser-based app, i.e., WhatsApp Web. For Mac users, WhatsApp desktop app native to Mac operating systems is currently in development. The company noted that Mac users can use WhatsApp Web in their browser or download web-based WhatsApp Desktop app.
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(RTTNews) - WhatsApp, an instant messaging app owned by Meta Platforms, has launched a new desktop app for Windows users. Till now, WhatsApp Desktop users have been using its web-based desktop app i.e., WhatsApp Desktop, or browser-based app, i.e., WhatsApp Web. The company noted that Mac users can use WhatsApp Web in their browser or download web-based WhatsApp Desktop app.
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(RTTNews) - WhatsApp, an instant messaging app owned by Meta Platforms, has launched a new desktop app for Windows users. Till now, WhatsApp Desktop users have been using its web-based desktop app i.e., WhatsApp Desktop, or browser-based app, i.e., WhatsApp Web. The desktop app has now been rebuilt using native Windows technologies.
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19742.0
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2022-08-17 00:00:00 UTC
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Apple suppliers to make Apple Watch and MacBook in Vietnam - Nikkei
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https://www.nasdaq.com/articles/apple-suppliers-to-make-apple-watch-and-macbook-in-vietnam-nikkei-0
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Adds details about MacBook production
Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter.
Apple's Chinese supplier Luxshare Precision Industry 002475.SZ and Taiwan-based Foxconn 2317.TW have started test production of Apple Watch in northern Vietnam, the report added.
Apple has asked suppliers to set up a test production line in Vietnam for the MacBook, the report said, adding that progress in moving mass production to the country has been slow partly due to pandemic-related disruptions but also because notebook computer production involves a larger supply chain.
Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets.
India, the world's second-biggest smartphone market, along with countries such as Mexico and Vietnam, is becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China.
Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.
Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
Like other global manufacturers, Foxconn - formally called Hon Hai Precision Industry Co Ltd - has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Rashmi Aich)
((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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Adds details about MacBook production Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter. India, the world's second-biggest smartphone market, along with countries such as Mexico and Vietnam, is becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China. Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
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Adds details about MacBook production Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter. Apple's Chinese supplier Luxshare Precision Industry 002475.SZ and Taiwan-based Foxconn 2317.TW have started test production of Apple Watch in northern Vietnam, the report added. Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets.
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Adds details about MacBook production Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter. Apple's Chinese supplier Luxshare Precision Industry 002475.SZ and Taiwan-based Foxconn 2317.TW have started test production of Apple Watch in northern Vietnam, the report added. Apple has asked suppliers to set up a test production line in Vietnam for the MacBook, the report said, adding that progress in moving mass production to the country has been slow partly due to pandemic-related disruptions but also because notebook computer production involves a larger supply chain.
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Adds details about MacBook production Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter. Apple's Chinese supplier Luxshare Precision Industry 002475.SZ and Taiwan-based Foxconn 2317.TW have started test production of Apple Watch in northern Vietnam, the report added. Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets.
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19743.0
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2022-08-17 00:00:00 UTC
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3 Top Tech Stocks That Could Help Make You Rich by Retirement
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-that-could-help-make-you-rich-by-retirement-2
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It may be tough to fathom how stocks can compound your wealth over years and decades. The secret to getting rich is nothing amazing -- it simply involves buying and owning great stocks over the long term. What you do need, however, is patience to stay the course as share prices can go through significant volatility in the short run.
That said, if the selection process is done correctly, all you need is to sit tight on your winners. Great companies can steadily grow their revenue, profits, and cash flow over time, catalyzing the rise in their stock price and helping you to get rich by the time retirement comes along.
The attributes you should look for include a strong and growing brand, trends that can sustain long-term growth, and a long runway for that growth to materialize. Technology companies qualify as great compounders because many have dominant brands and are well-positioned to grow along with digital adoption and technological advancements.
Here are three technology stocks with all the factors in place that can grow your pot of gold for your retirement.
Image source: Getty images.
Apple
Apple (NASDAQ: AAPL) must surely qualify as one of the most innovative technology companies in the world. The manufacturer of the iPhone has, time and again, proven that its brand alone is enough to endear a generation of loyal followers to its multitude of products, devices, and services. The technology behemoth has dipped just 5% year to date, despite a near-18% decline in the NASDAQ Composite index over the same period, a testament to its durability and resilience.
Financially, the company has continued to post increasing revenue and net income over the past three years despite the onset of the COVID-19 pandemic. For its fiscal 2019 (ended Sept. 28), net sales clocked in at $260.2 billion and rose to $365.8 billion by fiscal 2021. Net income soared by 71.3% over the same period to hit $94.7 billion. The technology giant has also continued raising its quarterly dividend after going through a 4-for-1 stock split in 2020.
Apple recently also reported a strong fiscal 2022 third quarter, with revenue hitting a record high of $83 billion, up 2% year over year. Its active installed base of devices also reached a new all-time high for all its major product categories, while a record number of people have ditched other brands to switch to its ubiquitous iPhone.
The company expects strong iPhone sales in 2023 despite a looming economic slowdown and has ordered its suppliers to assemble 90 million of them for the next iteration of its iPhone, the iPhone 14. Elsewhere, the company's innovation may surface again for the next version of its smart watch, allowing for an accurate temperature sensor to be incorporated into it. Investors can keep the faith that Apple's strong brand power and its continued innovation will help to steadily grow its loyal customer base.
PayPal
Payments company PayPal (NASDAQ: PYPL) has been an important conduit connecting merchants and their customers for many years. Its platform and digital wallet allow customers to conduct a wide variety of secure online transactions that have seen total payment volume (TPV) grow steadily for the company. Over the years, PayPal has also expanded its payment options, recently allowing customers in the U.K. to transact using cryptocurrencies such as Bitcoin and Ethereum.
The company's financial and operating metrics have also impressed. Net revenue climbed from $17.8 billion in 2019 to $25.4 billion in 2021, with net income jumping nearly 70% over the same period to $4.2 billion. For the first half of 2022, net revenue retained its uptrend, rising by 8.3% year over year.
PayPal has also committed to improving its operating margin in 2023 while authorizing a new $15 billion share repurchase plan. Total active accounts rose from 305 million in 2019 to 426 million in 2021, with TPV growing from $712 billion to $1.25 trillion over the two years.
There's every indication PayPal can continue its momentum as the pandemic has accelerated digital adoption and e-commerce usage. The payments company is tapping this trend to continue growing its user base and TPV. In time, the increase in the number of users on its platform should also lift its revenue and net income.
MercadoLibre
MercadoLibre (NASDAQ: MELI) is the largest e-commerce player in Latin America. It not only provides a platform for buyers and sellers in the region to trade products, but also hosts a payments platform and operates a logistics fulfilment network to provide an all-encompassing fintech solution.
The company's financial growth has been stunning, with net revenue more than tripling from from $2.3 billion in 2019 to $7.1 billion in 2021. MercadoLibre went from a net loss of around $172 million in 2019 to a net profit of $83.3 million and has reported a strong surge in operating metrics along the way.
Gross merchandise volume (GMV), a measure of the transaction flow on the company's platform, doubled from $14 billion in 2019 to $28.3 billion in 2021, while TPV soared from $28.4 billion to $77.4 billion over the same period. Needless to say, the total items shipped and the number of payment transactions have also ballooned in tandem, making MercadoLibre one of the leading e-commerce players in the region.
The momentum has continued into 2022, with its second-quarter GMV reaching an all-time high of over $8.5 billion, up 22% year over year. The company's growth shows no sign of slowing as it launches improvements to its platform such as fast and free shipping for three-quarters of its GMV and a better navigation tool to encourage usage. Its fintech solutions division is also launching more financial services and increasing its access to credit to attract more users and merchants.
With a dominant market position in South America and a culture of continuous improvement, MercadoLibre looks set to continue its breakneck growth in the years ahead.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of August 11, 2022
Royston Yang has positions in Apple and PayPal Holdings. The Motley Fool has positions in and recommends Apple, MercadoLibre, and PayPal 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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Apple Apple (NASDAQ: AAPL) must surely qualify as one of the most innovative technology companies in the world. Its active installed base of devices also reached a new all-time high for all its major product categories, while a record number of people have ditched other brands to switch to its ubiquitous iPhone. Its platform and digital wallet allow customers to conduct a wide variety of secure online transactions that have seen total payment volume (TPV) grow steadily for the company.
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Apple Apple (NASDAQ: AAPL) must surely qualify as one of the most innovative technology companies in the world. Great companies can steadily grow their revenue, profits, and cash flow over time, catalyzing the rise in their stock price and helping you to get rich by the time retirement comes along. Apple recently also reported a strong fiscal 2022 third quarter, with revenue hitting a record high of $83 billion, up 2% year over year.
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Apple Apple (NASDAQ: AAPL) must surely qualify as one of the most innovative technology companies in the world. Apple recently also reported a strong fiscal 2022 third quarter, with revenue hitting a record high of $83 billion, up 2% year over year. Net revenue climbed from $17.8 billion in 2019 to $25.4 billion in 2021, with net income jumping nearly 70% over the same period to $4.2 billion.
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Apple Apple (NASDAQ: AAPL) must surely qualify as one of the most innovative technology companies in the world. Apple recently also reported a strong fiscal 2022 third quarter, with revenue hitting a record high of $83 billion, up 2% year over year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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19744.0
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2022-08-16 00:00:00 UTC
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1 Metric That Apple Investors Should Stop Worrying About
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AAPL
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https://www.nasdaq.com/articles/1-metric-that-apple-investors-should-stop-worrying-about
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Like many of its streaming rivals, Apple (NASDAQ: AAPL) does not disclose the exact number of people who watch its TV shows and movies. In fact, Apple goes further than competitors such as Netflix and Walt Disney's Disney+ in that it also withholds Apple TV+ subscriber figures. Instead, the company combines its video-streaming numbers with the rest of its services business, which includes Apple Music, Apple Arcade, Apple TV+, and more.
To some investors, it may seem like Apple is hiding something. Here's why you shouldn't worry.
Hollywood would like to see the numbers
Apple's tight-lipped approach to viewership numbers is in the spotlight after Ben Stiller spoke with Decider about his Apple TV+ show, Severance. The actor and director said he doesn't know how many people have watched the show because Apple has only provided him partial data. However, Stiller noted even that information is far from transparent: "[Y]ou get these graphs and charts ... but you don't know what the baseline is."
Stiller's comments highlight a common disconnect between how streamers operate and the metrics Hollywood has long relied upon to determine whether a show or movie is a hit. Studios, producers, and agents have traditionally used Nielsen TV viewership ratings and box office receipts to gauge what audiences are responding to. These data points are the cornerstone of decisions about what gets made, what gets axed, whom to hire, how much they should get paid, etc. But as Stiller notes, "[It's] a big mystery of who's watching what on streaming."
Apple is playing to a different audience
While Apple TV+ viewer numbers surely matter to Apple, this is not the only audience the company is thinking about. With devices like the Mac, Apple Watch, and of course, the iPhone, Apple has several revenue streams, with many overlapping customers. Leveraging its installed device user base, Apple has expanded into a diverse mix of ancillary services such as video-editing tools, payments, and music streaming as a way of bolstering its hardware operations and developing other revenue streams.
CFO Luca Maestri touched on how Apple's hardware base directly ties into its services business during the company's fiscal 2022 third-quarter earnings call. Maestri noted devices are the "engine" of Apple, and that services "tend to help [the company] over the long term." Viewed through this lens, Apple TV+ is just another add-on feature that helps to keep customers tethered to Apple products, which drives growth.
Services as a growing business
The iPhone has been Apple's big money maker for years. As the company revealed in its Q3 earnings, iPhone sales were up almost 3% year over year at $40.7 billion, accounting for almost half of all its revenue for the quarter. However, at $19.6 billion, services is now Apple's fastest growing sector, representing a 12% increase year over year.
The growth of Apple's services division is a positive for stakeholders as other parts of the company's operation are struggling amid economic headwinds: iPad revenue for Q3 was $7.2 billion, down 2% year over year, while Apple's wearables, home, and accessories unit managed $8.1 billion, a drop of 8% year over year.
The strength of the ecosystem
Apple certainly cares about the quality of the content it's producing for Apple TV+ (the company cited its Emmy Award nominations during the Q3 earnings call), but by placing the streamer in the same category as Apple Pay and iCloud, it's signaling that it's just a piece of a much bigger puzzle. And while that might irk some in Hollywood, for investors, it's an indication Apple knows its overall strength comes from its ecosystem rather than its constituent parts.
While it seems unlikely Apple will start reporting numbers for the individual parts of its services business any time soon, that could change if any individual offering gains dominance in its field. If Apple TV+ subscriber numbers started to look like they could challenge those of Netflix or Walt Disney, then Apple may opt to provide greater insight. But as things currently stand, market watchers should focus more on how the services unit is doing as a whole, as it's clearly becoming one of the most significant parts of Apple's business.
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of August 11, 2022
Tom Wilton has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. The Motley Fool 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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Like many of its streaming rivals, Apple (NASDAQ: AAPL) does not disclose the exact number of people who watch its TV shows and movies. Stiller's comments highlight a common disconnect between how streamers operate and the metrics Hollywood has long relied upon to determine whether a show or movie is a hit. Studios, producers, and agents have traditionally used Nielsen TV viewership ratings and box office receipts to gauge what audiences are responding to.
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Like many of its streaming rivals, Apple (NASDAQ: AAPL) does not disclose the exact number of people who watch its TV shows and movies. Instead, the company combines its video-streaming numbers with the rest of its services business, which includes Apple Music, Apple Arcade, Apple TV+, and more. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney.
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Like many of its streaming rivals, Apple (NASDAQ: AAPL) does not disclose the exact number of people who watch its TV shows and movies. Instead, the company combines its video-streaming numbers with the rest of its services business, which includes Apple Music, Apple Arcade, Apple TV+, and more. Apple is playing to a different audience While Apple TV+ viewer numbers surely matter to Apple, this is not the only audience the company is thinking about.
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Like many of its streaming rivals, Apple (NASDAQ: AAPL) does not disclose the exact number of people who watch its TV shows and movies. But as Stiller notes, "[It's] a big mystery of who's watching what on streaming." With devices like the Mac, Apple Watch, and of course, the iPhone, Apple has several revenue streams, with many overlapping customers.
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2022-08-16 00:00:00 UTC
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US STOCKS-Dow, S&P 500 gain on retail earnings boost
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-sp-500-gain-on-retail-earnings-boost
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nan
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By Bansari Mayur Kamdar and Anisha Sircar
Aug 16 (Reuters) - Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday.
Walmart Inc WMT.N shares rose 5.9% after the world's largest retailer also forecast a smaller drop in full-year profit than previously projected.
Home Depot Inc HD.N added 5.4% as it surpassed estimates for quarterly sales on steady demand from builders as well as price hikes.
The two heavyweight stocks contributed to the S&P 500 retail sector's .SPXRT 2.1% gain.
"These companies are beating reduced or at least modestly reduced expectations," said Jason Pride, CIO for private wealth at Glenmede.
"Arguably, it is unexpected to some degree to see the magnitude of EPS strength being seen this quarter and even the prior quarter in the face of the difficulty that consumers are facing on the inflation in the rising rate environment."
So far, 77.6% of the S&P 500 companies that have reported results as of Friday have topped analysts' estimates, according to Refinitiv data.
Better-than-expected earnings from corporate America are helping U.S. equities recoup losses from a recent inflation-induced rout, with the tech-heavy Nasdaq index bouncing nearly 24% off its mid-June lows.
Meanwhile, the 10-year Treasury yield recovered to 2.84% as encouraging data from U.S. retail giants suggested that the Federal Reserve has room to further tighten financial conditions as it battles four-decade high inflation. US/
Traders are now seeing a 60% chance of a 50 basis-point hike by the U.S. central bank in September and a 40% chance of a 75 basis-point hike. FEDWATCH
That rise in yields weighed on high-growth stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O.
"The back and forth in markets is heavily driven by changing expectations for rate hikes, which impacts stock prices," Pride added.
At 12:11 p.m. ET, the Dow Jones Industrial Average .DJI was up 248.32 points, or 0.73%, at 34,160.76, the S&P 500 .SPX was up 11.50 points, or 0.27%, at 4,308.64, and the Nasdaq Composite .IXIC was down 20.10 points, or 0.15%, at 13,107.95.
Investor sentiment is still bearish, but no longer "apocalyptically" so, according to BofA's monthly survey of global fund managers in August.
Focus will be on retail earnings and retail sales data this week for more clues on the impact of inflation on consumer behavior.
Zoom Video Communications ZM.O fell 4.2% after Citigroup cut its rating on the pandemic darling's stock to "sell".
Advancing issues outnumbered decliners by a 1.06-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.28-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 29 new lows, while the Nasdaq recorded 67 new highs and 30 new lows.
(Reporting by Bansari Mayur Kamdar, Susan Mathew and Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FEDWATCH That rise in yields weighed on high-growth stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Bansari Mayur Kamdar and Anisha Sircar Aug 16 (Reuters) - Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday. Better-than-expected earnings from corporate America are helping U.S. equities recoup losses from a recent inflation-induced rout, with the tech-heavy Nasdaq index bouncing nearly 24% off its mid-June lows.
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FEDWATCH That rise in yields weighed on high-growth stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Bansari Mayur Kamdar and Anisha Sircar Aug 16 (Reuters) - Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday. "The back and forth in markets is heavily driven by changing expectations for rate hikes, which impacts stock prices," Pride added.
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FEDWATCH That rise in yields weighed on high-growth stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Bansari Mayur Kamdar and Anisha Sircar Aug 16 (Reuters) - Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday. Focus will be on retail earnings and retail sales data this week for more clues on the impact of inflation on consumer behavior.
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FEDWATCH That rise in yields weighed on high-growth stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Bansari Mayur Kamdar and Anisha Sircar Aug 16 (Reuters) - Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday. Home Depot Inc HD.N added 5.4% as it surpassed estimates for quarterly sales on steady demand from builders as well as price hikes.
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2022-08-16 00:00:00 UTC
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Stock Market Keeping You Up at Night? Buy These Top 3 Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/stock-market-keeping-you-up-at-night-buy-these-top-3-tech-stocks
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After a strong rebound from the pandemic last year, the economy is slowing down, inflation is still at multi-decade highs, and interest rates are going up. Many stocks have been clobbered this year as a result. As of this writing, the S&P 500 and Nasdaq Composite are down a respective 10% and 17% so far in 2022.
Market turmoil doesn't have to keep you up at night, though. When the going gets tough, don't get fancy. Invest in tried-and-true businesses that are still growing at a healthy pace. Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) aren't the most exciting stocks these days, but these three top tech stocks are great buys right now. Here's why.
1. Alphabet: Deep pockets are a safe haven in uncertain times
Let's start our discussion of the tech titan frenemies with Alphabet, parent to ubiquitous internet search engine Google. Some 80% of Alphabet's revenue is still tied to advertising of some sort, and 70% of that advertising revenue comes specifically from Google Search ads. Advertising is sensitive to macroeconomic economic health. In tough times, many businesses cut marketing spending. The market has thus been worrying that Alphabet's empire could be headed for a decline if a recession hits this year or next.
But Alphabet has been through a couple of recessions (2008 and 2020), and its Search ads are flexible. It's easy for businesses to turn those ads off and back on again. If a recession does hit, any downturn in ad spending would be very short-lived for Alphabet. And in the meantime, the company has proven its resiliency even in the face of sharp economic slowdown. Google advertising revenue was up 11.6% year over year in Q2 2022 to $56.3 billion.
Digital ad services are also very profitable, and Alphabet has been using these margins to invest in new businesses (like Google Cloud and self-driving car start-up Waymo) that have the potential to be big someday. But even after supporting these up-and-coming segments, Alphabet still has room to return lots of excess cash to shareholders. It has repurchased $28.5 billion worth of its own stock through the first half of 2022 (1.9% of the company's current enterprise value).
This return of cash creates a nice cushion for Alphabet shareholders during turbulent times, and there's plenty of room for the company to keep rewarding owners of its stock. The company had $125 billion in cash and short-term investments on its balance sheet at the end of June (plus another $30.7 billion in long-term investments), offset by debt of only $14.7 billion. In terms of cash net of debt, that doesn't only make Alphabet the deepest-pocketed tech giant, but one of the wealthiest organizations on the planet. Trading for 23 times enterprise value to trailing 12-month free cash flow, Alphabet is a fantastic buy right now.
2. Amazon: The cloud is an unstoppable force
After a two-decade run of rapid growth, e-commerce is finally taking a breather. In the first two years of the pandemic, online shopping activity boomed. Now households are making more in-person trips to the store again. That hasn't been great news for Amazon. The company's "product sales" segment fell 2% year over year through the first half of 2022, led by declines in its online store (and partially offset by healthy increases in its physical stores, like Whole Foods).
This big slowdown in e-commerce led to a massive drop in the stock earlier this year. At one point, Amazon was down well over 40% from its all-time highs set late in 2021. Shares are back on the mend, though, thanks in no small part to Amazon Web Services (AWS), the massive cloud computing segment. In fact, AWS has been one of the primary reasons to be invested in Amazon for some years. Why? Because though AWS accounted for just a fraction of Amazon's total revenue, it generates most of the e-commerce leader's operating profit. During the first half of this year, AWS made up just 16% of sales, but it generated all of the total operating profit (while product sales generated an operating loss).
Granted, this doesn't mean Amazon's online selling juggernaut is worthless. On the contrary, shopping is a sticky experience that has led to other revenue lines for the company -- like its TV streaming service Prime Video, or a burgeoning online advertising business that hauled in almost $8.8 billion in revenue in Q2 2022 alone, up 18% from the year prior.
Nevertheless, AWS is an incredible business model that helped pioneer cloud computing in the first place, and it continues to rapidly expand. AWS sales jumped 33% in Q2. The cloud is rapidly overtaking traditional IT infrastructure in the wake of the pandemic, and is expected to hit $1 trillion in annual spending by the end of this decade. AWS is at the forefront of this movement, and should remain so for years to come. Amazon is currently operating in the red on a free cash flow basis as it spends to support more cloud and other business growth. However, while the stock is still down, it's far from out. Amazon will turn profitable again at some point. The company also had $61 billion in cash and short-term investments, offset by debt of $49 billion, and currently has an enterprise value of $1.5 trillion. This rock-solid business is a fantastic buy right now after receiving more than its fair share of market punishment.
3. Apple: The iPhone goes slow and steady to win the race
Apple fans, specifically fans of the iPhone, are a unique bunch of consumers. While the global smartphone industry is poised for a big pullback the second half of this year (after a strong two-year run from 5G network device upgrades), Apple sees very little disruption to iPhone demand at this juncture. It's a testament to how powerful the Apple brand is as iPhone adoption continues apace, especially in emerging markets like Indonesia, Vietnam, and India.
Through the first three quarters of Apple's fiscal year 2022 (the fiscal year ends Sept. 24), iPhone sales were a staggering $163 billion -- up 6.5% from last year. It's a slow and steady pace compared to times past, but nonetheless an impressive number. The iPhone business is sizable enough to offset weakness in other areas (like Mac and iPad sales), and is highly profitable. Apple used those margins (plus a little cash off the balance sheet, which had $179 billion in cash and investments and $120 billion in debt) to return $28 billion to shareholders via dividends and share repurchases last quarter alone.
Though Apple isn't the highest growth tech giant anymore, there's a lot to like about its scale. The company now has many hundreds of millions of actively used devices around the globe, and it keeps tight control over its ecosystem of hardware and software. Thus, Apple can gradually release new features to the iPhone to generate incremental revenue growth -- primarily from its services segment. These services (like the App Store and digital payments) hauled in $19.6 billion in sales last quarter, a 12% year-over-year increase.
With other device sales losing steam this year, Apple is still chugging along at a healthy pace. It's proof that this $2.8 trillion enterprise behemoth is still worthy of a prominent place in investors' portfolios. Apple stock currently trades for 26 times enterprise value to trailing 12-month free cash flow. It's a premium price tag, but worth every penny during uncertain times.
10 stocks we like better than Alphabet (A 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. Nicholas Rossolillo and his clients have positions in Alphabet (C shares), Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) aren't the most exciting stocks these days, but these three top tech stocks are great buys right now. Digital ad services are also very profitable, and Alphabet has been using these margins to invest in new businesses (like Google Cloud and self-driving car start-up Waymo) that have the potential to be big someday. This return of cash creates a nice cushion for Alphabet shareholders during turbulent times, and there's plenty of room for the company to keep rewarding owners of its stock.
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Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) aren't the most exciting stocks these days, but these three top tech stocks are great buys right now. Trading for 23 times enterprise value to trailing 12-month free cash flow, Alphabet is a fantastic buy right now. The company's "product sales" segment fell 2% year over year through the first half of 2022, led by declines in its online store (and partially offset by healthy increases in its physical stores, like Whole Foods).
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Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) aren't the most exciting stocks these days, but these three top tech stocks are great buys right now. Through the first three quarters of Apple's fiscal year 2022 (the fiscal year ends Sept. 24), iPhone sales were a staggering $163 billion -- up 6.5% from last year. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Apple.
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Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) aren't the most exciting stocks these days, but these three top tech stocks are great buys right now. Google advertising revenue was up 11.6% year over year in Q2 2022 to $56.3 billion. * 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!
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19747.0
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2022-08-16 00:00:00 UTC
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ITOT, KSCD: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/itot-kscd%3A-big-etf-outflows
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 9,900,000 units were destroyed, or a 2.1% decrease week over week. Among the largest underlying components of ITOT, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.7%.
And on a percentage change basis, the ETF with the biggest outflow was the KSCD ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: ITOT, KSCD: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of ITOT, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.7%. And on a percentage change basis, the ETF with the biggest outflow was the KSCD ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ITOT, KSCD: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 9,900,000 units were destroyed, or a 2.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KSCD ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ITOT, KSCD: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 9,900,000 units were destroyed, or a 2.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KSCD ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ITOT, KSCD: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 9,900,000 units were destroyed, or a 2.1% decrease week over week. Among the largest underlying components of ITOT, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.7%. And on a percentage change basis, the ETF with the biggest outflow was the KSCD ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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19748.0
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2022-08-16 00:00:00 UTC
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Stock Market Today: Dow Jones, S&P 500 Open Mixed; Walmart, Home Deport Rally On Better-Than-Expected Earnings
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https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-open-mixed-walmart-home-deport-rally-on-better-than
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Stock Market Today Mid Morning Updates
On Tuesday morning, the Dow Jones Industrial Average reversed to the upside by over 63 points. This comes following four straight weeks of S&P gains, along with better-than-expected earnings from top retail companies such as Walmart (NYSE: WMT) and Home Depot (NYSE: HD).
Last week, the S&P 500 advanced 3.25% to post its fourth straight week of gains, making it the longest winning streak since 2021. Meanwhile, the Nasdaq composite recovered another 3.08% last week, while the Dow recorded gains of 2.9%. Additionally, this week investors will be closing attention to corporate earnings from other top retail companies. Specifically, retail companies such as Target (NYSE: TGT), Lowe’s Companies, Inc. (NYSE: LOW), and TJX Companies Inc. (NYSE: TJX) will report their most recent quarterly earnings results before the market opens on Wednesday.
Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. Meanwhile, shares of Caterpillar, Inc. (NYSE: CAT), and The Walt Disney Co (NYSE: DIS) shares are trading lower on Tuesday morning. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are trading mixed during Tuesday morning’s trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) fell on Tuesday by 1.74%. Rival EV companies like Rivian are also trading lower by 2.55%. Lucid Group (NASDAQ: LCID) stock dropped by 2.59% on Tuesday morning. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading down on Tuesday.
Dow Jones Today: U.S. Treasury Yield Jumps To 2.85%
Following the stock market opening on Tuesday, the major indices opened mixed. The Dow is trading higher by 0.09%, while the S&P 500, and Nasdaq are trading lower by 0.39%, and 1.03%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) fell on Tuesday morning by 1.08% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also trading lower by 0.41%.
The benchmark 10-year U.S. Treasury yield is at 2.85% during the Monday morning trading session. Additionally, investors will be paying close attention to key economic data that will be released on Wednesday. Specifically, the Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both scheduled to be released on Wednesday this week.
[Read More] Best Stocks That Pay Dividends? 3 For Your August 2022 Watchlist
Walmart Stock Jumps On Quarterly Earnings & Revenue Beat
Shares of the retail giant Walmart rallied over 5% on Tuesday to $139.95 per share. This comes after the company reported stronger-than-expected second-quarter 2022 earnings results. In the report, Walmart posted a beat on earnings per share of $1.77 versus the estimates of $1.60 per share. Also, the company also beat analysts’ revenue estimates, recording $152.9 billion in Q2, versus the $150.5 billion consensus estimates. Additionally, Walmart’s U.S. comp sales advanced 6.5%, while e-commerce growth was 12%.
The company said it expects third-quarter earnings of $1.29 to $1.32 per share on revenue of approximately $147.55 billion. The current consensus earnings estimate is $1.30 per share on revenue of $145.68 billion for Q3. Doug McMillon, President & CEO at Walmart commented in his letter to shareholders, “We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year.“
Source: TD Ameritrade TOS
[Read More] Best Stocks To Buy Today? 4 Semiconductor Stocks To Watch
Home Depot Stock Jumps After Reporting An Earnings Beat
On Tuesday morning, Home Depot reported a beat for its second quarter 2022 fiscal results. As a result, shares of HD stock gained over 3% off the open on Tuesday at $324.62 a share. In detail, the retail behemoth reported earnings per share of $5.05 on revenue of $43.8 billion. For context, wall street estimates for the quarter were earnings of $4.95 per share on revenue of $43.4 billion. Additionally, Home Depot posted a 6.5% increase in revenue on a year-over-year basis.
What’s more, in the report, Home Depot reaffirmed its fiscal 2022 guidance. Specifically, they continue to expect fiscal 2023 earnings of approximately $16.31 per share on revenue of approximately $155.69 billion. In comparison, the current consensus earnings estimate is $16.42 per share on revenue of $156.24 billion for the year. “In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment.“
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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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. Specifically, the Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both scheduled to be released on Wednesday this week. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year.“ Source: TD Ameritrade TOS [Read More] Best Stocks To Buy Today?
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. Specifically, retail companies such as Target (NYSE: TGT), Lowe’s Companies, Inc. (NYSE: LOW), and TJX Companies Inc. (NYSE: TJX) will report their most recent quarterly earnings results before the market opens on Wednesday. Dow Jones Today: U.S. Treasury Yield Jumps To 2.85% Following the stock market opening on Tuesday, the major indices opened mixed.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. Specifically, retail companies such as Target (NYSE: TGT), Lowe’s Companies, Inc. (NYSE: LOW), and TJX Companies Inc. (NYSE: TJX) will report their most recent quarterly earnings results before the market opens on Wednesday. 3 For Your August 2022 Watchlist Walmart Stock Jumps On Quarterly Earnings & Revenue Beat Shares of the retail giant Walmart rallied over 5% on Tuesday to $139.95 per share.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. 3 For Your August 2022 Watchlist Walmart Stock Jumps On Quarterly Earnings & Revenue Beat Shares of the retail giant Walmart rallied over 5% on Tuesday to $139.95 per share. In the report, Walmart posted a beat on earnings per share of $1.77 versus the estimates of $1.60 per share.
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19749.0
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2022-08-16 00:00:00 UTC
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Michael Burry Sells Everything Except This One Stock
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AAPL
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https://www.nasdaq.com/articles/michael-burry-sells-everything-except-this-one-stock
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In the below video, I explain what's going on with Michael Burry and Scion Asset Management, the hedge fund he runs. According to the most recent 13F, Burry liquidated 12 positions and kept only this single stock, Geo Group (NYSE: GEO), long. Why is he holding this stock? Is Geo stock a buy now, or is it simply a trade? Watch the video below to find out.
*Stock prices used were from the trading day of Aug. 16, 2022. The video was published on Aug. 16, 2022.
10 stocks we like better than The Geo Group
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 The Geo Group 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 11, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet (A shares) and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Booking Holdings, Bristol Myers Squibb, 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. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the below video, I explain what's going on with Michael Burry and Scion Asset Management, the hedge fund he runs. 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 will earn some extra money that supports his channel.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Booking Holdings, Bristol Myers Squibb, 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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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 11, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Booking Holdings, Bristol Myers Squibb, and Meta Platforms, Inc.
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Is Geo stock a buy now, or is it simply a trade? The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Booking Holdings, Bristol Myers Squibb, and Meta Platforms, Inc. His opinions remain his own and are unaffected by The Motley Fool.
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19750.0
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2022-08-16 00:00:00 UTC
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US STOCKS-Dow edges up on retail earnings boost
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-edges-up-on-retail-earnings-boost
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nan
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By Bansari Mayur Kamdar and Susan Mathew
Aug 16 (Reuters) - The Dow inched higher on Tuesday as results from Walmart and Home Depot lifted the retail sector, while a slide in megacap growth stocks and signs of a slowing global economy weighed on the Nasdaq and the S&P 500.
Boosting the blue-chip Dow .DJI, Walmart Inc WMT.N rose 5.3% as the world's largest retailer forecast a smaller drop in full-year profit than previously projected.
The S&P 500 retail sector .SPXRT gained 0.5% in early trading.
Home Depot Inc HD.N added 1.7% as it surpassed estimates for quarterly sales after demand from builders and higher prices helped the biggest home-improvement chain cushion the hit from dwindling store visits.
"The consumer seems to be holding up, even though we continue to have inflation," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
"The price of gasoline has come down and especially for lower-income shoppers, that takes a lot of their spending."
Many high-growth and technology stocks edged lower as U.S. Treasury yields snapped their two-day slump.
Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 0.4% and 1.1%, respectively, as the 10-year Treasury yield rose to 2.85%. US/
Despite a rough start to the year on fears of surging prices and rising rates tipping the U.S. economy into a recession, Wall Street indexes have recovered some of their sharp losses in the recent weeks on signs that inflation has peaked.
The tech-heavy Nasdaq index has bounced nearly 24% off its mid-June lows.
Investor sentiment is still bearish, but no longer "apocalyptically" so, according to BofA's monthly survey of global fund managers in August.
At 09:41 a.m. ET, the Dow Jones Industrial Average .DJI was up 26.85 points, or 0.08%, at 33,939.29, the S&P 500 .SPX was down 5.77 points, or 0.13%, at 4,291.37, and the Nasdaq Composite .IXIC was down 55.16 points, or 0.42%, at 13,072.89.
Better-than-expected earnings from corporate America have been a bright spot for U.S. equities recently, with 77.6% of the S&P 500 companies that have reported results as of Friday beating analysts' estimates, according to Refinitiv data.
Focus will be on retail earnings and retail sales data this week for more clues on the impact of inflation on consumer behavior.
Declining issues outnumbered advancers for a 1.41-to-1 ratio on the NYSE and a 1.84-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and 29 new lows, while the Nasdaq recorded 24 new highs and 12 new lows.
(Reporting by Bansari Mayur Kamdar and Susan Mathew in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 0.4% and 1.1%, respectively, as the 10-year Treasury yield rose to 2.85%. By Bansari Mayur Kamdar and Susan Mathew Aug 16 (Reuters) - The Dow inched higher on Tuesday as results from Walmart and Home Depot lifted the retail sector, while a slide in megacap growth stocks and signs of a slowing global economy weighed on the Nasdaq and the S&P 500. Home Depot Inc HD.N added 1.7% as it surpassed estimates for quarterly sales after demand from builders and higher prices helped the biggest home-improvement chain cushion the hit from dwindling store visits.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 0.4% and 1.1%, respectively, as the 10-year Treasury yield rose to 2.85%. By Bansari Mayur Kamdar and Susan Mathew Aug 16 (Reuters) - The Dow inched higher on Tuesday as results from Walmart and Home Depot lifted the retail sector, while a slide in megacap growth stocks and signs of a slowing global economy weighed on the Nasdaq and the S&P 500. Focus will be on retail earnings and retail sales data this week for more clues on the impact of inflation on consumer behavior.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 0.4% and 1.1%, respectively, as the 10-year Treasury yield rose to 2.85%. By Bansari Mayur Kamdar and Susan Mathew Aug 16 (Reuters) - The Dow inched higher on Tuesday as results from Walmart and Home Depot lifted the retail sector, while a slide in megacap growth stocks and signs of a slowing global economy weighed on the Nasdaq and the S&P 500. Focus will be on retail earnings and retail sales data this week for more clues on the impact of inflation on consumer behavior.
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Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 0.4% and 1.1%, respectively, as the 10-year Treasury yield rose to 2.85%. By Bansari Mayur Kamdar and Susan Mathew Aug 16 (Reuters) - The Dow inched higher on Tuesday as results from Walmart and Home Depot lifted the retail sector, while a slide in megacap growth stocks and signs of a slowing global economy weighed on the Nasdaq and the S&P 500. Boosting the blue-chip Dow .DJI, Walmart Inc WMT.N rose 5.3% as the world's largest retailer forecast a smaller drop in full-year profit than previously projected.
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19751.0
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2022-08-16 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-1
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nan
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Warren Buffett's Berkshire Hathaway portfolio has drawn attention for decades. Its 20% average annual return since 1965 doubled the performance of the S&P 500.
Despite that performance, not all of the stocks Buffett owns are buys today. Nonetheless, Buffett and his team continue to add stocks. To that end, investors should pay particular attention to five of Buffett's key additions in recent years, all of which are affordable within a $1,000 budget.
Apple
Apple (NASDAQ: AAPL) has become one of the most recognizable brands in the world. Its iPhones, Mac computers, and wearables have become highly desired by consumers, and Buffett came to appreciate the value of these offerings over time. Consequently, it has served both Apple and Berkshire investors so well that it has outperformed the S&P 500 at a time when many tech stocks fell by more than 75%.
Despite its $2.75 trillion market cap, Apple managed to achieve revenue growth in the high single digits in a slowing economy. Moreover, its $191 billion in liquidity gives it one of the most solid balance sheets among public companies. Given those attributes, it is little wonder that Apple stock constitutes more than 40% of Berkshire's portfolio.
Snowflake
Snowflake (NYSE: SNOW) is a fast-growing software stock that stands in contrast to Buffett's more notable investments. It is a high-growth, money-losing stock, having lost $166 million in its fiscal first quarter of 2023 alone. Also, the price-to-sales (P/S) ratio of 36 is outlandish by Buffett's standards and would be much higher were it not for the 40% stock price decline over the last year.
However, its position as the leading data cloud provider could make it the kind of essential offering that Buffett typically likes to see in a company. Moreover, its customer count of 6,300 indicates it has barely scratched the surface of its potential. Between its 40% customer growth year over year and the 74% increase in customer spending over the last year, Snowflake is on track to more than justify its high cost.
Chevron
Despite an increased focus on clean energy, oil and natural gas make up 68% of U.S. energy use. This benefits Chevron (NYSE: CVX), which derives over 99% of its revenue from these energy sources. Its business is so profitable that it reported $16.7 billion in free cash flow in the first half of 2022.
That cash flow funds a rising dividend stream, a factor that likely attracted Buffett. Its $5.68 per share annual dividend yields 3.6% and has risen for 35 consecutive years. And at a dividend cost of $5.5 billion in the first half of the year, cash flows should support further increases. Moreover, with a P/E ratio of just 11, income investors may want to consider following Buffett's lead.
Bank of America
Buffett's interest in banks is not new. However, the size of his Bank of America (NYSE: BAC) position has grown steadily in recent years. At 10%, it is Berkshire's second-largest position next to Apple. It is also a megabank that has aggressively adopted fintech solutions. CEO Brian Moynihan told Yahoo! Finance last year that the company spends about $3.5 billion per year on technology-driven products and services.
Additionally, the company pays an annual dividend of $0.88 per share, good for a yield of about 2.4%. Its annual payout has risen every year since 2014. Since the cost of this dividend claimed $4.2 billion of its $13.3 billion in net income over the first half of 2022, the payout should easily sustain itself. At 11 times earnings, investors can buy that income stream at a low price.
Amazon
Despite sluggish e-commerce growth, Amazon (NASDAQ: AMZN) is one Buffett stock investors may want to buy and hold forever. Its cloud segment, AWS, has driven all of the company's operating income this year even though it makes up only 16% of revenue in the first half of 2022. Moreover, its digital advertising segment continues to grow revenue at double-digit rates.
Still, this potential does not necessarily mean it has been one of Buffett's better-performing investments in recent months. Amazon has fallen by 13% over the last year, and its 127 P/E ratio is hardly cheap.
However, Buffett probably likes AWS' trailing 12-month operating margin of 31%, a stark contrast to the negative margins of its retail segments. According to Grand View Research, cloud infrastructure is expected to grow at a compound annual growth rate of 16% through 2030, a factor that should keep Amazon growing even if e-commerce recovers slowly.
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of August 11, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Will Healy has positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. 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) has become one of the most recognizable brands in the world. Despite its $2.75 trillion market cap, Apple managed to achieve revenue growth in the high single digits in a slowing economy. However, its position as the leading data cloud provider could make it the kind of essential offering that Buffett typically likes to see in a company.
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Apple Apple (NASDAQ: AAPL) has become one of the most recognizable brands in the world. Between its 40% customer growth year over year and the 74% increase in customer spending over the last year, Snowflake is on track to more than justify its high cost. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc.
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Apple Apple (NASDAQ: AAPL) has become one of the most recognizable brands in the world. Between its 40% customer growth year over year and the 74% increase in customer spending over the last year, Snowflake is on track to more than justify its high cost. Amazon Despite sluggish e-commerce growth, Amazon (NASDAQ: AMZN) is one Buffett stock investors may want to buy and hold forever.
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Apple Apple (NASDAQ: AAPL) has become one of the most recognizable brands in the world. Between its 40% customer growth year over year and the 74% increase in customer spending over the last year, Snowflake is on track to more than justify its high cost. At 10%, it is Berkshire's second-largest position next to Apple.
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19752.0
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2022-08-16 00:00:00 UTC
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Apple Sets Sept. 5 Deadline For Return To Office
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AAPL
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https://www.nasdaq.com/articles/apple-sets-sept.-5-deadline-for-return-to-office
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(RTTNews) - Tech major Apple Inc. has asked corporate employees to return to offices at least three days a week by September 5, Bloomberg reported. The latest deadline was issued following several delays to its previous deadlines amid a resurgence in COVID-19 cases.
As per the report, the company will require employees to work from offices on Tuesdays, Thursdays and a regular third day to be determined by individual teams.
The new policy, which was notified to employees, is expected to first take effect in Silicon Valley and then spread to other offices. Apple has been continuing with its plan of two days in office a week since April as COVID-19 cases declined and local governments loosened restrictions.
The Cupertino, California-based company's initial three-day policy had called employees for in-person work on Mondays, Tuesdays, and Thursdays.
Since CEO Tim Cook's initial announcement regarding the hybrid model, the iPhone maker has been shifting many deadlines amid COVID-19 spikes in between, leaving workers on a two-day-a-week schedule.
Apple recently dropped its mask mandate in common areas of offices. At individual desks, the requirement was removed several months ago.
In May, the company had again required its staff to wear masks in common spaces, meeting rooms, hallways, and elevators, as well as at 100 U.S. stores.
Also, for the first time since 2019, the company held an in-person gathering at its campus to watch a developers' conference presentation.
Like many other major companies, Apple had allowed its employees to work remotely after the COVID-19 pandemic hit in 2020. The hybrid work model has been a part of its efforts to return to normal functioning.
Meanwhile, the employees have been objecting to the hybrid office return plan, saying that it limits productivity. They pointed out that commute time takes away hours that could be put toward their work.
In early May, in an open letter to the iPhone maker's executive team, a group of Apple employees had complained about the three-day policy, which only allows two days of working from home. The employees alleged that the policy is wasteful, inflexible, and will lead to a "younger, whiter, more male-dominated, more neuro-normative, more able-bodied" workforce.
Among others, luxury electric car maker's CEO Elon Musk recently asked its employees to stop working from home and to return to office or else quit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since CEO Tim Cook's initial announcement regarding the hybrid model, the iPhone maker has been shifting many deadlines amid COVID-19 spikes in between, leaving workers on a two-day-a-week schedule. In early May, in an open letter to the iPhone maker's executive team, a group of Apple employees had complained about the three-day policy, which only allows two days of working from home. Among others, luxury electric car maker's CEO Elon Musk recently asked its employees to stop working from home and to return to office or else quit.
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As per the report, the company will require employees to work from offices on Tuesdays, Thursdays and a regular third day to be determined by individual teams. The Cupertino, California-based company's initial three-day policy had called employees for in-person work on Mondays, Tuesdays, and Thursdays. Among others, luxury electric car maker's CEO Elon Musk recently asked its employees to stop working from home and to return to office or else quit.
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As per the report, the company will require employees to work from offices on Tuesdays, Thursdays and a regular third day to be determined by individual teams. In early May, in an open letter to the iPhone maker's executive team, a group of Apple employees had complained about the three-day policy, which only allows two days of working from home. Among others, luxury electric car maker's CEO Elon Musk recently asked its employees to stop working from home and to return to office or else quit.
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(RTTNews) - Tech major Apple Inc. has asked corporate employees to return to offices at least three days a week by September 5, Bloomberg reported. As per the report, the company will require employees to work from offices on Tuesdays, Thursdays and a regular third day to be determined by individual teams. The Cupertino, California-based company's initial three-day policy had called employees for in-person work on Mondays, Tuesdays, and Thursdays.
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19753.0
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2022-08-16 00:00:00 UTC
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Apple suppliers to make Apple Watch and MacBook in Vietnam - Nikkei
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AAPL
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https://www.nasdaq.com/articles/apple-suppliers-to-make-apple-watch-and-macbook-in-vietnam-nikkei
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nan
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nan
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Adds details from report, background
Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar matter.
Apple's Chinese suppliers Luxshare Precision Industry 002475.SZ and iPhone assembler Foxconn 2317.TW have started test production of Apple Watch and MacBook in Northern Vietnam, the report added.
Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.
India, the world's second-biggest smartphone market, along with countries such as Mexico and Vietnam are becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China.
Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.
Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
Like other global manufacturers, Foxconn - formally called Hon Hai Precision Industry Co Ltd - has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Rashmi Aich)
((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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Adds details from report, background Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar matter. India, the world's second-biggest smartphone market, along with countries such as Mexico and Vietnam are becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China. Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
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Adds details from report, background Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar matter. Apple's Chinese suppliers Luxshare Precision Industry 002475.SZ and iPhone assembler Foxconn 2317.TW have started test production of Apple Watch and MacBook in Northern Vietnam, the report added. Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.
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Adds details from report, background Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar matter. Apple's Chinese suppliers Luxshare Precision Industry 002475.SZ and iPhone assembler Foxconn 2317.TW have started test production of Apple Watch and MacBook in Northern Vietnam, the report added. Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.
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Adds details from report, background Aug 16 (Reuters) - Apple Inc's AAPL.O suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar matter. Apple's Chinese suppliers Luxshare Precision Industry 002475.SZ and iPhone assembler Foxconn 2317.TW have started test production of Apple Watch and MacBook in Northern Vietnam, the report added. Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.
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19754.0
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2022-08-16 00:00:00 UTC
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3 Painfully Common Investing Mistakes to Avoid Right Now
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AAPL
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https://www.nasdaq.com/articles/3-painfully-common-investing-mistakes-to-avoid-right-now-1
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nan
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nan
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Roy H. Williams once said, "A smart man makes a mistake, learns from it, and never makes that mistake again. But a wise man finds a smart man and learns from him how to avoid the mistake altogether."
None of us can avoid all investing mistakes, but as the quotation above suggests, we might make fewer mistakes if we take some time to learn about and avoid common ones. Here are three investing blunders that can cost you a bundle.
Image source: Getty Images.
1. Not understanding what you're investing in
This is a classic beginner investing mistake and, sadly, one that even experienced investors make: not really understanding what you're investing in. This can happen when you read a short piece about a company that's very bullish on it and then buy some shares.
Maybe it was a company in the oil industry. If so, did you take time to find out whether it focused on upstream (exploring, extracting, and producing), midstream (transporting and storing), or downstream (refining and distributing) operations? Each of those activities has its own challenges and opportunities, and you'll want to understand the strengths and risks of any company you're considering investing in -- and have a good grasp of its competitive advantages, too.
It's also important to understand a company's business model -- which is exactly how it makes its money. You might think of Amazon.com as a dominant e-commerce company, but that's far from all it does. Among other things, it operates one of the largest cloud computing services -- Amazon Web Services (AWS), which generated 16% of revenue in its second quarter, up from 13% a year earlier.
Some industries, such as consumer products and retail, are easier to understand than industries like biotechnology and internet security. Be sure you understand what you're investing in.
2. Not considering valuation
Next up is valuation. You might have read broadly and deeply and have a solid understanding of a company and its industry. If so, terrific! You might have determined it's a wonderful business with amazing long-term potential. That's also terrific. But if many others have come to the same conclusion and piled into the stock, sending its shares soaring, you'll be buying an overvalued stock that might be more likely to fall closer to its intrinsic value in the near term than to continue soaring.
Always evaluate both the quality and the price of any company or stock you're considering for your portfolio. You might keep a list of great stocks you'd like to own -- at the right price. Always aim to buy a stock for less than you think it's worth -- ideally, a lot less.
3. Not being patient
Finally, understand that for best results, you'll want to be patient. Think of the stock market's great long-term performers, such as Apple and Costco, among many others. Sure, you might have invested in them years ago and then sold after a few months or years, netting a respectable profit -- perhaps, say, 50% or even 200%. But if you'd held on for many years or even decades, you might have reaped eye-popping profits. Returns of 1,000%, 10,000%, 20,000%, or more are possible for long-term investors.
Never hold blindly, though. Buy with the aim to hang on for many years, but keep up with your holdings' progress and news. If their growth potential is no longer compelling at any point, consider selling.
And remember that great stocks don't appreciate in a straight line -- the line will always be jagged, with ups and downs. Prepare to wait out downturns as long as you retain faith in your holding. Give great companies time to perform for you.
Avoiding just these three classic blunders can help you make a lot more money -- and save you from losing plenty, too.
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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. Selena Maranjian has positions in Amazon, Apple, and Costco Wholesale. The Motley Fool has positions in and recommends Amazon, Apple, and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If so, did you take time to find out whether it focused on upstream (exploring, extracting, and producing), midstream (transporting and storing), or downstream (refining and distributing) operations? Each of those activities has its own challenges and opportunities, and you'll want to understand the strengths and risks of any company you're considering investing in -- and have a good grasp of its competitive advantages, too. Avoiding just these three classic blunders can help you make a lot more money -- and save you from losing plenty, too.
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Think of the stock market's great long-term performers, such as Apple and Costco, among many others. The Motley Fool has positions in and recommends Amazon, Apple, and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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None of us can avoid all investing mistakes, but as the quotation above suggests, we might make fewer mistakes if we take some time to learn about and avoid common ones. Not understanding what you're investing in This is a classic beginner investing mistake and, sadly, one that even experienced investors make: not really understanding what you're investing in. See the 10 stocks Stock Advisor returns as of 2/14/21 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Be sure you understand what you're investing in. Think of the stock market's great long-term performers, such as Apple and Costco, among many others. That's right -- they think these 10 stocks are even better buys.
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19755.0
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2022-08-16 00:00:00 UTC
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Pre-Market Most Active for Aug 16, 2022 : AMTD, DNA, BBBY, WMT, SQQQ, TQQQ, NU, BBWI, CVX, AMZN, AAPL, TLRY
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-16-2022-%3A-amtd-dna-bbby-wmt-sqqq-tqqq-nu-bbwi-cvx-amzn-aapl
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The NASDAQ 100 Pre-Market Indicator is down -15.45 to 13,651.73. The total Pre-Market volume is currently 27,575,152 shares traded.
The following are the most active stocks for the pre-market session:
AMTD IDEA Group (AMTD) is +0.68 at $2.94, with 11,067,453 shares traded.
Ginkgo Bioworks Holdings, Inc. (DNA) is +0.71 at $4.20, with 2,310,105 shares traded. As reported by Zacks, the current mean recommendation for DNA is in the "buy range".
Bed Bath & Beyond Inc. (BBBY) is -0.65 at $15.35, with 2,289,916 shares traded. BBBY's current last sale is 383.75% of the target price of $4.
Walmart Inc. (WMT) is +5.52 at $138.12, with 2,098,165 shares traded. Smarter Analyst Reports: SEC Probes Tesla Over Solar Panel Defects Case
ProShares UltraPro Short QQQ (SQQQ) is +0.11 at $33.56, with 1,641,312 shares traded. This represents a 19.22% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.0904 at $38.80, with 1,538,789 shares traded. This represents a 81.99% increase from its 52 Week Low.
Nu Holdings Ltd. (NU) is +0.84 at $5.52, with 1,300,451 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Bath & Body Works, Inc. (BBWI) is +0.05 at $39.25, with 1,129,139 shares traded.BBWI is scheduled to provide an earnings report on 8/17/2022, for the fiscal quarter ending Jul2022. The consensus earnings per share forecast is 0.41 per share, which represents a 77 percent increase over the EPS one Year Ago
Chevron Corporation (CVX) is +1.4 at $158.21, with 1,034,518 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $5.15. CVX's current last sale is 87.89% of the target price of $180.
Amazon.com, Inc. (AMZN) is +1.12 at $144.30, with 676,144 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.24. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.14 at $173.05, with 494,968 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Tilray Brands, Inc. (TLRY) is +0.14 at $4.43, with 444,175 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending May 2023. The consensus EPS forecast is $-0.03. TLRY's current last sale is 106.75% of the target price of $4.15.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.14 at $173.05, with 494,968 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: SEC Probes Tesla Over Solar Panel Defects Case
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. Apple Inc. (AAPL) is -0.14 at $173.05, with 494,968 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $173.05, with 494,968 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 27,575,152 shares traded.
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Apple Inc. (AAPL) is -0.14 at $173.05, with 494,968 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -15.45 to 13,651.73.
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19756.0
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2022-08-16 00:00:00 UTC
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9 Stocks Warren Buffett Just Bought in the Second Quarter
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AAPL
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https://www.nasdaq.com/articles/9-stocks-warren-buffett-just-bought-in-the-second-quarter
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nan
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nan
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Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) were once again buying stocks in the second quarter of the year, although not nearly with the same ferocity of the first quarter when they pumped $51 billion into stocks.
Berkshire just released its 13F filing, which shows what stocks the company purchased and sold in Q2, which started April 1 and ended June 30. We knew from Berkshire's second-quarter earnings report last week that Buffett and Berkshire purchased roughly $6.2 billion of equities and sold about $2.3 billion of stocks in the quarter.
Buffett and Berkshire didn't buy anything new but did increase their position in several of their existing holdings. Here are the nine stocks Buffett and Berkshire purchased in Q2.
The three biggest buys
For those who follow Buffett and Berkshire closely, it should come as no surprise that Berkshire significantly increased its position in the Houston-based oil and natural gas company Occidental Petroleum (NYSE: OXY). Buffett has been buying domestic oil companies all year, especially as the tension between Russia and the rest of the world has mounted. The Russian invasion of Ukraine resulted in oil sanctions from countries all over the world on Russian gas, which has led to inventory shortages and higher gas prices.
At the end of the second quarter, Buffett owned roughly 158.5 million shares of Occidental Petroleum, valued at more than $9.3 billion. But since the end of Q2, we know that Buffett has been buying more of the stock and has now accumulated over 20% of the company, or more than 188 million shares. With shares of Occidental closing today at over $64 per share, that values the stake north of $12 billion. Many have surmised that Berkshire's continued buying of the stock could eventually lead to a full takeover of the company.
Berkshire's second big purchase was made in the consumer digital bank Ally Financial (NYSE: ALLY), which specializes in auto lending and which Berkshire first initiated in the first quarter. Berkshire increased its position by 234%, snapping up more than 21 million shares and growing its stake to 30 million shares valued at more than $1 billion. That gives it about a 9.7% stake in the company based on today's closing price. Ally has generated superb returns since the pandemic, thanks to improved operations and elevated car prices, but investors have been concerned about a time when those prices start to normalize.
Buffett and Berkshire also made a fairly sizable addition to their position in the multinational media company Paramount Global (NASDAQ: PARA), adding roughly 9.5 million shares and putting their overall stake at 78.4 million shares. The position, which is currently valued at more than $2 billion based on today's share price of $26.56, currently makes up more than 12% of the company.
Other notable moves
Buffett and Berkshire also continued to increase their position in some of their largest portfolio holdings, such as their overwhelmingly favorite stock, Apple (NASDAQ: AAPL). Berkshire added roughly 3.9 million shares and now has 894.8 million shares in the tech giant. This values Berkshire's position in Apple at close to $155 billion based on today's closing price, which represents a nearly 5.7% stake in the company. With Berkshire having roughly $300 billion of equity holdings at the end of Q2, that means Apple made up 40.7% of its equity holdings at the end of the quarter when you exclude Berkshire's $105 billion of cash and cash equivalents.
Berkshire also boosted its large stake in the other large U.S. oil producer, Chevron (NYSE: CVX), by 2.26 million shares. With Chevron closing the day at $156.80 and Berkshire owning more than 161.4 million shares, Berkshire's stake amounts to $25.3 billion or roughly 8.2% of Chevron.
Berkshire then boosted its stake in the video game company Activision Blizzard (NASDAQ: ATVI) from 64.3 million shares at the end of the first quarter to more than 68.4 million shares at the end of Q2. Berkshire's stake is now worth roughly $5.3 billion, or nearly 8.5% of the company.
Finally, Buffett and Berkshire added 1.27 million shares of the specialty materials company Celanese Corp (NYSE: CE), about 277,000 shares to the pharma company McKesson Corporation (NYSE: MCK), and more than 47,000 to the insurance and investment company Markel Corp (NYSE: MKL).
Long-term investors who want to follow Buffett's buy-and-hold philosophy could use these timely buys as inspiration, but ought to do their own due diligence to see which stocks make sense in their portfolio.
10 stocks we like better than Berkshire Hathaway (A shares)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) 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 11, 2022
Ally is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), and Markel. The Motley Fool recommends McKesson 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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Other notable moves Buffett and Berkshire also continued to increase their position in some of their largest portfolio holdings, such as their overwhelmingly favorite stock, Apple (NASDAQ: AAPL). Berkshire just released its 13F filing, which shows what stocks the company purchased and sold in Q2, which started April 1 and ended June 30. Long-term investors who want to follow Buffett's buy-and-hold philosophy could use these timely buys as inspiration, but ought to do their own due diligence to see which stocks make sense in their portfolio.
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Other notable moves Buffett and Berkshire also continued to increase their position in some of their largest portfolio holdings, such as their overwhelmingly favorite stock, Apple (NASDAQ: AAPL). With Berkshire having roughly $300 billion of equity holdings at the end of Q2, that means Apple made up 40.7% of its equity holdings at the end of the quarter when you exclude Berkshire's $105 billion of cash and cash equivalents. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), and Markel.
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Other notable moves Buffett and Berkshire also continued to increase their position in some of their largest portfolio holdings, such as their overwhelmingly favorite stock, Apple (NASDAQ: AAPL). Buffett and Berkshire also made a fairly sizable addition to their position in the multinational media company Paramount Global (NASDAQ: PARA), adding roughly 9.5 million shares and putting their overall stake at 78.4 million shares. Finally, Buffett and Berkshire added 1.27 million shares of the specialty materials company Celanese Corp (NYSE: CE), about 277,000 shares to the pharma company McKesson Corporation (NYSE: MCK), and more than 47,000 to the insurance and investment company Markel Corp (NYSE: MKL).
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Other notable moves Buffett and Berkshire also continued to increase their position in some of their largest portfolio holdings, such as their overwhelmingly favorite stock, Apple (NASDAQ: AAPL). Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) were once again buying stocks in the second quarter of the year, although not nearly with the same ferocity of the first quarter when they pumped $51 billion into stocks. But since the end of Q2, we know that Buffett has been buying more of the stock and has now accumulated over 20% of the company, or more than 188 million shares.
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19757.0
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2022-08-16 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-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 Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.32 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 usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.37%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.95% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 24.76% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has lost about -10.50% so far this year and is down about -4.61% in the last one year (as of 08/16/2022). In the past 52-week period, it has traded between $35.40 and $46.85.
The ETF has a beta of 1.02 and standard deviation of 24.07% for the trailing three-year period. With about 990 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHK is a 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 $320.19 billion in assets, SPDR S&P 500 ETF has $393.20 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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Schwab 1000 Index ETF (SCHK): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
The views and 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 5.95% 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 Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.95% 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 Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.95% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.95% 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 Schwab 1000 Index ETF (SCHK) is a passively managed exchange traded fund launched on 10/11/2017.
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19758.0
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2022-08-16 00:00:00 UTC
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3 Stocks to Buy in a New Nasdaq Bull Market
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-in-a-new-nasdaq-bull-market
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Have the bears gone into hibernation? That appears to be the case with the Nasdaq Composite Index -- for now, at least.
The Nasdaq bear market that began only a few months ago seems to be over. Many investors consider a bear market to be over when stocks are no longer down by 20% or more. In recent days, the Nasdaq Composite Index has moved above that threshold.
Some would argue that the Nasdaq is actually in a bull market now. The index is up more than 20% since reaching a low on June 16, 2022. Others might prefer to wait before declaring a bull market to make sure the recent gains don't evaporate.
Here are three stocks to buy in a new Nasdaq bull market -- whether we're already in one or it's right around the corner.
1. Apple
Apple (NASDAQ: AAPL) ranks as one of the top stocks helping drive the market rebound. It's the biggest component of both the Nasdaq Composite Index and the S&P 500. And Apple has been on a roll in recent weeks.
If the Nasdaq bull market gains steam, it's likely that Apple will continue to be a big part of the momentum. There are several good reasons to think that the giant tech stock will indeed keep rising.
For one thing, Apple expects that its revenue growth will accelerate in the third quarter of 2022. The company doesn't think that the supply chain issues that have caused problems so far this year will be as significant. Apple also could deliver an especially strong Q4 after the anticipated launch of iPhone 14 in September.
More importantly, though, Apple's long-term prospects remain bright. The company's iPhone ecosystem continues to attract customers. Apple also has growth opportunities in augmented reality and increased 5G adoption.
2. MercadoLibre
The sell-off of growth stocks hit MercadoLibre (NASDAQ: MELI) especially hard. The e-commerce stock plunged as much as 68% below its peak at one point. However, MercadoLibre is now on a tear.
Despite facing some stiff macroeconomic headwinds, MercadoLibre delivered tremendous Q2 results. It blew away analysts' revenue and earnings estimates with net revenue soaring nearly 57% year over year.
MercadoLibre's e-commerce opportunity in Latin America continues to grow. The company is capitalizing on this opportunity by improving its online functionality as well as reducing delivery times. Fintech offers another big and growing market for MercadoLibre. Many people in Latin America don't have full access to traditional financial services.
MercadoLibre CFO Pedro Arnt said in the company's Q2 call that advertising is only "beginning to scratch the surface of its potential." Advertising isn't just a revenue growth driver with the e-commerce platform; the company is also testing ways to support advertising on its Mercado Pago digital payment platform.
3. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) hasn't needed a rebound. Unlike most stocks, Vertex never dipped into negative territory at all this year. The biotech stock is up more than 35% so far in 2022.
Even if the Nasdaq bull market doesn't have legs, Vertex should be a great stock to buy. The company's business isn't impacted very much by inflation or higher interest rates. Vertex commands a monopoly in treating the underlying cause of cystic fibrosis (CF). No other potential rival is even beyond phase 2 clinical testing at this point.
Vertex definitely has plenty of room to grow in the CF market. However, it has other opportunities that could deliver even stronger growth.
The big biotech plans to file for regulatory approvals of exa-cel beginning later this year. This gene-editing therapy, developed with partner CRISPR Therapeutics, holds the potential to cure sickle cell disease and transfusion-dependent beta-thalassemia. Vertex's pipeline also includes several other promising programs.
Find out why Apple is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of August 11, 2022
Keith Speights has positions in Apple, MercadoLibre, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Apple, CRISPR Therapeutics, MercadoLibre, and Vertex Pharmaceuticals. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks as one of the top stocks helping drive the market rebound. MercadoLibre CFO Pedro Arnt said in the company's Q2 call that advertising is only "beginning to scratch the surface of its potential." This gene-editing therapy, developed with partner CRISPR Therapeutics, holds the potential to cure sickle cell disease and transfusion-dependent beta-thalassemia.
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Apple Apple (NASDAQ: AAPL) ranks as one of the top stocks helping drive the market rebound. MercadoLibre's e-commerce opportunity in Latin America continues to grow. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) hasn't needed a rebound.
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Apple Apple (NASDAQ: AAPL) ranks as one of the top stocks helping drive the market rebound. Even if the Nasdaq bull market doesn't have legs, Vertex should be a great stock to buy. *Stock Advisor returns as of August 11, 2022 Keith Speights has positions in Apple, MercadoLibre, and Vertex Pharmaceuticals.
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Apple Apple (NASDAQ: AAPL) ranks as one of the top stocks helping drive the market rebound. MercadoLibre's e-commerce opportunity in Latin America continues to grow. However, it has other opportunities that could deliver even stronger growth.
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19759.0
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2022-08-16 00:00:00 UTC
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2 Stocks Warren Buffett Just Bought That You Should Buy Too
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AAPL
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https://www.nasdaq.com/articles/2-stocks-warren-buffett-just-bought-that-you-should-buy-too
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nan
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nan
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We now know which stocks Warren Buffett has been buying and selling for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. The giant conglomerate submitted its 13-F filing to the U.S. Securities and Exchange Commission after the market closed on Monday.
Buffett and his investment managers led Berkshire to add shares of several companies. Here are two stocks that he just bought that you should consider buying, too.
The Apple of Buffett's eye
Other than Berkshire Hathaway itself, there's one stock that Buffett prizes above all others -- Apple (NASDAQ: AAPL). It's by far the biggest position in Berkshire's portfolio. And now Buffett's stake in Apple is even bigger.
As of the end of the first quarter of 2022, Berkshire directly owned nearly 891 million shares of Apple. Berkshire revealed in its latest 13-F filing that it owns a little over 894.8 million shares of Apple. Actually, Berkshire's stake in Apple is even larger. It also indirectly owns additional shares of Apple through its position in New England Asset Management.
Why does Buffett love Apple so much? Probably the best answer is that Apple is simply an exceptionally well-run company. Buffett stated in 2020 that it was "probably the best business I know in the world." That's high praise coming from a consummate analyst of businesses.
The strength of Apple's underlying business is also the top reason why it's a great pick for investors who don't head up huge conglomerates. Apple's iPhone continues to gain popularity. The company reported a record number of customers switching to the iPhone from other phones in its June quarter.
Look for Apple's fortunes to improve over the near term. CFO Luca Maestri told analysts in the company's recent conference call that revenue growth is expected to accelerate in the September quarter. Apple should also benefit from a boost in the latter part of the year with its upcoming launch of the iPhone 14.
Of course, Buffett focuses more on the long term than he does on the short term. So should you. Apple's long-term prospects also appear to be bright. Global 5G penetration remains low, which presents a big opportunity for Apple. The company also could open up new markets with its augmented reality innovations on the way.
A baby Berkshire
Much of Berkshire's success has been due to its insurance businesses. Insurers make money through premiums and by investing. Buffett really likes this business model. Unsurprisingly, Berkshire initiated a position earlier this year in Markel (NYSE: MKL) -- a company that some refer to as a "baby Berkshire."
At the end of the first quarter of 2022, Berkshire owned 424,343 shares of Markel. Buffett and his investment team added over 10% more shares in Q2.
Markel really is sort of a mini-me to Berkshire. The company primarily focuses on insurance. It ranks as a leader in providing specialty insurance for niche markets with unique needs. Like Berkshire, Markel uses the cash generated from premiums to invest in other businesses.
Many of those are publicly traded businesses. Markel owns over 100 stocks. Its top holding happens to be Berkshire Hathaway. Several other stocks in Markel's portfolio are also found in Berkshire's portfolio, notably including Apple. However, Markel also has invested in many stocks that Buffett and his team haven't bought, such as Alphabet and Microsoft.
Also like Berkshire, Markel sometimes invests in businesses that aren't listed on stock exchanges. The company's Markel Ventures unit owns stakes in 19 companies, including luxury handbag maker Brahmin and primary care provider PartnerMD.
There's a good argument to be made that Markel ranks among the best stocks that Buffett owns right now. Its insurance business generates steady revenue that's largely resistant to inflation. Markel's investments could prove to be even bigger winners over the long run than Berkshire's portfolio.
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of August 11, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet (A shares), Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Markel, 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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The Apple of Buffett's eye Other than Berkshire Hathaway itself, there's one stock that Buffett prizes above all others -- Apple (NASDAQ: AAPL). The strength of Apple's underlying business is also the top reason why it's a great pick for investors who don't head up huge conglomerates. CFO Luca Maestri told analysts in the company's recent conference call that revenue growth is expected to accelerate in the September quarter.
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The Apple of Buffett's eye Other than Berkshire Hathaway itself, there's one stock that Buffett prizes above all others -- Apple (NASDAQ: AAPL). Keith Speights has positions in Alphabet (A shares), Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Markel, and Microsoft.
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The Apple of Buffett's eye Other than Berkshire Hathaway itself, there's one stock that Buffett prizes above all others -- Apple (NASDAQ: AAPL). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Markel, 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.
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The Apple of Buffett's eye Other than Berkshire Hathaway itself, there's one stock that Buffett prizes above all others -- Apple (NASDAQ: AAPL). At the end of the first quarter of 2022, Berkshire owned 424,343 shares of Markel. Also like Berkshire, Markel sometimes invests in businesses that aren't listed on stock exchanges.
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19760.0
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2022-08-16 00:00:00 UTC
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These 6 Dividend Stocks Pay $83 Billion a Year, Combined, to Their Shareholders
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AAPL
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https://www.nasdaq.com/articles/these-6-dividend-stocks-pay-%2483-billion-a-year-combined-to-their-shareholders
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Although there are a lot of investing strategies that have the potential to make investors richer over time, few have a better track record of success than dividend stocks.
Companies that pay a dividend are often profitable on a recurring basis and time-tested (i.e., they've proven they can withstand a recession... or 10). Further, they have a clear-cut history of outperforming their publicly traded peers that don't pay a dividend.
Back in 2013, J.P. Morgan Asset Management released a report comparing the performance of companies that initiated and grew their payouts to stocks with no dividend over a 40-year stretch (1972-2012). The end result was a 9.5% average annual return for the income stocks versus a meager 1.6% average annual return for the companies without a dividend.
Image source: Getty Images.
However, not all dividend stocks are created equally. Though the following six stocks may not offer the highest yields to their investors, they are among the highest nominal-dollar dividend payers on the planet. On a combined basis, these six stocks are doling out close to $83 billion a year in dividend income to their shareholders.
1. Microsoft: $18.5 billion in annual dividends paid to shareholders
Yield isn't everything -- just ask Microsoft (NASDAQ: MSFT) shareholders. Even though Microsoft's yield is a pedestrian 0.9%, the second-largest publicly listed company in the U.S. is parsing out the largest annual payout ($18.5 billion).
Microsoft's success is reflection of blending its legacy software operations with its high-growth initiatives. For instance, the company's Windows operating system isn't even close to the growth story it was two decades ago. Nevertheless, it hasn't stopped Windows from accounting for roughly three-quarters of global desktop operating system market share. The cash flow generated from these legacy segments funds acquisitions (e.g., LinkedIn) and high-growth investments.
Speaking of high-growth investments, Microsoft is all-in on cloud services. According to estimates from Canalys, Microsoft Azure totaled 21% of worldwide cloud-service spending during the first quarter (No. 2 globally). Other cloud initiatives are paying off, too, with Dynamics sales growing 24% year-over-year, as of June 30, 2022.
2. Apple: $14.78 billion
Another tech stock with a deceptively generous dividend policy is innovation kingpin Apple (NASDAQ: AAPL). Even though Apple's yield is below 0.6%, the largest publicly traded company in the world is doling out almost $14.8 billion annually to its shareholders.
Apple is a company Warren Buffett loves because it checks all the appropriate boxes of a great long-term investment. Apple's brand is well-recognized, it has an extremely loyal customer base, and the company's innovation is what's driven its results. Ever since Apple unveiled its 5G-capable iPhone during the fourth quarter of 2020, it's held at least a 50% smartphone market share or higher in the U.S., with the exception of one quarter.
However, Apple's future is all about subscription services. CEO Tim Cook is overseeing this ongoing transition that'll further improve customer loyalty, generate higher-margin recurring revenue, open doors to unique possibilities (i.e., building the foundation of the metaverse), and minimize the peaks and troughs associated with product replacement cycles.
Image source: Getty Images.
3. ExxonMobil: $14.68 billion
If there's one thing Big Oil is known for, it's gushing dividends. Integrated oil and gas giant ExxonMobil (NYSE: XOM) is no exception. This is a company that's raised its base annual dividend for 39 consecutive years and is parsing out close to $14.7 billion a year to its shareholders.
What makes ExxonMobil such a consistent income producer is the "integrated" aspect of its operations. While there's no question that drilling oil and natural gas is where the higher margins can be hand, ExxonMobil also operates downstream assets, such as refineries and chemical plants. If and when the price of oil and natural gas declines, the input costs for these downstream segments goes down and consumer/enterprise demand usually rises. Effectively, the company is well-hedged against wild price swings in energy commodities.
The company has also benefited from prudent lever-pulling. It's pared back capital expenditures when commodity prices have fallen, yet continued to invest in its most-promising projects. For instance, Guyana's environment protection agency gave ExxonMobil the green light for its top-producing oil project (Yellowtail) in April. When complete by mid-decade, this deepwater drilling project will generate 250,000 barrels of oil per day.
4. Johnson & Johnson: $11.89 billion
Another company with an amazing dividend is healthcare conglomerate Johnson & Johnson (NYSE: JNJ). J&J, as the company is more commonly known, has raised its base annual payout for 60 consecutive years and is on pace to hand out nearly $11.9 billion in dividends to its shareholders over the next 12 months.
Johnson & Johnson is a company that really benefits from continuity and the defensive nature of the healthcare sector. With regard to the latter, people are always going to need prescription drugs, medical devices, and healthcare services, no matter how high inflation rises or how poorly the U.S. economy and stock market perform.
As for continuity, J&J has had just 10 CEOs since being founded 136 years ago. Having key leaders stick around is what's helped the company thrive for so many decades.
It also doesn't hurt that J&J has complementary operating segments. For example, pharmaceuticals generate the bulk of its growth and operating margin. However, brand-name drugs have a finite period of sales exclusivity. To counter this, Johnson & Johnson can rely on its medical device segment, which is well-positioned to capitalize on an aging domestic population and an international market where access to medical care is improving.
5. JPMorgan Chase: $11.72 billion
Money-center bank JPMorgan Chase (NYSE: JPM) is a big-time dividend payer, too. Based on an annual dividend of $4/share, JPMorgan expects to pay more than $11.7 billion to its faithful shareholders over the course of the next year.
Generally speaking, bank stocks are money machines. Although financial stocks are cyclical, and therefore susceptible to weakness during economic downturns, the fact of the matter is that recessions don't last very long. On the flipside, periods of economic expansion are almost always measured in years. This allows JPMorgan Chase and its peers to pretty consistently grow their loans and deposits over time. Loan and deposit growth is the bread and butter of boosting bank profits.
JPMorgan Chase and most of the banking industry are also set to benefit from an aggressive shift in monetary policy. With the Federal Reserve rapidly raising interest rates in an effort to tame historically high inflation, bank stocks should see a hearty uptick in net-interest income, courtesy of their outstanding variable-rate loans.
Chevron is a Dividend Aristocrat that's raised its base annual payout for 35 consecutive years. CVX Dividend data by YCharts.
6. Chevron: $11.13 billion
Have I mentioned that Big Oil pays some big dividends? In addition to ExxonMobil, Chevron (NYSE: CVX) is dishing out some big paydays for its shareholders. With a $5.68 annual payout, Chevron's investors are taking home a little over $11.1 billion.
Like ExxonMobil, Chevron's greatest attribute is its integrated operations. Chevron owns midstream assets, such as oil and gas transmission pipelines, which lean on fixed-fee or volume-based contracts to produce highly predictable cash flow. It also possesses refineries and chemical plants that act as an excellent hedge against downside price swings in crude oil and natural gas.
Chevron also deserves kudos for its prudent balance sheet management. Whereas most integrated oil and gas companies buried themselves in debt, Chevron sports one of the lowest debt-to-equity ratios among the majors. This means more financial flexibility to undertake projects, such as the Wheatstone and Gorgon natural gas projects designed to power the Asia-Pacific region, or to make earnings-accretive acquisitions.
10 stocks we like better than Microsoft
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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 July 27, 2022
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in ExxonMobil. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Johnson & Johnson and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $14.78 billion Another tech stock with a deceptively generous dividend policy is innovation kingpin Apple (NASDAQ: AAPL). CEO Tim Cook is overseeing this ongoing transition that'll further improve customer loyalty, generate higher-margin recurring revenue, open doors to unique possibilities (i.e., building the foundation of the metaverse), and minimize the peaks and troughs associated with product replacement cycles. With regard to the latter, people are always going to need prescription drugs, medical devices, and healthcare services, no matter how high inflation rises or how poorly the U.S. economy and stock market perform.
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Apple: $14.78 billion Another tech stock with a deceptively generous dividend policy is innovation kingpin Apple (NASDAQ: AAPL). While there's no question that drilling oil and natural gas is where the higher margins can be hand, ExxonMobil also operates downstream assets, such as refineries and chemical plants. With regard to the latter, people are always going to need prescription drugs, medical devices, and healthcare services, no matter how high inflation rises or how poorly the U.S. economy and stock market perform.
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Apple: $14.78 billion Another tech stock with a deceptively generous dividend policy is innovation kingpin Apple (NASDAQ: AAPL). Microsoft: $18.5 billion in annual dividends paid to shareholders Yield isn't everything -- just ask Microsoft (NASDAQ: MSFT) shareholders. This is a company that's raised its base annual dividend for 39 consecutive years and is parsing out close to $14.7 billion a year to its shareholders.
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Apple: $14.78 billion Another tech stock with a deceptively generous dividend policy is innovation kingpin Apple (NASDAQ: AAPL). Microsoft: $18.5 billion in annual dividends paid to shareholders Yield isn't everything -- just ask Microsoft (NASDAQ: MSFT) shareholders. This is a company that's raised its base annual dividend for 39 consecutive years and is parsing out close to $14.7 billion a year to its shareholders.
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19761.0
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2022-08-15 00:00:00 UTC
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US STOCKS-Wall Street extends recent gains, led by megacaps
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-extends-recent-gains-led-by-megacaps
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 15 (Reuters) - U.S. stocks were higher in afternoon trading on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased.
Shares of Apple Inc AAPL.O, up 0.5%, and Microsoft Corp MSFT.O, also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq.
Treasury yields were slightly lower, while China's central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July.
Stocks extended gains from last week when signs that inflation may have peaked in July increased investor confidence that a bull market could be under way.
Some investors also have been growing more convinced that the economy may avoid a severe downturn even as it copes with high inflation.
"We're back to growth doing well relative to value, and market participants looking at the (Federal Reserve) and saying, 'Hey, they're going to be cutting rates here sooner than we know, and that's going to be good for the equity market,'" said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
The Dow Jones Industrial Average .DJI rose 152.89 points, or 0.45%, to 33,913.94, the S&P 500 .SPX gained 15.65 points, or 0.37%, to 4,295.8 and the Nasdaq Composite .IXIC added 65.58 points, or 0.5%, to 13,112.76.
The S&P value index .IVX was up 0.3% while the growth index .IGX was up 0.5%.
Quarterly reports from big retailers are expected this week and will round out the second-quarter reporting period. Results from Walmart Inc WMT.N are due on Tuesday. Walmart's stock was up 0.3%.
U.S.-listed shares of China's e-commerce giant Alibaba Group Holding Ltd BABA.N slipped 0.9%.
Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored advancers.
The S&P 500 posted 7 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 67 new highs and 25 new lows.
(Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Sruthi Shankar in Bengaluru Editing by Arun Koyyur and Matthew Lewis)
((caroline.valetkevitch@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 Apple Inc AAPL.O, up 0.5%, and Microsoft Corp MSFT.O, also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks were higher in afternoon trading on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. Treasury yields were slightly lower, while China's central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July.
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Shares of Apple Inc AAPL.O, up 0.5%, and Microsoft Corp MSFT.O, also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks were higher in afternoon trading on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. The Dow Jones Industrial Average .DJI rose 152.89 points, or 0.45%, to 33,913.94, the S&P 500 .SPX gained 15.65 points, or 0.37%, to 4,295.8 and the Nasdaq Composite .IXIC added 65.58 points, or 0.5%, to 13,112.76.
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Shares of Apple Inc AAPL.O, up 0.5%, and Microsoft Corp MSFT.O, also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks were higher in afternoon trading on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
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Shares of Apple Inc AAPL.O, up 0.5%, and Microsoft Corp MSFT.O, also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq. Some investors also have been growing more convinced that the economy may avoid a severe downturn even as it copes with high inflation. Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
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19762.0
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2022-08-15 00:00:00 UTC
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US STOCKS-Wall Street ends up, extends recent gains as growth shares rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-up-extends-recent-gains-as-growth-shares-rise
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 15 (Reuters) - U.S. stocks ended higher on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased.
Shares of Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest boosts to the S&P 500 and Nasdaq.
Benchmark Treasury yields US10YT=RR were slightly lower, while China's central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July.
Stocks extended gains from last week when signs that inflation may have peaked in July increased investor confidence that a bull market could be under way. The S&P 500 has rebounded sharply since mid-June, but remains down for the year.
U.S. data in recent weeks also has bolstered hopes that the Federal Reserve can achieve a soft landing for the economy.
"We're back to growth doing well relative to value, and market participants looking at the Fed and saying, 'Hey, they're going to be cutting rates here sooner than we know, and that's going to be good for the equity market,'" said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
According to preliminary data, the S&P 500 .SPX gained 15.94 points, or 0.37%, to end at 4,296.09 points, while the Nasdaq Composite .IXIC gained 76.71 points, or 0.59%, to 13,123.89. The Dow Jones Industrial Average .DJI rose 142.52 points, or 0.42%, to 33,903.57.
Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
The S&P 500 value index .IVX underperformed the S&P 500 growth index .IGX on the day.
Quarterly reports from big retailers are expected this week and will round out the second-quarter reporting period. Results from Walmart Inc WMT.N and Home Depot Inc HD.N are due before the bell on Tuesday.
Target Corp TGT.N is also due to report quarterly results this week.
Estimated earnings growth on the second quarter for S&P 500 companies has improved since July 1, and news from U.S. companies has mostly surprised investors, who had been bracing for a gloomier outlook on both businesses and the economy.
U.S.-listed shares of China's e-commerce giant Alibaba Group Holding Ltd BABA.N slipped.
(Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Sruthi Shankar in Bengaluru Editing by Arun Koyyur and Matthew Lewis)
((caroline.valetkevitch@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 Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks ended higher on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. Benchmark Treasury yields US10YT=RR were slightly lower, while China's central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July.
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Shares of Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks ended higher on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. According to preliminary data, the S&P 500 .SPX gained 15.94 points, or 0.37%, to end at 4,296.09 points, while the Nasdaq Composite .IXIC gained 76.71 points, or 0.59%, to 13,123.89.
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Shares of Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest boosts to the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, Aug 15 (Reuters) - U.S. stocks ended higher on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased. According to preliminary data, the S&P 500 .SPX gained 15.94 points, or 0.37%, to end at 4,296.09 points, while the Nasdaq Composite .IXIC gained 76.71 points, or 0.59%, to 13,123.89.
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Shares of Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest boosts to the S&P 500 and Nasdaq. According to preliminary data, the S&P 500 .SPX gained 15.94 points, or 0.37%, to end at 4,296.09 points, while the Nasdaq Composite .IXIC gained 76.71 points, or 0.59%, to 13,123.89. Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
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19763.0
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2022-08-15 00:00:00 UTC
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After Hours Most Active for Aug 15, 2022 : WBD, DNA, OPEN, TSM, PINS, ACWI, BABA, NLSN, T, AAPL, INTC, CSCO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-15-2022-%3A-wbd-dna-open-tsm-pins-acwi-baba-nlsn-t-aapl-intc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.84 to 13,659.34. The total After hours volume is currently 68,269,522 shares traded.
The following are the most active stocks for the after hours session:
Warner Bros. Discovery, Inc. (WBD) is +0.02 at $13.14, with 5,642,246 shares traded. WBD's current last sale is 55.91% of the target price of $23.5.
Ginkgo Bioworks Holdings, Inc. (DNA) is +0.51 at $4.00, with 4,004,705 shares traded. As reported by Zacks, the current mean recommendation for DNA is in the "buy range".
Opendoor Technologies Inc (OPEN) is unchanged at $6.01, with 3,175,538 shares traded. As reported by Zacks, the current mean recommendation for OPEN is in the "buy range".
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is +0.21 at $91.78, with 2,940,697 shares traded. As reported by Zacks, the current mean recommendation for TSM is in the "buy range".
Pinterest, Inc. (PINS) is +0.02 at $23.40, with 2,828,711 shares traded. PINS's current last sale is 90% of the target price of $26.
iShares MSCI ACWI Index Fund (ACWI) is -0.0333 at $92.60, with 2,616,298 shares traded. This represents a 13.95% increase from its 52 Week Low.
Alibaba Group Holding Limited (BABA) is -0.1 at $94.10, with 2,469,701 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Nielsen N.V. (NLSN) is unchanged at $27.56, with 2,383,054 shares traded. NLSN's current last sale is 98.43% of the target price of $28.
AT&T Inc. (T) is unchanged at $18.39, with 2,263,849 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 $0.55. T's current last sale is 82.65% of the target price of $22.25.
Apple Inc. (AAPL) is -0.21 at $172.98, with 2,236,142 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Intel Corporation (INTC) is +0.03 at $36.37, with 2,081,300 shares traded. INTC's current last sale is 93.26% of the target price of $39.
Cisco Systems, Inc. (CSCO) is +0.01 at $46.60, with 1,092,374 shares traded.CSCO is scheduled to provide an earnings report on 8/17/2022, for the fiscal quarter ending Jul2022. The consensus earnings per share forecast is 0.73 per share, which represents a 76 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.21 at $172.98, with 2,236,142 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -0.21 at $172.98, with 2,236,142 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -0.21 at $172.98, with 2,236,142 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 68,269,522 shares traded.
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Apple Inc. (AAPL) is -0.21 at $172.98, with 2,236,142 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for TSM is in the "buy range".
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19764.0
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2022-08-15 00:00:00 UTC
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OMFL, CHIS: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/omfl-chis%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000 Dynamic Multifactor ETF, where 9,510,000 units were destroyed, or a 17.3% decrease week over week. Among the largest underlying components of OMFL, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.5%.
And on a percentage change basis, the ETF with the biggest outflow was the CHIS ETF, which lost 360,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior.
VIDEO: OMFL, CHIS: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000 Dynamic Multifactor ETF, where 9,510,000 units were destroyed, or a 17.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the CHIS ETF, which lost 360,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior. VIDEO: OMFL, CHIS: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000 Dynamic Multifactor ETF, where 9,510,000 units were destroyed, or a 17.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the CHIS ETF, which lost 360,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior. VIDEO: OMFL, CHIS: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000 Dynamic Multifactor ETF, where 9,510,000 units were destroyed, or a 17.3% decrease week over week. Among the largest underlying components of OMFL, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest outflow was the CHIS ETF, which lost 360,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Russell 1000 Dynamic Multifactor ETF, where 9,510,000 units were destroyed, or a 17.3% decrease week over week. Among the largest underlying components of OMFL, in morning trading today Apple is trading flat, and Microsoft is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest outflow was the CHIS ETF, which lost 360,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior.
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19765.0
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2022-08-15 00:00:00 UTC
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Two Sigma, Soros among hedge funds positioned for tech comeback
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AAPL
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https://www.nasdaq.com/articles/two-sigma-soros-among-hedge-funds-positioned-for-tech-comeback
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nan
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nan
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By David Randall
NEW YORK, Aug 15 (Reuters) - Two Sigma Investments, Hudson Bay Capital Management, and Soros Fund Management were among the prominent hedge funds that added stakes in mega-cap technology companies in the last quarter, positioning themselves to potentially benefit from the recent comeback in growth stocks.
Two Sigma Investments, for instance, added a new position in Facebook-parent Meta Platforms Inc META.O of slightly more than 1.5 million shares that was worth $248.5 million at the end of June, according to securities filings.
Hudson Bay Capital added a new position of 4.66 million shares in Apple Inc AAPL.O worth nearly $638 million at the end of June, while Soros Fund Management added a new position of nearly 30,000 shares in Tesla Inc TSLA.O worth $20.1 million at the time of the filing.
Meta Platform's shares are up 12.1% so far this quarter, Apple has gained 26.6% and Tesla's shares have increased 37.8%.
Quarterly filings known as 13-fs are one of the few ways that hedge funds are required to disclose their long positions, but may not reflect current holdings.
Tech and growth stocks have come screaming back in recent weeks after a brutal first half of the year, as some investors bet the Federal Reserve will be less hawkish than previously anticipated in its fight to tame the worst inflation in forty years.
The Russell 1000 Growth Index .RLG, which is dominated by tech stocks, is up 17.6% for the current quarter, compared with the 10.5% gain in the Russell 1000 Value index .RLV.
The tech-heavy Nasdaq is up 19%.
Besides mega-cap tech companies, funds also added new positions in smaller growth and tech companies.
Soros, for instance, added 300,000 shares in Uber Technologies Inc UBER.N that were worth $6.1 million at the end of the quarter, while Two Sigma bought 10.6 million shares of Snap Inc SNAP.N worth approximately $140 million at the end of June.
Shares of Snap are down 6.7% for the quarter to date, while shares of Uber are up nearly 59% over the same time.
(Reporting by David Randall Editing by Marguerita Choy)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.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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Hudson Bay Capital added a new position of 4.66 million shares in Apple Inc AAPL.O worth nearly $638 million at the end of June, while Soros Fund Management added a new position of nearly 30,000 shares in Tesla Inc TSLA.O worth $20.1 million at the time of the filing. By David Randall NEW YORK, Aug 15 (Reuters) - Two Sigma Investments, Hudson Bay Capital Management, and Soros Fund Management were among the prominent hedge funds that added stakes in mega-cap technology companies in the last quarter, positioning themselves to potentially benefit from the recent comeback in growth stocks. Quarterly filings known as 13-fs are one of the few ways that hedge funds are required to disclose their long positions, but may not reflect current holdings.
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Hudson Bay Capital added a new position of 4.66 million shares in Apple Inc AAPL.O worth nearly $638 million at the end of June, while Soros Fund Management added a new position of nearly 30,000 shares in Tesla Inc TSLA.O worth $20.1 million at the time of the filing. By David Randall NEW YORK, Aug 15 (Reuters) - Two Sigma Investments, Hudson Bay Capital Management, and Soros Fund Management were among the prominent hedge funds that added stakes in mega-cap technology companies in the last quarter, positioning themselves to potentially benefit from the recent comeback in growth stocks. Soros, for instance, added 300,000 shares in Uber Technologies Inc UBER.N that were worth $6.1 million at the end of the quarter, while Two Sigma bought 10.6 million shares of Snap Inc SNAP.N worth approximately $140 million at the end of June.
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Hudson Bay Capital added a new position of 4.66 million shares in Apple Inc AAPL.O worth nearly $638 million at the end of June, while Soros Fund Management added a new position of nearly 30,000 shares in Tesla Inc TSLA.O worth $20.1 million at the time of the filing. By David Randall NEW YORK, Aug 15 (Reuters) - Two Sigma Investments, Hudson Bay Capital Management, and Soros Fund Management were among the prominent hedge funds that added stakes in mega-cap technology companies in the last quarter, positioning themselves to potentially benefit from the recent comeback in growth stocks. Soros, for instance, added 300,000 shares in Uber Technologies Inc UBER.N that were worth $6.1 million at the end of the quarter, while Two Sigma bought 10.6 million shares of Snap Inc SNAP.N worth approximately $140 million at the end of June.
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Hudson Bay Capital added a new position of 4.66 million shares in Apple Inc AAPL.O worth nearly $638 million at the end of June, while Soros Fund Management added a new position of nearly 30,000 shares in Tesla Inc TSLA.O worth $20.1 million at the time of the filing. By David Randall NEW YORK, Aug 15 (Reuters) - Two Sigma Investments, Hudson Bay Capital Management, and Soros Fund Management were among the prominent hedge funds that added stakes in mega-cap technology companies in the last quarter, positioning themselves to potentially benefit from the recent comeback in growth stocks. Soros, for instance, added 300,000 shares in Uber Technologies Inc UBER.N that were worth $6.1 million at the end of the quarter, while Two Sigma bought 10.6 million shares of Snap Inc SNAP.N worth approximately $140 million at the end of June.
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19766.0
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2022-08-15 00:00:00 UTC
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Buffett Buys More Apple, Chevron, Occidental Petroleum, in Q2
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AAPL
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https://www.nasdaq.com/articles/buffett-buys-more-apple-chevron-occidental-petroleum-in-q2
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nan
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nan
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Warren Buffett's Berkshire Hathaway (BRK.B, $302.82) took advantage of the market's second-quarter swoon to add to its stakes in Apple (AAPL, $173.16), Chevron (CVX, $156.80), Occidental Petroleum (OXY, $64.34) and a handful of other stocks, but the holding company didn't make any exciting or surprising new moves, a regulatory filing made late Monday revealed.
Chairman and CEO Buffett, along with co-portfolio managers Ted Weschler and Todd Combs, were once again net purchasers of equities during the three months ended June 30, although their pace of buying slowed considerably compared with Q1.
SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
After subtracting sales, Berkshire spent $3.8 billion on stocks during the second quarter, down from net purchases of $41 billion in equities during the first three months of 2022. The S&P 500 lost more than 16% of its value during the second quarter. Suffice to say that Buffett and his lieutenants were once again greedy when others were fearful.
It's also worth noting that Buffett and his subalterns' buying stands in stark contrast to last year's second quarter, when Berkshire was a net seller of equities. And, for good measure, Buffett also spent $1 billion buying back Berkshire Hathaway stock during Q2.
Among the notable additions, Buffett bought another 3.9 million shares in Apple, which is Berkshire's largest position by a wide margin.
The company owned nearly 895 million shares in the iPhone maker, a stake worth $122.3 billion as of June 30. AAPL accounted for 41% of Berkshire's portfolio value at the end of Q2. That's down from 43% at the end of the first quarter due to a slump in Apple's share price.
Buffett has also been aggressively adding to Berkshire's stake in Occidental Petroleum. Berkshire bought an additional 9.6 million shares – worth about $530 million – in the integrated oil and gas firm in late June. The holding company again added to its stake in July, buying another 4.3 million OXY shares worth $250 million.
Including warrants, Berkshire owns roughly 30% of OXY's shares outstanding. Naturally, the conglomerate's large and growing position in OXY is fueling speculation that Buffett could be eyeing a buyout of Occidental Petroleum.
In some other notable purchases, Berkshire topped off existing stakes in Chevron, Celanese (CE, $116.22), Paramount Global (PARA, $26.55) and Ally Financial (ALLY, $35.68)
On the other side of Berkshire's ledger, the company exited what remained of its small stake in Verizon (VZ, $45.55), the only telecommunications stock in the Dow Jones Industrial Average. Berkshire also closed out its short-lived position in Royalty Pharma (RPRX, $43.87).
In other stock sales, Berkshire slashed its stake in Store Capital (STOR, $29.24) by more than 50%. Buffett also reduced Berkshire's exposure to General Motors (GM, $39.40) and Kroger (KR, $47.52).
Ultimately, however, Buffett and his lieutenants had themselves a relatively quiet quarter, making mostly immaterial moves. The Berkshire Hathaway portfolio is highly concentrated, after all, with its top five holdings accounting for 75% of the total portfolio value. STOR, GM and KR don't really move the needle here.
And so although Berkshire went on a shopping spree in Q2, it mostly consisted of bargain hunting in a few of Buffett's favorite names. Investors looking for new stock or sector ideas based on the Oracle's Q2 moves didn't get much, if anything, to work with.
SEE MORE 15 Stock Picks That Billionaires Love
The views and 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, $302.82) took advantage of the market's second-quarter swoon to add to its stakes in Apple (AAPL, $173.16), Chevron (CVX, $156.80), Occidental Petroleum (OXY, $64.34) and a handful of other stocks, but the holding company didn't make any exciting or surprising new moves, a regulatory filing made late Monday revealed. AAPL accounted for 41% of Berkshire's portfolio value at the end of Q2. Chairman and CEO Buffett, along with co-portfolio managers Ted Weschler and Todd Combs, were once again net purchasers of equities during the three months ended June 30, although their pace of buying slowed considerably compared with Q1.
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Warren Buffett's Berkshire Hathaway (BRK.B, $302.82) took advantage of the market's second-quarter swoon to add to its stakes in Apple (AAPL, $173.16), Chevron (CVX, $156.80), Occidental Petroleum (OXY, $64.34) and a handful of other stocks, but the holding company didn't make any exciting or surprising new moves, a regulatory filing made late Monday revealed. AAPL accounted for 41% of Berkshire's portfolio value at the end of Q2. SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio After subtracting sales, Berkshire spent $3.8 billion on stocks during the second quarter, down from net purchases of $41 billion in equities during the first three months of 2022.
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Warren Buffett's Berkshire Hathaway (BRK.B, $302.82) took advantage of the market's second-quarter swoon to add to its stakes in Apple (AAPL, $173.16), Chevron (CVX, $156.80), Occidental Petroleum (OXY, $64.34) and a handful of other stocks, but the holding company didn't make any exciting or surprising new moves, a regulatory filing made late Monday revealed. AAPL accounted for 41% of Berkshire's portfolio value at the end of Q2. SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio After subtracting sales, Berkshire spent $3.8 billion on stocks during the second quarter, down from net purchases of $41 billion in equities during the first three months of 2022.
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Warren Buffett's Berkshire Hathaway (BRK.B, $302.82) took advantage of the market's second-quarter swoon to add to its stakes in Apple (AAPL, $173.16), Chevron (CVX, $156.80), Occidental Petroleum (OXY, $64.34) and a handful of other stocks, but the holding company didn't make any exciting or surprising new moves, a regulatory filing made late Monday revealed. AAPL accounted for 41% of Berkshire's portfolio value at the end of Q2. SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio After subtracting sales, Berkshire spent $3.8 billion on stocks during the second quarter, down from net purchases of $41 billion in equities during the first three months of 2022.
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19767.0
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2022-08-15 00:00:00 UTC
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Dow Analyst Moves: AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-analyst-moves%3A-aapl-2
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nan
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nan
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The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #4 analyst pick. Apple is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 spot out of 500.
Looking at the stock price movement year to date, Apple is lower by about 3.0%.
VIDEO: Dow Analyst Moves: AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #4 analyst pick. Apple is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #4 analyst pick. Apple is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #4 analyst pick. Apple is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #4 analyst pick. Apple is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 spot out of 500.
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19768.0
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2022-08-15 00:00:00 UTC
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Apple's $30 mln settlement over employee bag checks gets court approval
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AAPL
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https://www.nasdaq.com/articles/apples-%2430-mln-settlement-over-employee-bag-checks-gets-court-approval
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nan
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By Daniel Wiessner
Aug 15 (Reuters) - A federal judge in California has signed off on Apple Inc.'s AAPL.O $30.5 million settlement in a nearly decade-old lawsuit claiming the company shortchanged 15,000 retail workers by not paying them for time spent in security checks after their shifts.
U.S. District Judge William Alsup in San Francisco approved the settlement in the 2013 class action on Saturday. The California Supreme Court in 2020 used the case to rule that state law requires employees to be paid when they go through mandatory security screenings.
Walmart Inc. and Amazon.com Inc. are also among major U.S. employers to face similar lawsuits. Amazon and a staffing agency last year agreed to pay $8.7 million to 42,000 warehouse workers to settle one of those cases.
The plaintiffs in Apple's case claimed retail workers often waited several minutes after clocking out, and sometimes longer, to have their bags checked before they could leave the stores where they worked.
Apple and lawyers for the plaintiffs did not immediately respond to requests for comment.
Alsup had dismissed the case in 2015, saying the workers were not under the company's control during security checks because they were not required to bring personal items to work that would have to be screened.
A federal appeals court asked the California Supreme Court to decide whether time spent in post-shift screenings had to be compensated under state law.
The state court in 2020 ruled against Apple, saying it was impractical to expect employees not to bring personal belongings to work. The federal court then revived the case and Alsup last year said he planned to grant summary judgment to the plaintiffs and order a trial on damages.
The case is Frlekin et al v. Apple Inc, U.S. District Court for the Northern District of California, No. 3:13-cv-03451.
(Reporting by Daniel Wiessner in Albany, New York, editing by Deepa Babington)
((daniel.wiessner@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 Daniel Wiessner Aug 15 (Reuters) - A federal judge in California has signed off on Apple Inc.'s AAPL.O $30.5 million settlement in a nearly decade-old lawsuit claiming the company shortchanged 15,000 retail workers by not paying them for time spent in security checks after their shifts. The plaintiffs in Apple's case claimed retail workers often waited several minutes after clocking out, and sometimes longer, to have their bags checked before they could leave the stores where they worked. Alsup had dismissed the case in 2015, saying the workers were not under the company's control during security checks because they were not required to bring personal items to work that would have to be screened.
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By Daniel Wiessner Aug 15 (Reuters) - A federal judge in California has signed off on Apple Inc.'s AAPL.O $30.5 million settlement in a nearly decade-old lawsuit claiming the company shortchanged 15,000 retail workers by not paying them for time spent in security checks after their shifts. The California Supreme Court in 2020 used the case to rule that state law requires employees to be paid when they go through mandatory security screenings. The plaintiffs in Apple's case claimed retail workers often waited several minutes after clocking out, and sometimes longer, to have their bags checked before they could leave the stores where they worked.
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By Daniel Wiessner Aug 15 (Reuters) - A federal judge in California has signed off on Apple Inc.'s AAPL.O $30.5 million settlement in a nearly decade-old lawsuit claiming the company shortchanged 15,000 retail workers by not paying them for time spent in security checks after their shifts. The California Supreme Court in 2020 used the case to rule that state law requires employees to be paid when they go through mandatory security screenings. A federal appeals court asked the California Supreme Court to decide whether time spent in post-shift screenings had to be compensated under state law.
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By Daniel Wiessner Aug 15 (Reuters) - A federal judge in California has signed off on Apple Inc.'s AAPL.O $30.5 million settlement in a nearly decade-old lawsuit claiming the company shortchanged 15,000 retail workers by not paying them for time spent in security checks after their shifts. U.S. District Judge William Alsup in San Francisco approved the settlement in the 2013 class action on Saturday. Alsup had dismissed the case in 2015, saying the workers were not under the company's control during security checks because they were not required to bring personal items to work that would have to be screened.
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19769.0
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2022-08-15 00:00:00 UTC
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Buffett's Berkshire boosts Ally, Activision holdings; sheds Verizon
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-boosts-ally-activision-holdings-sheds-verizon
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nan
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nan
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By Jonathan Stempel
Aug 15 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, has tripled its stake in online banking company Ally Financial Inc ALLY.N and increased its bet that "Call of Duty" video game maker Activision Blizzard Inc ATVI.O will be acquired by Microsoft Corp MSFT.O.
In a Monday regulatory filing describing its U.S.-listed equity investments as of June 30, Berkshire also said it exited what was once an $8.3 billion investment in Verizon Communications Inc VZ.N and no longer owns Royalty Pharma Plc RPRX.O, which buys drug royalties.
The filing does not specify whether Buffett or his portfolio managers Todd Combs and Ted Weschler made specific purchases and sales, but investors often try to mimic what Berkshire does. Larger investments are normally Buffett's.
Berkshire slowed its stock buying spree in the second quarter as U.S. stock markets fell, purchasing $6.2 billion of stocks and selling $2.3 billion. It had bought $51.1 billion and sold $9.7 billion in the first quarter.
Nevertheless, Buffett's conglomerate, which also owns dozens of businesses such as the BNSF railroad and Geico auto insurer, ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple Inc AAPL.O.
It also invested more than $33 billion in two oil companies, Chevron Corp CVX.N and Occidental Petroleum Corp OXY.N, as oil prices surged following Russia's invasion of Ukraine.
Berkshire has since purchased another $1.7 billion of Occidental stock, boosting its stake to 20.2%. It also owns $10 billion of Occidental preferred stock.
In the second quarter, Berkshire's Ally stake grew to 30 million shares from about 9 million, while its Activision stake grew to 68.4 million shares, worth $5.3 billion, from 64.3 million.
The Activision investment is a form of arbitrage, where Buffett appears to be betting that investors are pessimistic that regulators will approve Microsoft's proposed $68.7 billion takeover of the company.
According to Monday's filing, Berkshire also increased its holdings during the second quarter in Apple, Celanese Corp CE.N, Chevron, Markel Corp MKL.N, McKesson Corp MCK.N, Occidental and Paramount Global PARA.O.
It reduced its holdings in General Motors Co GM.N, Kroger Co KR.N, Store Capital Corp STOR.N and US Bancorp USB.N, the filing shows.
(Reporting by Jonathan Stempel in New York, Editing by Franklin Paul and Josie Kao)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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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Nevertheless, Buffett's conglomerate, which also owns dozens of businesses such as the BNSF railroad and Geico auto insurer, ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple Inc AAPL.O. By Jonathan Stempel Aug 15 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, has tripled its stake in online banking company Ally Financial Inc ALLY.N and increased its bet that "Call of Duty" video game maker Activision Blizzard Inc ATVI.O will be acquired by Microsoft Corp MSFT.O. The filing does not specify whether Buffett or his portfolio managers Todd Combs and Ted Weschler made specific purchases and sales, but investors often try to mimic what Berkshire does.
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Nevertheless, Buffett's conglomerate, which also owns dozens of businesses such as the BNSF railroad and Geico auto insurer, ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple Inc AAPL.O. It also invested more than $33 billion in two oil companies, Chevron Corp CVX.N and Occidental Petroleum Corp OXY.N, as oil prices surged following Russia's invasion of Ukraine. In the second quarter, Berkshire's Ally stake grew to 30 million shares from about 9 million, while its Activision stake grew to 68.4 million shares, worth $5.3 billion, from 64.3 million.
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Nevertheless, Buffett's conglomerate, which also owns dozens of businesses such as the BNSF railroad and Geico auto insurer, ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple Inc AAPL.O. Berkshire slowed its stock buying spree in the second quarter as U.S. stock markets fell, purchasing $6.2 billion of stocks and selling $2.3 billion. In the second quarter, Berkshire's Ally stake grew to 30 million shares from about 9 million, while its Activision stake grew to 68.4 million shares, worth $5.3 billion, from 64.3 million.
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Nevertheless, Buffett's conglomerate, which also owns dozens of businesses such as the BNSF railroad and Geico auto insurer, ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple Inc AAPL.O. In a Monday regulatory filing describing its U.S.-listed equity investments as of June 30, Berkshire also said it exited what was once an $8.3 billion investment in Verizon Communications Inc VZ.N and no longer owns Royalty Pharma Plc RPRX.O, which buys drug royalties. Berkshire has since purchased another $1.7 billion of Occidental stock, boosting its stake to 20.2%.
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19770.0
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2022-08-15 00:00:00 UTC
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Saudi prince made $500 mln Russia bet at start of Ukraine war
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AAPL
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https://www.nasdaq.com/articles/saudi-prince-made-%24500-mln-russia-bet-at-start-of-ukraine-war
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nan
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nan
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By investing in Gazprom GAZP.MM, Rosneft ROSN.MM and Lukoil LKOH.MM, Kingdom was likely seeking undervalued assets, but its move came as many Western nations imposed sanctions on Russian energy firms and their executives following Russia's invasion of Ukraine on Feb. 24.
Saudi Arabia and other Gulf states have so far tried to maintain what they say is a neutral position on the war in Ukraine, frustrating some Western officials who have sought to isolate Russia over the invasion.
Kingdom in February invested in global depository receipts of Gazprom and Roseneft worth 1.37 billion riyals ($365 million) and 196 million riyals ($52 million) respectively.
The firm also invested 410 million riyals ($109 million) in Lukoil's U.S. depository receipts between February and March, filings showed on Sunday as part of a lengthy disclosure of recent investments. It gave no reason for any of its specific investments.
Kingdom Holding, which is 16.9% owned by Saudi Arabia's sovereign wealth fund chaired by crown prince Mohammed Bin Salman, had not previously revealed the details of its investments.
Prince Alwaleed bin Talal rose to international prominence after making a big successful bet on Citigroup Inc C.N in the 1990s and he was an early investor in Apple Inc AAPL.O.
The prince has also made hundreds of millions of dollars by investing in companies such as Uber Technologies Inc UBER.N to Twitter Inc
Alwaleed's investment style has focused on new opportunities that could be lucrative but carry risk, as well as looking at undervalued assets, a source with knowledge of Kingdom's business said in June.
Saudi Arabia and Russia lead the OPEC+ group, an alliance formed in 2017 between the Organization of the Petroleum Exporting Countries (OPEC) and allied producers.
($1 = 3.7540 riyals)
(Reporting by Nayera Abdallah; Editing by Hugh Lawson and David Holmes)
((Nayera.Abdallah@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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Prince Alwaleed bin Talal rose to international prominence after making a big successful bet on Citigroup Inc C.N in the 1990s and he was an early investor in Apple Inc AAPL.O. By investing in Gazprom GAZP.MM, Rosneft ROSN.MM and Lukoil LKOH.MM, Kingdom was likely seeking undervalued assets, but its move came as many Western nations imposed sanctions on Russian energy firms and their executives following Russia's invasion of Ukraine on Feb. 24. Saudi Arabia and other Gulf states have so far tried to maintain what they say is a neutral position on the war in Ukraine, frustrating some Western officials who have sought to isolate Russia over the invasion.
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Prince Alwaleed bin Talal rose to international prominence after making a big successful bet on Citigroup Inc C.N in the 1990s and he was an early investor in Apple Inc AAPL.O. By investing in Gazprom GAZP.MM, Rosneft ROSN.MM and Lukoil LKOH.MM, Kingdom was likely seeking undervalued assets, but its move came as many Western nations imposed sanctions on Russian energy firms and their executives following Russia's invasion of Ukraine on Feb. 24. Kingdom in February invested in global depository receipts of Gazprom and Roseneft worth 1.37 billion riyals ($365 million) and 196 million riyals ($52 million) respectively.
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Prince Alwaleed bin Talal rose to international prominence after making a big successful bet on Citigroup Inc C.N in the 1990s and he was an early investor in Apple Inc AAPL.O. Kingdom in February invested in global depository receipts of Gazprom and Roseneft worth 1.37 billion riyals ($365 million) and 196 million riyals ($52 million) respectively. The firm also invested 410 million riyals ($109 million) in Lukoil's U.S. depository receipts between February and March, filings showed on Sunday as part of a lengthy disclosure of recent investments.
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Prince Alwaleed bin Talal rose to international prominence after making a big successful bet on Citigroup Inc C.N in the 1990s and he was an early investor in Apple Inc AAPL.O. By investing in Gazprom GAZP.MM, Rosneft ROSN.MM and Lukoil LKOH.MM, Kingdom was likely seeking undervalued assets, but its move came as many Western nations imposed sanctions on Russian energy firms and their executives following Russia's invasion of Ukraine on Feb. 24. Saudi Arabia and other Gulf states have so far tried to maintain what they say is a neutral position on the war in Ukraine, frustrating some Western officials who have sought to isolate Russia over the invasion.
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19771.0
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2022-08-15 00:00:00 UTC
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2 Warren Buffett Stocks to Buy That Are Helping Drive the Market Rebound
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-that-are-helping-drive-the-market-rebound
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nan
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nan
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Bye-bye, bear market? The S&P 500 only briefly entered bear market territory in June. The Nasdaq Composite Index stayed in a bear market longer. However, it's now up 20% from the low -- a criterion that some use to determine when a bear market is over.
The bottom line is that the stock market has been on a roll in recent weeks. And some stocks that are playing a bigger role in this momentum than others look like great picks right now. Here are two Warren Buffett stocks to buy that are especially helping drive the market rebound.
Key drivers
Apple (NASDAQ: AAPL) ranks by far as the top stock that Buffett owns other than Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. The tech stock makes up more than 40% of Berkshire's portfolio.
Amazon (NASDAQ: AMZN) isn't nearly as high on the list for Buffett. Berkshire owns nearly 10.7 million shares of the e-commerce and cloud giant. However, that's enough to comprise only 0.4% of the conglomerate's portfolio.
Both of these Buffett stocks, though, play an outsized role in driving the S&P 500's performance. The index uses market cap to determine the weighting of each of its component stocks.
Apple's market cap of more than $2.7 trillion makes it the No. 1 stock in the S&P 500 with a weight of 7.3%. Amazon's market cap of $1.4 trillion puts it at No. 3 in the index with a weight of nearly 3.5%.
With Apple and Amazon together comprising almost 11% of the S&P 500's total weight, it's not surprising that the index is much more likely to move higher when both stocks soar. That's exactly what's happened in recent weeks.
Apple stock has jumped 17% over the past month. It's up more than 30% since hitting a 52-week low on June 16, 2022.
Meanwhile, Amazon stock has vaulted 26% higher over the past month. Amazon reached its nadir on June 14, 2022, and has rebounded nearly 40% since then.
Why they're great picks now
Just because Apple and Amazon have great momentum going doesn't mean they're great picks now. But I think they are both great picks for two reasons. First, the near-term prospects for both companies are improving. Second, Apple's and Amazon's long-term prospects continue to be exceptional.
Apple CFO Luca Maestri said in the company's recent quarterly call that "revenue growth will accelerate" in the next quarter. The company also tends to perform really well in Q4 thanks to holiday buying.
Amazon reported record Prime Day sales, which should significantly boost its Q3 results. The company's Prime Video debuts Thursday Night Football and The Lord of the Rings: The Rings of Power in September. Amazon Web Services (AWS) continues to win big new contracts.
I'm even more pumped about the companies' long-term opportunities. For Apple, augmented reality and digital payments appear to be especially important growth markets. I also suspect the company will become a bigger threat in streaming with Apple TV+.
AWS will almost certainly remain a significant growth driver for Amazon. Don't overlook the potential for company's recently announced acquisitions, though, to make a big difference. Amazon's buyout of One Medical will bolster its presence in the healthcare market. I also totally agree with the view that Amazon's acquisition of iRobot is about a lot more than just vacuums. It will be intriguing to see how the home robotics market evolves with Amazon in the driver's seat.
Some risks
Sure, both Apple and Amazon face some risks. It's possible that a severe economic downturn could still happen. Supply chain issues could still negatively impact both companies. They also might be derailed by innovative competitors in some markets.
However, these two Buffett stocks continue to rank among the best-run businesses with strong moats and multiple avenues to generate growth. If the market rebound has legs, it will probably be in large part to sustained momentum for Apple and Amazon.
Find out why Apple is one of the 10 best stocks to buy now
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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. Keith Speights has positions in Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and iRobot. 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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Key drivers Apple (NASDAQ: AAPL) ranks by far as the top stock that Buffett owns other than Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. However, these two Buffett stocks continue to rank among the best-run businesses with strong moats and multiple avenues to generate growth. Find out why Apple is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market.
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Key drivers Apple (NASDAQ: AAPL) ranks by far as the top stock that Buffett owns other than Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and iRobot. 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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Key drivers Apple (NASDAQ: AAPL) ranks by far as the top stock that Buffett owns other than Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. With Apple and Amazon together comprising almost 11% of the S&P 500's total weight, it's not surprising that the index is much more likely to move higher when both stocks soar. Why they're great picks now Just because Apple and Amazon have great momentum going doesn't mean they're great picks now.
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Key drivers Apple (NASDAQ: AAPL) ranks by far as the top stock that Buffett owns other than Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself. That's exactly what's happened in recent weeks. AWS will almost certainly remain a significant growth driver for Amazon.
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19772.0
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2022-08-15 00:00:00 UTC
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US STOCKS-Futures fall as weak China data sparks slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-weak-china-data-sparks-slowdown-fears
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures off: Dow 0.53%, S&P 0.54%, Nasdaq 0.39%
Aug 15 (Reuters) - U.S. stock index futures fell on Monday, taking cues from global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy.
China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% each in trading before the bell, while banks also edged lower after posting six straight weeks of gains.
Oil stocks Exxon Mobil Corp XOM.N, Chevron Corp CVX.N, Halliburton Co HAL.N and Marathon Oil Corp MRO.N fell between 1.6% and 3.3% as crude prices tumbled on concerns over demand in China, the world's largest crude importer. O/R
At 06:37 a.m. ET, Dow e-minis 1YMcv1 were down 179 points, or 0.53%, S&P 500 e-minis EScv1 were down 23.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were down 52.5 points, or 0.39%.
Wall Street has rallied over the last few weeks, with the benchmark S&P 500 index clawing back over half of its losses this year as optimism seeped back into markets following data that raised hopes the U.S. Federal Reserve can achieve a soft landing for the economy.
The S&P 500 and the Nasdaq posted their fourth straight week of gains on Friday even as Fed officials pushed back on expectations that the central bank will end its rate hikes sooner than anticipated, and economists warned that inflation could return in the coming months.
Traders are seeing nearly equal odds of the Fed hiking rates by 50 basis points or 75 basis points in September. FEDWATCH
Meanwhile, U.S.-listed shares of Canadian miner Turquoise Hill Resources Ltd TRQ.N plunged 26% on rejecting an offer by majority shareholder Rio Tinto Ltd RIO.AX, RIO.L to buy the 49% stake it doesn't already own for $2.7 billion.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by 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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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% each in trading before the bell, while banks also edged lower after posting six straight weeks of gains. China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis. The S&P 500 and the Nasdaq posted their fourth straight week of gains on Friday even as Fed officials pushed back on expectations that the central bank will end its rate hikes sooner than anticipated, and economists warned that inflation could return in the coming months.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% each in trading before the bell, while banks also edged lower after posting six straight weeks of gains. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures off: Dow 0.53%, S&P 0.54%, Nasdaq 0.39% Aug 15 (Reuters) - U.S. stock index futures fell on Monday, taking cues from global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. ET, Dow e-minis 1YMcv1 were down 179 points, or 0.53%, S&P 500 e-minis EScv1 were down 23.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were down 52.5 points, or 0.39%.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% each in trading before the bell, while banks also edged lower after posting six straight weeks of gains. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures off: Dow 0.53%, S&P 0.54%, Nasdaq 0.39% Aug 15 (Reuters) - U.S. stock index futures fell on Monday, taking cues from global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. ET, Dow e-minis 1YMcv1 were down 179 points, or 0.53%, S&P 500 e-minis EScv1 were down 23.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were down 52.5 points, or 0.39%.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% each in trading before the bell, while banks also edged lower after posting six straight weeks of gains. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures off: Dow 0.53%, S&P 0.54%, Nasdaq 0.39% Aug 15 (Reuters) - U.S. stock index futures fell on Monday, taking cues from global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. The S&P 500 and the Nasdaq posted their fourth straight week of gains on Friday even as Fed officials pushed back on expectations that the central bank will end its rate hikes sooner than anticipated, and economists warned that inflation could return in the coming months.
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19773.0
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2022-08-15 00:00:00 UTC
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Is Most-Watched Stock Apple Inc. (AAPL) Worth Betting on Now?
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AAPL
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https://www.nasdaq.com/articles/is-most-watched-stock-apple-inc.-aapl-worth-betting-on-now-1
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +14.6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 18.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.26 per share for the current quarter, representing a year-over-year change of +1.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.3%.
For the current fiscal year, the consensus earnings estimate of $6.10 points to a change of +8.7% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $6.48 indicates a change of +6.3% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $87.92 billion for the current quarter points to a year-over-year change of +5.5%. The $391.96 billion and $410.65 billion estimates for the current and next fiscal years indicate changes of +7.2% and +4.8%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $82.96 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $1.20 for the same period compares with $1.30 a year ago.
Compared to the Zacks Consensus Estimate of $81.99 billion, the reported revenues represent a surprise of +1.19%. The EPS surprise was +5.26%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report When earnings estimates for a company go up, the fair value for its stock goes up as well.
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19774.0
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2022-08-15 00:00:00 UTC
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Stock Market Today: Dow Jones, S&P 500 Open Slightly Lower; Li Auto Falls After Reporting Earnings
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AAPL
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https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-open-slightly-lower-li-auto-falls-after-reporting
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nan
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nan
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Stock Market Today Mid Morning Updates
On Monday morning, the Dow Jones Industrial Average opened modestly lower by 10 points. This comes after four straight weeks of S&P 500 gains. Also, China reported disappointing economic data, which weighed on markets on Monday morning. The country’s central bank also cut rates surprisingly, heightening concern over China’s economic recovery.
Just last week, the S&P 500 gained 3.25% to record its fourth consecutive week of gains, making it the longest winning streak since last year. Meanwhile, the Nasdaq composite gained 3.08% last week, while the Dow posted an increase of 2.9%. Additionally, this week investors will be closing attention to retail earnings. This week, top retail stocks such as Home Depot (NYSE: HD), Walmart (NYSE: WMT), and Target (NYSE: TGT) will report their most recent quarterly earnings results.
Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are flat on Monday, while Microsoft (NASDAQ: MSFT) is trading slightly lower by 0.20%. Meanwhile, shares of Caterpillar, Inc. (NYSE: CAT), and The Walt Disney Co (NYSE: DIS) shares are trading mixed on Monday morning. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are trading lower during Monday morning’s trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) are advancing on Monday by 1.90%. Rival EV companies like Rivian are also trading lower by 3.24%. Lucid Group (NASDAQ: LCID) stock dropped by 0.16% on Monday. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading down on Monday.
[Read More] Best Stocks To Buy Today? 4 Semiconductor Stocks To Watch
Dow Jones Today: U.S. Treasury Yield Drops To 2.77%
Following the stock market opening on Monday, the major indices opened lower. The Dow, S&P 500, and Nasdaq are trading lower by 0.07%, 0.21%, and 0.15%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is flat while the SPDR S&P 500 ETF (NYSEARCA: SPY) is red by 0.22%.
The benchmark 10-year U.S. Treasury yield is at 2.77% during the Monday morning trading session. Furthermore, investors await key economic data on Wednesday. In detail, the Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both scheduled to be released on Wednesday this week.
[Read More] Best Stocks That Pay Dividends? 3 For Your August 2022 Watchlist
Li Auto (LI) Stock Falls Following Earnings Report
Shares of the Chinese EV maker Li Auto (NASDAQ: LI) fell over 2% to $31.90 per share during Monday morning’s trading session. This comes after the company reported its unaudited second quarter 2022 financial results. In it, Li Auto reported a loss of $0.10 per share on revenue of $1.3 billion. What’s more the company posted a 67.1% increase in revenue on a year-over-year basis. In the news release, the company reported its estimated Q3 revenue to come in between $1.34 billion to $1.43 billion. For context, wall street consensus expectations is a revenue estimate of $2.02 billion for Q3.
Continuing on, the EV maker reported its delivery numbers for July 2022. In detail, the company delivered 10,422 Li ONEs, which reflects a 21.3% increase from the same period in 2021. Mr. Xiang Li, founder, chairman, and chief executive officer of Li Auto, stated, “We delivered solid second quarter results in an environment with challenges and uncertainties through operational and product excellence. Our vehicles continued to win family users, not only illustrating the strength of our vehicle and the growing appeal of our brand, but also reaffirming the effectiveness of our strategy.”
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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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are flat on Monday, while Microsoft (NASDAQ: MSFT) is trading slightly lower by 0.20%. The country’s central bank also cut rates surprisingly, heightening concern over China’s economic recovery. In detail, the Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both scheduled to be released on Wednesday this week.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are flat on Monday, while Microsoft (NASDAQ: MSFT) is trading slightly lower by 0.20%. Stock Market Today Mid Morning Updates On Monday morning, the Dow Jones Industrial Average opened modestly lower by 10 points. 4 Semiconductor Stocks To Watch Dow Jones Today: U.S. Treasury Yield Drops To 2.77% Following the stock market opening on Monday, the major indices opened lower.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are flat on Monday, while Microsoft (NASDAQ: MSFT) is trading slightly lower by 0.20%. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are trading lower during Monday morning’s trading session. 3 For Your August 2022 Watchlist Li Auto (LI) Stock Falls Following Earnings Report Shares of the Chinese EV maker Li Auto (NASDAQ: LI) fell over 2% to $31.90 per share during Monday morning’s trading session.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are flat on Monday, while Microsoft (NASDAQ: MSFT) is trading slightly lower by 0.20%. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are trading lower during Monday morning’s trading session. The Dow, S&P 500, and Nasdaq are trading lower by 0.07%, 0.21%, and 0.15%, respectively.
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19775.0
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2022-08-15 00:00:00 UTC
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US STOCKS-Wall St set to open lower as weak China data sparks slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-weak-china-data-sparks-slowdown-fears
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nan
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By Bansari Mayur Kamdar and Susan Mathew
Aug 15 (Reuters) - U.S. stock indexes headed for a lower open on Monday, mirroring global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy.
China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
U.S.-listed shares of China's e-commerce giant Alibaba Group Holding Ltd BABA.N and internet firm Baidu Inc BIDU.O declined more than 1% each in trading before the bell.
Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% and 0.8%, respectively, while banks also edged lower after posting six straight weeks of gains.
"With the recent rally that we've had from the June lows, it just gives investors a reason to pause today," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.
"I think the primary reason futures are down is because China surprisingly cut one of their key lending rates as economic news was a little bit weaker than expected."
Oil stocks Exxon Mobil Corp XOM.N, Chevron Corp CVX.N, Halliburton Co HAL.N and Marathon Oil Corp MRO.N fell between 2.9% and 4.1% as crude prices tumbled on concerns over demand in China, the world's largest crude importer. O/R
At 08:12 a.m. ET, Dow e-minis 1YMcv1 were down 199 points, or 0.59%, S&P 500 e-minis EScv1 were down 27.25 points, or 0.64%, and Nasdaq 100 e-minis NQcv1 were down 64.75 points, or 0.48%.
Wall Street has rallied over the last few weeks, with the benchmark S&P 500 index recovering half of its losses this year as optimism seeped back into markets following data that raised hopes the U.S. Federal Reserve can achieve a soft landing for the economy.
The S&P 500 and the Nasdaq posted their fourth straight week of gains on Friday even as Fed officials pushed back on expectations that the central bank will end its rate hikes sooner than anticipated, and economists warned that inflation could return in the coming months.
Meanwhile, analysts and advisers were optimistic that the move to delist five Chinese state-owned enterprises from the New York Stock Exchange could pave the way for Beijing to strike an audit deal with the United States, ending a more than decade-old dispute.
U.S.-listed shares of the five Chinese firms China Life Insurance Co Ltd LFC.N, Sinopec SNP.N, Aluminum Corp of China Ltd ACH.N, PetroChina Co Ltd PTR.N and Sinopec Shanghai Petrochemical Co Ltd SHI.N shed between 1.7% and 7.2%, extending Friday's decline.
Miner Turquoise Hill Resources Ltd TRQ.N plunged 17.4% on rejecting an offer by majority shareholder Rio Tinto Ltd RIO.AX, RIO.L to buy the 49% stake it doesn't already own for $2.7 billion.
(Reporting by Bansari Mayur Kamdar and Susan Mathew in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% and 0.8%, respectively, while banks also edged lower after posting six straight weeks of gains. China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis. Wall Street has rallied over the last few weeks, with the benchmark S&P 500 index recovering half of its losses this year as optimism seeped back into markets following data that raised hopes the U.S. Federal Reserve can achieve a soft landing for the economy.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% and 0.8%, respectively, while banks also edged lower after posting six straight weeks of gains. By Bansari Mayur Kamdar and Susan Mathew Aug 15 (Reuters) - U.S. stock indexes headed for a lower open on Monday, mirroring global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% and 0.8%, respectively, while banks also edged lower after posting six straight weeks of gains. By Bansari Mayur Kamdar and Susan Mathew Aug 15 (Reuters) - U.S. stock indexes headed for a lower open on Monday, mirroring global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. Oil stocks Exxon Mobil Corp XOM.N, Chevron Corp CVX.N, Halliburton Co HAL.N and Marathon Oil Corp MRO.N fell between 2.9% and 4.1% as crude prices tumbled on concerns over demand in China, the world's largest crude importer.
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Megacap growth and technology stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O slid 0.5% and 0.8%, respectively, while banks also edged lower after posting six straight weeks of gains. By Bansari Mayur Kamdar and Susan Mathew Aug 15 (Reuters) - U.S. stock indexes headed for a lower open on Monday, mirroring global markets, after weak economic data from China rekindled fears of an economic slowdown in the world's second-largest economy. China's central bank slashed key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
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19776.0
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2022-08-15 00:00:00 UTC
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2 Top Tech Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/2-top-tech-stocks-to-buy-for-the-long-haul-4
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nan
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There is no better vehicle for creating wealth than investing in stocks. They beat out gold, bonds, real estate, and certainly cryptocurrencies. And while one asset class or another may outperform stocks over short periods of time, history proves that if you want to accumulate large amounts of wealth, investing in stocks is the way to go.
A Deutsche Bank study showed that over the past 100 years, stocks surpassed the performance of gold by 5.6% annually, housing prices by 6.6%, Treasuries by 6.8%, and oil by 8.4% per year.
Image source: Getty Images.
Only twice have there been a decade when stocks produced negative returns: the 1930s, when the market lost 0.5% during the Great Depression, and the 2000s, when a combination of the Tech Wreck, 9/11, and the financial and housing markets collapse conspired to sink the market and caused stocks to lose 0.9%.
Yet, those losing periods were followed by strong bull markets. The 1940s generated compound annual returns of 10.2% annually, including dividends, while the 2010s produced a CAGR of 14%.
Tech stocks have often been the driver of the market's gains as demand for consumer electronics and related products and services caused the sector to far outperform every other segment. So buying and holding tech stocks for the long haul is the way to go. Following are two you should consider now.
Apple
Whether or not you're a fan of Apple (NASDAQ: AAPL) products, you must admit it operates a superior business. When it's not changing how consumers think about interacting with technology, it's producing products with a style, fit, and finish that capture a large number of customers within its ecosystem. And analysts continuously underestimate the power of that allure, which has them often misjudge the staying power of its gadgets.
Warren Buffett understands the iconic prestige of the brand and its ability to generate recurring streams of revenue and profits over long periods of time. While I don't recommend making Apple stock almost half of your portfolio, as Buffett has done at Berkshire Hathaway, it's still a company an investor can't go wrong with over the decades.
Revenue continues to run higher, with second-quarter sales eclipsing $83 billion, a record for the period, as product revenue rose 7% to $77.5 billion, and service revenue jumped 17% to $20 billion, also a record.
The iPhone, in particular, but also its Macs, iPads, Apple Watch, and Apple TV continue to grow in popularity. However, it's that service portion of its business that is likely to be the company's future as it is the fastest-growing segment. It makes Apple a stock to buy now and hold onto for decades.
Digital Realty
A real estate investment trust (REIT) isn't what you normally think of as a tech stock. However, because Digital Realty Trust (NYSE: DLR) is the world's largest provider of data centers for cloud services and telecom carriers, this REIT easily fits the bill.
Data centers are considered the backbone of the internet -- the central nervous system for every device that accesses a network, whether in the cloud or online. For speed and efficiency, data needs to be housed in a central depository, and data centers serve as secure warehouses for the servers and networking equipment storing the data.
Digital Realty owns over 300 data centers in 27 countries, representing nearly 37 million square feet of space. The industry has undergone significant consolidation that has left the REIT as one of only two remaining that focus on the sector.
Data centers used to be solely physical facilities, but they're increasingly being located in the cloud themselves. Digital Realty's PlatformDigital service offers a hybrid solution of cloud and brick-and-mortar storage options that growing numbers of customers are using.
The REIT lowered its core funds-from-operations guidance for the full year by $0.05, to $6.75 to $6.85 per share, but that downward shift is due solely to currency exchange rates.
Digital Realty customers like Amazon and Microsoft could become competitors down the road, considering their own vaunted cloud services. But as more businesses generate growing amounts of data, the need for the REITs' specialized services is likely to keep pace. Global expansion makes Digital Realty a stock to own now and well into the future.
Find out why Apple is one of the 10 best stocks to buy now
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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. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Digital Realty Trust, 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 Whether or not you're a fan of Apple (NASDAQ: AAPL) products, you must admit it operates a superior business. Tech stocks have often been the driver of the market's gains as demand for consumer electronics and related products and services caused the sector to far outperform every other segment. Warren Buffett understands the iconic prestige of the brand and its ability to generate recurring streams of revenue and profits over long periods of time.
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Apple Whether or not you're a fan of Apple (NASDAQ: AAPL) products, you must admit it operates a superior business. Digital Realty A real estate investment trust (REIT) isn't what you normally think of as a tech stock. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Digital Realty Trust, and Microsoft.
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Apple Whether or not you're a fan of Apple (NASDAQ: AAPL) products, you must admit it operates a superior business. Only twice have there been a decade when stocks produced negative returns: the 1930s, when the market lost 0.5% during the Great Depression, and the 2000s, when a combination of the Tech Wreck, 9/11, and the financial and housing markets collapse conspired to sink the market and caused stocks to lose 0.9%. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Digital Realty Trust, and Microsoft.
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Apple Whether or not you're a fan of Apple (NASDAQ: AAPL) products, you must admit it operates a superior business. It makes Apple a stock to buy now and hold onto for decades. Digital Realty A real estate investment trust (REIT) isn't what you normally think of as a tech stock.
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19777.0
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2022-08-15 00:00:00 UTC
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Did Disney Just Turn a Genius Move Into a Big Mistake?
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AAPL
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https://www.nasdaq.com/articles/did-disney-just-turn-a-genius-move-into-a-big-mistake
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nan
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Walt Disney (NYSE: DIS) blew the market away with its second-quarter earnings report. It not only beat Wall Street predictions on its top and bottom lines but also catapulted the entertainment giant into the lead over rival Netflix (NASDAQ: NFLX) by adding 14.4 million new subscribers to its Disney+ streaming service.
That's emboldening Disney to raise the price of Disney+ while introducing a new, lower-cost, ad-supported version as consumers have proven willing to pay for commercials. But pricing is a tricky business, and while tapping into this trend could be a genius move, Disney also might be making a big mistake by pricing both at a premium level.
Image source: Getty Images.
Leapfrogging to the forefront
Disney now has 221.1 million subscribers to its various streaming services, compared to 220.7 at Netflix. It was only expected to add 10 million new subscribers to its account, but a strong lineup of must-see programs had consumers signing up in droves. That comes as viewers grew tired of Netflix's push for quantity over quality in content and canceled their subscriptions to the streamer in record numbers. Netflix lost almost one million subscriptions in the second quarter, the most it's ever recorded.
It could be part of an overall fatigue setting in among viewers who now have a choice between not only Disney and Netflix but also Amazon Prime Video, Apple TV+, Hulu, Tubi, Freevee, HBOMax, Paramount+, Peacock, and more. According to data from the industry analysts at Kantar, viewers have had enough, and streaming growth has stalled.
Its latest Entertainment on Demand Barometer report shows 4.5 million consumers canceled their streaming subscriptions in the second quarter, reducing industry household penetration to 85%. Consumers are paring their subscriptions down to just a few, and of those with only one subscription, Amazon Prime Video was the choice of 69%.
Of course, consumers aren't paying $149 a year to get streaming video from Amazon; they're paying for free delivery from the e-commerce site with movies and TV shows thrown in for free. And that is why Disney's pricing plan for Disney+ is so critical -- and why its decisions here may be a big mistake.
Paying up for advertising
Disney raised the monthly price of Disney+ from $7.99 to $10.99, a 38% price hike. However, that is still a bargain relative to Netflix, which raised the monthly price of its most popular subscription plan from $13.99 to $15.49 this past January.
Although that increase alone carries some risk, Disney's mistake is launching its new, ad-supported service in December at the old $7.99 per month price. There does not appear to be enough value proposition between ad-free and ad-supported to justify consumers signing up for the lower-cost service. While that may actually be the plan -- subtly encouraging viewers to pay up to go ad-free -- it undermines the premise and promise as a whole.
Disney just did something similar with ESPN+, raising the subscription price of the sports-centric streaming service from $6.99 to $9.99 a month, hoping viewers would just choose to go the package-deal route and add in Disney+ and Hulu for an extra $4 more per month. However, the entertainment company could arguably generate more revenue overall if it had made the ad-laced service an actual bargain.
Too smart by half?
The streaming video industry is certainly evolving. There was a time not that long ago when consumers suffered through advertising on broadcast TV because it was free but ended up paying more for streaming services to avoid the ads.
Then, as providers began raising prices, they started offering free versions so long as you didn't mind watching some ads. Now, it's gotten to the point that viewers not only see ads but also have to pay for that privilege.
Maybe Disney is smart to generate ad revenue while also charging its customers to watch them. On the other hand, that seems a big mistake because it's not viewer-friendly -- a move that could ultimately cause its total streaming subscriptions to drop over time.
10 stocks we like better than Walt Disney
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney 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 11, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It not only beat Wall Street predictions on its top and bottom lines but also catapulted the entertainment giant into the lead over rival Netflix (NASDAQ: NFLX) by adding 14.4 million new subscribers to its Disney+ streaming service. It could be part of an overall fatigue setting in among viewers who now have a choice between not only Disney and Netflix but also Amazon Prime Video, Apple TV+, Hulu, Tubi, Freevee, HBOMax, Paramount+, Peacock, and more. Its latest Entertainment on Demand Barometer report shows 4.5 million consumers canceled their streaming subscriptions in the second quarter, reducing industry household penetration to 85%.
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Its latest Entertainment on Demand Barometer report shows 4.5 million consumers canceled their streaming subscriptions in the second quarter, reducing industry household penetration to 85%. The Motley Fool has positions in and recommends Amazon, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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Paying up for advertising Disney raised the monthly price of Disney+ from $7.99 to $10.99, a 38% price hike. Disney just did something similar with ESPN+, raising the subscription price of the sports-centric streaming service from $6.99 to $9.99 a month, hoping viewers would just choose to go the package-deal route and add in Disney+ and Hulu for an extra $4 more per month. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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Paying up for advertising Disney raised the monthly price of Disney+ from $7.99 to $10.99, a 38% price hike. 10 stocks we like better than Walt Disney When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool has positions in and recommends Amazon, Netflix, and Walt Disney.
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19778.0
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2022-08-15 00:00:00 UTC
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Will Used Merchandise Fly at Walmart?
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AAPL
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https://www.nasdaq.com/articles/will-used-merchandise-fly-at-walmart
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nan
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nan
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Everything old is new again, or maybe it's everything refurbished is new again.
Walmart (NYSE: WMT) is getting into the refurbished consumer electronics game, and it's a smart move as it meshes well with its price-sensitive consumers. While just about everyone is price-sensitive in this time of high inflation, elevated energy costs, and rising interest rates, the like-new refurbished market seems right in the retailer's wheelhouse.
Image source: Walmart.
Just like new
Walmart recently launched Walmart Restored as part of its website, where it lists consumer electronics and appliances from its preferred third-party sellers and suppliers that have been refurbished to like-new condition. The prices are reportedly "a fraction of typical costs," and after the products have been inspected, tested, and cleaned, they will also not have any visible imperfections when viewed at a short distance. They also come with a 90-day free return guarantee.
The program will initially only be on the walmart.com website, but will move into select stores later this fall. Among the brands included in the program are Apple, HP, KitchenAid, and Samsung.
Although Walmart is not alone in offering refurbished goods, the inflationary era people are enduring means it's a timely introduction of the program. It's the back-to-school season, which is a good time to pick up laptops, tablets, TVs, mobile devices, and other consumer electronics -- and it launched sufficiently before the start of holiday shopping, which gives an opportunity to get a head start on the rush of goods.
A growing need to offload goods
Walmart is the largest retailer in the world, but it has been hit by slowing sales and recently announced it needed to unload a boatload of merchandise at discounted prices to clear inventory that wasn't moving.
It also provided a business update that indicated profits would be materially hurt by rising prices and expenses, and more recently announced it would be laying off hundreds of employees at its corporate offices.
The Walmart Restored program was likely an outgrowth of this developing financial reality. Although apparel is where the retailer is experiencing a build-up of inventory that it needs to work down, its sellers and suppliers are obviously inundated with a lot of product returns that they need to move as well.
A sea of refurbished goods
It's not the first time Walmart has experimented with resale items. A few years ago, the retailer partnered with returns company goTRG to sell refurbished Apple products on its website. goTRG works with a number of major retailers, including Home Depot, Lowe's, and Amazon.
Amazon actually started its own refurbishing program, Amazon Renewed, to sell pre-owned goods that have been restored, as have others such as Apple, Best Buy, and eBay.
Although it took refurbished consumer products a while to gain market acceptance as people feared they were getting damaged goods, the entire secondhand market has taken on a life of its own, particularly during the early days of the pandemic.
Customers now have selections of used clothes, sneakers, consumer electronics, and appliances to choose from. In many instances there has not been any appreciable upgrade in design or innovation of the products, but prices have continued to spiral upwards. So consumers are more willing to purchase refurbished goods. And with retailers standing behind the used products they're selling, it's given customers confidence to buy them.
A good start
The program won't do anything to help Walmart's margins in the short term, but it could increase website traffic, which could eventually lead to greater sales elsewhere.
It's a realization that buyers are under more pressure today than they've been in years. Because Walmart is associated with everyday low pricing already, the program should be successful in moving merchandise. That can save its customers a lot of money, while increasing website traffic and customer loyalty.
10 stocks we like better than Walmart Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart 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 11, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has positions in Lowe's. The Motley Fool has positions in and recommends Amazon, Apple, Best Buy, HP, Home Depot, and Walmart Inc. The Motley Fool recommends Lowe's and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While just about everyone is price-sensitive in this time of high inflation, elevated energy costs, and rising interest rates, the like-new refurbished market seems right in the retailer's wheelhouse. It also provided a business update that indicated profits would be materially hurt by rising prices and expenses, and more recently announced it would be laying off hundreds of employees at its corporate offices. A good start The program won't do anything to help Walmart's margins in the short term, but it could increase website traffic, which could eventually lead to greater sales elsewhere.
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goTRG works with a number of major retailers, including Home Depot, Lowe's, and Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Best Buy, HP, Home Depot, and Walmart Inc. The Motley Fool recommends Lowe's and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay.
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Just like new Walmart recently launched Walmart Restored as part of its website, where it lists consumer electronics and appliances from its preferred third-party sellers and suppliers that have been refurbished to like-new condition. Amazon actually started its own refurbishing program, Amazon Renewed, to sell pre-owned goods that have been restored, as have others such as Apple, Best Buy, and eBay. The Motley Fool recommends Lowe's and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay.
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Everything old is new again, or maybe it's everything refurbished is new again. Amazon actually started its own refurbishing program, Amazon Renewed, to sell pre-owned goods that have been restored, as have others such as Apple, Best Buy, and eBay. The Motley Fool has positions in and recommends Amazon, Apple, Best Buy, HP, Home Depot, and Walmart Inc.
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19779.0
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2022-08-14 00:00:00 UTC
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Here's Why Netflix Stock May Be Riskier Than You Think
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AAPL
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https://www.nasdaq.com/articles/heres-why-netflix-stock-may-be-riskier-than-you-think
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nan
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nan
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Netflix (NASDAQ: NFLX) still stands above all the other streaming networks, with 220 million subscribers and $8 billion in revenue. However, it continues to take a beating from the many other streaming companies that are trying to topple it and capture market share.
While it tackles these issues from atop its precarious perch, there's a major drawback that it has compared to almost all of its competition -- and it makes owning Netflix stock look a bit risky right now.
A completely new streaming landscape
Let's walk back a few steps to see what led to this situation since Netflix didn't change, but the world has. Disney had Disney+ in plans before the pandemic, and it was first launched in the U.S. in November 2019, just prior to COVID-19.
The unforeseen circumstances that followed had a massive effect on the streaming industry. Disney+ was adopted at a greatly accelerated rate, Netflix itself enjoyed unusually high subscriber growth, and several other studios jumped on the bandwagon with their own streaming services to grab a piece of the pie.
The results is that there is now a flooded market, with many services that are not differentiated (save for which titles they feature). It also means that Netflix may be in trouble. Not only did its subscriber growth fall, but subscriber count actually fell in the 2022 first and second quarters.
Netflix still has a lot going for it, so far retaining the highest subscriber count. It continues to roll out popular original content that's drawing new subscribers in some regions, and it has remained profitable, as well as cash flow positive.
However, as competitors make inroads and subscriber count falls, Netflix has had to change its model to stay competitive. It recently added gaming services to its platform, and it's in the process of working out a free, ad-supported version similar to Roku to add revenue and keep more viewers.
However, there's something else it's missing that could be a key ingredient in a winning model.
What other streamers have in common -- and Netflix doesn't
Leaving out Roku, the other major streaming channels are Disney+, HBO Max, Peacock, Paramount+, Amazon Prime, Apple TV+, and Discovery+. That's a lot of competition for the same dollars. Out of all these, the only one besides Netflix that doesn't come along with a film production studio that releases to theaters is Apple. Disney owns several studios, including Marvel and Pixar, in addition to the Disney label. Both HBO Max and Discovery+ are owned by the newly created Warner Bros Discovery. Peacock is owned by Comcast, which owns Universal Studios, Paramount+ is owned by Paramount (NASDAQ: PARA), and Amazon recently acquired MGM Studios.
At various points in time, Netflix had deals with many of these companies to stream their content on its platform. However, many of the studios have pulled their content from Netflix to stream on their own channels. With some exceptions, much of Netflix's content at this point is from its own studios.The benefit of that system is that Netflix can send its content straight to streaming, which is a good thing for subscribers. It also makes for fresher content instead of recycled content from other studios.
However, it also becomes very expensive. And that's where Netflix's competitors have an advantage. The studio-owned streaming sites -- which are all of the above except for Netflix, Roku and Apple -- take billions of dollars in proceeds at the box office. That goes a long way toward covering production expenses before bringing content to streaming, and that operational model gives them more resources to cover straight-to-streaming content as well.
If Netflix wants to be able to compete with these studios, it needs the resources to produce content on the same level as the major studios. Prior to the pandemic, it was moving in that direction. But with all the streaming companies pouring money into new content to capture market share, Netflix has also raised its content spending, without the benefit of ticket sales to cover costs.
I first noted this as an advantage for Disney, but the new management at Warner Bros Discovery is moving to make the most of the model as well. It recently said that it would focus on sending more feature films to theater before streaming, and it's also entertaining the idea of launching an ad-supported tier.
Without the option of sending films to theaters, Netflix will have a much harder time recouping costs for high-caliber films. And if it wants to stay competitive, it needs high-caliber content.
What are Netflix's options?
So far, Netflix is taking the other approach -- moving toward the ad-supported model to get more viewers and make money in other ways, a similar model to Roku. Roku's advertising business is strong, enough so that it was able to roll out its own original content last year. They have been a great success with viewers, and Netflix may succeed this way, with an ad-supported tier, as well.
Does it make sense for Netflix to release its films to theaters? That's another avenue it might be pursuing. It has done so in a limited way in the past, and according to Bloomberg, it's in talks with AMC (NYSE: AMC) and Cinemark Holdings (NYSE: CNK) about a trial run for some of its upcoming releases.
The only network we didn't talk about is Apple, which is unique because it's a streaming-only studio attached to another business. It's also not banking on a huge library to capture viewers. So while it may be losing tons of money on the service, it's negligible on Apple's total business.
Where does all this leave the top streaming provider? I would say Netflix is in a risky place right now as it struggles to find its footing again, and investors should keep that in mind.
10 stocks we like better than Netflix
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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. Jennifer Saibil has positions in Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast and Warner Bros. Discovery, Inc. 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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While it tackles these issues from atop its precarious perch, there's a major drawback that it has compared to almost all of its competition -- and it makes owning Netflix stock look a bit risky right now. Disney+ was adopted at a greatly accelerated rate, Netflix itself enjoyed unusually high subscriber growth, and several other studios jumped on the bandwagon with their own streaming services to grab a piece of the pie. What other streamers have in common -- and Netflix doesn't Leaving out Roku, the other major streaming channels are Disney+, HBO Max, Peacock, Paramount+, Amazon Prime, Apple TV+, and Discovery+.
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What other streamers have in common -- and Netflix doesn't Leaving out Roku, the other major streaming channels are Disney+, HBO Max, Peacock, Paramount+, Amazon Prime, Apple TV+, and Discovery+. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. Discovery, Inc. 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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With some exceptions, much of Netflix's content at this point is from its own studios.The benefit of that system is that Netflix can send its content straight to streaming, which is a good thing for subscribers. But with all the streaming companies pouring money into new content to capture market share, Netflix has also raised its content spending, without the benefit of ticket sales to cover costs. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney.
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However, as competitors make inroads and subscriber count falls, Netflix has had to change its model to stay competitive. It recently said that it would focus on sending more feature films to theater before streaming, and it's also entertaining the idea of launching an ad-supported tier. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney.
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2022-08-14 00:00:00 UTC
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INSIGHT-Caste in California: Tech giants confront ancient Indian hierarchy
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https://www.nasdaq.com/articles/insight-caste-in-california%3A-tech-giants-confront-ancient-indian-hierarchy
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By Paresh Dave
OAKLAND, Calif, Aug 15 (Reuters) - America's tech giants are taking a modern-day crash course in India's ancient caste system, with Apple AAPL.O emerging as an early leader in policies to rid Silicon Valley of a rigid hierarchy that's segregated Indians for generations.
Apple, the world's biggest listed company, updated its general employee conduct policy about two years ago to explicitly prohibit discrimination on the basis of caste, which it added alongside existing categories such as race, religion, gender, age and ancestry.
The inclusion of the new category, which hasn't been previously reported, goes beyond U.S. discrimination laws, which do not explicitly ban casteism.
The update came after the tech sector - which counts India as its top source of skilled foreign workers - received a wake-up call in June 2020 when California's employment regulator sued Cisco Systems CSCO.O on behalf of a low-caste engineer who accused two higher-caste bosses of blocking his career.
Cisco, which denies wrongdoing, says an internal probe found no evidence of discrimination and that some of the allegations are baseless because caste is not a legally "protected class" in California. This month an appeals panel rejected the networking company's bid to push the case to private arbitration, meaning a public court case could come as early as next year.
The dispute - the first U.S. employment lawsuit about alleged casteism - has forced Big Tech to confront a millennia-old hierarchy where Indians' social position has been based on family lineage, from the top Brahmin "priestly" class to the Dalits, shunned as "untouchables" and consigned to menial labor.
Since the suit was filed, several activist and employee groups have begun seeking updated U.S. discrimination legislation - and have also called on tech companies to change their own policies to help fill the void and deter casteism.
Their efforts have produced patchy results, according to a Reuters review of policy across the U.S. industry, which employs hundreds of thousands of workers from India.
"I am not surprised that the policies would be inconsistent because that's almost what you would expect when the law is not clear," said Kevin Brown, a University of South Carolina law professor studying caste issues, citing uncertainty among executives over whether caste would ultimately make it into U.S. statutes.
"I could imagine that parts of ... (an) organization are saying this makes sense, and other parts are saying we don't think taking a stance makes sense."
Apple's main internal policy on workplace conduct, which was seen by Reuters, added reference to caste in the equal employment opportunity and anti-harassment sections after September 2020.
Apple confirmed that it "updated language a couple of years ago to reinforce that we prohibit discrimination or harassment based on caste." It added that training provided to staff also explicitly mentions caste.
"Our teams assess our policies, training, processes and resources on an ongoing basis to ensure that they are comprehensive," it said. "We have a diverse and global team, and are proud that our policies and actions reflect that."
Elsewhere in tech, IBM told Reuters that it added caste, which was already in India-specific policies, to its global discrimination rules after the Cisco lawsuit was filed, though it declined to give a specific date or a rationale.
IBM's only training that mentions caste is for managers in India, the company added.
Several companies do not specifically reference caste in their main global policy, including Amazon AMZN.O, Dell DELL.N, Facebook owner Meta META.O, Microsoft MSFT.O and Google GOOGL.O. Reuters reviewed each of the policies, some of which are only published internally to employees.
The companies all told Reuters that they have zero tolerance for caste prejudice and, apart from Meta which did not elaborate, said such bias would fall under existing bans on discrimination by categories such as ancestry and national originon policy.
CASTEISM OUTLAWED IN INDIA
Caste discrimination was outlawed in India over 70 years ago, yet bias persists, according to several studies in recent years, including one that found Dalit people were underrepresented in higher-paying jobs. Debate over the hierarchy is contentious in India and abroad, with the issue intertwined with religion, and some people saying discrimination is now rare.
Government policies reserving seats for lower-caste students at top Indian universities have helped many land tech jobs in the West in recent years.
Reuters spoke to about two dozen Dalit tech workers in the United States who said discrimination had followed them overseas. They said that caste cues, including their last names, hometowns, diets or religious practices, had led to colleagues bypassing them in hiring, promotions and social activities.
Reuters could not independently verify the allegations of the workers, who all spoke on condition of anonymity, saying they feared harming their careers. Two said they had quit their jobs over what they viewed as casteism.
Some staff groups, including the Alphabet Workers Union (AWU) at Google's parent company, say explicit mention of caste in corporate rules would open the door to companies investing in areas such as data collection and training at the same levels as they do to protect other groups.
"Significant caste discrimination exists in the United States," said Mayuri Raja, a Google software engineer who is a member of the AWU and advocates for lower-caste colleagues.
Over 1,600 Google workers demanded the addition of caste to the main workplace code of conduct worldwide in a petition, seen by Reuters, which they emailed to CEO Sundar Pichai last month and resent last week after no response.
Google reiterated to Reuters that caste discrimination fell under national origin, ancestry and ethnic discrimination. It declined to elaborate further on its policies.
'NOT GOOD FOR BUSINESS'
Adding caste to a general code of conduct is not unheard of.
The World Wide Web Consortium, an industry standards body partly based in Massachusetts, introduced it in July 2020. California State University and the state Democratic Party have followed over the past two years.
In May this year, California's employment regulator, the Civil Rights Department, added caste to its example equal employment opportunity policy for employers.
Yet the move by Apple, a $2.8 trillion behemoth with more than 165,000 full-time employees globally, looms large.
The iPhone maker's fair hiring policy now states that Apple "does not discriminate in recruiting, training, hiring, or promoting on the basis of" 18 categories, including "race, color, ancestry, national origin, caste, religion, creed, age" plus disability, sexual orientation and gender identity.
By contrast, many employers are hesitant to go beyond laws with their primary policies, according to three employment attorneys including Koray Bulut, a partner at Goodwin Procter.
"Most companies simply quote from the federal and state statutes that list the protected categories," Bulut said.
Some companies have, however, gone further in secondary policies that govern limited operations or serve only as loose guidelines.
Caste is explicitly written into Dell's Global Social Media Policy, for example, and in Amazon sustainability team's Global Human Rights Principles and Google's code of conduct for suppliers.
Amazon and Dell confirmed they had also begun mentioning caste in anti-bias presentations for at least some new hires outside India. They declined to specify when, why and how broadly they made the addition, though Dell said it made the change after the Cisco lawsuit was filed.
The companies' presentations include explanations of caste as an unwanted social structure that exists in parts of the world, according to a Reuters review of some of the online training, with the Dell material referencing a recent lawsuit "from the headlines."
John-Paul Singh Deol, lead employment attorney at Dhillon Law Group in San Francisco, said that only including caste in training and guidelines amounted to "giving lip service" to the issue because their legal force is questionable.
This characterization was rejected by Janine Yancey, CEO of Emtrain, which sells anti-bias training to about 550 employers, and a longtime employment attorney.
"No company wants to have employee turnover, lack of productivity and conflict - that's just not good for business," she said.
Yet explicitly referencing caste would likely invite an increased number of HR complaints alleging it as a bias, Yancey added.
"Whenever you're going to call out something specifically, you're exponentially increasing your caseload," she said.
Apple declined to say whether any complaints had been brought under its caste provision.
South Carolina law professor Brown expects no immediate resolution to the debate over of whether companies should reference caste.
"This is an issue that ultimately will be resolved by the courts," he said. "The area right now is unsettled."
(Reporting by Paresh Dave; Additional reporting by Kanishka Singh in Washington and Sudarshan Varadhan in New Delhi; Editing by Kenneth Li and Pravin Char)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Paresh Dave OAKLAND, Calif, Aug 15 (Reuters) - America's tech giants are taking a modern-day crash course in India's ancient caste system, with Apple AAPL.O emerging as an early leader in policies to rid Silicon Valley of a rigid hierarchy that's segregated Indians for generations. The update came after the tech sector - which counts India as its top source of skilled foreign workers - received a wake-up call in June 2020 when California's employment regulator sued Cisco Systems CSCO.O on behalf of a low-caste engineer who accused two higher-caste bosses of blocking his career. The dispute - the first U.S. employment lawsuit about alleged casteism - has forced Big Tech to confront a millennia-old hierarchy where Indians' social position has been based on family lineage, from the top Brahmin "priestly" class to the Dalits, shunned as "untouchables" and consigned to menial labor.
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By Paresh Dave OAKLAND, Calif, Aug 15 (Reuters) - America's tech giants are taking a modern-day crash course in India's ancient caste system, with Apple AAPL.O emerging as an early leader in policies to rid Silicon Valley of a rigid hierarchy that's segregated Indians for generations. Apple, the world's biggest listed company, updated its general employee conduct policy about two years ago to explicitly prohibit discrimination on the basis of caste, which it added alongside existing categories such as race, religion, gender, age and ancestry. In May this year, California's employment regulator, the Civil Rights Department, added caste to its example equal employment opportunity policy for employers.
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By Paresh Dave OAKLAND, Calif, Aug 15 (Reuters) - America's tech giants are taking a modern-day crash course in India's ancient caste system, with Apple AAPL.O emerging as an early leader in policies to rid Silicon Valley of a rigid hierarchy that's segregated Indians for generations. Apple, the world's biggest listed company, updated its general employee conduct policy about two years ago to explicitly prohibit discrimination on the basis of caste, which it added alongside existing categories such as race, religion, gender, age and ancestry. Elsewhere in tech, IBM told Reuters that it added caste, which was already in India-specific policies, to its global discrimination rules after the Cisco lawsuit was filed, though it declined to give a specific date or a rationale.
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By Paresh Dave OAKLAND, Calif, Aug 15 (Reuters) - America's tech giants are taking a modern-day crash course in India's ancient caste system, with Apple AAPL.O emerging as an early leader in policies to rid Silicon Valley of a rigid hierarchy that's segregated Indians for generations. Apple, the world's biggest listed company, updated its general employee conduct policy about two years ago to explicitly prohibit discrimination on the basis of caste, which it added alongside existing categories such as race, religion, gender, age and ancestry. Reuters reviewed each of the policies, some of which are only published internally to employees.
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2022-08-14 00:00:00 UTC
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3 High-Yield Dividend Stocks That Are Passive Income Machines
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https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-that-are-passive-income-machines
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The stock market rebound continued on Wednesday after Wall Street acted favorably due to the Bureau of Labor Statistics' July Consumer Price Index reading. The Nasdaq Composite is now down less than 20% from its all-time high, while the S&P 500 is down just 12% from its all-time high.
While the rebound feels good, it's still important to focus on quality businesses that you understand. For income investors, the core objective is to find companies that can pay and raise their dividends over time.
Investing in equal parts of 3M (NYSE: MMM), Brookfield Renewable (NYSE: BEPC) (NYSE: BEP), and ABB (NYSE: ABB) gives an investor an average dividend yield of 3.4% and exposure to different industries within the industrial sector, as well as renewable energy. Here's what makes each dividend stock a great buy now.
Image source: Getty Images.
A Dividend King with a high yield
Daniel Foelber (3M): The Dow Jones Industrial Average is chock-full of impressive market-beating stocks like Apple and Microsoft, reliable dividend stocks like Procter & Gamble, and recognizable name brand companies like Nike. But it also hosts some big-time multi-year underperformers, with 3M topping the list as the worst of the worst. However, 3M stock has bounced 19% off its 52-week low in just one month. And there are signs its business could be turning the corner.
3M has three big problems right now. The first is that it has been making headlines for the wrong reasons, namely through its legal battle with military veterans over faulty combat earplugs that could cost the company over $1 billion. The second is that it is failing to pass along higher costs to its customers, resulting in declining margins and directly affecting 3M's short-term growth and profitability.
Third, 3M has failed to meaningfully grow its business over the long term. The 10-year revenue and net income chart says it all, as 3M's revenue is up less than 20% over the last 10 years, and net income is down.
MMM Revenue (TTM) data by YCharts
The long-term effect of 3M's restructuring remains to be seen. However, the strategic shift is already boosting its margins and has successfully reduced costs, which is a good sign that the worst may be over for it.
3M is by no means a fast grower. But it is an inexpensive stock -- trading at just 14.2 times the midpoint of its projected 2022 earnings of $10.30 to $10.80 per share. 3M is also a Dividend King that has paid and raised its dividend for 64 consecutive years. 3M stock has a dividend yield of 4%.
With two decades of past dividend growth, this clean energy powerhouse isn't slowing down
Scott Levine (Brookfield Renewable): Hydropower? Yes. How about wind power? Yes, that too. And also solar? You betcha. Brookfield Renewable is a clean energy powerhouse that specializes in operating a variety of renewable energy assets. In fact, it has more than 6,000 power-generating facilities that represent an installed capacity of 23 gigawatts (GW), making it one of the largest operators of renewable energy assets in the world.
The company, consequently, returns the cash it generates from its green power assets to its shareholders. And we're not talking about a pittance, either. Brookfield Renewable currently offers investors an attractive 3.2% forward dividend yield.
Over the past 20 years, Brookfield Renewable has demonstrated a consistent interest in rewarding shareholders with growing distributions. From 2001, when it provided $0.38 per unit, through 2022, when it expects to return $1.28 per unit to investors, Brookfield Renewable has logged a compound annual growth rate of 6% for its distributions.
And the company expects steadfast growth to continue in the years ahead. While management hasn't provided an end date for the growth profile of its dividend, it has stated a target of growing its distribution 5% to 9% annually.
Brookfield Renewable has been a reliable passive income engine for investors over the past two decades, and it seems well-positioned to continue in that role for years to come. During its recent second-quarter 2022 earnings presentation, the company reported that it has a 17-GW pipeline of projects that are under construction and advanced-stage.
And that was before the climate bill passing the Senate. Should it clear the House of Representatives and make it to President Biden's desk, renewable energy investments are expected to grow considerably -- something that could undoubtedly benefit Brookfield Renewable and buttress the belief that its distribution growth will continue.
The turnaround continues at ABB
Lee Samaha (ABB): This industrial giant has long been a puzzling investment proposition. On the one hand, it has an exciting collection of businesses with exposure to some highly attractive megatrends. Its electrification segment (including an electric vehicle charging stations, hardware, and services business) has exposure to the global trend toward electrification in the economy.
ABB's robotics and discrete automation segment has exposure to the trend toward increasing automation in the factory, and process automation and motion control are indispensable parts of the industrial economy.
On the other hand, the company has underperformed over the years. In the decade before the pandemic hit, the stock only rose a miserable 26%. However, since the start of 2020, it's outperformed many of its automation peers.
Data by YCharts.
The reason comes down to the turnaround strategy put in place by CEO Bjorn Rosengren when he took over in March 2020. Underperforming businesses have been sold, for example, the stake in its power grids to Hitachi and a mechanical power business to RBC Bearings. Meanwhile, ABB will spin off its turbocharging business (Accelleron) in due course, and plans to spin off its e-mobility business when market conditions are right.
Everything points to a business being restructured for growth in its core areas while it catches up with its peers' margin performance. It's a compelling value proposition, and investors will currently earn a 3% dividend yield while they wait for it to happen.
10 stocks we like better than 3M
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They just revealed what they believe are the ten best stocks for investors to buy right now... and 3M 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 July 27, 2022
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has positions in Brookfield Renewable Corporation Inc. The Motley Fool has positions in and recommends ABB, Apple, Brookfield Renewable Corporation Inc., Microsoft, and Nike. The Motley Fool recommends 3M 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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The stock market rebound continued on Wednesday after Wall Street acted favorably due to the Bureau of Labor Statistics' July Consumer Price Index reading. The first is that it has been making headlines for the wrong reasons, namely through its legal battle with military veterans over faulty combat earplugs that could cost the company over $1 billion. In fact, it has more than 6,000 power-generating facilities that represent an installed capacity of 23 gigawatts (GW), making it one of the largest operators of renewable energy assets in the world.
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Investing in equal parts of 3M (NYSE: MMM), Brookfield Renewable (NYSE: BEPC) (NYSE: BEP), and ABB (NYSE: ABB) gives an investor an average dividend yield of 3.4% and exposure to different industries within the industrial sector, as well as renewable energy. With two decades of past dividend growth, this clean energy powerhouse isn't slowing down Scott Levine (Brookfield Renewable): Hydropower? The Motley Fool has positions in and recommends ABB, Apple, Brookfield Renewable Corporation Inc., Microsoft, and Nike.
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Investing in equal parts of 3M (NYSE: MMM), Brookfield Renewable (NYSE: BEPC) (NYSE: BEP), and ABB (NYSE: ABB) gives an investor an average dividend yield of 3.4% and exposure to different industries within the industrial sector, as well as renewable energy. A Dividend King with a high yield Daniel Foelber (3M): The Dow Jones Industrial Average is chock-full of impressive market-beating stocks like Apple and Microsoft, reliable dividend stocks like Procter & Gamble, and recognizable name brand companies like Nike. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Daniel Foelber has no position in any of the stocks mentioned.
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3M stock has a dividend yield of 4%. Brookfield Renewable currently offers investors an attractive 3.2% forward dividend yield. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Daniel Foelber has no position in any of the stocks mentioned.
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2022-08-14 00:00:00 UTC
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3 Semiconductor Stocks to Buy Now, Including Nvidia
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This week, a number of high-profile semiconductor companies confirmed that consumer electronics spending is hitting a rough patch. Nvidia (NASDAQ: NVDA) said that PC and laptop demand is hurting its video game segment, and Micron Technology (NASDAQ: MU) said PC and smartphone sales are going to be sharply lower in the second half of 2022 as device manufacturers work through built-up inventory of some components.
The market already knew trouble was brewing. Semiconductor stocks have declined 25% so far in 2022, as measured by the iShares Semiconductor ETF (NASDAQ: SOXX). However, in spite of a deafening chorus lamenting the onset of a cyclical downturn in the chip industry, this ETF has rallied sharply off highs. The reason? Though consumer spending is hitting the skids, enterprise spending on chips for the cloud, data centers, artificial intelligence (AI), and the like is still going strong.
Three Fool.com contributors think chip stocks are a buy right now for the long haul. Here's why Nvidia, Micron Technology, and Kulicke and Soffa Industries (NASDAQ: KLIC) top their buy lists right now.
Familiar territory for Nvidia shareholders
Nicholas Rossolillo (Nvidia): For longtime owners of Nvidia, this week's announcement by CEO Jensen Huang and company feels like 2018 redux. The chip industry overall is slowing after a run of strong growth. There are demand issues in China. The cryptocurrency market (parts of which use GPUs like what Nvidia designs to "mine" crypto) has just taken a brutal beating. And Nvidia is preparing to announce a new generation of gaming GPUs later this autumn (which means some gamers might be delaying purchases until the new hardware comes out). As a result, Nvidia said its preliminary gaming segment sales declined 33% year over year in Q2 fiscal 2023.
The high-end video gaming graphics company has always been pretty cyclical. Nvidia releases new GPUs that can handle more powerful video games, gamers upgrade laptops and PCs, sales boom then ebb, Nvidia announces another GPU refresh, and the cycle repeats. While the 2022 downturn has its unique challenges, this is familiar territory for longtime shareholders.
Data by YCharts.
One key difference this time, though, is that Nvidia is now a diversified business. In fact, based on its preliminary Q2 numbers, Nvidia's data center business (where it's powering AI and other high-performance computing for enterprises) grew 61% year over year. With sales of $3.81 billion, data centers are now Nvidia's largest segment at an implied 57% of total revenue.
At some point, the data center end-market will also go through a slowdown or cyclical downturn. But Nvidia now has lots of irons in the fire (a cloud software licensing business, automotive and industrial equipment chips, new gaming chips). When Nvidia and the chip industry hit these bumps in the road, I start buying through the downturn while awaiting the next cycle higher. At this juncture, I see no reason to treat this top semiconductor stock any differently from times past.
This advanced packaging leader is incredibly cheap
Billy Duberstein (Kulicke and Soffa): One way to play the chip sector is semiconductor equipment stocks, the "picks and shovels" to the industry. When people think of semi-cap equipment, they usually turn to front-end equipment-makers, which print massive numbers of tiny transistors onto silicon chips. However, investors shouldn't overlook advanced packaging companies.
That's because front-end scaling is now bumping up against the laws of physics. In response, the chip industry is applying more advanced packaging techniques to continue generating more power with less energy. By bringing chips, memory, and accelerators closer together and connecting them more efficiently within devices, packaging can continue improving total system performance.
Many leading chipmakers have even begun designing "chiplets," or smaller semiconductor units that perform specific functions, which can be rearranged with other chiplets to make customized "super-chips."
Kulicke and Soffa stands to benefit handsomely from this trend, as a leader in traditional wire bonding, and in more modern advanced packaging techniques for general semiconductors, automobiles, and advanced displays.
K&S' workhorse product is the wire bonder, a legacy bonding product for which it has more than 60% market share, according to VLSI Research. However, since CEO Fusen Chen took over the top job in 2016, K&S has done an excellent job of developing new products in advanced packaging, such as thermocompression bonding, and a new product line in mini/microLED assembly, both through internal R&D and tuck-in acquisitions.
On the recent conference call, Chen noted its newer advanced packaging technology products were tracking 35% ahead of expectations given at the company's Investor Day one year ago.
The advanced display segment also offers lots of potential. MiniLED is a cutting-edge display technology, offering deeper blacks and richer colors, and is replacing OLED in many products such as high-end TVs. Apple (NASDAQ: AAPL) is beginning to incorporate miniLED into more of its products. The new Pro versions of MacBooks and iPads will feature miniLEDs.
K&S is a notoriously cyclical stock, and we are definitely entering a near-term downturn. Widespread pullbacks in industry expansions caused management to guide for a sequential 25% decline in revenues next quarter, and for earnings per share to fall more than 50%, from $1.99 last quarter to $0.93 in the upcoming quarter.
So why is the stock a buy? Because it's really cheap! K&S now trades in the mid-$40 range, and also has a strong net cash position of about $12.50 per share. Even taking next quarter's earnings per share as a baseline, that would equate to $3.60 per share in a downturn. If that marks a cycle's bottom, that means the stock trades at less than 10 times trough earnings, stripping out its excess cash. Meanwhile, over the past 12-month "boom," K&S earned $8.06 per share.
Even if near-term revenue and earnings fall lower, the growth in packaging intensity should allow for bigger highs and lows over time. Meanwhile, Chen noted that by 2024, many new advanced packaging and miniLED products just being qualified today will be hitting the markets. I'd suspect K&S will still be profitable through a downcycle, and eventually make higher highs than even the 2021 "boom year" at some point. Then today's stock price will look like even more of a bargain.
Temporary sales slowdown, temporary stock discounts, audacious long-term plans
Anders Bylund (Micron Technology): Memory chip specialist Micron Technology almost always seems to be on fire sale. The stock rarely trades above 10 times trailing earnings, apart from a two-year surge above that line in 2020 and 2021.
2022's inflation concerns ended that hot streak, pushing Micron's price-to-earnings ratio below 7 again. The latest twist in that chart was a 3.5% haircut on Tuesday, inspired by Micron's lowered fourth-quarter guidance. Customer demand for memory chips has cooled due to supply chain challenges and macroeconomic issues. Many companies that build devices containing digital memory chips are digging into their warehouse inventories rather than ordering new stock at the moment.
Micron is managing its expected near-term revenue slowdown by holding back on chip-making equipment installations over the next couple of quarters. However, I think it's a mistake to focus too much on this temporary issue, which undoubtedly will leave Micron with an explosive amount of pent-up demand and another sharp revenue spike in 2023 or 2024.
On the same day as that chilling guidance cut, Micron also committed to investing $40 billion in U.S. memory-chip manufacturing facilities before 2030. This plan is supported by the freshly signed Chips and Science Act, a government bill that includes $52 billion of funding for U.S. chip designers and semiconductor manufacturers.
So Micron will more than double its chip-making assets over the next seven years, creating roughly 40,000 jobs for Americans and a massive source of memory chip supplies. Today, most memory chips are made in Taiwan, China, or Japan. In light of the economywide supply chain problems that started with semiconductor shortages in Asia, Micron's domestic investment might be considered a matter of national security.
You can invest in Micron's sensible and patriotic long-term plans for the bargain-bin price of just seven times the company's trailing earnings. I'm not concerned about the short-term revenue downturn, because Micron has a robust balance sheet and fantastic long-term plans.
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Anders Bylund has positions in Micron Technology. Billy Duberstein has positions in Apple, Kulicke & Soffa Industries, and Micron Technology and has the following options: short August 2022 $35 puts on Kulicke & Soffa Industries, short August 2022 $40 puts on Kulicke & Soffa Industries, short January 2023 $160 calls on Micron Technology, and short January 2023 $210 calls on Apple. His clients may own the stocks mentioned. Nicholas Rossolillo has positions in Apple, Micron Technology, and Nvidia. His clients may own 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) is beginning to incorporate miniLED into more of its products. This advanced packaging leader is incredibly cheap Billy Duberstein (Kulicke and Soffa): One way to play the chip sector is semiconductor equipment stocks, the "picks and shovels" to the industry. On the recent conference call, Chen noted its newer advanced packaging technology products were tracking 35% ahead of expectations given at the company's Investor Day one year ago.
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Apple (NASDAQ: AAPL) is beginning to incorporate miniLED into more of its products. Temporary sales slowdown, temporary stock discounts, audacious long-term plans Anders Bylund (Micron Technology): Memory chip specialist Micron Technology almost always seems to be on fire sale. Billy Duberstein has positions in Apple, Kulicke & Soffa Industries, and Micron Technology and has the following options: short August 2022 $35 puts on Kulicke & Soffa Industries, short August 2022 $40 puts on Kulicke & Soffa Industries, short January 2023 $160 calls on Micron Technology, and short January 2023 $210 calls on Apple.
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Apple (NASDAQ: AAPL) is beginning to incorporate miniLED into more of its products. This advanced packaging leader is incredibly cheap Billy Duberstein (Kulicke and Soffa): One way to play the chip sector is semiconductor equipment stocks, the "picks and shovels" to the industry. Temporary sales slowdown, temporary stock discounts, audacious long-term plans Anders Bylund (Micron Technology): Memory chip specialist Micron Technology almost always seems to be on fire sale.
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Apple (NASDAQ: AAPL) is beginning to incorporate miniLED into more of its products. So why is the stock a buy? Meanwhile, Chen noted that by 2024, many new advanced packaging and miniLED products just being qualified today will be hitting the markets.
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2022-08-13 00:00:00 UTC
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Down 65% Year-to-Date, Should Investors Buy the Dip on Roku?
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https://www.nasdaq.com/articles/down-65-year-to-date-should-investors-buy-the-dip-on-roku
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Streaming stocks have been absolutely punished by investors of late. Look at industry powerhouse Netflix for example -- its stock price has collapsed 59% year-to-date in the wake of a slowdown in growth and macroeconomic headwinds like high inflation and the Fed's interest rate hikes.
Another stock at the center of the streaming universe is Roku (NASDAQ: ROKU), which has performed equally poorly in recent times, plunging 65% since the start of the year. It's clear that investors as a whole have fallen out of love with streaming stocks.
But could that mean we've been gifted with many scarce buying opportunities? Star stock picker Cathie Wood's third-largest holding in her ARK Innovation ETF is Roku. Let's look at its latest financial situation to see if it's a buy at the moment.
Image source: Getty Images.
Looking inside Roku's business
Broadly speaking, Roku sells hardware devices that allow consumers to stream media content from one simple location. Owners of a Roku device have access to free and paid video subscription services such as Netflix, Disney+, Amazon Prime Video, Apple TV+, and Warner Bros. Discovery's HBO Max, among many others. As of the first quarter of 2022, the company controls over 50% of the Connected TV (CTV) market in North America, which is an excellent sign given that the global CTV industry is forecast to expand at a compound annual growth rate (CAGR) of 15.5% from 2021 through 2026, according to Mordor Intelligence.
The company posted second-quarter earnings on July 28 that didn't quite meet investors' expectations. Its total net revenue rose 18.5% year-over-year to $764.4 million, and it also finished with a diluted net loss of $0.82 per share, falling short of analysts' negative $0.69 estimate. The top-line growth was driven by a 26.5% surge in revenue from its platform segment, which includes digital advertising sales and content distribution services. Meanwhile, revenue from its player devices, representing about 12% of total sales, declined 19.1% year-over-year to $91.2 million. Player revenue is generated primarily through the sale of its streaming hardware devices.
In terms of other key operating metrics, active accounts increased 14.5% to 63.1 million, and average revenue per user (ARPU) rose 21%, up to $44.10. Total streaming hours also expanded 19% to 20.7 billion as more consumers continue to ditch cable television and resort to streaming services. For the full fiscal year, Wall Street analysts project Roku's total revenue to grow 12.8% year-over-year to $3.1 billion, and its earnings to finish in the red with a $3.11 per share loss.
Without a doubt, one of the major concerns investors have about the streaming-focused company is its ability to consistently generate a positive bottom line. The company currently has $2.1 billion in cash and cash equivalents, and given that it has only burned $5.0 million in cash over the past 12 months, Roku has ample time to turn its situation around before needing additional funding.
Should investors snatch Roku stock right now?
It's clear that Roku has confronted some growing pains lately, but a couple of subpar quarters shouldn't derail you from investing in a company over the long run. At a market capitalization of just $11.2 billion today, this is a stock that could generate fortunes for patient investors who are willing to buy at current lows. Right now, the stock carries a price-to-sales multiple of 3.7, its lowest level in three years.
And let's not act like Roku isn't firmly positioned for a sound bounce back -- the company is a downright leader in a fast-growing industry. Even though it may seem difficult, down periods are the time for prudent investors to go shopping, and Roku makes for a compelling buy case at this time.
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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. Luke Meindl has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. 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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Look at industry powerhouse Netflix for example -- its stock price has collapsed 59% year-to-date in the wake of a slowdown in growth and macroeconomic headwinds like high inflation and the Fed's interest rate hikes. For the full fiscal year, Wall Street analysts project Roku's total revenue to grow 12.8% year-over-year to $3.1 billion, and its earnings to finish in the red with a $3.11 per share loss. It's clear that Roku has confronted some growing pains lately, but a couple of subpar quarters shouldn't derail you from investing in a company over the long run.
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Its total net revenue rose 18.5% year-over-year to $764.4 million, and it also finished with a diluted net loss of $0.82 per share, falling short of analysts' negative $0.69 estimate. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. Discovery, Inc. 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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Another stock at the center of the streaming universe is Roku (NASDAQ: ROKU), which has performed equally poorly in recent times, plunging 65% since the start of the year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! Discovery, Inc. 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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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney.
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19784.0
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2022-08-12 00:00:00 UTC
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US STOCKS-Wall St eyes weekly gains as slowing inflation raises hopes
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-weekly-gains-as-slowing-inflation-raises-hopes
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By Herbert Lash and Bansari Mayur Kamdar
NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way.
The S&P 500 .SPX is up 16.8% from a mid-June low, with the latest boost coming from data this week showing a slower-than-expected rise in the consumer price index and a surprise drop in producer prices last month.
The S&P 500 crossed a closely watched technical level of 4,231 points, indicating the benchmark index has recouped half its losses since tumbling from its all-time peak in January. A 50% retracement for some signals a bull market.
As the S&P 500 and Nasdaq headed for a fourth straight week of gains, analysts noted the Federal Reserve still had its work cut out to tame inflation by raising interest rates without prompting a recession.
"Markets certainly got great news this week on inflation," said Dec Mullarkey, managing director of investment strategy and asset allocation at SLC Management in Boston.
"A victory lap in some respects was in order, but it's not 'mission accomplished' by any means. It's still a very slow grind ahead."
The Dow Jones Industrial Average .DJI rose 300.32 points, or 0.9%, to 33,636.99, the S&P 500 .SPX gained 53.72 points, or 1.28%, to 4,260.99 and the Nasdaq Composite .IXIC added 206.79 points, or 1.62%, to 12,986.70.
While the Fed is prepared to further tighten monetary policy until inflation has fully abated, traders see just a 55.5% chance of policymakers raising rates by 50 basis points when they meet in September, instead of 75 basis points. FEDWATCH
The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.
All 11 of the major S&P 500 sectors advanced, with information technology stocks .SPLRCT leading the gains.
Technology stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week.
US/
Growth stocks .IGX have underpeformed theunderperformedterparts .IVX so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation. But growth outperformed value on Friday.
Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with U.S. growth stocks recording their largest weekly inflow since December last year.
"The major indices are trading near highs going back to May and June and those highs are now serving as near-term resistance," said Adam Sarhan, chief executive of 50 Park Investments.
Meanwhile, banks .SPXBK rose 0.8% and were on track to extend their rally for a sixth straight week. JPMorgan Chase JPM.N and Morgan Stanley MS.N rose about 1.0% each.
Data showed U.S. consumer sentiment ticked further up in August from a record low this summer and American households' near-term outlook for inflation eased again on easing gasoline prices.
After a rough start to the year, better-than-expected second-quarter earnings from corporate America have supported the upbeat sentiment for U.S. equities.
Of the 456 S&P 500 companies that have reported earnings so far, 77.6% have topped profit expectations, as per Refinitiv data.
Rivian Automotive Inc RIVN.O rose 0.3% as the electric-vehicle maker reported better-than-expected second-quarter revenue.
GlobalFoundries Inc GFS.O jumped 11.9% on being added to BofA Global Research's "U.S. 1 list."
Advancing issues outnumbered declining ones on the NYSE by a 3.51-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored advancers.
The S&P 500 posted five new 52-week highs and 29 new lows; the Nasdaq Composite recorded 64 new highs and 37 new lows.
U.S. Inflation: Past its peak?https://tmsnrt.rs/3dkLbra
(Reporting by Herbert Lash in New York Additional reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Matthew Lewis)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week. By Herbert Lash and Bansari Mayur Kamdar NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way. The S&P 500 crossed a closely watched technical level of 4,231 points, indicating the benchmark index has recouped half its losses since tumbling from its all-time peak in January.
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Technology stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week. By Herbert Lash and Bansari Mayur Kamdar NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way. Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with U.S. growth stocks recording their largest weekly inflow since December last year.
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Technology stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week. By Herbert Lash and Bansari Mayur Kamdar NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way. The Dow Jones Industrial Average .DJI rose 300.32 points, or 0.9%, to 33,636.99, the S&P 500 .SPX gained 53.72 points, or 1.28%, to 4,260.99 and the Nasdaq Composite .IXIC added 206.79 points, or 1.62%, to 12,986.70.
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Technology stocks such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week. By Herbert Lash and Bansari Mayur Kamdar NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way. The Dow Jones Industrial Average .DJI rose 300.32 points, or 0.9%, to 33,636.99, the S&P 500 .SPX gained 53.72 points, or 1.28%, to 4,260.99 and the Nasdaq Composite .IXIC added 206.79 points, or 1.62%, to 12,986.70.
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19785.0
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2022-08-12 00:00:00 UTC
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YouTube plans to launch streaming video service - WSJ
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https://www.nasdaq.com/articles/youtube-plans-to-launch-streaming-video-service-wsj
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Aug 12 (Reuters) - Alphabet Inc's GOOGL.O YouTube is planning to launch an online store for streaming video services, the Wall Street Journal reported on Friday.
The company has renewed talks with entertainment companies about participating in the platform, which it is referring to internally as a "channel store", the report said, citing people close to the recent discussions.
The platform has been in the works for at least 18 months and could be available as early as this fall, the report added. https://on.wsj.com/3w22hAv
Alphabet did not immediately respond to a Reuters request for comment.
With more consumers cutting the cord on cable or satellite TV and shifting to subscription-based streaming services, the planned launch will allow YouTube to join companies like Roku Inc ROKU.O and Apple AAPL.O in a bid to gain a portion of the already crowded streaming market.
Earlier this week, the New York Times reported that Walmart Inc WMT.N has held talks with media companies about including streaming entertainment in its membership service.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Maju Samuel)
((tiyashi.datta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With more consumers cutting the cord on cable or satellite TV and shifting to subscription-based streaming services, the planned launch will allow YouTube to join companies like Roku Inc ROKU.O and Apple AAPL.O in a bid to gain a portion of the already crowded streaming market. Aug 12 (Reuters) - Alphabet Inc's GOOGL.O YouTube is planning to launch an online store for streaming video services, the Wall Street Journal reported on Friday. Earlier this week, the New York Times reported that Walmart Inc WMT.N has held talks with media companies about including streaming entertainment in its membership service.
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With more consumers cutting the cord on cable or satellite TV and shifting to subscription-based streaming services, the planned launch will allow YouTube to join companies like Roku Inc ROKU.O and Apple AAPL.O in a bid to gain a portion of the already crowded streaming market. Aug 12 (Reuters) - Alphabet Inc's GOOGL.O YouTube is planning to launch an online store for streaming video services, the Wall Street Journal reported on Friday. The company has renewed talks with entertainment companies about participating in the platform, which it is referring to internally as a "channel store", the report said, citing people close to the recent discussions.
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With more consumers cutting the cord on cable or satellite TV and shifting to subscription-based streaming services, the planned launch will allow YouTube to join companies like Roku Inc ROKU.O and Apple AAPL.O in a bid to gain a portion of the already crowded streaming market. Aug 12 (Reuters) - Alphabet Inc's GOOGL.O YouTube is planning to launch an online store for streaming video services, the Wall Street Journal reported on Friday. The company has renewed talks with entertainment companies about participating in the platform, which it is referring to internally as a "channel store", the report said, citing people close to the recent discussions.
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With more consumers cutting the cord on cable or satellite TV and shifting to subscription-based streaming services, the planned launch will allow YouTube to join companies like Roku Inc ROKU.O and Apple AAPL.O in a bid to gain a portion of the already crowded streaming market. Aug 12 (Reuters) - Alphabet Inc's GOOGL.O YouTube is planning to launch an online store for streaming video services, the Wall Street Journal reported on Friday. The company has renewed talks with entertainment companies about participating in the platform, which it is referring to internally as a "channel store", the report said, citing people close to the recent discussions.
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19786.0
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2022-08-12 00:00:00 UTC
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Here’s Why the U.S. and China are Interested in Taiwan
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https://www.nasdaq.com/articles/heres-why-the-u.s.-and-china-are-interested-in-taiwan
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What is common between the U.S. and China? Both countries are obsessed with Taiwan due to its control of the semiconductor market. The Semiconductor Industry Association describes semiconductors as the brain of modern electronics. Now, about 63% of these "brains" are manufactured in Taiwan. The Taiwan Semiconductor Manufacturing Co. (TSM) itself churns out 54% of the global semiconductors. This clears the picture of why the U.S. and China are so focused on Taiwan.
Earlier this month, U.S. House Speaker Nancy Pelosi's trip to Taiwan thrust the tense China-Taiwan-U.S. dynamics into the limelight. China was very bothered by this trip and immediately got down to a full display of power as a protest. Many reasons are behind this, but the most important of all is the power play between the world's two largest economies for control over Taiwan's semiconductor manufacturing.
Geopolitical Dynamics Between the Countries
Let's talk about the dynamics between Taiwan and China, as well as between Taiwan and the U.S.
Taiwan is an independently governed island country off China, which is still within the realm of the Republic of China. The history of Taiwan's resistance to Chinese communist rule dates back to post-World War II times.
The U.S. initially bonded with Taiwan over mutual opposition to China's communist-dominated political system. However, now, Taiwan's global dominance over semiconductor manufacturing has piqued the interest of the U.S., which has been trying to extend support to the country in its political struggle with China.
Needless to say, China is not happy about this setup. Although China enjoys around a 7% share in the global chip manufacturing market, it primarily relies on Taiwan's chip supply to manufacture its drones, military hardware, and other defense equipment.
The U.S., on the other hand, also has around a 7% market share, enjoyed by Global Foundries (GFS) in the international semiconductor manufacturing market. Even though it has some self-reliance in most of its military technologies, the U.S. still relies on Taiwan's chips to design several key defense systems. Moreover, 90% of the chips marketed by American tech stalwarts like Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), and Qualcomm (QCOM) come from TSMC.
Year-to-Date Price Performance Comparison
Why Has Nancy Pelosi's Visit Irked China?
Coming back to the controversial visit, China had warned against this move multiple times. The defiance was the first red flag. Moreover, during the trip, Pelosi met Mark Lui, chairman of TSMC, which further bothered China. This is because the U.S. has been trying to get TSMC to build a manufacturing unit on U.S. soil and reduce its chip supply to China.
Knowing the repercussions of such a move by Taiwan, China retaliated against Pelosi's trip with an elaborate display of fire drills, making Taiwan aware that China could take it over at any moment.
What a Chinese Invasion of Taiwan Means for the U.S. Semiconductor Industry
If China invades and cuts off Taiwan's export of chips, China's market share could climb to 70%. Given the trade issues between the U.S. and China, the latter will have a monopolistic advantage over semiconductors, making it either difficult to attain or very expensive for American companies to source chips from China-controlled Taiwan.
On the flip side, Taiwan also sources raw materials and chemicals to produce its semiconductors. So, cutting off Taiwan will also hurt Taiwan's production, leading to a fresh disruption in the global supply chain.
Given this uncertainty of chip supply from Taiwan, countries have begun to hoard chips, giving a new direction to the already jammed supply chain. This may lead to a massive supply shortage of semiconductors in the U.S. and elsewhere, accompanied by price rises, denting the margins of semiconductor companies.
There's One Good Thing about the Current Supply Crunch
Interestingly, one good thing to come of this scenario is the new Chips and Science Act of the U.S., which allocates almost $53 billion towards efforts to internalize chip production, citing it unsafe to depend on Taiwan.
From navigating a potential supply crunch of a large magnitude to expanding its own innovation and production capacity, the U.S. semiconductor industry has a lot of work to do. The government's investment will support semiconductor companies to achieve self-reliance at discounted costs. The near term may look shaky, and supply may be tight, but American chipmakers have a long runway for considerable growth in the long haul, with or without Taiwan.
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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Moreover, 90% of the chips marketed by American tech stalwarts like Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), and Qualcomm (QCOM) come from TSMC. Given the trade issues between the U.S. and China, the latter will have a monopolistic advantage over semiconductors, making it either difficult to attain or very expensive for American companies to source chips from China-controlled Taiwan. From navigating a potential supply crunch of a large magnitude to expanding its own innovation and production capacity, the U.S. semiconductor industry has a lot of work to do.
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Moreover, 90% of the chips marketed by American tech stalwarts like Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), and Qualcomm (QCOM) come from TSMC. Although China enjoys around a 7% share in the global chip manufacturing market, it primarily relies on Taiwan's chip supply to manufacture its drones, military hardware, and other defense equipment. What a Chinese Invasion of Taiwan Means for the U.S. Semiconductor Industry If China invades and cuts off Taiwan's export of chips, China's market share could climb to 70%.
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Moreover, 90% of the chips marketed by American tech stalwarts like Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), and Qualcomm (QCOM) come from TSMC. Geopolitical Dynamics Between the Countries Let's talk about the dynamics between Taiwan and China, as well as between Taiwan and the U.S. Taiwan is an independently governed island country off China, which is still within the realm of the Republic of China. Although China enjoys around a 7% share in the global chip manufacturing market, it primarily relies on Taiwan's chip supply to manufacture its drones, military hardware, and other defense equipment.
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Moreover, 90% of the chips marketed by American tech stalwarts like Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), and Qualcomm (QCOM) come from TSMC. However, now, Taiwan's global dominance over semiconductor manufacturing has piqued the interest of the U.S., which has been trying to extend support to the country in its political struggle with China. Although China enjoys around a 7% share in the global chip manufacturing market, it primarily relies on Taiwan's chip supply to manufacture its drones, military hardware, and other defense equipment.
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2022-08-12 00:00:00 UTC
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What Is Market Cap In Stocks?
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https://www.nasdaq.com/articles/what-is-market-cap-in-stocks
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Market Capitalization (Cap) Definition
If you’re new to the stock market, you’ve likely been overwhelmed with all the stock market terms that investors use. In this article, we’re going to discuss what is market capitalization or market cap in stocks.
Dy definition, market capitalization is the value of a company that is traded on the stock market. Simply put, Market cap, or market capitalization, is a measure of the value of a publicly traded company’s shares.
How To Understand Market Capitalization (Cap)
In order to understand market cap, it is important to first understand what the stock market is. The stock market is a collection of all the stocks that are being traded on the stock exchange. The stock exchange is where companies list their stocks and investors can buy and sell them.
Understanding market cap is important for understanding the overall value of a company. It also helps us compare companies within the same industry. It can also be useful for understanding the risk involved in investing in a particular company. A high market cap indicates that a company is large and stable. On the other side, a low market cap indicates that a company is small and riskier. Knowing the market cap can help you make informed investment decisions.
[Read More] The Most Frequently Asked Questions About The Stock Market In 2022
How To Calculate Market Capitalization (Cap)
Now we know now that the market cap is a measure of the value of a publicly traded company’s shares. Market cap is calculated by multiplying the number of shares outstanding by the current market price per share. For example, if a company has 1 million shares outstanding with a share price of $20, the market cap would be $20 million.
Additionally, the market cap is often used to categorize companies by size. Specifically, large-cap companies have a market cap of $10 billion or more. While small-cap companies have a market cap of less than $2 billion.
[Read More] 15 Best Stocks To Buy For Beginners
Bottom Line
Though market cap is a useful metric, it should not be the only factor to consider when making investment decisions. A company with a large market cap may be overvalued by the market, while a small-cap company may be undervalued.
In addition, the market cap does not take into account other important factors. This includes the company’s financial health, competitive advantage, and growth potential to name a few. As such, it is important to consider all available information when making investment decisions.
Below you will find a list of the 10 largest publicly traded companies in order by market cap. The current share price is as of Friday, August 12, 2022 afternoon.
Apple, Inc. (NASDAQ: AAPL)
Market Cap: $2.762 Trillion
Current Share Price: $171.90
Microsoft Corporation (NASDAQ: MSFT)
Market Cap: $2.169 Trillion
Current Share Price: $290.95
Alphabet (NASDAQ: GOOG)
Market Cap: $1.591 Trillion
Current Share Price: $122.48
Amazon.com, Inc. (NASDAQ: AMZN)
Market Cap: $1.455 Trillion
Current Share Price: $142.84
Tesla, Inc. (NASDAQ: TSLA)
Market Cap: $938.51 Billion
Current Share Price: $898.54
Berkshire Hathaway (NYSE: BRK.B)
Market Cap: $661.45 Billion
Current Share Price: $300.34
UnitedHealth Group, Inc. (NYSE: UNH)
Market Cap: $506.05 Billion
Current Share Price: $541.01
Meta Platforms Inc. (NASDAQ: META)
Market Cap: $484.45 Billion
Current Share Price: $180.26
Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM)
Market Cap: $472.06 Billion
Current Share Price: $91.03
NVIDIA Corporation (NASDAQ: NVDA)
Market Cap: $464.23 Billion
Current Share Price: $186.29
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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, Inc. (NASDAQ: AAPL) Market Cap: $2.762 Trillion Current Share Price: $171.90 Microsoft Corporation (NASDAQ: MSFT) Market Cap: $2.169 Trillion Current Share Price: $290.95 Alphabet (NASDAQ: GOOG) Market Cap: $1.591 Trillion Current Share Price: $122.48 Amazon.com, Inc. (NASDAQ: AMZN) Market Cap: $1.455 Trillion Current Share Price: $142.84 Tesla, Inc. (NASDAQ: TSLA) Market Cap: $938.51 Billion Current Share Price: $898.54 Berkshire Hathaway (NYSE: BRK.B) Market Cap: $661.45 Billion Current Share Price: $300.34 UnitedHealth Group, Inc. (NYSE: UNH) Market Cap: $506.05 Billion Current Share Price: $541.01 Meta Platforms Inc. (NASDAQ: META) Market Cap: $484.45 Billion Current Share Price: $180.26 Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) Market Cap: $472.06 Billion Current Share Price: $91.03 NVIDIA Corporation (NASDAQ: NVDA) Market Cap: $464.23 Billion Current Share Price: $186.29 If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. [Read More] 15 Best Stocks To Buy For Beginners Bottom Line Though market cap is a useful metric, it should not be the only factor to consider when making investment decisions. Below you will find a list of the 10 largest publicly traded companies in order by market cap.
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Apple, Inc. (NASDAQ: AAPL) Market Cap: $2.762 Trillion Current Share Price: $171.90 Microsoft Corporation (NASDAQ: MSFT) Market Cap: $2.169 Trillion Current Share Price: $290.95 Alphabet (NASDAQ: GOOG) Market Cap: $1.591 Trillion Current Share Price: $122.48 Amazon.com, Inc. (NASDAQ: AMZN) Market Cap: $1.455 Trillion Current Share Price: $142.84 Tesla, Inc. (NASDAQ: TSLA) Market Cap: $938.51 Billion Current Share Price: $898.54 Berkshire Hathaway (NYSE: BRK.B) Market Cap: $661.45 Billion Current Share Price: $300.34 UnitedHealth Group, Inc. (NYSE: UNH) Market Cap: $506.05 Billion Current Share Price: $541.01 Meta Platforms Inc. (NASDAQ: META) Market Cap: $484.45 Billion Current Share Price: $180.26 Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) Market Cap: $472.06 Billion Current Share Price: $91.03 NVIDIA Corporation (NASDAQ: NVDA) Market Cap: $464.23 Billion Current Share Price: $186.29 If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. How To Understand Market Capitalization (Cap) In order to understand market cap, it is important to first understand what the stock market is. For example, if a company has 1 million shares outstanding with a share price of $20, the market cap would be $20 million.
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Apple, Inc. (NASDAQ: AAPL) Market Cap: $2.762 Trillion Current Share Price: $171.90 Microsoft Corporation (NASDAQ: MSFT) Market Cap: $2.169 Trillion Current Share Price: $290.95 Alphabet (NASDAQ: GOOG) Market Cap: $1.591 Trillion Current Share Price: $122.48 Amazon.com, Inc. (NASDAQ: AMZN) Market Cap: $1.455 Trillion Current Share Price: $142.84 Tesla, Inc. (NASDAQ: TSLA) Market Cap: $938.51 Billion Current Share Price: $898.54 Berkshire Hathaway (NYSE: BRK.B) Market Cap: $661.45 Billion Current Share Price: $300.34 UnitedHealth Group, Inc. (NYSE: UNH) Market Cap: $506.05 Billion Current Share Price: $541.01 Meta Platforms Inc. (NASDAQ: META) Market Cap: $484.45 Billion Current Share Price: $180.26 Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) Market Cap: $472.06 Billion Current Share Price: $91.03 NVIDIA Corporation (NASDAQ: NVDA) Market Cap: $464.23 Billion Current Share Price: $186.29 If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. How To Understand Market Capitalization (Cap) In order to understand market cap, it is important to first understand what the stock market is. [Read More] The Most Frequently Asked Questions About The Stock Market In 2022 How To Calculate Market Capitalization (Cap) Now we know now that the market cap is a measure of the value of a publicly traded company’s shares.
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Apple, Inc. (NASDAQ: AAPL) Market Cap: $2.762 Trillion Current Share Price: $171.90 Microsoft Corporation (NASDAQ: MSFT) Market Cap: $2.169 Trillion Current Share Price: $290.95 Alphabet (NASDAQ: GOOG) Market Cap: $1.591 Trillion Current Share Price: $122.48 Amazon.com, Inc. (NASDAQ: AMZN) Market Cap: $1.455 Trillion Current Share Price: $142.84 Tesla, Inc. (NASDAQ: TSLA) Market Cap: $938.51 Billion Current Share Price: $898.54 Berkshire Hathaway (NYSE: BRK.B) Market Cap: $661.45 Billion Current Share Price: $300.34 UnitedHealth Group, Inc. (NYSE: UNH) Market Cap: $506.05 Billion Current Share Price: $541.01 Meta Platforms Inc. (NASDAQ: META) Market Cap: $484.45 Billion Current Share Price: $180.26 Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) Market Cap: $472.06 Billion Current Share Price: $91.03 NVIDIA Corporation (NASDAQ: NVDA) Market Cap: $464.23 Billion Current Share Price: $186.29 If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. How To Understand Market Capitalization (Cap) In order to understand market cap, it is important to first understand what the stock market is. [Read More] The Most Frequently Asked Questions About The Stock Market In 2022 How To Calculate Market Capitalization (Cap) Now we know now that the market cap is a measure of the value of a publicly traded company’s shares.
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19788.0
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2022-08-12 00:00:00 UTC
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Friday's ETF with Unusual Volume: IWY
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AAPL
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-iwy
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The iShares Russell Top 200 Growth ETF is seeing unusually high volume in afternoon trading Friday, with over 1.5 million shares traded versus three month average volume of about 393,000. Shares of IWY were up about 1.8% on the day.
Components of that ETF with the highest volume on Friday were Advanced Micro Devices, trading up about 2.8% with over 62.8 million shares changing hands so far this session, and Apple, up about 2% on volume of over 47.1 million shares. Workday is the component faring the best Friday, higher by about 6% on the day, while Occidental Petroleum is lagging other components of the iShares Russell Top 200 Growth ETF, trading lower by about 0.2%.
VIDEO: Friday's ETF with Unusual Volume: IWY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The iShares Russell Top 200 Growth ETF is seeing unusually high volume in afternoon trading Friday, with over 1.5 million shares traded versus three month average volume of about 393,000. Components of that ETF with the highest volume on Friday were Advanced Micro Devices, trading up about 2.8% with over 62.8 million shares changing hands so far this session, and Apple, up about 2% on volume of over 47.1 million shares. Workday is the component faring the best Friday, higher by about 6% on the day, while Occidental Petroleum is lagging other components of the iShares Russell Top 200 Growth ETF, trading lower by about 0.2%.
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The iShares Russell Top 200 Growth ETF is seeing unusually high volume in afternoon trading Friday, with over 1.5 million shares traded versus three month average volume of about 393,000. Workday is the component faring the best Friday, higher by about 6% on the day, while Occidental Petroleum is lagging other components of the iShares Russell Top 200 Growth ETF, trading lower by about 0.2%. VIDEO: Friday's ETF with Unusual Volume: IWY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The iShares Russell Top 200 Growth ETF is seeing unusually high volume in afternoon trading Friday, with over 1.5 million shares traded versus three month average volume of about 393,000. Components of that ETF with the highest volume on Friday were Advanced Micro Devices, trading up about 2.8% with over 62.8 million shares changing hands so far this session, and Apple, up about 2% on volume of over 47.1 million shares. Workday is the component faring the best Friday, higher by about 6% on the day, while Occidental Petroleum is lagging other components of the iShares Russell Top 200 Growth ETF, trading lower by about 0.2%.
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The iShares Russell Top 200 Growth ETF is seeing unusually high volume in afternoon trading Friday, with over 1.5 million shares traded versus three month average volume of about 393,000. Workday is the component faring the best Friday, higher by about 6% on the day, while Occidental Petroleum is lagging other components of the iShares Russell Top 200 Growth ETF, trading lower by about 0.2%. VIDEO: Friday's ETF with Unusual Volume: IWY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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19789.0
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2022-08-12 00:00:00 UTC
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SPYG, UTRN: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spyg-utrn%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 7,300,000 units, or a 3.0% increase week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.4%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the UTRN ETF, which added 1,050,000 units, for a 33.9% increase in outstanding units.
VIDEO: SPYG, UTRN: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPYG, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.4%. And on a percentage change basis, the ETF with the biggest increase in inflows was the UTRN ETF, which added 1,050,000 units, for a 33.9% increase in outstanding units. VIDEO: SPYG, UTRN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 7,300,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the UTRN ETF, which added 1,050,000 units, for a 33.9% increase in outstanding units. VIDEO: SPYG, UTRN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 7,300,000 units, or a 3.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the UTRN ETF, which added 1,050,000 units, for a 33.9% increase in outstanding units. VIDEO: SPYG, UTRN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 7,300,000 units, or a 3.0% increase week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.4%. And on a percentage change basis, the ETF with the biggest increase in inflows was the UTRN ETF, which added 1,050,000 units, for a 33.9% increase in outstanding units.
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19790.0
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2022-08-12 00:00:00 UTC
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2 of My Favorite Stocks Right Now
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AAPL
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https://www.nasdaq.com/articles/2-of-my-favorite-stocks-right-now
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nan
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nan
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The market meltdown in the first half of 2022 was uncomfortable, but it also created many fantastic investment opportunities. Companies of impeccable quality are suddenly trading at rock-bottom prices. As long as you stick with wonderful businesses and hold them for at least five years, the shares you buy at today's bargain-bin discounts should deliver tremendous returns in the long run.
Here are two of my favorite investment ideas in this dangerous but opportunity-packed market. Spoiler alert: These companies address the same market from two very different angles.
The service-neutral streaming platform
Media-streaming technology expert Roku (NASDAQ: ROKU) is already a firmly established leader in its chosen field. Buying a smart TV in North America probably means you get Roku's operating system and media-streaming apps.
The company's market share here was 56% in March 2022, far ahead of Apple and Samsung, which battle for second place with market shares of less than 20% each. That duel has been going on for years, and neither have been able to steal any meaningful market share from Roku.
Roku's dominance in the crucial American market sets the company up to benefit from the digital streaming trend on a fundamental level. No matter which content studios and streaming services are winning consumer hearts and wallet share in the long run, every content source worth its salt needs to work with the market-leading Roku platform.
The situation is different overseas. Roku is so tightly focused on North America that it doesn't even break out international results in its financial filings. All you get in those documents is the admission that international sales consistently account for less than 10% of the company's total revenue, and hence don't have to be reported in greater detail.
That imbalance smells like a growth vector to me. Roku is poised to follow in the illustrious footsteps of Netflix (NASDAQ: NFLX) here. The global leader of the streaming video industry manages a deeply international user base nowadays, where only one-third of its 221 million subscribers hail from North American shores. Ten years ago, 88% of Netflix's subscribers were found in the domestic market.
I'm not saying that Roku will follow the same path to international growth without lifting a finger. In fact, it will take hard work and lots of time to achieve similar growth figures. However, Roku is perfectly poised to attempt to follow Netflix's example.
At the same time, the streaming market itself continues to expand as consumers around the world ditch their cable and broadcast TV services in favor of digital solutions. Suitable broadband connections and digital payment services are also becoming more widely available in developing nations, giving companies like Roku more support for their subscription-based business plans.
In last month's second-quarter report, inflation and macroeconomic pressure tripped up Roku's nascent advertising services. And many investors are backing away from fast-growing but unprofitable companies like Roku right now. The advertising stumbles provided more fuel for the bearish argument against this stock. As a result of these headwinds, it's down 65% in 2022.
But I expect the advertising market and Roku's ad platform to undergo a full recovery over the next year or two, giving this side project a chance to deliver profitable growth for the long haul. And the company should start pushing into international markets soon enough, opening the doors to a much larger addressable market. The lessons learned in America will come in handy to support Roku's international ambitions.
So buying Roku stock at these deeply discounted prices looks like an intelligent wealth-building move.
The content-making household name
You don't have to go far away from Roku to find my next top-shelf investment idea. Walt Disney (NYSE: DIS) is trading 24% lower this year. The stock is changing hands at valuation ratios well below Disney's historical averages, and the company is flexing its industry-defining muscles in the streaming market.
In this week's third-quarter report, for example, Disney said it added 14.4 million subscribers to the streaming services Disney+ and Hotstar. The company's total number of streaming subscribers now stands at 231.1 million, passing Netflix's global customer count for the first time.
At the same time, Disney is switching gears in the streaming sector. The company announced price increases for all of its domestic streaming services, which should boost their top-line contributions but cool down the subscriber growth. But a free-to-watch version of Disney+ is coming soon, bringing a fully ad-supported option for the most price-sensitive viewers.
The company threw its full weight behind streaming content in 2021, and the audacious bet is already paying off. So if you prefer a media streaming investment with a deeper focus on content production, you can skip Roku and go straight to the House of Mouse instead. Both stocks should serve you well in the coming years, and even decades. Their low share prices are just icing on the lucrative cake.
10 stocks we like better than Roku
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 Roku 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 July 27, 2022
Anders Bylund has positions in Netflix, Roku, and Walt Disney. The Motley Fool has positions in and recommends Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The global leader of the streaming video industry manages a deeply international user base nowadays, where only one-third of its 221 million subscribers hail from North American shores. Suitable broadband connections and digital payment services are also becoming more widely available in developing nations, giving companies like Roku more support for their subscription-based business plans. But I expect the advertising market and Roku's ad platform to undergo a full recovery over the next year or two, giving this side project a chance to deliver profitable growth for the long haul.
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The service-neutral streaming platform Media-streaming technology expert Roku (NASDAQ: ROKU) is already a firmly established leader in its chosen field. The Motley Fool has positions in and recommends Apple, Netflix, Roku, and Walt Disney. The Motley Fool 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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Roku's dominance in the crucial American market sets the company up to benefit from the digital streaming trend on a fundamental level. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Anders Bylund has positions in Netflix, Roku, and Walt Disney. The Motley Fool 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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In this week's third-quarter report, for example, Disney said it added 14.4 million subscribers to the streaming services Disney+ and Hotstar. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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19791.0
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2022-08-12 00:00:00 UTC
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Why GlobalFoundries, Micron Technology, and Applied Materials Soared Today
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AAPL
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https://www.nasdaq.com/articles/why-globalfoundries-micron-technology-and-applied-materials-soared-today
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What happened
Shares of semiconductor-focused companies GlobalFoundries (NASDAQ: GFS), Micron Technology (NASDAQ: MU), and Applied Materials (NASDAQ: AMAT) were roaring higher today, up 12%, 4.3%, and 4.7%, respectively, as of 2:31 p.m. ET.
There wasn't any company-specific news today for any of these stocks, although there was earlier in the week, especially for GlobalFoundries. However, broader optimism over the path of inflation, the passage of the CHIPS Act earlier this week, and today's likely passage by the House of the Inflation Reduction Act could all be helping these stocks move higher.
Additionally, an article on Apple's (NASDAQ: AAPL) iPhone production plans last night may have eased some fears around the beaten-down chip sector.
So what
In conjunction with many clean energy stocks, many semiconductor stocks are on the rise today in anticipation of the House passing the Inflation Reduction Act, which provides subsidies to consumers to purchase new or used qualifying electric vehicles (EVs).
That could be because electric vehicles require vastly more semiconductor content than traditional internal combustion vehicles. According to GlobalFoundries' recent Capital Markets Day presentation, Level 2 autonomous EVs require three times the semiconductor content of traditional cars, while Level 4 autonomous EVs require six times the amount. With only 5% EV penetration in the U.S. and 8% global penetration, it's possible EVs could see a tipping point into mass adoption with the help of this bill.
On that note, GlobalFoundries produces lots of chips on mature lagging-edge nodes that are used in EVs, such as power semiconductors. Earlier this week, it announced an extension of its long-term supply agreement with Qualcomm, which notably includes Qualcomm's auto chip platform.
The CHIPS Act, passed earlier this week, should also help GlobalFoundries. On the heels of GlobalFoundries' earnings beat on Tuesday and its Capital Markets Day for analysts on Thursday, Baird analyst Tristan Guerra reiterated the stock's outperform rating on GlobalFoundries, while keeping its price target at $100, about 50% higher than the price today.
Guerra believes the CHIPS Act will enable the U.S.-based foundry to expand its gross margin beyond its long-term target. In this week's Capital Market presentation, GlobalFoundries outlined an ambition for today's 27% gross margin to expand to 40% over time, while also projecting 8% to 12% annual revenue growth.
Memory-producer Micron also had two big announcements. First, the company guided down again for its current quarter, as the pandemic hangover in PCs continues to bite its near-term results. Citing macroeconomic worries on the part of customers, management noted a broadening of inventory adjustments that should take a couple of quarters to work through.
Although Micron fell on that news, it is ending the week higher. That could be due to today's optimism over the IRA, as well as this week's signing of the CHIPS Act. Following the CHIPS Act, Micron announced a $40 billion investment in leading-edge memory manufacturing in the U.S., which will take place over the course of the decade.
Micron is also highly sensitive to the broader economy, since its memory chips are commodity-like, with prices that fluctuate with supply and demand. Since the markets received some positive news on the inflation front on Wednesday, with month-over-month inflation at zero for the first time in a long time, many economically sensitive stocks blasted higher on renewed optimism for a "soft landing."
Meanwhile, all of these new manufacturing subsidies should go a long way toward boosting Applied Materials, which is the largest semiconductor equipment stock by revenue. Although the stock had fallen to start the year on fears of an economic slowdown, the passage of the CHIPS Act could lead to some redundant chip manufacturing investment in the near term, perhaps softening any potential downturn -- if one even materializes.
Finally, as a cherry on top of a momentous week, Bloomberg reported that Apple has told its suppliers to build at least 90 million iPhone 14 units this year. That figure would be about the same as last year, and seemed to provide a data point that smartphone demand on the high end remains resilient, in spite of fears over big declines that have plagued lower-end phone brands this year. Given Apple's size and prominence, chip companies tend to react to Apple news as well, for good or ill.
Now what
Semiconductor stocks had a brutal start to 2022 in anticipation of the semiconductor downturn that appears to be taking place; however, given how forward-looking this cyclical sector is, the combination of waning inflationary pressures and large manufacturing subsidies from the U.S. government this week is pointing to better times ahead.
One rule of semiconductor investing: If you wait for the slump to sell or concrete positive financials to buy, odds are you will have missed a big move in the stocks, in either direction.
10 stocks we like better than GlobalFoundries 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 GlobalFoundries 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 11, 2022
Billy Duberstein has positions in Apple, Applied Materials, and Micron Technology and has the following options: short January 2023 $160 calls on Micron Technology and short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple, Applied Materials, and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Additionally, an article on Apple's (NASDAQ: AAPL) iPhone production plans last night may have eased some fears around the beaten-down chip sector. In this week's Capital Market presentation, GlobalFoundries outlined an ambition for today's 27% gross margin to expand to 40% over time, while also projecting 8% to 12% annual revenue growth. Finally, as a cherry on top of a momentous week, Bloomberg reported that Apple has told its suppliers to build at least 90 million iPhone 14 units this year.
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Additionally, an article on Apple's (NASDAQ: AAPL) iPhone production plans last night may have eased some fears around the beaten-down chip sector. According to GlobalFoundries' recent Capital Markets Day presentation, Level 2 autonomous EVs require three times the semiconductor content of traditional cars, while Level 4 autonomous EVs require six times the amount. See the 10 stocks *Stock Advisor returns as of August 11, 2022 Billy Duberstein has positions in Apple, Applied Materials, and Micron Technology and has the following options: short January 2023 $160 calls on Micron Technology and short January 2023 $210 calls on Apple.
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Additionally, an article on Apple's (NASDAQ: AAPL) iPhone production plans last night may have eased some fears around the beaten-down chip sector. However, broader optimism over the path of inflation, the passage of the CHIPS Act earlier this week, and today's likely passage by the House of the Inflation Reduction Act could all be helping these stocks move higher. Given Apple's size and prominence, chip companies tend to react to Apple news as well, for good or ill. Now what Semiconductor stocks had a brutal start to 2022 in anticipation of the semiconductor downturn that appears to be taking place; however, given how forward-looking this cyclical sector is, the combination of waning inflationary pressures and large manufacturing subsidies from the U.S. government this week is pointing to better times ahead.
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Additionally, an article on Apple's (NASDAQ: AAPL) iPhone production plans last night may have eased some fears around the beaten-down chip sector. What happened Shares of semiconductor-focused companies GlobalFoundries (NASDAQ: GFS), Micron Technology (NASDAQ: MU), and Applied Materials (NASDAQ: AMAT) were roaring higher today, up 12%, 4.3%, and 4.7%, respectively, as of 2:31 p.m. The CHIPS Act, passed earlier this week, should also help GlobalFoundries.
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19792.0
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2022-08-12 00:00:00 UTC
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US STOCKS-Wall St set for weekly gains on signs of cooling inflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-weekly-gains-on-signs-of-cooling-inflation
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nan
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By Bansari Mayur Kamdar and Aniruddha Ghosh
Aug 12 (Reuters) - Wall Street's main indexes rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike on evidence of cooling inflation.
The S&P 500 .SPX is up 16% from its mid-June low, with the latest boost coming from a slower-than-expected rise in consumer prices and a surprise drop in producer prices in July.
The benchmark index briefly crossed a closely watched technical level of 4,231 points, indicating it has recovered 50% of its bear market loss.
"The economy is not falling off a cliff, but there are some troubling signs. Still, the bulls can point to a very strong jobs market and corporate earnings that did not suggest a slowdown was hurting company profits," said Lindsey Bell, chief markets and money strategist at Ally.
"Stocks big and small have recovered impressively in the last two months despite a very mixed bag of economic data."
While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5% chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike. FEDWATCH
The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.
Ten of the 11 major S&P 500 sectors advanced in early trading, with communication services .SPLRCL and information technology stocks .SPLRCL leading the gains.
High-growth and technology stocks such as Apple Inc AAPL.O and Alphabet GOOGL.O rose 0.8% each as investors returned to riskier assets and Treasury yields dipped after a volatile week. US/
Growth stocks .IGX have underpeformed their value counterparts .IVX so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation.
Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with U.S. growth stocks recording their largest weekly inflow since December last year.
"The major indices are trading near highs going back to May and June and those highs are now serving as near-term resistance," said Adam Sarhan, chief executive of 50 Park Investments.
Meanwhile, banks .SPXBK edged 0.3% lower but were still on track to extend their rally for sixth straight week.
Data showed U.S. consumer sentiment ticked further up in August from a record low this summer and American households' near-term outlook for inflation eased again on easing gasoline prices.
At 10:09 a.m. ET, the Dow Jones Industrial Average .DJI was up 99.94 points, or 0.30%, at 33,436.61, the S&P 500 .SPX was up 22.64 points, or 0.54%, at 4,229.91, and the Nasdaq Composite .IXIC was up 98.18 points, or 0.77%, at 12,878.09.
After a rough start to the year, better-than-expected second quarter earnings from corporate America have supported the upbeat sentiment for U.S. equities.
Of the 456 S&P 500 companies that have reported earnings so far, 77.6% have topped profit expectations, as per Refinitiv data.
Rivian Automotive Inc RIVN.O rose 1.3% as the electric-vehicle maker reported better-than-expected second quarter revenue.
Advancing issues outnumbered decliners by a 2.35-to-1 ratio on the NYSE and by a 1.80-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 29 new lows, while the Nasdaq recorded 28 new highs and 18 new lows.
U.S. Inflation: Past its peak?https://tmsnrt.rs/3dkLbra
(Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @bansarikamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High-growth and technology stocks such as Apple Inc AAPL.O and Alphabet GOOGL.O rose 0.8% each as investors returned to riskier assets and Treasury yields dipped after a volatile week. By Bansari Mayur Kamdar and Aniruddha Ghosh Aug 12 (Reuters) - Wall Street's main indexes rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike on evidence of cooling inflation. US/ Growth stocks .IGX have underpeformed their value counterparts .IVX so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation.
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High-growth and technology stocks such as Apple Inc AAPL.O and Alphabet GOOGL.O rose 0.8% each as investors returned to riskier assets and Treasury yields dipped after a volatile week. While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5% chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike. After a rough start to the year, better-than-expected second quarter earnings from corporate America have supported the upbeat sentiment for U.S. equities.
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High-growth and technology stocks such as Apple Inc AAPL.O and Alphabet GOOGL.O rose 0.8% each as investors returned to riskier assets and Treasury yields dipped after a volatile week. By Bansari Mayur Kamdar and Aniruddha Ghosh Aug 12 (Reuters) - Wall Street's main indexes rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike on evidence of cooling inflation. While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5% chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike.
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High-growth and technology stocks such as Apple Inc AAPL.O and Alphabet GOOGL.O rose 0.8% each as investors returned to riskier assets and Treasury yields dipped after a volatile week. While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5% chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike. Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with U.S. growth stocks recording their largest weekly inflow since December last year.
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19793.0
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2022-08-12 00:00:00 UTC
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Where Should You Store the Private Keys to Your ETH?
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AAPL
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https://www.nasdaq.com/articles/where-should-you-store-the-private-keys-to-your-eth
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By Frank Corva
There are a number of factors to consider when choosing where to store the private keys for your Ether (ETH) — the native asset of the Ethereum blockchain.
First, you have to consider whether you’re planning to hold your ETH long-term or short-term.
Then, you must think about how important safety is to you.
You also have to consider whether you want to put your ETH to work — do you want to stake it, lend it or yield farm with it?
Because of the dynamic nature of ETH, choosing the right wallet in which to store the private keys to your ETH is a serious consideration.
ETH is not a share of a company
When most people first buy some ETH — or any other digital asset for that matter — they open an account on a major centralized exchange like Coinbase or Binance, buy the digital asset that they want, and then leave the asset in a wallet “on the exchange.”
But the asset isn’t “on the exchange” — instead, it’s on the blockchain. The private keys to the asset remain in the hands of the exchange if you don't take custody of them by transferring them to a wallet for which you hold the private keys. More on that in a moment, though.
Most people leave their private keys with an exchange because they’re accustomed to buying assets via brokerages like Fidelity, Charles Schwab or Robinhood.
When you buy assets via these exchanges, your IOU for the share of the stock you buy is stored on the platform’s centralized database. You don’t have the option to move your shares of Apple stock (AAPL) into your own custody. But this isn’t the case with ETH or other crypto assets.
Taking responsibility for your ETH and putting it to work
So, now you’ve done it — you sat down to move the private keys for your ETH into your own custody because you finally heeded the “not your keys, not your coins” warning.
But where do you move the private keys to your ETH to?
If security is of paramount importance to you and you plan to hold your ETH long-term, then you’ll probably want to move your private keys to a device like a Ledger or Trezor wallet — a hardware wallet that stores your private keys offline
Because transferring the private keys for your digital assets on and off a hardware wallet is a bit of a hassle, you’re more likely to buy and hold once you transfer your private keys to one of these devices.
If you’re only speculating in the short-term with your ETH holdings, then you might want to transfer the private keys to your ETH to a desktop or mobile wallet like Exodus or Atomic. Storing the private keys to your ETH in a software wallet is safer than leaving them in the hands of an exchange, but not quite as safe as storing them offline in a hardware wallet.
Or maybe you’re a crypto degen — a more savvy crypto investor who likes to take bigger risks with their crypto — and you want to put your crypto to work. Then, you’ll want to transfer your crypto to a browser extension wallet like MetaMask. Doing so will allow you to utilize DeFi platforms like Aave or SushiSwap, where you can lend your ETH or use it to yield farm.
Recognizing the commitment to your ETH
Purchasing some ETH on a centralized exchange is only the first step in committing yourself to your crypto investment.
The next step is finding a home for the private keys to your ETH — and recognizing that the home for those private keys may change as you become a more sophisticated crypto investor.
If you’re new to investing in ETH, what’s most important to understand from the onset is that ETH isn’t a stock or any other type of traditional investment — or an IOU which can only be stored on the centralized database of the brokerage where you purchased the asset.
Where you store the private keys to your ETH is ultimately up to you — and this is perhaps one of the most important considerations when choosing to invest in the asset.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You don’t have the option to move your shares of Apple stock (AAPL) into your own custody. By Frank Corva There are a number of factors to consider when choosing where to store the private keys for your Ether (ETH) — the native asset of the Ethereum blockchain. Most people leave their private keys with an exchange because they’re accustomed to buying assets via brokerages like Fidelity, Charles Schwab or Robinhood.
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You don’t have the option to move your shares of Apple stock (AAPL) into your own custody. When you buy assets via these exchanges, your IOU for the share of the stock you buy is stored on the platform’s centralized database. If security is of paramount importance to you and you plan to hold your ETH long-term, then you’ll probably want to move your private keys to a device like a Ledger or Trezor wallet — a hardware wallet that stores your private keys offline Because transferring the private keys for your digital assets on and off a hardware wallet is a bit of a hassle, you’re more likely to buy and hold once you transfer your private keys to one of these devices.
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You don’t have the option to move your shares of Apple stock (AAPL) into your own custody. ETH is not a share of a company When most people first buy some ETH — or any other digital asset for that matter — they open an account on a major centralized exchange like Coinbase or Binance, buy the digital asset that they want, and then leave the asset in a wallet “on the exchange.” But the asset isn’t “on the exchange” — instead, it’s on the blockchain. Taking responsibility for your ETH and putting it to work So, now you’ve done it — you sat down to move the private keys for your ETH into your own custody because you finally heeded the “not your keys, not your coins” warning.
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You don’t have the option to move your shares of Apple stock (AAPL) into your own custody. The private keys to the asset remain in the hands of the exchange if you don't take custody of them by transferring them to a wallet for which you hold the private keys. But where do you move the private keys to your ETH to?
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19794.0
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2022-08-12 00:00:00 UTC
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2 Top Metaverse Stocks Ready for a Bull Run
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AAPL
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https://www.nasdaq.com/articles/2-top-metaverse-stocks-ready-for-a-bull-run-4
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nan
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The metaverse is supposed to be a groundbreaking concept that's going to change the way people interact with each other, connecting our virtual avatars in 3D virtual worlds from the comforts of our homes, offices, or anywhere with devices such as headsets or smartphones.
Third-party estimates forecast that the metaverse could become an $800 billion market by 2028. People are expected to use this platform for work, education, socializing, and even attending sports events and concerts. Not surprisingly, many tech giants are in the race to make the most of this potential revenue opportunity.
Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are among the technology companies that could win big from the metaverse. Both stocks have been flying high in the past month, and it won't be surprising to see them soar higher in the future, thanks to the metaverse. Let's see why.
1. Nvidia
Nvidia's graphics cards and data center chips are going to play an important role in making the metaverse a reality. This is already evident from the usage of Nvidia's graphics cards in Meta Platforms' (NASDAQ: META) AI Research SuperCluster (RSC) supercomputer that's supposed to help build a foundational framework for handling metaverse workloads.
Meta had announced in January this year that it would be using 16,000 Nvidia GPUs (graphics processing units) to power this supercomputer. Additionally, Meta recently announced that it would be increasing the deployment of GPUs in data centers by fivefold this year to power its artificial intelligence (AI)-enabled content discovery engine, which could be a boon for Nvidia's graphics cards sales.
Nvidia's relationship with Meta could get stronger with time as the latter intends to spend aggressively, in the long run, to make the metaverse a reality. That's because the metaverse would require a massive bump in computing power. Chip giant Intel estimates that rolling out the metaverse successfully would require a thousand-times increase in computing capacity.
This is where Nvidia's GPUs come into play, thanks to their ability to handle heavy workloads. In simpler words, the metaverse will create the need for more data center accelerators such as GPUs. According to third-party estimates, the data center accelerator market could grow at an annual pace of 37% through 2026. Catalysts such as the metaverse could help this market sustain its impressive pace of growth, presenting a solid opportunity for Nvidia to expand its data center business in the long run.
Nvidia's data center revenue shot up 83% year over year in the first quarter of fiscal 2023 (for the three months ended on May 1, 2022) to a record $3.75 billion. The segment's impressive growth led to a 46% spike in its total revenue to $8.29 billion. The healthy prospect of the data center business is one of the reasons why analysts are expecting 23% annual earnings growth from Nvidia over the next five years.
However, the adoption of nascent technologies such as the metaverse could give Nvidia's data center segment an additional boost and help it grow at a faster pace.
2. Apple
Apple is a consumer electronics giant that's famous for its iPhones and iPads, and the metaverse could present the next frontier for the company to grow its devices business.
Reports suggest that Apple is developing a mixed reality headset that would support both augmented reality (AR) and virtual reality (VR) devices. The tech giant is expected to launch its first headset next year, followed by the release of an improved version in 2024.
This rumored move by Apple could open a whole new addressable market for Apple as AR/VR headsets are going to be the gateway to the metaverse for users, transporting them into virtual worlds where their virtual avatars could interact with others.
Not surprisingly, market research firm IDC estimates that sales of VR headsets could jump from an estimated 13.9 million units in 2022 to almost 35 million units in 2026. Meanwhile, the revenue from the AR wearables market is expected to hit $30 billion by 2030, according to data analytics firm GlobalData.
Apple's patent wins for its mixed-reality headsets indicate that the company could indeed be preparing to enter this market. So, don't be surprised to see the metaverse giving Apple's growth a nice shot in the arm in the future by making a significant contribution to its top line. Throw in other catalysts, such as Apple's dominant position in the 5G smartphone market and the growth of its services business, and investors have multiple reasons to buy this stock right now.
Apple stock has appreciated 17% in the past month, but it is still available at an attractive valuation. The price-to-earnings ratio of 27 is lower than last year's multiple of nearly 32. So, investors looking to buy a tech stock should take a closer look at Apple as the company looks capable of sustaining its bull run for a long time to come as catalysts such as the metaverse come into play.
10 stocks we like better than Nvidia
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, Meta Platforms, Inc., and Nvidia. The Motley Fool 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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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are among the technology companies that could win big from the metaverse. Additionally, Meta recently announced that it would be increasing the deployment of GPUs in data centers by fivefold this year to power its artificial intelligence (AI)-enabled content discovery engine, which could be a boon for Nvidia's graphics cards sales. Catalysts such as the metaverse could help this market sustain its impressive pace of growth, presenting a solid opportunity for Nvidia to expand its data center business in the long run.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are among the technology companies that could win big from the metaverse. This is already evident from the usage of Nvidia's graphics cards in Meta Platforms' (NASDAQ: META) AI Research SuperCluster (RSC) supercomputer that's supposed to help build a foundational framework for handling metaverse workloads. Catalysts such as the metaverse could help this market sustain its impressive pace of growth, presenting a solid opportunity for Nvidia to expand its data center business in the long run.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are among the technology companies that could win big from the metaverse. Nvidia Nvidia's graphics cards and data center chips are going to play an important role in making the metaverse a reality. Catalysts such as the metaverse could help this market sustain its impressive pace of growth, presenting a solid opportunity for Nvidia to expand its data center business in the long run.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are among the technology companies that could win big from the metaverse. Nvidia Nvidia's graphics cards and data center chips are going to play an important role in making the metaverse a reality. That's right -- they think these 10 stocks are even better buys.
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19795.0
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2022-08-12 00:00:00 UTC
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Surprise! Warren Buffett "Owns" All 5 FAANG Stocks
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AAPL
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https://www.nasdaq.com/articles/surprise-warren-buffett-owns-all-5-faang-stocks
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For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has made making money on Wall Street look easy. Although the Oracle of Omaha isn't infallible, he's overseen a jaw-dropping 20.1% average annual return on his company's Class A shares (BRK.A) since taking the reins in 1965. For those who are curious, this works out to an aggregate return of more than 3,600,000% through the end of 2021.
Because of Warren Buffett's resounding success over the years, retail and professional investors alike have been known to ride his coattails to big gains. They do this by closely monitoring Berkshire Hathaway's 13F filings.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Berkshire Hathaway's 13Fs don't always tell the full story
A 13F is akin to looking under the hood of a high-powered automobile. It's a required filing with the Securities and Exchange Commission (SEC) for money managers with at least $100 million in assets under management and allows investors to see what securities successful fund managers were buying, selling, and holding during the most-recent quarter. A 13F is often the golden ticket to mirroring Buffett's investment activity.
But as we've seen, not everything Warren Buffett owns or buys is necessarily going to show up in a 13F filing with the SEC. For example, the Oracle of Omaha and his right-hand man Charlie Munger have repurchased more than $62 billion of Berkshire Hathaway's Class A and B shares since July 2018. That's far more than this dynamic duo has spent on any single stock in Berkshire's investment portfolio over the past four years -- and you won't find this buying activity listed in a 13F filing.
Likewise, Warren Buffett has a secret portfolio with $6.31 billion in assets under management, as of the end of March. When Berkshire Hathaway acquired insurer General Re in 1998 for $22 billion, it also bought specialty investment company and General Re subsidiary New England Asset Management (NEAM).
Even though Buffett isn't in control of NEAM's investment portfolio, Berkshire Hathaway is ultimately the owner of any securities it buys. You can find New England Asset Management's holdings in its quarterly 13F, but you won't find these holdings listed in Berkshire's quarterly 13F filing.
Surprise! Warren Buffett (sort of) owns all the FAANG stocks
Perhaps the biggest surprise of all is that Warren Buffett, an investor who's generally shunned technology stocks and high-growth companies throughout his 57-plus years at the helm, has a stake, either directly or indirectly, in all five FAANG stocks.
When I say "FAANG," I'm talking about:
Facebook, which has changed its name to Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which changed its name to Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
A few of the FAANGs have been fixtures in Buffett's portfolio for years. Apple is Berkshire's largest holding by market value, accounting for 42.5% of the company's $354 billion of invested assets, as of last weekend. The Oracle of Omaha refers to Apple as one of his company's "four giants," so it's unlikely this position will be reduced anytime soon.
Meanwhile, e-commerce giant Amazon has been a continuous holding for more than three years. Buffett has previously stated that Berkshire's position in Amazon was initiated by one of his investing lieutenants, Todd Combs or Ted Weschler. Both Apple and Amazon have been showing up in Berkshire Hathaway's quarterly 13Fs.
But what about social media stock Meta Platforms, streaming-platform Netflix, and internet-search behemoth Alphabet (the parent of Google)? For these stocks, we have to go further down the rabbit hole to one of Berkshire Hathaway's first-quarter buys.
Among the 16 stocks Warren Buffett and his investing team added since the year began is diversified holding-company Markel (NYSE: MKL). This company is often viewed by the investing community as a mini-Berkshire, with nearly $7 billion in assets under management, as of June 30, 2022.
Buffett is a shareholder in Markel, as his company, technically, has a vested interest in the more than 100 securities in which Markel is invested. This includes 43,000 shares of Netflix, more than 184,000 shares of Meta, and close to 2.75 million shares of Google (Class C, GOOG).
Indirectly, at least, Warren Buffett "owns" all five FAANG stocks.
Image source: Getty Images.
The FAANG stocks check all the appropriate boxes for Buffett
Even though the Oracle of Omaha only owns two of the five FAANGs directly, they all possess the characteristics Buffett would look for in a long-term investment. For instance, each of the FAANG stocks are industry leaders that have operating models capable of running on autopilot:
Meta had more than half the world's adult population (3.65 billion people) visit its owned social media assets on a monthly basis during the second quarter.
Apple has controlled 50% or more of U.S. smartphone market share in all but one quarter since releasing a 5G-capable iPhone.
Amazon is forecast by eMarketer to account for just shy of 40% of all U.S. online retail sales in 2022. That's more than its 14 closest competitors on a combined basis.
Netflix accounted for a whopping 45.2% of global-streaming market share, as of the first quarter of 2022, according to Parrot Analytics.
Alphabet's internet-search engine Google is a veritable monopoly. Over the past 24 months, it's controlled between 91% and 93% of global internet-search share.
These are also well-recognized brands that have relatively loyal customer bases. Amazon has pivoted its strong customer engagement into more than 200 million global Prime memberships, which add tens of billions in annual revenue for the company. Meanwhile, Apple is leaning on its loyal customers as it transitions to a subscription service-driven operating model.
Warren Buffett will also appreciate the capital-return programs for these companies. Apple has repurchased approximately $520 billion worth of its own stock since initiating a buyback program in 2013. As for Alphabet, it's spent around $140 billion on share repurchases over the past five years (through June 30, 2022). A hearty dividend and/or buyback program is an easy way to get Warren Buffett's attention and stay on his good side.
Even the management teams for all five FAANG stocks are arguably strong. There's been continuity at key leadership positions and, for the most part, long-term strategic visions are being met. In other words, the FAANG stocks check all the right boxes for Warren Buffett.
10 stocks we like better than Berkshire Hathaway (B shares)
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*Stock Advisor returns as of July 27, 2022
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. 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. Sean Williams has positions in Alphabet (A shares), Amazon, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Markel, Meta Platforms, Inc., and Netflix. 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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When I say "FAANG," I'm talking about: Facebook, which has changed its name to Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which changed its name to Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) A few of the FAANGs have been fixtures in Buffett's portfolio for years. That's far more than this dynamic duo has spent on any single stock in Berkshire's investment portfolio over the past four years -- and you won't find this buying activity listed in a 13F filing. For instance, each of the FAANG stocks are industry leaders that have operating models capable of running on autopilot: Meta had more than half the world's adult population (3.65 billion people) visit its owned social media assets on a monthly basis during the second quarter.
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When I say "FAANG," I'm talking about: Facebook, which has changed its name to Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which changed its name to Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) A few of the FAANGs have been fixtures in Buffett's portfolio for years. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Markel, Meta Platforms, Inc., and Netflix. 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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When I say "FAANG," I'm talking about: Facebook, which has changed its name to Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which changed its name to Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) A few of the FAANGs have been fixtures in Buffett's portfolio for years. Warren Buffett (sort of) owns all the FAANG stocks Perhaps the biggest surprise of all is that Warren Buffett, an investor who's generally shunned technology stocks and high-growth companies throughout his 57-plus years at the helm, has a stake, either directly or indirectly, in all five FAANG stocks. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Markel, Meta Platforms, Inc., and Netflix.
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When I say "FAANG," I'm talking about: Facebook, which has changed its name to Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which changed its name to Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) A few of the FAANGs have been fixtures in Buffett's portfolio for years. Berkshire Hathaway CEO Warren Buffett. Warren Buffett (sort of) owns all the FAANG stocks Perhaps the biggest surprise of all is that Warren Buffett, an investor who's generally shunned technology stocks and high-growth companies throughout his 57-plus years at the helm, has a stake, either directly or indirectly, in all five FAANG stocks.
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19796.0
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2022-08-12 00:00:00 UTC
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EXPLAINER-How could the new U.S. corporate minimum tax affect companies?
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AAPL
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https://www.nasdaq.com/articles/explainer-how-could-the-new-u.s.-corporate-minimum-tax-affect-companies-0
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nan
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nan
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By Rose Horowitch and David Lawder
Aug 12 (Reuters) - The main revenue source in the new U.S. tax, climate and drugs bill is a novel 15% corporate minimum tax aimed at stopping large, profitable companies from gaming the Internal Revenue Service code and slashing their tax bills to zero.
The U.S. House of Representatives was scheduled to vote on Friday on the $430 billion legislation and send it to President Joe Biden's desk for signing into law, a political triumph for his Democratic Party ahead of the Nov. 8 midterm election.
The nonpartisan Joint Committee on Taxation estimates that the new tax will add around $222 billion to U.S. government coffers over the next 10 years, down from a previous projection of $313 billion after last-minute changes to the bill. It will apply to companies with more than $1 billion in "book income," the profits they report to shareholders before the effects of tax deductions and credits.
Here are some key details on how it would work:
What is the corporate minimum tax?
A wealth of deductions, credits and loopholes in the federal tax code has allowed some companies to report no income or negative income to the IRS while reporting strong profits to shareholders. Biden has repeatedly singled out Amazon.com Inc AMZN.O for paying little to no federal income tax despite billions of dollars in profits.
If enacted, the tax will serve as a corporate version of the Alternative Minimum Tax for individuals, which prevents the wealthiest Americans from zeroing out their tax bills with investment losses and other deductions and credits.
The tax would likely apply to around 150 of the world's largest companies, according to a Joint Committee on Taxation analysis. These include large pharmaceutical companies and major corporations like Amazon, Apple Inc AAPL.O, Exxon Mobil Corp XOM.N and Nike Inc NKE.N, according to several think tanks that support the new tax. Amazon declined to comment on a potential tax increase. Apple, Exxon Mobil and Nike did not respond to requests for comment.
Companies that meet this threshold must calculate their taxes under both the 21% income tax regime and the 15% corporate minimum tax regime - and pay the higher bill.
The tax would take effect next year and affect companies that earned an average of $1 billion in book income for three consecutive years. It would also apply to foreign companies that earn $100 million of book income in the United States.
What are the exceptions for companies?
Some regular corporate income tax credits and deductions are still allowed under the minimum tax, including credits for foreign taxes paid. The carrying forward of prior-year losses to offset future income is also permitted, but only 80% can be applied to reducing taxable income. Credits for research and development expenses are also allowed, with 75% of the value applied to reducing corporate minimum tax.
At the urging of Democratic Senator Kyrsten Sinema, lawmakers added a provision to preserve deductions on capital investments such as machinery, vehicles and buildings. The exception would allow companies to more quickly offset these expenses against tax bills.
Under another last-minute change to the legislation urged by Sinema, companies controlled by private equity firms are not subject to the corporate minimum tax if they make less than $1 billion of book income, even if that investment firm's combined portfolio of companies exceeds the threshold. Some private equity firms may be able to shift assets among companies in their portfolios so that each earns less than the $1 billion threshold to avoid the minimum tax.
Book income is calculated based on the income companies report to shareholders, and the new tax may give companies an incentive to lower the book income they report, law firm BakerHostetler said in a recent note. They pointed to a nonpartisan Congressional Research Service report showing evidence of how past efforts to levy taxes based on book income compelled corporate taxpayers to manage their earnings and adjust book income to reduce taxes.
Large companies also could try to lobby the nongovernmental Financial Accounting Standards Board for favorable changes to the rules for calculating book income.
U.S. House set to give Biden huge win with $430 bln bill on climate, drug prices
(Reporting by Rose Horowitch and David Lawder; Editing by Jonathan Oatis and Howard Goller)
((Rose.Horowitch@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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These include large pharmaceutical companies and major corporations like Amazon, Apple Inc AAPL.O, Exxon Mobil Corp XOM.N and Nike Inc NKE.N, according to several think tanks that support the new tax. The U.S. House of Representatives was scheduled to vote on Friday on the $430 billion legislation and send it to President Joe Biden's desk for signing into law, a political triumph for his Democratic Party ahead of the Nov. 8 midterm election. At the urging of Democratic Senator Kyrsten Sinema, lawmakers added a provision to preserve deductions on capital investments such as machinery, vehicles and buildings.
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These include large pharmaceutical companies and major corporations like Amazon, Apple Inc AAPL.O, Exxon Mobil Corp XOM.N and Nike Inc NKE.N, according to several think tanks that support the new tax. Companies that meet this threshold must calculate their taxes under both the 21% income tax regime and the 15% corporate minimum tax regime - and pay the higher bill. Some regular corporate income tax credits and deductions are still allowed under the minimum tax, including credits for foreign taxes paid.
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These include large pharmaceutical companies and major corporations like Amazon, Apple Inc AAPL.O, Exxon Mobil Corp XOM.N and Nike Inc NKE.N, according to several think tanks that support the new tax. By Rose Horowitch and David Lawder Aug 12 (Reuters) - The main revenue source in the new U.S. tax, climate and drugs bill is a novel 15% corporate minimum tax aimed at stopping large, profitable companies from gaming the Internal Revenue Service code and slashing their tax bills to zero. Companies that meet this threshold must calculate their taxes under both the 21% income tax regime and the 15% corporate minimum tax regime - and pay the higher bill.
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These include large pharmaceutical companies and major corporations like Amazon, Apple Inc AAPL.O, Exxon Mobil Corp XOM.N and Nike Inc NKE.N, according to several think tanks that support the new tax. It will apply to companies with more than $1 billion in "book income," the profits they report to shareholders before the effects of tax deductions and credits. Credits for research and development expenses are also allowed, with 75% of the value applied to reducing corporate minimum tax.
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19797.0
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2022-08-11 00:00:00 UTC
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US STOCKS-S&P 500 above three-month high on more signs of cooling inflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-above-three-month-high-on-more-signs-of-cooling-inflation
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nan
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nan
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By Bansari Mayur Kamdar and Aniruddha Ghosh
Aug 11 (Reuters) - The S&P 500 was trading at its highest level in more than three months on Thursday, extending a rally from the previous session as fresh evidence of cooling inflation further cemented hopes of a smaller rise in interest rates.
Growth and technology stocks rebounded after data showed U.S. producer prices unexpectedly fell in July bolstering the chance of a 50-basis point hike by the Federal Reserve in September instead of 75 basis points.
Meanwhile, the number of Americans filing new claims for unemployment benefits rose for the second straight week, indicating further softening in the labor market despite tight conditions.
The indexes had sharply rallied on Wednesday following a softer-than-expected rise in consumer prices. The gains came even as policymakers left no doubt they will tighten monetary policy until price pressures are fully broken.
"Rates still have to move higher even though in the very short run the market is reacting positively... Inflation is a bit more moderate, but inflation has not disappeared as a problem as yet," said Chuck Lieberman, chief investment officer at Advisors Capital Management.
Traders are now pricing in a more than 67.5% chance that the Fed will hike interest rate by 50 basis points. IRPR
Ten of the 11 major S&P 500 indexes advanced, with financials .SPLRCL and communication services .SPLRCL adding more than 1%, while energy stocks tracked gains in crude prices.
The Nasdaq .IXIC was more than 20% above its June low, but still short of its peak in November to confirm a new bull market.
Despite its recent rebound, the tech-heavy index is down 17% so far this year as fears of an aggressive monetary policy sapped appetite for equities, particularly high-growth stocks.
The U.S. central bank has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.
At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was up 224.28 points, or 0.67%, at 33,533.79, the S&P 500 .SPX was up 28.19 points, or 0.67%, at 4,238.43, and the Nasdaq Composite .IXIC was up 91.93 points, or 0.72%, at 12,946.74.
Banks looked set to extend their climb, with Bank of America BAC.N up 2.0%.
"People are projecting that there will be much more lending going forward if the economy does fine and inflation will decline," said Hugh Anderson, managing director at Hightower Advisors.
High-growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O, whose valuations are vulnerable to rising bond yields, advanced as U.S. Treasury yields continued to pull back. US/
In earnings-driven news, Walt Disney DIS.N jumped 8.9% as the media giant edged past rival Netflix Inc NFLX.O with 221 million streaming customers and announced it will increase prices for customers who want to watch Disney+ or Hulu without commercials.
Advancing issues outnumbered decliners by a 4.89-to-1 ratio on the NYSE and by a 3.01-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 29 new lows, while the Nasdaq recorded 39 new highs and eight new lows.
(Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High-growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O, whose valuations are vulnerable to rising bond yields, advanced as U.S. Treasury yields continued to pull back. By Bansari Mayur Kamdar and Aniruddha Ghosh Aug 11 (Reuters) - The S&P 500 was trading at its highest level in more than three months on Thursday, extending a rally from the previous session as fresh evidence of cooling inflation further cemented hopes of a smaller rise in interest rates. Meanwhile, the number of Americans filing new claims for unemployment benefits rose for the second straight week, indicating further softening in the labor market despite tight conditions.
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High-growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O, whose valuations are vulnerable to rising bond yields, advanced as U.S. Treasury yields continued to pull back. By Bansari Mayur Kamdar and Aniruddha Ghosh Aug 11 (Reuters) - The S&P 500 was trading at its highest level in more than three months on Thursday, extending a rally from the previous session as fresh evidence of cooling inflation further cemented hopes of a smaller rise in interest rates. Traders are now pricing in a more than 67.5% chance that the Fed will hike interest rate by 50 basis points.
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High-growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O, whose valuations are vulnerable to rising bond yields, advanced as U.S. Treasury yields continued to pull back. By Bansari Mayur Kamdar and Aniruddha Ghosh Aug 11 (Reuters) - The S&P 500 was trading at its highest level in more than three months on Thursday, extending a rally from the previous session as fresh evidence of cooling inflation further cemented hopes of a smaller rise in interest rates. Growth and technology stocks rebounded after data showed U.S. producer prices unexpectedly fell in July bolstering the chance of a 50-basis point hike by the Federal Reserve in September instead of 75 basis points.
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High-growth stocks such as Apple Inc AAPL.O and Amazon.com Inc AMZN.O, whose valuations are vulnerable to rising bond yields, advanced as U.S. Treasury yields continued to pull back. Traders are now pricing in a more than 67.5% chance that the Fed will hike interest rate by 50 basis points. The U.S. central bank has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.
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19798.0
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2022-08-11 00:00:00 UTC
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Stock Market Today; Dow Jones, S&P 500 Rally Continues; Disney Stock Jumps On Earnings Beat
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AAPL
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https://www.nasdaq.com/articles/stock-market-today-dow-jones-sp-500-rally-continues-disney-stock-jumps-on-earnings-beat
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nan
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nan
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Stock Market Today Mid Morning Updates
On Thursday morning, the Dow Jones Industrial Average rallied over 300 points. This comes after the Labor Department released the most recent producer price index (PPI) report. In it, The producer price index increased 9.5% on annual basis. However, PPI fell by 0.5% in July from the previous month. This is under the consensus expectation of a gain of 0.2%. This comes a day after positive CPI data reading. As a result, this has caused a positive sentiment among investors and the stock market as it could mean inflation has finally peaked.
Furthermore, on Wednesday after the market closed, companies like Walt Disney Co. (NYSE: DIS), and Bumble Inc. (NASDAQ: BMBL) reported their corporate earnings. Additionally, on Thursday after the market closes, companies such as Rivian Automotive, Inc. (NASDAQ: RIVN), Poshmark, Inc. (NYSE: POSH), and Endeavor Group Holdings (NYSE: EDR) are scheduled to report earnings.
Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading modestly higher on Thursday up 0.41%, while Microsoft (NASDAQ: MSFT) is also trading slightly lower by 0.19%. Meanwhile, shares of Caterpillar, Inc. (NYSE: CAT), and Nike, Inc. (NYSE: NKE) shares are trading higher on Thursday morning. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are both trading higher during Thursday morning’s trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) fell on Thursday by 1.14%. Rival EV companies like Rivian are also trading higher by 4.68%. Lucid Group (NASDAQ: LCID) stock gained by over 2% on Thursday. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading higher on Thursday.
[Read More] Best Stocks To Buy Today? 4 Semiconductor Stocks To Watch
Dow Jones Today: U.S. Treasury Yield Rises To 2.80%; PPI Report Comes In Weaker-Than-Expected
Following the stock market opening on Thursday, the major indices opened green. The Dow, S&P 500, and Nasdaq are trading higher by 0.909%, 0.99%, and 1.16%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has gained by 1.15% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up 0.99%. The benchmark 10-year U.S. Treasury yield is at 2.80% during the Thursday morning trading session.
On Thursday morning, the Bureau of Labor Statistics reported the most recent producer price index report. This report measures wholesale prices that are paid by companies and are often viewed by investors as a leading indicator of future consumer inflation. In the report, PPI declined by 0.5% in July from the previous month. This is below the consensus expectations of an increase of 0.2%. A big contributor to July’s decline is the fact that prices of gasoline have fallen. In fact, this was the first time wholesale prices have declined in two years.
[Read More] Highest Short Interest Stocks To Buy Now? 3 In Focus
Disney (DIS) Stock Jumps On Better-Than-Expected Q3 Earnings
Shares of Disney (DIS) jumped by over 7% during Thursday’s morning trading session. This came after the entertainment company reported better-than-expected quarterly earnings. In detail, the company reported 3rd Quarter 2022 earnings of $1.09 per share on revenue of $21.5 billion. Wall Street estimates were $0.94 per share on revenue of $20.1 billion. What’s more, Disney’s revenue increased 26.3% on a year-over-year basis.
“We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings,” commented Bob Chapek, Chief Executive Officer at Disney. As of Thursday morning, shares of DIS stock are trading at $120.10 per share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading modestly higher on Thursday up 0.41%, while Microsoft (NASDAQ: MSFT) is also trading slightly lower by 0.19%. Furthermore, on Wednesday after the market closed, companies like Walt Disney Co. (NYSE: DIS), and Bumble Inc. (NASDAQ: BMBL) reported their corporate earnings. “We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading modestly higher on Thursday up 0.41%, while Microsoft (NASDAQ: MSFT) is also trading slightly lower by 0.19%. This comes after the Labor Department released the most recent producer price index (PPI) report. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading higher on Thursday.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading modestly higher on Thursday up 0.41%, while Microsoft (NASDAQ: MSFT) is also trading slightly lower by 0.19%. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are both trading higher during Thursday morning’s trading session. 3 In Focus Disney (DIS) Stock Jumps On Better-Than-Expected Q3 Earnings Shares of Disney (DIS) jumped by over 7% during Thursday’s morning trading session.
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Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading modestly higher on Thursday up 0.41%, while Microsoft (NASDAQ: MSFT) is also trading slightly lower by 0.19%. The Dow, S&P 500, and Nasdaq are trading higher by 0.909%, 0.99%, and 1.16%, respectively. This report measures wholesale prices that are paid by companies and are often viewed by investors as a leading indicator of future consumer inflation.
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19799.0
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2022-08-11 00:00:00 UTC
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After Hours Most Active for Aug 11, 2022 : SWN, SCHW, RIVN, INTC, CWK, SU, AAPL, BAC, GOOGL, FE, MSFT, CCXI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-11-2022-%3A-swn-schw-rivn-intc-cwk-su-aapl-bac-googl-fe-msft
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 16.75 to 13,308.74. The total After hours volume is currently 89,240,978 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is unchanged at $7.49, with 3,335,022 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.34. SWN's current last sale is 83.22% of the target price of $9.
The Charles Schwab Corporation (SCHW) is unchanged at $72.57, with 3,265,270 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.13. As reported by Zacks, the current mean recommendation for SCHW is in the "buy range".
Rivian Automotive, Inc. (RIVN) is -0.65 at $38.30, with 3,038,070 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
Intel Corporation (INTC) is +0.14 at $35.73, with 2,898,284 shares traded. INTC's current last sale is 91.62% of the target price of $39.
Cushman & Wakefield plc (CWK) is unchanged at $16.17, with 2,877,581 shares traded. As reported by Zacks, the current mean recommendation for CWK is in the "buy range".
Suncor Energy Inc. (SU) is -0.35 at $31.50, with 2,731,213 shares traded. As reported by Zacks, the current mean recommendation for SU is in the "buy range".
Apple Inc. (AAPL) is +0.23 at $168.72, with 2,707,398 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is +0.14 at $36.05, with 2,623,826 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.86. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Alphabet Inc. (GOOGL) is +0.46 at $119.30, with 2,398,801 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
FirstEnergy Corp. (FE) is unchanged at $40.07, with 2,121,418 shares traded. FE's current last sale is 91.07% of the target price of $44.
Microsoft Corporation (MSFT) is +0.58 at $287.60, with 1,727,777 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $2.68. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
ChemoCentryx, Inc. (CCXI) is unchanged at $50.60, with 1,618,267 shares traded. As reported in the last short interest update the days to cover for CCXI is 8.481958; this calculation is based on the average trading volume of the stock.
The views and 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 +0.23 at $168.72, with 2,707,398 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
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Apple Inc. (AAPL) is +0.23 at $168.72, with 2,707,398 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.23 at $168.72, with 2,707,398 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
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Apple Inc. (AAPL) is +0.23 at $168.72, with 2,707,398 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The Charles Schwab Corporation (SCHW) is unchanged at $72.57, with 3,265,270 shares traded.
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