Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
19900.0
|
2022-08-04 00:00:00 UTC
|
Notable Thursday Option Activity: TSLA, AAPL, K
|
AAPL
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-tsla-aapl-k
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Tesla Inc (Symbol: TSLA), where a total of 876,127 contracts have traded so far, representing approximately 87.6 million underlying shares. That amounts to about 291% of TSLA's average daily trading volume over the past month of 30.1 million shares. Particularly high volume was seen for the $950 strike call option expiring August 05, 2022, with 77,993 contracts trading so far today, representing approximately 7.8 million underlying shares of TSLA. Below is a chart showing TSLA's trailing twelve month trading history, with the $950 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 866,529 contracts thus far today. That number of contracts represents approximately 86.7 million underlying shares, working out to a sizeable 120.5% of AAPL's average daily trading volume over the past month, of 71.9 million shares. Particularly high volume was seen for the $167.50 strike call option expiring August 05, 2022, with 100,457 contracts trading so far today, representing approximately 10.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
And Kellogg Co (Symbol: K) saw options trading volume of 27,642 contracts, representing approximately 2.8 million underlying shares or approximately 114.7% of K's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $80 strike call option expiring August 19, 2022, with 17,735 contracts trading so far today, representing approximately 1.8 million underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for TSLA options, AAPL options, or K options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $167.50 strike call option expiring August 05, 2022, with 100,457 contracts trading so far today, representing approximately 10.0 million underlying shares of AAPL. Below is a chart showing TSLA's trailing twelve month trading history, with the $950 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 866,529 contracts thus far today. That number of contracts represents approximately 86.7 million underlying shares, working out to a sizeable 120.5% of AAPL's average daily trading volume over the past month, of 71.9 million shares.
|
Below is a chart showing TSLA's trailing twelve month trading history, with the $950 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 866,529 contracts thus far today. Below is a chart showing AAPL's trailing twelve month trading history, with the $167.50 strike highlighted in orange: And Kellogg Co (Symbol: K) saw options trading volume of 27,642 contracts, representing approximately 2.8 million underlying shares or approximately 114.7% of K's average daily trading volume over the past month, of 2.4 million shares. That number of contracts represents approximately 86.7 million underlying shares, working out to a sizeable 120.5% of AAPL's average daily trading volume over the past month, of 71.9 million shares.
|
Below is a chart showing AAPL's trailing twelve month trading history, with the $167.50 strike highlighted in orange: And Kellogg Co (Symbol: K) saw options trading volume of 27,642 contracts, representing approximately 2.8 million underlying shares or approximately 114.7% of K's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $80 strike call option expiring August 19, 2022, with 17,735 contracts trading so far today, representing approximately 1.8 million underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for TSLA options, AAPL options, or K options, visit StockOptionsChannel.com. Below is a chart showing TSLA's trailing twelve month trading history, with the $950 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 866,529 contracts thus far today.
|
Below is a chart showing AAPL's trailing twelve month trading history, with the $167.50 strike highlighted in orange: And Kellogg Co (Symbol: K) saw options trading volume of 27,642 contracts, representing approximately 2.8 million underlying shares or approximately 114.7% of K's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $80 strike call option expiring August 19, 2022, with 17,735 contracts trading so far today, representing approximately 1.8 million underlying shares of K. Below is a chart showing K's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for TSLA options, AAPL options, or K options, visit StockOptionsChannel.com. Below is a chart showing TSLA's trailing twelve month trading history, with the $950 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 866,529 contracts thus far today.
|
19901.0
|
2022-08-04 00:00:00 UTC
|
Better Buy: Apple or Every Nasdaq Stock?
|
AAPL
|
https://www.nasdaq.com/articles/better-buy%3A-apple-or-every-nasdaq-stock
|
nan
|
nan
|
It's an exciting time for investors looking to buy on the dip, but getting that strategy wrong could hurt your portfolio. Apple (NASDAQ: AAPL) remains wildly popular, but you might get better results from an ETF that tracks the Nasdaq, such as the Invesco QQQ Trust (NASDAQ: QQQ). As always, the most suitable option depends on personal factors, so consider them before making a choice.
Apple is tech royalty
Apple is the largest publicly traded company in the world, based on market cap. The company has delivered steady revenue growth over the past 20 years. There have been a number of bumps along the way due to recessions and competitive conditions, but the overall trend has been sharply upward due to a series of popular consumer devices and associated software.
AAPL Revenue (TTM) data by YCharts
Apple isn't quite reaching the same growth rates that it delivered at a smaller scale, but its most recent results were still impressive. The company reported 9% sales growth in the first quarter of 2022, and it generated $28 billion in operating cash flow during the quarter. That's really impressive for an enormous global business with formidable competitors. With an annual R&D budget around $25 million, Apple is clearly committed to sustaining its place as a global consumer tech leader.
Apple could be a compelling play for investors who want to capitalize on the rise of virtual and augmented reality. The company doesn't have a device on the market right now, but there are rumors that it's launching a headset in the not-so-distant future. Apple's potential entry into VR would be assisted by its powerful presence in the content, consumer software, and mobile device markets.
Image source: Getty Images.
Investors can buy the stock at a forward P/E ratio of 24, which is pretty reasonable at the current growth rate. It's not the cheapest stock in the world, but investors who like the company should be comfortable with this valuation for long-term gains.
The case for owning the index
There's a classic trade-off between owning an entire index rather than an individual stock. The best possible returns come from hitting it big with one stock. Owning an index means that the losers are dragging the winners back down to the average.
On the other hand, owning a diverse bundle means that you'll never experience the catastrophe of one stock falling short of expectations. There are plenty of historical examples of that in action. Because the market has historically delivered solid long-term returns, most investors are better off using index funds to limit risks.
It's unlikely that Apple will crash and burn anytime soon, for all the reasons covered above. It's not completely implausible that its financial results could deteriorate. The iPhone accounts for more than half of the company's sales, which opens up risk. If consumer tastes change or if competitors release a superior product, dwindling sales of that flagship product could hit the bottom line.
Even if Apple maintains market share, growth could stagnate. Some investors are concerned about smartphone saturation. Over 83% of people in the world have a smartphone, so there aren't many untapped corners of the market left. Of course, Apple is committed to establishing itself in new product and software markets, so its fortunes won't always be this tied to the iPhone.
Ultimately, the best argument in favor of the index centers on their similarities rather than differences. Apple is highly correlated with the Nasdaq. In fact, Apple makes up around 13% of the Invesco QQQ Trust. Many of Apple's tech peers share its major growth catalysts, so most of the time, the Nasdaq will go as Apple goes. There's a chance that the Cupertino tech giant breaks out above the index, but it's going to at least partially drag the Nasdaq along with it.
AAPL, QQQ Total Return Level data by YCharts
Both Apple and the whole Nasdaq are probably winning investments for investors today. By owning the index, you can capture most of Apple's upside while greatly reducing risk. You'll also get exposure to a handful of exciting, successful tech leaders. Most investors should prioritize that stability.
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 July 27, 2022
Ryan Downie 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.
|
AAPL, QQQ Total Return Level data by YCharts Both Apple and the whole Nasdaq are probably winning investments for investors today. Apple (NASDAQ: AAPL) remains wildly popular, but you might get better results from an ETF that tracks the Nasdaq, such as the Invesco QQQ Trust (NASDAQ: QQQ). AAPL Revenue (TTM) data by YCharts
|
Apple (NASDAQ: AAPL) remains wildly popular, but you might get better results from an ETF that tracks the Nasdaq, such as the Invesco QQQ Trust (NASDAQ: QQQ). AAPL Revenue (TTM) data by YCharts AAPL, QQQ Total Return Level data by YCharts Both Apple and the whole Nasdaq are probably winning investments for investors today.
|
Apple (NASDAQ: AAPL) remains wildly popular, but you might get better results from an ETF that tracks the Nasdaq, such as the Invesco QQQ Trust (NASDAQ: QQQ). AAPL Revenue (TTM) data by YCharts AAPL, QQQ Total Return Level data by YCharts Both Apple and the whole Nasdaq are probably winning investments for investors today.
|
Apple (NASDAQ: AAPL) remains wildly popular, but you might get better results from an ETF that tracks the Nasdaq, such as the Invesco QQQ Trust (NASDAQ: QQQ). AAPL Revenue (TTM) data by YCharts AAPL, QQQ Total Return Level data by YCharts Both Apple and the whole Nasdaq are probably winning investments for investors today.
|
19902.0
|
2022-08-04 00:00:00 UTC
|
Buy and Hold Apple Stock for the Long Term
|
AAPL
|
https://www.nasdaq.com/articles/buy-and-hold-apple-stock-for-the-long-term
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL), like other tech stocks, has bounced back in recent weeks. This is largely due to growing speculation that the Federal Reserve will cut interest rates in 2023 in order to minimize the impact of a recession. Lower interest rates are a positive for growth-oriented names like AAPL stock. Lower rates increase the present value of future earnings.
It’s too early to say that rate cuts next year are a done deal. That’s why some commentators are suggesting that selling into strength is the move to make with Apple shares. Further developments could signal the Fed plans to remain hawkish for as long as it takes to fight high inflation. This may result in another tech selloff.
So, is cashing out the best move? Not so fast.
Buy and hold remains the better course of action here.
AAPL Stock: Why You Shouldn’t Cash Out Now
It’s tempting to try to time the market, but it’s easier said than done. In fact, it’s nearly impossible, even for Wall Street pros. Plenty have tried to predict short-term price movements only to find themselves buying high and selling low. In turn, they miss out on the bulk of a stock’s gains.
That’s the key risk you take by selling AAPL stock today while external uncertainties continue. Cashing out today, and waiting things out until there’s another big pullback, may on paper seem like a foolproof strategy. Yet just as it’s far from a lock that relief for growth stocks is just around the corner, it’s also not set in stone that another big selloff looms for tech stocks.
Put simply, if you are bullish on Apple in the long term, don’t cash out in the hopes you can re-enter at a lower price. The opportunity may not arrive. Instead of pulling back, the rally could carry on.
There’s no reason to waste effort and energy trying to trade around this stock. Instead, a set it and forget approach is the more fruitful path to potential profits.
Apple Has Ample Long-Term Runway
What do I mean when I say set it and forget it with AAPL stock? If you already own it, hold onto your position. If you don’t own it yet, lock down a position at current market prices instead of sitting on the sidelines until it falls back to its 52-week low. Splitting hairs over entry price makes little sense.
Why? It’s likely that the bulk of Apple’s gains from here will arrive steadily in the years ahead. Shares stand to move higher when the macroeconomic worries that are holding it back today clear up. From this factor alone, the stock could make its way to prices at or near $200 per share. On a longer timeframe, company-specific catalysts could catapult it to even higher prices.
For instance, a pivot toward making more of the tech giant’s revenue subscription-based will help. Per one sell-side analyst, achieving this could add another $1 trillion to Apple’s already multitrillion-dollar market capitalization.
Its driverless electric car catalyst, another potential needle-mover, is still in motion as well. Don’t forget either that there’s the metaverse, where Apple can level up on its past success.
The Verdict
Currently, AAPL stock earns a B rating in my Portfolio Grader. It’s unclear whether shares will continue to rebound in the near term. Even so, investors holding this stock today, or looking to add it to their portfolios, shouldn’t let near-term volatility get in the way of long-term appreciation.
Gains from here may arrive gradually, but runway is ample. Despite already sporting a valuation in the trillions, it hasn’t hit a growth wall.
Moving toward more of a subscription-based revenue model could produce significant shareholder value. Its move into self-driving electric cars and the metaverse could materially increase the company’s value as well.
There are multiple factors giving it a strong chance of retaking its past high and soaring to even higher prices. Don’t cash out or sit out on AAPL stock today. Holding it as a long-term position is the better move.
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.
The post Buy and Hold Apple Stock for the Long Term 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.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL), like other tech stocks, has bounced back in recent weeks. Lower interest rates are a positive for growth-oriented names like AAPL stock. AAPL Stock: Why You Shouldn’t Cash Out Now It’s tempting to try to time the market, but it’s easier said than done.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL), like other tech stocks, has bounced back in recent weeks. Don’t cash out or sit out on AAPL stock today. Lower interest rates are a positive for growth-oriented names like AAPL stock.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL), like other tech stocks, has bounced back in recent weeks. Apple Has Ample Long-Term Runway What do I mean when I say set it and forget it with AAPL stock? Lower interest rates are a positive for growth-oriented names like AAPL stock.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL), like other tech stocks, has bounced back in recent weeks. Don’t cash out or sit out on AAPL stock today. Lower interest rates are a positive for growth-oriented names like AAPL stock.
|
19903.0
|
2022-08-04 00:00:00 UTC
|
POLL-Taiwan July exports seen growing at slower pace amid rising uncertainties
|
AAPL
|
https://www.nasdaq.com/articles/poll-taiwan-july-exports-seen-growing-at-slower-pace-amid-rising-uncertainties
|
nan
|
nan
|
For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI
Exports median forecast 11.65% y/y (prior month +15.2%)
Imports median forecast 15.85% y/y (prior month +19.2%)
Balance median forecast $4.49 bln (prior month $4.64 bln)
CPI median forecast 3.51% y/y (prior month +3.59%)
Trade data due Monday, Aug. 8, 4:00 p.m. (0800 GMT)
CPI due Friday, Aug. 5, 4:00 p.m. (0800 GMT)
TAIPEI, Aug 4 (Reuters) - Taiwan's exports likely rose for the 25th straight month in July though at a slower pace than in June, amid fears of a global recession, uncertainties due to the Ukraine conflict and COVID-19 flare-ups in China, according to a Reuters poll.
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods, with the trade data seen as an important gauge of world demand for tech gadgets.
Exports last month were estimated to have risen 11.65% from a year earlier, a Reuters poll of 10 analysts showed on Thursday, slower than the 15.2% jump in June.
The export forecasts ranged between 4.5% and 19.0% higher, reflecting uncertainties over the global economic recovery, supply chain disruptions due to pandemic lockdowns in eastern China and Russia's invasion of Ukraine.
Taiwan's Finance Ministry predicted July exports to increase by 10% to 13% from a year earlier.
Separately, the consumer price index was expected to have risen 3.51% in July from a year earlier, a slightly slower rate than 3.59% in June.
The inflation data will be released on Friday, followed by trade data on Monday.
(Poll compiled by Devayani Sathyan, Arsh Mogre and Carol Lee; Reporting by Yimou Lee, Ben Blanchard and Ellen Zhang; Editing by Shounak Dasgupta)
((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.
|
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods, with the trade data seen as an important gauge of world demand for tech gadgets. Exports last month were estimated to have risen 11.65% from a year earlier, a Reuters poll of 10 analysts showed on Thursday, slower than the 15.2% jump in June. The export forecasts ranged between 4.5% and 19.0% higher, reflecting uncertainties over the global economic recovery, supply chain disruptions due to pandemic lockdowns in eastern China and Russia's invasion of Ukraine.
|
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods, with the trade data seen as an important gauge of world demand for tech gadgets. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast 11.65% y/y (prior month +15.2%) Imports median forecast 15.85% y/y (prior month +19.2%) Balance median forecast $4.49 bln (prior month $4.64 bln) CPI median forecast 3.51% y/y (prior month +3.59%) Trade data due Monday, Aug. 8, 4:00 p.m. (0800 GMT) CPI due Friday, Aug. 5, 4:00 p.m. (0800 GMT) TAIPEI, Aug 4 (Reuters) - Taiwan's exports likely rose for the 25th straight month in July though at a slower pace than in June, amid fears of a global recession, uncertainties due to the Ukraine conflict and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 11.65% from a year earlier, a Reuters poll of 10 analysts showed on Thursday, slower than the 15.2% jump in June.
|
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods, with the trade data seen as an important gauge of world demand for tech gadgets. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast 11.65% y/y (prior month +15.2%) Imports median forecast 15.85% y/y (prior month +19.2%) Balance median forecast $4.49 bln (prior month $4.64 bln) CPI median forecast 3.51% y/y (prior month +3.59%) Trade data due Monday, Aug. 8, 4:00 p.m. (0800 GMT) CPI due Friday, Aug. 5, 4:00 p.m. (0800 GMT) TAIPEI, Aug 4 (Reuters) - Taiwan's exports likely rose for the 25th straight month in July though at a slower pace than in June, amid fears of a global recession, uncertainties due to the Ukraine conflict and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 11.65% from a year earlier, a Reuters poll of 10 analysts showed on Thursday, slower than the 15.2% jump in June.
|
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods, with the trade data seen as an important gauge of world demand for tech gadgets. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast 11.65% y/y (prior month +15.2%) Imports median forecast 15.85% y/y (prior month +19.2%) Balance median forecast $4.49 bln (prior month $4.64 bln) CPI median forecast 3.51% y/y (prior month +3.59%) Trade data due Monday, Aug. 8, 4:00 p.m. (0800 GMT) CPI due Friday, Aug. 5, 4:00 p.m. (0800 GMT) TAIPEI, Aug 4 (Reuters) - Taiwan's exports likely rose for the 25th straight month in July though at a slower pace than in June, amid fears of a global recession, uncertainties due to the Ukraine conflict and COVID-19 flare-ups in China, according to a Reuters poll. Separately, the consumer price index was expected to have risen 3.51% in July from a year earlier, a slightly slower rate than 3.59% in June.
|
19904.0
|
2022-08-04 00:00:00 UTC
|
China's memory upstart YMTC edges closer to rivals with 232-layer chip
|
AAPL
|
https://www.nasdaq.com/articles/chinas-memory-upstart-ymtc-edges-closer-to-rivals-with-232-layer-chip
|
nan
|
nan
|
By Josh Horwitz
SHANGHAI, Aug 4 (Reuters) - Chinese chipmaker Yangtze Memory Technologies Co Ltd (YMTC) on Wednesday announced new memory chip technology that would help it catch up with rivals Micron and SK Hynix, just as Washington considers steeper curbs on Chinese semiconductor companies.
The company unveiled its fourth-generation 3D NAND chip, the X3-9070, and its first to feature 232 layers of memory cells, government-backed media outlet Global Times reported on Wednesday.
That places it close to rival Micron, which last month said it aimed to start mass production of its 232 layer chip by the end of the year.
South Korea's SK Hynix has also developed its first 238-layer memory chip, boasting a new industry benchmark.
A YMTC spokesperson declined to comment on the Global Times report.
Industry experts say that while YMTC will unlikely launch mass production of the chip any time soon, it nevertheless marks a breakthrough for the company.
The company's market share remains in the single digits, but it is aggressively expanding production capacity and R&D with the help of state subsidies.
Toby Zhu, who tracks China's chip sector at research firm Canalys, says that while the YMTC's revenue has improved over the years, gaps remain between it and market leaders.
Once a little-known player backed by the ailing Chinese state-conglomerate Tsinghua Unigroup, YMTC has attracted attention in the chip industry for its fast advancements in R&D.
Bloomberg reported in March that phone maker Apple Inc AAPL.N was considering using YMTC as a memory chip supplier, which would mark a major boon for the upstart company.
Reuters reported earlier this week that Washington, citing a growing threat from China, is considering placing restrictions on companies that supply to YMTC, forbidding equipment makers from selling parts to the company that enable it to manufacture chips at 128 layers and above.
The restrictions, if enacted, could rattle YMTC's ambitions to grow its business, not unlike how sanctions in 2020 rattled Chinese phone maker Huawei Technologies Co Ltd HWT.UL
(Reporting by Josh Horwitz; Editing by Stephen Coates)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Bloomberg reported in March that phone maker Apple Inc AAPL.N was considering using YMTC as a memory chip supplier, which would mark a major boon for the upstart company. The company unveiled its fourth-generation 3D NAND chip, the X3-9070, and its first to feature 232 layers of memory cells, government-backed media outlet Global Times reported on Wednesday. Toby Zhu, who tracks China's chip sector at research firm Canalys, says that while the YMTC's revenue has improved over the years, gaps remain between it and market leaders.
|
Bloomberg reported in March that phone maker Apple Inc AAPL.N was considering using YMTC as a memory chip supplier, which would mark a major boon for the upstart company. By Josh Horwitz SHANGHAI, Aug 4 (Reuters) - Chinese chipmaker Yangtze Memory Technologies Co Ltd (YMTC) on Wednesday announced new memory chip technology that would help it catch up with rivals Micron and SK Hynix, just as Washington considers steeper curbs on Chinese semiconductor companies. The company unveiled its fourth-generation 3D NAND chip, the X3-9070, and its first to feature 232 layers of memory cells, government-backed media outlet Global Times reported on Wednesday.
|
Bloomberg reported in March that phone maker Apple Inc AAPL.N was considering using YMTC as a memory chip supplier, which would mark a major boon for the upstart company. By Josh Horwitz SHANGHAI, Aug 4 (Reuters) - Chinese chipmaker Yangtze Memory Technologies Co Ltd (YMTC) on Wednesday announced new memory chip technology that would help it catch up with rivals Micron and SK Hynix, just as Washington considers steeper curbs on Chinese semiconductor companies. Reuters reported earlier this week that Washington, citing a growing threat from China, is considering placing restrictions on companies that supply to YMTC, forbidding equipment makers from selling parts to the company that enable it to manufacture chips at 128 layers and above.
|
Bloomberg reported in March that phone maker Apple Inc AAPL.N was considering using YMTC as a memory chip supplier, which would mark a major boon for the upstart company. By Josh Horwitz SHANGHAI, Aug 4 (Reuters) - Chinese chipmaker Yangtze Memory Technologies Co Ltd (YMTC) on Wednesday announced new memory chip technology that would help it catch up with rivals Micron and SK Hynix, just as Washington considers steeper curbs on Chinese semiconductor companies. The company unveiled its fourth-generation 3D NAND chip, the X3-9070, and its first to feature 232 layers of memory cells, government-backed media outlet Global Times reported on Wednesday.
|
19905.0
|
2022-08-04 00:00:00 UTC
|
Goldman discloses probe into U.S. credit card division
|
AAPL
|
https://www.nasdaq.com/articles/goldman-discloses-probe-into-u.s.-credit-card-division
|
nan
|
nan
|
Aug 4 (Reuters) - Goldman Sachs Group Inc's GS.N credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday.
The investigation by the Consumer Financial Protection Bureau (CFPB) includes scrutiny of the bank's credit card account management practices, refunds and billing error resolution, according to the filing.
Goldman said it was cooperating with the CFPB. (https://bit.ly/3PY9wBu)
Under its chief executive officer, David Solomon, the bank has been looking to expand its consumer business as it seeks to diversify its revenue streams beyond trading and investment banking.
The bank has a credit card partnership with Apple Inc AAPL.O, following the launch of a card with the iPhone maker in 2019. It also offers a co-branded credit card with General Motors Co GM.N.
The Wall Street giant also said it had reduced its credit exposure to Russia by over 13% in the second quarter. Citigroup Inc C.N, on the other hand, saw its Russia exposure climb by $500 million as the rouble firmed.
(Reporting by Niket Nishant in Bengaluru; Editing by Anil D'Silva)
((Niket.Nishant@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.
|
The bank has a credit card partnership with Apple Inc AAPL.O, following the launch of a card with the iPhone maker in 2019. Aug 4 (Reuters) - Goldman Sachs Group Inc's GS.N credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday. The investigation by the Consumer Financial Protection Bureau (CFPB) includes scrutiny of the bank's credit card account management practices, refunds and billing error resolution, according to the filing.
|
The bank has a credit card partnership with Apple Inc AAPL.O, following the launch of a card with the iPhone maker in 2019. Aug 4 (Reuters) - Goldman Sachs Group Inc's GS.N credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday. The investigation by the Consumer Financial Protection Bureau (CFPB) includes scrutiny of the bank's credit card account management practices, refunds and billing error resolution, according to the filing.
|
The bank has a credit card partnership with Apple Inc AAPL.O, following the launch of a card with the iPhone maker in 2019. Aug 4 (Reuters) - Goldman Sachs Group Inc's GS.N credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday. The investigation by the Consumer Financial Protection Bureau (CFPB) includes scrutiny of the bank's credit card account management practices, refunds and billing error resolution, according to the filing.
|
The bank has a credit card partnership with Apple Inc AAPL.O, following the launch of a card with the iPhone maker in 2019. Aug 4 (Reuters) - Goldman Sachs Group Inc's GS.N credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday. (https://bit.ly/3PY9wBu) Under its chief executive officer, David Solomon, the bank has been looking to expand its consumer business as it seeks to diversify its revenue streams beyond trading and investment banking.
|
19906.0
|
2022-08-04 00:00:00 UTC
|
3 Things Most Investors Don't Know About Warren Buffett's Investing Style
|
AAPL
|
https://www.nasdaq.com/articles/3-things-most-investors-dont-know-about-warren-buffetts-investing-style
|
nan
|
nan
|
As frequently as investors might hear about Warren Buffett's time-tested value-investing philosophy, there's a lot that people still don't know about how the Oracle of Omaha evaluates stocks.
In particular, there are three things about his investing style that are especially under the radar. Let's learn about them and look at a couple of examples that demonstrate his thinking.
1. He's not a fan of being reliant on R&D spending
Most investors don't know that Buffett dislikes companies that need to consistently spend a lot of their revenue on research and development (R&D). Let's take a major pharmaceutical company like Eli Lilly (NYSE: LLY) as an example to explain his thinking. In 2021, it spent more than $7 billion on developing new medicines against its total revenue of $28.3 billion. For the money, it advanced a handful of its myriad clinical trials and preclinical projects. And that'll allow it to eventually commercialize at least a few of its programs to generate more revenue than it does today. But if Eli Lilly one day decided to stop its R&D investments, its competitors would eat its lunch in a matter of years because they would develop and commercialize better therapies.
Such a result speaks directly to why Buffett doesn't like companies that spend a lot of their revenue on R&D; the pressure to innovate against other companies' products frequently increases as more competitors enter a market, but it rarely decreases. In other words, R&D-intensive industries are rife with spending races that can erode returns over time. Nonetheless, Buffett is willing to compromise on his preference if it's for powerful businesses like Apple (NASDAQ: AAPL), so investors trying to mimic his style should take note to avoid being too dogmatic.
2. Dividends aren't usually his thing
Buffett isn't a fan of dividends either. When companies pay dividends, they distribute capital to shareholders that potentially could have been reinvested into the business for the purpose of growth. Therefore it's reasonable to expect that dividend payers will expand more slowly specifically because they are giving money away, and expanding slowly is often a one-way ticket to losing ground against competitors. The other salient point is that sometimes dividends are paid out because management can't find a good place to invest the excess capital being generated by operations. Both of these situations are regrettable to the Oracle of Omaha, and that's before even getting into the issue of taxes.
Buffett dislikes paying taxes on his capital gains. To get around that, he simply holds shares for longer than a year, so that when he does eventually sell, he gets taxed once at the lower long-term capital gains rate. When receiving dividends, investors are on the hook for the associated taxes every quarter, but they're also on the hook for the capital gains taxes after selling. Plus, because the company has less capital to throw into growth, effectively investors may end up experiencing lower price returns on top of their additional tax burden. And all of the above is quite distasteful to Buffett.
Once again, keep in mind that he's willing to compromise for the right company. Apple's forward dividend is a measly $0.92 per share, which works out to be a forward yield near 0.60% and a payout ratio of 14.3%. In contrast, Eli Lilly's forward dividend rate is $3.92, whereas its forward yield is near 1.2%, and it pays out a massive 52.4% of its earnings. It's no surprise that Buffett owns Apple and not Eli Lilly.
3. Most healthcare stocks aren't usually his thing either
Healthcare businesses are few and far between in Buffett's portfolio. He holds shares of DaVita, McKesson, Johnson & Johnson, and Royalty Pharma. Notably, Johnson & Johnson is the only pharmaceutical company in his lineup, and he has no exposure to biotech or healthcare real estate investment trusts (REITs). Given his distaste for R&D spending and dividends, the absence makes sense. But there's another reason that likely motivates him to stay away from most pharma and biotechs: They need to take a lot of risks to survive.
Biopharma businesses doing drug development need to initiate a bunch of programs to investigate in clinical trials because the odds of any single program failing to demonstrate its safety and efficacy are quite high. To put it differently, making new medicines is an inherently risky and failure-prone process -- and Buffett is an avid risk minimizer.
In the context of Eli Lilly and Apple, his reasoning becomes even clearer. Whereas Apple knows it can find a market for a new iPhone and that it can develop a new iPhone without a high chance of catastrophically failing along the way, many of Eli Lilly's candidates for becoming life-saving medicines end up getting shelved after flopping in clinical trials. And to Buffett, that's wasted money that could've been put to use in a more reliable type of investment to yield better returns for shareholders.
10 stocks we like better than Eli Lilly and Company
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 Eli Lilly and Company 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
Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple and Eli Lilly and Company. The Motley Fool recommends Johnson & Johnson and McKesson 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.
|
Nonetheless, Buffett is willing to compromise on his preference if it's for powerful businesses like Apple (NASDAQ: AAPL), so investors trying to mimic his style should take note to avoid being too dogmatic. As frequently as investors might hear about Warren Buffett's time-tested value-investing philosophy, there's a lot that people still don't know about how the Oracle of Omaha evaluates stocks. The other salient point is that sometimes dividends are paid out because management can't find a good place to invest the excess capital being generated by operations.
|
Nonetheless, Buffett is willing to compromise on his preference if it's for powerful businesses like Apple (NASDAQ: AAPL), so investors trying to mimic his style should take note to avoid being too dogmatic. In contrast, Eli Lilly's forward dividend rate is $3.92, whereas its forward yield is near 1.2%, and it pays out a massive 52.4% of its earnings. The Motley Fool has positions in and recommends Apple and Eli Lilly and Company.
|
Nonetheless, Buffett is willing to compromise on his preference if it's for powerful businesses like Apple (NASDAQ: AAPL), so investors trying to mimic his style should take note to avoid being too dogmatic. He's not a fan of being reliant on R&D spending Most investors don't know that Buffett dislikes companies that need to consistently spend a lot of their revenue on research and development (R&D). Such a result speaks directly to why Buffett doesn't like companies that spend a lot of their revenue on R&D; the pressure to innovate against other companies' products frequently increases as more competitors enter a market, but it rarely decreases.
|
Nonetheless, Buffett is willing to compromise on his preference if it's for powerful businesses like Apple (NASDAQ: AAPL), so investors trying to mimic his style should take note to avoid being too dogmatic. He's not a fan of being reliant on R&D spending Most investors don't know that Buffett dislikes companies that need to consistently spend a lot of their revenue on research and development (R&D). Dividends aren't usually his thing Buffett isn't a fan of dividends either.
|
19907.0
|
2022-08-04 00:00:00 UTC
|
2 Growth Stocks That Could Be in the Next Generation of FAANG Stocks
|
AAPL
|
https://www.nasdaq.com/articles/2-growth-stocks-that-could-be-in-the-next-generation-of-faang-stocks
|
nan
|
nan
|
The FAANG stocks have been market-beating investments over the past decade, and the success of these tech giants is due in part to a few common qualities. All five companies represented by the acronym -- Meta Platforms' Facebook, Amazon, Apple, Netflix, and Alphabet's Google -- benefit from a strong market presence and a big market opportunity, which has fueled years of dazzling revenue growth. The next generation of FAANG stocks -- in other words, the next businesses that weave themselves into daily life with disruptive technology -- will likely share those same traits.
Here are two growth stocks that could make the cut.
1. Block
Block (NYSE: SQ) is disrupting the financial services industry with two product ecosystems. Its Square platform blends all the hardware, software, and services merchants need to run their businesses across physical and digital channels. That includes basic products like point-of-sales systems and payment processing, as well as more sophisticated tools like marketing and team management software.
Similarly, the Cash App platform allows consumers to deposit, borrow, spend, and invest money, and file taxes, from a single mobile application. It is also becoming a commerce discovery and shopping tool, as Block is integrating the Afterpay Shop Directory into Cash App. That expansive offering has the platform growing quickly. Cash App monthly active users (MAUs) climbed 22% to 44 million in 2021, and profit per MAU ticked up 13% to $47.
Block's disruptive approach to financial services is resonating with merchants and consumers, which has led to impressive financial results. Over the past year, gross profit soared 50% to $4.8 billion, and the company generated $1.1 billion in cash from operations, up from $23 million in the prior year.
Block's integration of Afterpay could supercharge growth by unlocking synergies between its two product ecosystems. Square sellers should see an uptick in sales, as buy now, pay later products typically lead to better conversion rates and bigger order sizes. Sellers can also deliver targeted product suggestions to Cash App consumers to drive future sales. Additionally, 140,000 merchants already accept Afterpay, and Block sees an opportunity to bring those businesses into the Square ecosystem.
Block currently puts its U.S. market opportunity at $190 billion in gross profit, but the company also operates in Japan, Australia, Canada, and several European countries, meaning its total addressable market is even bigger. With that in mind, Block certainly has a chance to be part of the next generation of FAANG stocks, and investors should consider buying a few shares today.
2. Cloudflare
Cloudflare (NYSE: NET) specializes in cloud computing. It offers a range of application, network, and zero-trust security services, which collectively accelerate and protect business-critical infrastructure while freeing customers from the burden of managing costly and complex hardware on-site.
Internet users may not realize it, but many of them benefit from Cloudflare services on a daily basis. In fact, its content delivery network powers over 19% of the internet, while the next closest cloud vendor has less than 2% market share. That strong adoption can be attributed to Cloudflare's vast global network -- which sits within 50 milliseconds of 95% of internet users worldwide -- and its freemium pricing model.
Cloudflare has further differentiated itself through unparalleled performance. Internal studies have shown that its platform is faster than other edge clouds like Fastly, and public clouds like Amazon Web Services and Alphabet's Google Cloud. Additionally, Forrester Research recently recognized Cloudflare Workers as the leading edge development platform, citing a stronger current offering and a stronger growth strategy than any rival.
Not surprisingly, that strong market position has translated into consistent top-line growth. Over the past year, revenue climbed 53% to $731 million, and the company generated $6 million in cash from operations. That meager cash flow may worry some investors, but Cloudflare puts its market opportunity at a whopping $135 billion by 2024, and management plans to run the business at breakeven for the foreseeable future to capitalize on that opportunity.
On that note, Cloudflare's penchant for innovation has been a significant growth driver in the past, and it should continue to be a tailwind in the future. The company introduced several new services in 2021, including email security and cloud storage, and it recently announced D1, a managed database that will simplify application development on the Workers platform. CEO Matthew Prince expects D1 to "quickly become one of the largest databases in the world."
To summarize, given its past execution, strong market position, and capacity for innovation, Cloudflare could certainly be part of FAANG 2.0, and investors should consider buying this growth stock today.
10 stocks we like better than Block, 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 Block, 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 July 27, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon, Block, Inc., and Fastly. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., Cloudflare, Inc., Fastly, Meta Platforms, Inc., and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It offers a range of application, network, and zero-trust security services, which collectively accelerate and protect business-critical infrastructure while freeing customers from the burden of managing costly and complex hardware on-site. The company introduced several new services in 2021, including email security and cloud storage, and it recently announced D1, a managed database that will simplify application development on the Workers platform. To summarize, given its past execution, strong market position, and capacity for innovation, Cloudflare could certainly be part of FAANG 2.0, and investors should consider buying this growth stock today.
|
All five companies represented by the acronym -- Meta Platforms' Facebook, Amazon, Apple, Netflix, and Alphabet's Google -- benefit from a strong market presence and a big market opportunity, which has fueled years of dazzling revenue growth. To summarize, given its past execution, strong market position, and capacity for innovation, Cloudflare could certainly be part of FAANG 2.0, and investors should consider buying this growth stock today. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., Cloudflare, Inc., Fastly, Meta Platforms, Inc., and Netflix.
|
All five companies represented by the acronym -- Meta Platforms' Facebook, Amazon, Apple, Netflix, and Alphabet's Google -- benefit from a strong market presence and a big market opportunity, which has fueled years of dazzling revenue growth. To summarize, given its past execution, strong market position, and capacity for innovation, Cloudflare could certainly be part of FAANG 2.0, and investors should consider buying this growth stock today. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., Cloudflare, Inc., Fastly, Meta Platforms, Inc., and Netflix.
|
To summarize, given its past execution, strong market position, and capacity for innovation, Cloudflare could certainly be part of FAANG 2.0, and investors should consider buying this growth stock today. 10 stocks we like better than Block, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., Cloudflare, Inc., Fastly, Meta Platforms, Inc., and Netflix.
|
19908.0
|
2022-08-04 00:00:00 UTC
|
3 Things Smart Investors Do During a Bear Market
|
AAPL
|
https://www.nasdaq.com/articles/3-things-smart-investors-do-during-a-bear-market
|
nan
|
nan
|
It's been a dismal year for many investors. High inflation and rising interest rates have created a great deal of economic uncertainty, triggering a sharp decline in the stock market. In fact, the S&P 500 had its worst first half in more than five decades, falling 21% between January and June. That put the broad index in bear market territory for the seventh time since 1970.
The S&P 500 has since recouped some of its losses, but the bear market will not officially end until the index hits a new high. That may take a while. The S&P 500 last peaked about 210 days ago, but historical data shows that past bear markets have dragged on for an average of 391 days.
That being said, speculating on the duration and severity of a downturn is somewhat pointless. So here are three things smart investors do during bear markets.
Image source: Getty Images
Peter Lynch: Stay invested through bear markets
Legendary investor Peter Lynch ran the Magellan Fund at Fidelity for 13 years. During that time, despite weathering two bear markets, Lynch earned an annualized return of 29.2%, more than doubling the return of the S&P 500. That success can be attributed in part to his level-headed mindset. Lynch once said, "The key to making money in stocks is not to get scared out of them."
Bear markets are scary. Watching your portfolio shrink during a downturn is a gut-wrenching experience, and that type of stress often leads to irrational decisions. For instance, you may tell yourself that you'll temporarily sell your stocks and buy back in when things turn around. But timing the market is impossible, and if you try to dip in and out of stocks, there is a good chance your portfolio will underperform in the long run.
The best course of action -- assuming you've done the research and have conviction in the underlying businesses -- is to hold your stocks through market volatility. In doing so, you position yourself to realize the maximum benefit when the market inevitably rebounds.
Shelby Davis: Bear markets are buying opportunities
Shelby Davis is not as well known as the likes of Warren Buffett or Peter Lynch, but his story is no less inspiring. In 1947, when he was 38 years old, Davis put $50,000 into the stock market. By the time 1994 rolled around -- eight bear markets later -- he had made the Forbes 400 list and his portfolio was worth $900 million. That success can be attributed in part to his ability to spot buying opportunities. Davis once said, "You make most of your money in a bear market, you just don't realize it at the time."
It is human nature to be overly optimistic in good times and overly pessimistic in bad times. As a result, stocks tend to reach exorbitant valuations during bull markets, and they tend to trade at very cheap valuations during bear markets. That means downturns are an especially good time to buy stocks.
Warren Buffett: Not all beaten-down stocks are worth buying
Warren Buffet is widely recognized as one of the greatest investors of our time, and that reputation is well deserved. Under his leadership, Berkshire Hathaway shareholders saw an annualized return of 20.1% between 1965 and 2021, and much of that success is due to Buffett and his ability to pick winning investments.
Buffett once summarized his strategy by saying, "In business, I look for economic castles protected by unbreachable moats." In other words, businesses that have a sustainable competitive advantage tend to make great long-term investments. Apple's brand authority in consumer electronics, Amazon's intellectual property in cloud computing, and Bank of America's scale as a financial services provider are all good examples, and Buffett owns all three stocks through Berkshire Hathaway.
To summarize, bear markets are a good time to buy stocks, but not every beaten-down stock is worth buying. Investors should look for businesses with strong prospects for future growth and some type of competitive differentiation.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 2/14/21
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
High inflation and rising interest rates have created a great deal of economic uncertainty, triggering a sharp decline in the stock market. Under his leadership, Berkshire Hathaway shareholders saw an annualized return of 20.1% between 1965 and 2021, and much of that success is due to Buffett and his ability to pick winning investments. Apple's brand authority in consumer electronics, Amazon's intellectual property in cloud computing, and Bank of America's scale as a financial services provider are all good examples, and Buffett owns all three stocks through Berkshire Hathaway.
|
Shelby Davis: Bear markets are buying opportunities Shelby Davis is not as well known as the likes of Warren Buffett or Peter Lynch, but his story is no less inspiring. To summarize, bear markets are a good time to buy stocks, but not every beaten-down stock is worth buying. 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.
|
As a result, stocks tend to reach exorbitant valuations during bull markets, and they tend to trade at very cheap valuations during bear markets. To summarize, bear markets are a good time to buy stocks, but not every beaten-down stock is worth buying. 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.
|
That means downturns are an especially good time to buy stocks. To summarize, bear markets are a good time to buy stocks, but not every beaten-down stock is worth buying. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway (B shares).
|
19909.0
|
2022-08-04 00:00:00 UTC
|
Stock Market News for Aug 4, 2022
|
AAPL
|
https://www.nasdaq.com/articles/stock-market-news-for-aug-4-2022
|
nan
|
nan
|
Wall Street closed sharply higher on Wednesday on the back of robust economic data and strong earnings numbers. Investors shook off fears over any further strain in U.S.-China relations over Nancy Pelosi’s visit to Taiwan. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.3% or 416.33 points to close at 32,812.5. Twenty-five components of the 30-stock index ended in green, while four ended in red and one remained unchanged.
The tech-heavy Nasdaq Composite finished at 12,668.16, gaining 2.6% or 319.40 points led by a rally in the large-cap tech stocks.
The S&P 500 added 1.6% or 63.98 points to end at 4,155.17. Ten of the 11 broad sectors of the index closed in the green. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) gained 2.7%, 2.4% and 2.4%, respectively, while the Energy Select Sector SPDR (XLE) dropped 2.9%.
The fear-gauge CBOE Volatility Index (VIX) was down 8.3% to 21.95. A total of 11.7 billion shares were traded Wednesday, higher than the last 20-session average of 10.7 billion. Advancers outnumbered decliners on the NYSE by a 2.30-to-1 ratio. On Nasdaq, a 2.59-to-1 ratio favored advancing issues.
Impact of Speaker Pelosi’s Visit to Taiwan Subsides
Wall Street recovered from the effects of Nancy Pelosi’s visit to Taiwan as it became clear that there were no immediate ramifications that would further strain the relationship between the United States and China.
Pelosi, Speaker of the U.S. House of Representatives, made an unannounced visit to Taiwan on Tuesday, disregarding warnings from China. China responded by announcing war games to be played on the Taiwan Strait and a defensive show of air power intended to intimidate Taiwan, expressing its displeasure. Markets fell on Tuesday in the apprehension of a military conflict and strained trade relations but rebounded the day after as the immediate fallout was factored in.
Markets Gain Big on Increased Profit Outlook From PayPal and CVS
PayPal Holdings, Inc. PYPL reported earnings of $0.93 per share in second-quarter 2022, beating the Zacks Consensus Estimate by 9.4%. Net revenues of $6.81 billion exhibited year-over-year growth of 9% and surpassed the Zacks Consensus Estimate of $6.76 billion. The company raised its adjusted profit expectations to between $3.87 and $3.97 per share for the year from its previous forecast of $3.81 and $3.93.
CVS Health Corporation CVS reported second-quarter 2022 adjusted earnings per share of $2.40, surpassing the Zacks Consensus Estimate by 11.1%. Total revenues in the second quarter rose 11% year-over-year to $80.64 billion, beating the Zacks Consensus Estimate of $76.68 billion. The company currently expects adjusted EPS in the band of $8.40-$8.60, up from the earlier projected $8.20-$8.40.
PYPL and CVS shares rose 9.3% and 6.3%, respectively, based on the rosy picture they painted for the year, and had a broader impact on tech stocks and the pharmacy services sector.
Nasdaq was the day’s biggest gainer as it closed the session at a three-month high. Consequently, shares of Apple, Inc. AAPL and Amazon.com, Inc. AMZN gained 3.8% and 4%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Commercial crude oil inventories in the United States increased by 4.5 million barrels from the previous week. At 426.6 million barrels, U.S. crude oil inventories are about 7% below the five-year average for this time of the year.
The U.S. Census Bureau reported that new Factory Orders for June increased $10.8 billion or 2% compared with the consensus estimate of 0.7%, to $555.2 billion. Orders had increased 1.8% in May.
The Institute for Supply Management (ISM) reported that Services PMI for July came in at 56.7, against a consensus of 54, and significantly higher than the June index of 55.3.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
CVS Health Corporation (CVS): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
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.
|
Consequently, shares of Apple, Inc. AAPL and Amazon.com, Inc. AMZN gained 3.8% and 4%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Wall Street closed sharply higher on Wednesday on the back of robust economic data and strong earnings numbers.
|
Consequently, shares of Apple, Inc. AAPL and Amazon.com, Inc. AMZN gained 3.8% and 4%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Markets Gain Big on Increased Profit Outlook From PayPal and CVS PayPal Holdings, Inc. PYPL reported earnings of $0.93 per share in second-quarter 2022, beating the Zacks Consensus Estimate by 9.4%.
|
Consequently, shares of Apple, Inc. AAPL and Amazon.com, Inc. AMZN gained 3.8% and 4%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Impact of Speaker Pelosi’s Visit to Taiwan Subsides Wall Street recovered from the effects of Nancy Pelosi’s visit to Taiwan as it became clear that there were no immediate ramifications that would further strain the relationship between the United States and China.
|
Consequently, shares of Apple, Inc. AAPL and Amazon.com, Inc. AMZN gained 3.8% and 4%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Markets Gain Big on Increased Profit Outlook From PayPal and CVS PayPal Holdings, Inc. PYPL reported earnings of $0.93 per share in second-quarter 2022, beating the Zacks Consensus Estimate by 9.4%.
|
19910.0
|
2022-08-03 00:00:00 UTC
|
Wall Street rises on tech, earnings boost as recession fears ease
|
AAPL
|
https://www.nasdaq.com/articles/wall-street-rises-on-tech-earnings-boost-as-recession-fears-ease
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
U.S. service sector unexpectedly picks up in July
PayPal rises after bumping annual profit outlook
Apple gains 3.5%, Microsoft adds 2.7%
Moderna jumps on $3 billion share buyback plan
Indexes: Dow 1.08%, S&P 1.30%, Nasdaq 2.13%
Adds comment, details; updates prices
By Aniruddha Ghosh and Devik Jain
Aug 3 (Reuters) - Wall Street's major indexes surged on Wednesday, with gains in big technology companies lifting the Nasdaq to near three-month highs as key readings on the services sector and new orders helped calm recession fears.
A fresh batch of strong results from PayPal and CVS Health Corp also boosted sentiment in a largely upbeat second quarter that has helped markets bounce back from the fallout of the Ukraine war, rising inflation and a rise in borrowing costs.
Apple Inc AAPL.O rose 3.5% and Microsoft Corp MSFT.O added 2.7%, helping the broader growth stocks index .IGX outperform its value counterpart .IVX.
"An economy that is not falling into recession but is not roaring higher at this time would have you shift away from value stocks into growth," Kim Forrest, chief investment officer at Bokeh Capital Management said.
PayPal Holdings PYPL.O jumped 9.5% as the fintech firm raised its annual profit guidance and said activist investor Elliott Management has an over $2 billion stake.
CVS Health Corp CVS.N gained 5.4% as the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
The benchmark S&P 500 index .SPX and tech-heavy Nasdaq .IXIC are up 13.3% and 18.2%, respectively, from the lows hit in mid-June, but are still in a bear market.
Wall Street started August on a sour note as factory activity in the United States, China and Eurozone weakened in July. But worries eased on Wednesday as the U.S. services sector, which accounts for more than two-third of the economic activity, rebounded unexpectedly.
It rose in July to 56.7 from 55.3 in June amid strong order growth, while supply bottlenecks and price pressures eased. A separate survey showed new orders for U.S.-manufactured goods increased solidly in June.
"(Today's) data further support our view that service-sector activity will hold up well in the near-term," Wells Fargo economists wrote in a note.
"The recent easing in prices may in part be due to lower in commodity prices, but nonetheless this broad easing of price pressure will be welcome news for policymakers tasked with quelling inflation."
Meanwhile, Richmond Federal Reserve President Thomas Barkin on Wednesday joined policymakers voicing determination that the U.S. central bank is committed to getting inflation under control and returning it to 2% target.
At 12:27 p.m. ET, the Dow Jones Industrial Average .DJI was up 351.02 points, or 1.08%, at 32,747.19, the S&P 500 .SPX was up 53.19 points, or 1.30%, at 4,144.38, and the Nasdaq Composite .IXIC was up 263.40 points, or 2.13%, at 12,612.16.
Moderna Inc MRNA.O surged 15.1% after the vaccine maker announced a $3 billion share buyback plan.
Regeneron Pharmaceuticals REGN.O climbed 7.6% after it beat quarterly revenue estimates, while coffee chain Starbucks Corp SBUX.O rose 3.4% on upbeat quarterly profit.
Advancing issues outnumbered decliners by a 1.85-to-1 ratio on the NYSE and by a 2.29-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 30 new lows, while the Nasdaq recorded 40 new highs and 27 new lows.
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O rose 3.5% and Microsoft Corp MSFT.O added 2.7%, helping the broader growth stocks index .IGX outperform its value counterpart .IVX. U.S. service sector unexpectedly picks up in July PayPal rises after bumping annual profit outlook Apple gains 3.5%, Microsoft adds 2.7% Moderna jumps on $3 billion share buyback plan Indexes: Dow 1.08%, S&P 1.30%, Nasdaq 2.13% Adds comment, details; updates prices By Aniruddha Ghosh and Devik Jain Aug 3 (Reuters) - Wall Street's major indexes surged on Wednesday, with gains in big technology companies lifting the Nasdaq to near three-month highs as key readings on the services sector and new orders helped calm recession fears. "An economy that is not falling into recession but is not roaring higher at this time would have you shift away from value stocks into growth," Kim Forrest, chief investment officer at Bokeh Capital Management said.
|
Apple Inc AAPL.O rose 3.5% and Microsoft Corp MSFT.O added 2.7%, helping the broader growth stocks index .IGX outperform its value counterpart .IVX. U.S. service sector unexpectedly picks up in July PayPal rises after bumping annual profit outlook Apple gains 3.5%, Microsoft adds 2.7% Moderna jumps on $3 billion share buyback plan Indexes: Dow 1.08%, S&P 1.30%, Nasdaq 2.13% Adds comment, details; updates prices By Aniruddha Ghosh and Devik Jain Aug 3 (Reuters) - Wall Street's major indexes surged on Wednesday, with gains in big technology companies lifting the Nasdaq to near three-month highs as key readings on the services sector and new orders helped calm recession fears. A fresh batch of strong results from PayPal and CVS Health Corp also boosted sentiment in a largely upbeat second quarter that has helped markets bounce back from the fallout of the Ukraine war, rising inflation and a rise in borrowing costs.
|
Apple Inc AAPL.O rose 3.5% and Microsoft Corp MSFT.O added 2.7%, helping the broader growth stocks index .IGX outperform its value counterpart .IVX. U.S. service sector unexpectedly picks up in July PayPal rises after bumping annual profit outlook Apple gains 3.5%, Microsoft adds 2.7% Moderna jumps on $3 billion share buyback plan Indexes: Dow 1.08%, S&P 1.30%, Nasdaq 2.13% Adds comment, details; updates prices By Aniruddha Ghosh and Devik Jain Aug 3 (Reuters) - Wall Street's major indexes surged on Wednesday, with gains in big technology companies lifting the Nasdaq to near three-month highs as key readings on the services sector and new orders helped calm recession fears. A fresh batch of strong results from PayPal and CVS Health Corp also boosted sentiment in a largely upbeat second quarter that has helped markets bounce back from the fallout of the Ukraine war, rising inflation and a rise in borrowing costs.
|
Apple Inc AAPL.O rose 3.5% and Microsoft Corp MSFT.O added 2.7%, helping the broader growth stocks index .IGX outperform its value counterpart .IVX. U.S. service sector unexpectedly picks up in July PayPal rises after bumping annual profit outlook Apple gains 3.5%, Microsoft adds 2.7% Moderna jumps on $3 billion share buyback plan Indexes: Dow 1.08%, S&P 1.30%, Nasdaq 2.13% Adds comment, details; updates prices By Aniruddha Ghosh and Devik Jain Aug 3 (Reuters) - Wall Street's major indexes surged on Wednesday, with gains in big technology companies lifting the Nasdaq to near three-month highs as key readings on the services sector and new orders helped calm recession fears. CVS Health Corp CVS.N gained 5.4% as the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
|
19911.0
|
2022-08-03 00:00:00 UTC
|
Best Stocks To Invest In Right Now? 3 Tech Stocks To Watch In August
|
AAPL
|
https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-3-tech-stocks-to-watch-in-august
|
nan
|
nan
|
Check Out These Top Tech Stocks In The Stock Market Now
When it comes to stocks, there is no one-size-fits-all answer. The best stocks to invest in right now vary depending on the investor’s goals and risk tolerance. However, there are a few factors that can help to make a stock a good investment. First, the company should have strong financials and be well-positioned for growth. Second, the stock should be priced attractively relative to its sector peers. Finally, the company should have a solid management team with a clear strategy for success. By taking these factors into account, investors can identify stocks that offer the best potential chance for long-term success.
Technology stocks have long been a popular investment, thanks to the stunning growth of companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL). But what are technology stocks, and why do they tend to outperform the broader market?
Technology stocks are shares of companies that are involved in developing or using technology. This can include everything from software and semiconductors to internet services and energy-efficient materials. Because technology is always evolving, these companies often enjoy strong growth rates. And as more businesses and consumers adopt new technologies, there is typically a corresponding increase in demand for technology stocks. While technology stocks can be volatile, they have historically outperformed the broader market over the long term. So for investors looking for growth, they can be an attractive option. With that, here are three tech stocks to watch in the stock market today.
Best Tech Stocks To Invest In [Or Avoid] Right Now
Fastly, Inc. (NYSE: FSLY)
Advanced Micro Devices Inc. (NASDAQ: AMD)
eBay, Inc. (NASDAQ: EBAY)
Fastly, Inc. (FSLY Stock)
To start us off, let’s have a look at Fastly, Inc. (FSLY). Fastly is a real-time content delivery network (CDN) company. It provides services in the verticals of delivery, security, streaming media, e-commerce, and private CDN. Next, its platform helps reduce the lag time and latency of decentralization and can move a large amount of data across numerous countries. Share of FSLY stock closed Wednesday’s trading session up 7% at $13.21. The rally comes in anticipation of the company reporting its second-quarter 2022 financial results.
In the report, Fastly reported record quarterly revenue, while notching in a net retention rate of 117%. Next, the company posted a loss of $0.23 per share on revenue of $102.5 million. Compared with the consensus estimate of a loss of $0.17 per share on revenue of $101.0 million. “We are pleased to continue our revenue momentum into 2022, exceeding the top end of our guidance range and representing another record revenue quarter, further demonstrating Fastly’s value with our existing and new customers,” said Joshua Bixby, CEO of Fastly. Given all of this, will you be watching FSLY stock now?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Defense Stocks To Watch
Advanced Micro Devices Inc. (AMD Stock)
Following that, we have semiconductor stock Advanced Microdevices (AMD). In detail, its segments include Computing and Graphics, Enterprise, Embedded, and Semi-Custom. Today, AMD offers the industry’s widest portfolio of leadership high-performance and adaptive processor technologies. The company combines CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to drive leadership computing platforms for cloud, edge, and other end devices. As a result, AMD stock is often mentioned among the top tech stocks in thestock market today
Continuing on, just this week AMD reported its second quarter 2022 financial results. In detail, the company reported a record quarterly revenue of $6.6 billion. This reflects an increase of 70% year-over-year. On top of that, they recorded a record quarter for operating cash flow, which exceeds $1 billion. Aside from that, advanced micro devices posted earnings per share of $1.05, versus consensus estimates of $1.03.
“We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” commented AMD CEO Dr. Lisa Su. “Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model.” As of Wednesday’s close shares of AMD are trading at $98.09 a share.
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Rebound Following Back To Back Losing Days
eBay, Inc. (EBAY Stock)
Last but not least, let’s dive into eBay, Inc. (EBAY). Through its Marketplace platforms, buyers and sellers could connect in more than 190 markets around the globe. Its technology enables its customers and provides everyone with an opportunity to grow and thrive. As a result, EBAY stock has investors turning their attention to it in thestock market today Shares of EBAY stock closed Wednesday’s trading day up over 4% at $50.48 per share. This is on the heels of the company reporting its second-quarter 2022 financial results on Wednesday afternoon.
In detail, the company reported a Q2 earnings beat and sustained its quarterly dividend at $0.22 per share. Additionally, EBAY reported earnings per share of $0.99 for the quarter. Versus wall street’s estimates of $0.89 per share on revenue of 2.4 billion. As a result, shares of EBAY stock are pushing higher in Wednesday’s extended trading hours. With the company’s strong track record, and recent earnings beat, is EBAY on your watchlist right now?
Source: TD Ameritrade TOS
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.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Technology stocks have long been a popular investment, thanks to the stunning growth of companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL). The company combines CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to drive leadership computing platforms for cloud, edge, and other end devices. “We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” commented AMD CEO Dr. Lisa Su.
|
Technology stocks have long been a popular investment, thanks to the stunning growth of companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL). Best Tech Stocks To Invest In [Or Avoid] Right Now Fastly, Inc. (NYSE: FSLY) Advanced Micro Devices Inc. (NASDAQ: AMD) eBay, Inc. (NASDAQ: EBAY) Fastly, Inc. (FSLY Stock) To start us off, let’s have a look at Fastly, Inc. (FSLY). Aside from that, advanced micro devices posted earnings per share of $1.05, versus consensus estimates of $1.03.
|
Technology stocks have long been a popular investment, thanks to the stunning growth of companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL). Best Tech Stocks To Invest In [Or Avoid] Right Now Fastly, Inc. (NYSE: FSLY) Advanced Micro Devices Inc. (NASDAQ: AMD) eBay, Inc. (NASDAQ: EBAY) Fastly, Inc. (FSLY Stock) To start us off, let’s have a look at Fastly, Inc. (FSLY). As a result, AMD stock is often mentioned among the top tech stocks in thestock market today Continuing on, just this week AMD reported its second quarter 2022 financial results.
|
Technology stocks have long been a popular investment, thanks to the stunning growth of companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL). Technology stocks are shares of companies that are involved in developing or using technology. Best Tech Stocks To Invest In [Or Avoid] Right Now Fastly, Inc. (NYSE: FSLY) Advanced Micro Devices Inc. (NASDAQ: AMD) eBay, Inc. (NASDAQ: EBAY) Fastly, Inc. (FSLY Stock) To start us off, let’s have a look at Fastly, Inc. (FSLY).
|
19912.0
|
2022-08-03 00:00:00 UTC
|
After Hours Most Active for Aug 3, 2022 : LCID, T, CMCSA, LYFT, IQ, AAPL, IS, GOOGL, EAF, NYCB, BSIG, CHS
|
AAPL
|
https://www.nasdaq.com/articles/after-hours-most-active-for-aug-3-2022-%3A-lcid-t-cmcsa-lyft-iq-aapl-is-googl-eaf-nycb-bsig
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is down -22.26 to 13,231. The total After hours volume is currently 93,402,058 shares traded.
The following are the most active stocks for the after hours session:
Lucid Group, Inc. (LCID) is -2.36 at $18.20, with 4,896,743 shares traded. Smarter Analyst Reports: Lucid Under SEC Investigation; Shares Drop – Report
AT&T Inc. (T) is +0.03 at $18.40, with 4,701,426 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.54. T's current last sale is 80.88% of the target price of $22.75.
Comcast Corporation (CMCSA) is unchanged at $38.48, with 3,685,682 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Lyft, Inc. (LYFT) is -0.01 at $16.70, with 3,292,218 shares traded.LYFT is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is -0.58 per share, which represents a -68 percent increase over the EPS one Year Ago
iQIYI, Inc. (IQ) is unchanged at $3.98, with 3,006,208 shares traded. IQ's current last sale is 53.07% of the target price of $7.5.
Apple Inc. (AAPL) is -0.27 at $165.86, with 2,722,631 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 $1.33. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ironSource Ltd. (IS) is +0.05 at $4.60, with 2,465,649 shares traded.IS is scheduled to provide an earnings report on 8/10/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.02 per share, which represents a 2 percent increase over the EPS one Year Ago
Alphabet Inc. (GOOGL) is -0.23 at $117.85, with 2,317,660 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
GrafTech International Ltd. (EAF) is unchanged at $7.76, with 1,782,074 shares traded.EAF is scheduled to provide an earnings report on 8/5/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.41 per share, which represents a 43 percent increase over the EPS one Year Ago
New York Community Bancorp, Inc. (NYCB) is unchanged at $10.31, with 1,642,485 shares traded. NYCB's current last sale is 98.19% of the target price of $10.5.
BrightSphere Investment Group Inc. (BSIG) is unchanged at $18.85, with 1,526,397 shares traded. BSIG's current last sale is 58.91% of the target price of $32.
Chico's FAS, Inc. (CHS) is unchanged at $5.54, with 1,483,951 shares traded. CHS's current last sale is 100.73% of the target price of $5.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc. (AAPL) is -0.27 at $165.86, with 2,722,631 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 Dec 2022.
|
Apple Inc. (AAPL) is -0.27 at $165.86, with 2,722,631 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.58 per share, which represents a -68 percent increase over the EPS one Year Ago
|
Apple Inc. (AAPL) is -0.27 at $165.86, with 2,722,631 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.58 per share, which represents a -68 percent increase over the EPS one Year Ago
|
Apple Inc. (AAPL) is -0.27 at $165.86, with 2,722,631 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.03 at $18.40, with 4,701,426 shares traded.
|
19913.0
|
2022-08-03 00:00:00 UTC
|
Nasdaq ends at three-month high as PayPal fuels optimism
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-ends-at-three-month-high-as-paypal-fuels-optimism
|
nan
|
nan
|
By Noel Randewich
Aug 3 (Reuters) - Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May.
Data showed the U.S. services industry unexpectedly picked up in July amid strong order growth, while supply bottlenecks and price pressures eased. That supported views that the economy was not in recession despite output slumping in the first half of the year.
A fresh batch of strong results from companies including PayPal PYPL.O and CVS Health Corp CVS.N boosted sentiment in a largely upbeat quarterly reporting season. Reports exceeding low expectations have helped Wall Street rebound from losses caused by worries about decades-high inflation, rising interest rates and shrinking economic output.
"We're going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we're seeing a lot of better-than-feared prints, and that's just good enough right now," said Sahak Manuelian, managing director of trading at Wedbush Securities in Los Angeles.
Apple AAPL.O and Amazon AMZN.O rallied almost 4%, while Facebook-owner Meta Platforms META.O jumped 5.4%.
PayPal soared almost 10% after it raised its annual profit guidance and said activist investor Elliott Management had an over $2 billion stake in the financial technology firm.
CVS Health gained 6.3% after the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
Manuelian said an additional factor behind Wednesday's stock rally was growing confidence among investors that the Fed has already carried out the bulk of the interest rate hikes that will be necessary to bring inflation under control.
Meanwhile, Richmond Federal Reserve President Thomas Barkin on Wednesday joined policymakers saying that the U.S. central bank is committed to getting inflation under control and returning it to its 2% target.
The S&P 500 climbed 1.56% to end the session at 4,155.12 points.
The Nasdaq gained 2.59% to 12,668.16 points, while Dow Jones Industrial Average rose 1.29% to 32,812.50 points.
Additional data on Wednesday showed new orders for U.S.-manufactured goods increased solidly in June and business spending on equipment was stronger than initially thought, pointing to underlying strength in manufacturing despite rising interest rates.
The most traded stock in the S&P 500 was Tesla TSLA.OQ, with $24.3 billion worth of shares exchanged during the session. Its shares rose 2.27%.
Of the 11 S&P 500 sector indexes, 10 rose, led by information technology .SPLRCT, up 2.69%, followed by a 2.52% gain in consumer discretionary .SPLRCD.
The S&P 500 has rebounded about 13% from its closing low in mid-June and would have to climb another 15% to get back to its record high close in early January.
Moderna Inc MRNA.O surged about 16% after the vaccine maker announced a $3 billion share buyback plan.
Regeneron Pharmaceuticals REGN.O climbed 5.9% after it beat quarterly revenue estimates, while coffee chain Starbucks Corp SBUX.O rose over 4% after it reported upbeat quarterly profits.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 3.7-to-1 ratio. The S&P 500 posted two new highs and 30 new lows; the Nasdaq recorded 51 new highs and 37 new lows.
Volume on U.S. exchanges was relatively heavy, with 11.7 billion shares traded, compared to an average of 10.7 billion shares over the previous 20 sessions.
Wall Street's busiest tradeshttps://tmsnrt.rs/3bqKyM6
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru and by Noel Randewich in Oakland, Calif; Editing by Sriraj Kalluvila, Arun Koyyur and Cynthia Osterman)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL.O and Amazon AMZN.O rallied almost 4%, while Facebook-owner Meta Platforms META.O jumped 5.4%. By Noel Randewich Aug 3 (Reuters) - Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May. "We're going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we're seeing a lot of better-than-feared prints, and that's just good enough right now," said Sahak Manuelian, managing director of trading at Wedbush Securities in Los Angeles.
|
Apple AAPL.O and Amazon AMZN.O rallied almost 4%, while Facebook-owner Meta Platforms META.O jumped 5.4%. By Noel Randewich Aug 3 (Reuters) - Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May. A fresh batch of strong results from companies including PayPal PYPL.O and CVS Health Corp CVS.N boosted sentiment in a largely upbeat quarterly reporting season.
|
Apple AAPL.O and Amazon AMZN.O rallied almost 4%, while Facebook-owner Meta Platforms META.O jumped 5.4%. By Noel Randewich Aug 3 (Reuters) - Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May. Volume on U.S. exchanges was relatively heavy, with 11.7 billion shares traded, compared to an average of 10.7 billion shares over the previous 20 sessions.
|
Apple AAPL.O and Amazon AMZN.O rallied almost 4%, while Facebook-owner Meta Platforms META.O jumped 5.4%. By Noel Randewich Aug 3 (Reuters) - Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May. CVS Health gained 6.3% after the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
|
19914.0
|
2022-08-03 00:00:00 UTC
|
Q2 Earnings Scorecard and Research Reports for Apple, Chevron & Toyota
|
AAPL
|
https://www.nasdaq.com/articles/q2-earnings-scorecard-and-research-reports-for-apple-chevron-toyota
|
nan
|
nan
|
Wednesday, August 3, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Toyota Motor Corporation (TM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q2 Earnings Season Scorecard
Including all of this morning's reports, we now have Q2 results from 357 S&P 500 members or 71.4% of the index's total membership. Total earnings for these 357 index members are up +7.3% from the same period last year on +14.7% higher revenues, with 77.3% beating EPS estimates and 66.7% beating revenue estimates.
The proportion of these companies beating consensus EPS and revenue estimates still remains towards the lower end of the high-low range over the last 5 years for this group of companies.
The earnings growth of +7.3% for Q2 has been dragged down by lower growth for the Finance sector and boosted by the Energy sector results.
Excluding the Finance sector drag, Q2 earnings growth for the remainder of the index would be up +16.5%. The Q2 earnings growth pace turns negative on an ex-Energy basis (down -4%).
Looking at Q2 as a whole, combining the actuals from the 357 companies that have reported with estimates for the still-to-come companies, total earnings are on track to increase +6.3% on +13.2% higher revenues. The growth pace improves to +14% excluding the Finance sector and drops to a decline of -4.1% on an ex-Energy basis.
Today's Featured Analyst Reports
Apple shares have more than held their own in this year's uneven market, with the stock outperforming the S&P 500 -6.4% vs. -14.5% in the year-to-date period. The company’s third-quarter fiscal 2022 results have helped sustain this momentum, with the numbers benefiting from strong iPhone sales and continued momentum in the Services business.
The segment benefited from the robust performance of Apple TV+ partially offset by unfavorable forex, the absence of revenues from Russia and the challenging macroeconomic environment. However, iPad sales were hurt by supply-chain constraints. Apple did not provide revenue guidance for the fourth quarter of fiscal 2022.
Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite the unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
(You can read the full research report on Apple here >>>)
Chevron shares are down from their high in early June, but are still up +32.3% this year, outperforming the Zacks Energy sector's +22.9% gain. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially.
The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced. Finally, Chevron has been a laggard to jump into the net-zero bandwagon.
(You can read the full research report on Chevron here >>>)
Toyota Motor shares have declined -11.8% this year, outperforming the Zacks Auto sector's -20.9% decline. The stock has also held up better than Ford (down -24.2%) and GM (-35.9%) in the year-to-date period. While the company is faced with a host of near-term challenges, ranging from the chip crunch and logistical challenges, the scale and scope of its operations enable it to deal with these challenges better than its competitors.
Also, Toyota’s electrification push including investment in BEVs, hybrids, batteries and fuel-cell vehicles is set to bolster prospects. It aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030.
The Japanese auto giant forecasts a year-over-year growth in sales volume and revenues for the current fiscal year. The expanding portfolio of product lines, a robust lineup of trucks and SUVs, partnerships with Hino and Subaru and Mazda will steer long-term growth.
(You can read the full research report on Toyota Motor here >>>)
Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), ConocoPhillips (COP), and Chipotle Mexican Grill, Inc. (CMG).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Chevron (CVX) to Gain from Massive Permian Acreage
Electrification Drive Aids Toyota Motor (TM) Amid Inflation
Featured Reports
ConocoPhillips (COP) Banks on Oil-Rich Bakken Shale Assets
Per the Zacks analyst, ConocoPhillips' production outlook is bright since it holds core acres in the oil-rich Bakken shale play. But rising production & operating expenses is a concern.
Chipotle (CMG) Banks on Digital Sales, Wage Inflation High
Per the Zacks analyst, digitalization will continue to play a crucial role in sustaining growth for restaurant operators. However, elevated wage inflation is a concern.
IQVIA Benefits From Global IT Infrastructure, Liquidity Low
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Low liquidity remains a concern.
Arista (ANET) Rides on Healthy Demand, Portfolio Strength
Per the Zacks analyst, Arista is likely to benefit from solid demand trends led by a software-driven, data-centric approach to help customers build cloud architecture and enhance their cloud footprint
HDPE Project, A. Schulman Buyout Aid LyondellBasell (LYB)
While LyondellBasell faces headwind from higher turnaround costs, it will gain from synergies of the A. Schulman buyout and higher capacity driven by the HDPE project, per the Zacks analyst.
RenaissanceRe (RNR) Rides on High Premiums, Capital Position
Per the Zacks analyst, premium growth across Property plus Casualty and Specialty segments drives its top line. The company's robust capital position remains a key catalyst.
Strategic Plan Aids Associated Banc-Corp (ASB), Costs Ails
Per the Zacks analyst, strategic plan to expand lending capabilities, rising rates and a solid balance sheet will support Associated Banc-Corp. Yet, rising expenses and high debt levels are concerns.
New Upgrades
ExxonMobil (XOM) Gains From Discoveries at Stabroek Block
Per the Zacks analyst, ExxonMobil's discoveries in the Stabroek Block will increase its recoverable resources' estimates to 11 billion oil-equivalent barrels.
Strong Portfolio Aids Take Two (TTWO) Amid Stiff Competition
Per the Zacks analyst, Take-Two's popular franchises including NBA 2K22 and Grand Theft Auto V is helping it to counter stiff competition from the likes of EA and Activision Blizzard.
Strong Balance Sheet Supports UMB Financial (UMBF)
Per the Zacks analyst, UMB Financial's strong loans and deposits and diversified fee income are likely to boost its financials. Further, enhanced capital-deployment activities are also tailwinds.
New Downgrades
Intel (INTL) Plagued by Component Shortage, Production Delays
Per the Zacks analyst, production delays and continued component shortage are hurting Intel's revenues, with forex woes and fresh lockdown restrictions further compounding problems.
Supply Chain Issues to Mar Whirlpool's (WHR) Performance
Per the Zacks analyst, Whirlpool has been witnessing rising raw material costs and global supply chain disruptions, which have resulted in higher freight costs. This is likely to persist in 2022.
Pricing Pressure Hindering Stryker's (SYK) Topline Growth
Per the Zacks analyst, unfavorable pricing environment is likely to act as a hindrance to Stryker's top-line growth in the near term.
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
Chevron Corporation (CVX): Free Stock Analysis Report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
IQVIA Holdings Inc. (IQV): 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.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Electrification Drive Aids Toyota Motor (TM) Amid Inflation Featured Reports ConocoPhillips (COP) Banks on Oil-Rich Bakken Shale Assets Per the Zacks analyst, ConocoPhillips' production outlook is bright since it holds core acres in the oil-rich Bakken shale play. Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Toyota Motor Corporation (TM). Apple Inc. (AAPL): Free Stock Analysis Report
|
Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Toyota Motor Corporation (TM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Electrification Drive Aids Toyota Motor (TM) Amid Inflation Featured Reports ConocoPhillips (COP) Banks on Oil-Rich Bakken Shale Assets Per the Zacks analyst, ConocoPhillips' production outlook is bright since it holds core acres in the oil-rich Bakken shale play. Apple Inc. (AAPL): Free Stock Analysis Report
|
Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Toyota Motor Corporation (TM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Electrification Drive Aids Toyota Motor (TM) Amid Inflation Featured Reports ConocoPhillips (COP) Banks on Oil-Rich Bakken Shale Assets Per the Zacks analyst, ConocoPhillips' production outlook is bright since it holds core acres in the oil-rich Bakken shale play. Apple Inc. (AAPL): Free Stock Analysis Report
|
Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Chevron Corporation (CVX), and Toyota Motor Corporation (TM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Chevron (CVX) to Gain from Massive Permian Acreage Electrification Drive Aids Toyota Motor (TM) Amid Inflation Featured Reports ConocoPhillips (COP) Banks on Oil-Rich Bakken Shale Assets Per the Zacks analyst, ConocoPhillips' production outlook is bright since it holds core acres in the oil-rich Bakken shale play. Apple Inc. (AAPL): Free Stock Analysis Report
|
19915.0
|
2022-08-03 00:00:00 UTC
|
Beginner Investors: How to Understand Stock Investing Lingo
|
AAPL
|
https://www.nasdaq.com/articles/beginner-investors%3A-how-to-understand-stock-investing-lingo
|
nan
|
nan
|
(0:30) - How To Start Investing Right Now: Basic Stock Terms
(6:45) - Understanding How To Use Stock Valuation Metrics
(20:15) - What Exactly Is Arbitrage and How Can You Use It?
(25:30) - The Federal Reserve: Hawkish vs Dovish
(33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, FIVN
Podcast@Zacks.com
Welcome to Episode #325 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to give some help to beginner investors.
Perhaps, you are new to stock investing and have started listening to this podcast and watching CNBC. But you’re confused by some of the terms that are thrown around.
Tracey wants to give you some help.
Apple is Expensive: Huh?
You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about.
Apple currently trades with a forward P/E of 26. When analysts on television say it is “expensive” they are likely talking about its P/E.
Apple’s earnings are only expected to rise 8% this fiscal year. Yet Apple has one of the highest P/Es among the FANGMAN stocks.
Just know that it’s not about share price when looking at valuation.
ExxonMobil: Forward or Trailing P/E?
Another confusing concept for beginners may be on what type of P/E is being used. YahooFinance has the trailing P/E on its main quote page but Zacks has the forward P/E.
It can be a problem when a company has strong year-over-year earnings growth like ExxonMobil XOM.
ExxonMobil is expected to grow earnings by 125% in 2022. It’s forward P/E is cheap, at just 7.8x. But ExxonMobil’s trailing P/E is more than double, at 16.1.
That’s a big difference. Be sure you know which type of P/E you are using.
What is Arbitrage? Twitter and Activision Blizzard
Beginning investors might have heard the word “arbitrage” thrown around recently and wondered what it was all about.
There are two good examples of the arbitrage trade occurring right now.
The first is with Elon Musk’s offer to buy Twitter TWTR and the second is with the Microsoft’s MSFT proposed acquisition of Activision Blizzard ATVI.
Arbitrage is when a trader buys shares of a company that has an acquisition offer because those shares are under the buy out price. They are betting that the deal goes through and they make the difference.
For example, Elon Musk offered to buy Twitter at $54.20 but the shares recently traded in the $30s. David Einhorn at Greenlight Capital recently announced he bought a position, with an average price of $37.24.
That’s the arbitrage. He is betting the court orders the deal to go through at $54.20.
Microsoft has an offer to buy Activision Blizzard at $95 per share. But Activision Blizzard is now trading around $79. Earlier in the year, Warren Buffett announced that he had put on a big arbitrage trade, buying 9.5% of Activision Blizzard in the belief that Microsoft would be able to go through with the deal and he would make the difference.
New investors shouldn’t get thrown by fancy investing lingo. It’s usually not as difficult as it seems.
What Other Confusing Investing Terms Should Beginners Know About?
Tune into this week’s podcast to find out.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Twitter, Inc. (TWTR): 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.
|
(25:30) - The Federal Reserve: Hawkish vs Dovish (33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, FIVN Podcast@Zacks.com Welcome to Episode #325 of the Zacks Market Edge Podcast. You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about. Apple Inc. (AAPL): Free Stock Analysis Report
|
Apple Inc. (AAPL): Free Stock Analysis Report (25:30) - The Federal Reserve: Hawkish vs Dovish (33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, FIVN Podcast@Zacks.com Welcome to Episode #325 of the Zacks Market Edge Podcast. You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about.
|
(25:30) - The Federal Reserve: Hawkish vs Dovish (33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, FIVN Podcast@Zacks.com Welcome to Episode #325 of the Zacks Market Edge Podcast. You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about. Apple Inc. (AAPL): Free Stock Analysis Report
|
(25:30) - The Federal Reserve: Hawkish vs Dovish (33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, FIVN Podcast@Zacks.com Welcome to Episode #325 of the Zacks Market Edge Podcast. You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about. Apple Inc. (AAPL): Free Stock Analysis Report
|
19916.0
|
2022-08-03 00:00:00 UTC
|
U.S. corporate profits, economic outlooks, surprisingly upbeat
|
AAPL
|
https://www.nasdaq.com/articles/u.s.-corporate-profits-economic-outlooks-surprisingly-upbeat-1
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy.
More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
Some 78% of earnings reports are beating Wall Street expectations, above the long-term average.
Profit growth estimates for the third and fourth quarters have come down, but remain sharply positive. S&P 500 earnings for all of 2022 are now forecast to grow 8.1% versus a 9.5% estimated in July, based on Refinitiv data.
Investors had been worried that if high inflation and rising interest rates were about to tip the economy into recession, earnings estimates for 2022 were too high.
Raising the risk that the economy was on the cusp of a recession, the U.S. Commerce Department said last week the American economy unexpectedly contracted in the second quarter - the second straight quarterly decline in gross domestic product.
Concerns over a possible recession had driven a sharp selloff in stocks in the first half of the year. But the S&P 500 .SPX and Nasdaq .IXIC ended July with their biggest monthly percentage gains since 2020, partly because of stronger-than-expected earnings.
"The consensus view (was) that earnings were going to just fall apart," said Jonathan Golub, chief U.S. equity strategist & head of quantitative research at Credit Suisse Securities. "And it just didn't play out that way."
Company reports are showing that demand remains robust and sales are holding up, he said.
"If you want to say, what's the health of the economy, it's measured in sales," Golub said.
Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues.
Apple said parts shortages were easing and that demand for iPhones was continuing, while Amazon.com forecast a jump in third-quarter revenue.
Heading into earnings, concerns had been growing over how big technology and other growth names could handle higher interest rates and a possible recession, and results so far from companies have mostly helped to give investors confidence in their outlook.
Alphabet's GOOGL.O report "dispelled some of the fears about ad spending," and other areas, said Keith Buchanan, portfolio manager at GLOBALT Investments in Atlanta.
To be sure, the news has not been positive all around. Walmart WMT.Nrattled investors early last week when it cut its full-year profit forecast, blaming surging prices for food and fuel.
That's raised worried about the health of the consumer and prospects for other retailers, most of which have yet to report results on the last quarter.
Also, analysts have been cutting their third-quarter earnings growth estimates by more than usual when compared with "either pre-pandemic or over the last two years," Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.
Whether earnings forecasts hold up is key to valuations. The S&P 500's forward 12-month price-to-earnings ratio, at 17.5 as of Tuesday, is down from 22.1 at the end of December but still above the long-term average of about 16, Refinitiv data showed.
Other strategists said the season is following a normal pattern: Companies often are more negative than positive with their outlooks, so earnings forecasts for upcoming quarters tend to go down typically during a reporting period.
Negative outlooks from S&P 500 companies on the third quarter so far are running only slightly above positive ones, based on Refinitiv data.
"So far, what's happened isn't something that's worse than feared. And the market was already braced for bad news," said Keith Lerner, chief market strategist at Truist Advisory Services in Atlanta.
S&P 500 profit growth for 2022 and 2023https://tmsnrt.rs/3d8WCCo
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Nick Zieminski)
((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.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Heading into earnings, concerns had been growing over how big technology and other growth names could handle higher interest rates and a possible recession, and results so far from companies have mostly helped to give investors confidence in their outlook.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
|
19917.0
|
2022-08-03 00:00:00 UTC
|
3 S&P 500 Companies Generating Substantial Cash
|
AAPL
|
https://www.nasdaq.com/articles/3-sp-500-companies-generating-substantial-cash
|
nan
|
nan
|
A common metric focused on when selecting stocks is free cash flow. In its simplest form, free cash flow is the total amount of cash a company has left over after paying for operating costs and any capital expenditures.
It’s a great indicator of a company’s financial health. A high free cash flow provides more growth opportunities, a higher potential for share buybacks, stable dividend payouts, and the ability to wipe out any debt with ease.
A few titans within the S&P 500 have unbelievably strong free cash flow, such as Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT. The chart below illustrates the year-to-date performance of all three companies.
Image Source: Zacks Investment Research
Let’s take a closer glance at each company’s free cash flow metrics and projected growth.
Exxon Mobil
Exxon Mobil XOM has massively benefitted from soaring energy costs in 2022, causing analysts to significantly up their earnings outlook and push the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
As mentioned above, soaring energy prices have significantly benefitted the company, and especially its free cash flow – XOM reported quarterly free cash flow of a mighty $16.1 billion in its latest earnings report, good enough for a sizable 48% uptick from the prior quarter and a massive 133% year-over-year increase.
Image Source: Zacks Investment Research
Top and bottom-line estimates reflect substantial growth. For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $12.24, reflecting a 130% triple-digit uptick in earnings year-over-year.
Image Source: Zacks Investment Research
Of course, the growth doesn’t stop there – Exxon Mobil is forecasted to generate a sizable $418 billion in revenue in FY22, reflecting a steep 46% increase year-over-year. Below is a chart illustrating the company’s income on a quarterly basis.
Image Source: Zacks Investment Research
Apple
Apple AAPL has revolutionized the mobile phone landscape and has been one, if not the most, popular stock of the last decade. Analysts have primarily been bearish over the past 60 days, reflecting the harsh macroeconomic backdrop we’ve landed in. The company is a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Apple is the king of free cash flow - the company is on track to achieve the highest free cash flow of any S&P 500 company in 2022. Just in its latest quarter, free cash flow was reported at a spectacular $20.8 billion, good enough for a solid 9.4% uptick from year-ago quarterly free cash flow of $19 billion.
Image Source: Zacks Investment Research
Even in the face of a harsh macroeconomic backdrop, Apple is still projected to grow at a rock-solid pace. For the company’s current fiscal year, earnings are projected to climb a notable 8.7%, reflecting annual EPS of $6.10.
Image Source: Zacks Investment Research
In addition, Apple’s top-line looks to remain supercharged, with the FY22 sales estimate of $392 billion penciling in a strong 5.4% year-over-year uptick. Below is a chart illustrating the company’s income on a quarterly basis.
Image Source: Zacks Investment Research
Microsoft
Microsoft MSFT has been a cornerstone in many portfolios over the last decade, with shares rewarding investors handsomely. Analysts have dialed back their earnings outlook over the last 60 days, similar to what we’ve seen with Apple. The company is a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Microsoft has repeatedly impressed with its free cash flow and is one of the biggest cash generators within the S&P 500. In its latest quarter, free cash flow was reported at a mighty $17.8 billion, good enough for a solid 9.2% uptick from the year-ago quarter.
Image Source: Zacks Investment Research
Consistent growth is the name of the game for Microsoft. The Zacks Consensus EPS Estimate for the company’s current fiscal year (FY23) resides at $10.14, notching an impressive 10% double-digit year-over-year uptick.
Image Source: Zacks Investment Research
Of course, MSFT’s top-line is also in excellent shape – annual revenue is forecasted to climb 9.7% in FY23, reflecting annual sales of $220 billion. Below is a chart illustrating the company’s income on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Many investors seek high free cash flow when selecting stocks. Simply put, it proves that a company is making money with extra to spare for future endeavors.
In addition, it gives them flexibility amid downturns – a vital aspect that instills confidence within investors. After all, if a company can’t adapt, the consequences can be severe.
All three companies above are cash cows and members of the S&P 500 – undoubtedly a pairing that reflects serious success.
For investors looking for companies with substantial cash-generating abilities, Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT all precisely fit the parameters.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): 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.
|
A few titans within the S&P 500 have unbelievably strong free cash flow, such as Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT. Image Source: Zacks Investment Research Apple Apple AAPL has revolutionized the mobile phone landscape and has been one, if not the most, popular stock of the last decade. For investors looking for companies with substantial cash-generating abilities, Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT all precisely fit the parameters.
|
A few titans within the S&P 500 have unbelievably strong free cash flow, such as Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT. Image Source: Zacks Investment Research Apple Apple AAPL has revolutionized the mobile phone landscape and has been one, if not the most, popular stock of the last decade. For investors looking for companies with substantial cash-generating abilities, Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT all precisely fit the parameters.
|
A few titans within the S&P 500 have unbelievably strong free cash flow, such as Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT. Image Source: Zacks Investment Research Apple Apple AAPL has revolutionized the mobile phone landscape and has been one, if not the most, popular stock of the last decade. For investors looking for companies with substantial cash-generating abilities, Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT all precisely fit the parameters.
|
A few titans within the S&P 500 have unbelievably strong free cash flow, such as Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT. Image Source: Zacks Investment Research Apple Apple AAPL has revolutionized the mobile phone landscape and has been one, if not the most, popular stock of the last decade. For investors looking for companies with substantial cash-generating abilities, Apple AAPL, Exxon Mobil XOM, and Microsoft MSFT all precisely fit the parameters.
|
19918.0
|
2022-08-03 00:00:00 UTC
|
Nasdaq hits three-month high as PayPal fuels optimism
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-hits-three-month-high-as-paypal-fuels-optimism
|
nan
|
nan
|
By Noel Randewich and Devik Jain
Aug 3 (Reuters) - Wall Street rallied on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping drive the Nasdaq to its highest level since early May.
Data showed the U.S. services industry unexpectedly picked up in July amid strong order growth, while supply bottlenecks and price pressures eased. This supported views that the economy was not in recession despite output slumping in the first half of the year.
A fresh batch of strong results from companies including PayPal PYPL.O and CVS Health Corp CVS.N boosted sentiment in a largely upbeat quarterly reporting season. It has helped markets rebound from losses caused by worries about decades-high inflation, rising interest rates and shrinking economic output.
"We're going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we're seeing a lot of better-than-feared prints, and that's just good enough right now," said Sahak Manuelian, managing director of trading at Wedbush Securities in Los Angeles.
Apple AAPL.O and Amazon AMZN.O jumped more than 3% each, while Facebook-owner Meta Platforms META.O rallied almost 5%.
PayPal Holdings jumped 9.5% after it raised its annual profit guidance and said activist investor Elliott Management had an over $2 billion stake in the financial technology firm.
CVS Health Corp gained 5.4% as the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
Manuelian said an additional factor behind Wednesday's stock rally was growing confidence among investors that the Fed has already carried out the bulk of the interest rate hikes that will be necessary to bring inflation under control.
Meanwhile, Richmond Federal Reserve President Thomas Barkin on Wednesday joined policymakers saying that the U.S. central bank is committed to getting inflation under control and returning it to its 2% target.
In afternoon trading, the S&P 500 was up 1.58% at 4,155.65 points.
The Nasdaq gained 2.53% to 12,661.05 points, while the Dow Jones Industrial Average was up 1.31% at 32,819.72 points.
Additional data on Wednesday showed new orders for U.S.-manufactured goods increased solidly in June and business spending on equipment was stronger than initially thought, pointing to underlying strength in manufacturing despite rising interest rates.
Of the 11 S&P 500 sector indexes, 10 rose, led by information technology .SPLRCT, up 2.63%, followed by a 2.59% gain in consumer discretionary .SPLRCD.
The S&P 500 has rebounded about 13% from its closing low in mid-June and would have to climb another 15% to get back to its record high close in early January.
Moderna Inc MRNA.O surged over 16% after the vaccine maker announced a $3 billion share buyback plan.
Regeneron Pharmaceuticals REGN.O climbed 6.1% after it beat quarterly revenue estimates, while coffee chain Starbucks Corp SBUX.O rose 4.4% after it reported upbeat quarterly profits.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a four-to-one ratio. The S&P 500 posted two new highs and 30 new lows; the Nasdaq recorded 42 new highs and 31 new lows.
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru and by Noel Randewich in Oakland, Calif; Editing by Sriraj Kalluvila, Arun Koyyur and Cynthia Osterman)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL.O and Amazon AMZN.O jumped more than 3% each, while Facebook-owner Meta Platforms META.O rallied almost 5%. By Noel Randewich and Devik Jain Aug 3 (Reuters) - Wall Street rallied on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping drive the Nasdaq to its highest level since early May. "We're going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we're seeing a lot of better-than-feared prints, and that's just good enough right now," said Sahak Manuelian, managing director of trading at Wedbush Securities in Los Angeles.
|
Apple AAPL.O and Amazon AMZN.O jumped more than 3% each, while Facebook-owner Meta Platforms META.O rallied almost 5%. By Noel Randewich and Devik Jain Aug 3 (Reuters) - Wall Street rallied on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping drive the Nasdaq to its highest level since early May. A fresh batch of strong results from companies including PayPal PYPL.O and CVS Health Corp CVS.N boosted sentiment in a largely upbeat quarterly reporting season.
|
Apple AAPL.O and Amazon AMZN.O jumped more than 3% each, while Facebook-owner Meta Platforms META.O rallied almost 5%. By Noel Randewich and Devik Jain Aug 3 (Reuters) - Wall Street rallied on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping drive the Nasdaq to its highest level since early May. CVS Health Corp gained 5.4% as the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results.
|
Apple AAPL.O and Amazon AMZN.O jumped more than 3% each, while Facebook-owner Meta Platforms META.O rallied almost 5%. CVS Health Corp gained 5.4% as the largest U.S. pharmacy chain raised its annual profit forecast after posting strong quarterly results. Manuelian said an additional factor behind Wednesday's stock rally was growing confidence among investors that the Fed has already carried out the bulk of the interest rate hikes that will be necessary to bring inflation under control.
|
19919.0
|
2022-08-03 00:00:00 UTC
|
FOCUS-Chip makers have a message for car makers: Your turn to pay
|
AAPL
|
https://www.nasdaq.com/articles/focus-chip-makers-have-a-message-for-car-makers%3A-your-turn-to-pay
|
nan
|
nan
|
By Jane Lanhee Lee, Sarah Wu and Kevin Krolicki
Aug 3 (Reuters) - The shortages of computer chips that forced global automakers to scrap production plans for millions of cars over the past two years are easing - at a new and permanent cost to the car companies.
What had been “war room operations” to manage chip shortages are becoming embedded features of vehicle development, say executives in both industries. That has shifted the risks and some of the costs to automakers.
Newly created teams at the likes of General Motors Co GM.N, Volkswagen AG VOWG_p.DE and Ford Motor Co F.N are negotiating directly with chipmakers. Automakers like Nissan Motor Co Ltd 7201.T and others are accepting longer order commitments and higher inventories. Key suppliers including Robert Bosch ROBG.UL and Denso 6902.T are investing in chip production. GM and Stellantis STLA.MI have said they will work with chip designers to design components.
Taken together, the changes represent a fundamental shift for the auto industry: higher costs, more hands-on work in chip development and more capital commitment in exchange for better visibility in their chip supplies, executives and analysts say.
It is a U-turn for automakers who had previously relied on suppliers – or their suppliers – to source semiconductors.
For chip makers, the still-developing partnership with automakers is a welcome - and overdue reset. Many semiconductor executives point the finger at automakers’ lack of understanding of how the chip supply chain works – and an unwillingness to share cost and risk - for a large part of the recent crisis.
The costly changes are coming together just as the auto industry appears to be moving past the worst of an even more costly crisis that by one estimate has cut 13 million vehicles from global production since the start of 2021.
THEY NEVER CALLED
C.C. Wei, chief executive of the world’s biggest chipmaker Taiwan Semiconductor Manufacturing Co 2330.TW, said he had never had an auto industry executive call him - until the shortage was desperate.
“In the past two years they call me and behave like my best friend,” he told a laughing crowd of TSMC partners and customers in Silicon Valley recently. One automaker called to urgently request 25 wafers, said Wei, who is used to fielding orders for 25,000 wafers. “No wonder you cannot get the support.”
Thomas Caulfield, GlobalFoundries Inc GFS.O chief executive, said the auto industry understands it can no longer leave the risk of building multibillion-dollar chip factories to chipmakers.
“You can't have one element of the industry carry the water for the rest of the industry,” he told Reuters. “We will not put capacity on unless that customer is committed to it, and they have a state of ownership in that capacity.”
Ford has announced it will work with GlobalFoundries to secure its supply of chips. Mike Hogan, who heads GlobalFoundries’ automotive business, said more deals like that are in the pipeline with other car makers.
SkyWater Technology Inc SKYT.O, a chip manufacturer in Minnesota, is talking to automakers about putting “skin in the game” by buying equipment or paying for research and development, Chief Executive Thomas Sonderman told Reuters.
Working closer with carmakers and their suppliers has brought onsemi ON.O $4 billion in long-term agreements for power management chips made from silicon carbide, a new material gaining popularity, said Chief Executive Hassane El-Khoury. “We're making billions of dollars of investment every year in order to scale that operation,” he told Reuters. “We're not going to build factories on hope.”
Michael Hurlston, the CEO of Synaptics Inc SYNA.O, whose chips drive touch screens, which had held up some auto production, said the recent, more direct collaboration with automakers could create new business opportunities as well as managing risks.
Hurlston said the automotive industry has warmed up to using OLED screens, which are less durable than the LCD screens, a factor that many perceived would limit their use in cars despite better contrast and lower power consumption.
“But that perception has changed pretty dramatically over the last two years. And that perception has changed as a direct result of us being able to talk to (the auto industry),” he said. “The paradigm has really, really shifted for us.”
Chief executives of Japan’s Renesas Electronics Corp 6723.T and Dutch NXP Semiconductors N.V. NXPI.O have both told Reuters they are co-locating engineers to help automakers design a new architecture where one computer would centrally control all functions.
“They have woken up,” said NXP CEO Kurt Sievers. “They have understood what it takes. They try to find the right talent. It’s a big shift.”
‘WE HAVE UNDERSTOOD’
The average semiconductor content per vehicle will exceed $1,000 by 2026, doubling from the first year of the pandemic, according to Gartner. One example: the battery-powered Porsche Taycan has over 8,000 chips. That will double or triple by the end of the decade, according to Volkswagen.
“We have understood that we are a part of the semiconductor industry,” said Volkswagen Group’s Berthold Hellenthal, a senior manager for semiconductor management. “We have now people dedicated just to strategic semiconductor management.”
Securing – and keeping – chip engineers will be a challenge for automakers, which will have to compete against the likes of Alphabet Inc's GOOGL.O Google, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who works with both established automakers and startups. “I think that that would lead to acquisitions,” he said.
Unlike Tesla Inc TSLA.O, which designs its own core chips, Simoudis said traditional automakers will have to juggle production of legacy auto models as they make new investments.
AutoForecast Solutions (AFS) estimates that microchip shortages have forced automakers around the world to cut over 13 million vehicles from production plans since the start of 2021.
"It's an arrogant industry," said Sam Fiorani, vice president of global vehicle forecasting at AFS. “Sometimes it just bites them in the rear.”
(Reporting by Jane Lanhee Lee in Oakland, Calif., Sarah Wu in Taipei and Kevin Krolicki in Detroit Additional reporting by Tim Kelly in Tokyo and Victoria Waldersee in Berlin Editing by Kevin Krolicki and Matthew Lewis)
((kevin.krolicki@thomsonreuters.com; +813 6441 1800; Reuters Messaging: kevin.krolicki.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.
|
“We have now people dedicated just to strategic semiconductor management.” Securing – and keeping – chip engineers will be a challenge for automakers, which will have to compete against the likes of Alphabet Inc's GOOGL.O Google, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who works with both established automakers and startups. Working closer with carmakers and their suppliers has brought onsemi ON.O $4 billion in long-term agreements for power management chips made from silicon carbide, a new material gaining popularity, said Chief Executive Hassane El-Khoury. “We're not going to build factories on hope.” Michael Hurlston, the CEO of Synaptics Inc SYNA.O, whose chips drive touch screens, which had held up some auto production, said the recent, more direct collaboration with automakers could create new business opportunities as well as managing risks.
|
“We have now people dedicated just to strategic semiconductor management.” Securing – and keeping – chip engineers will be a challenge for automakers, which will have to compete against the likes of Alphabet Inc's GOOGL.O Google, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who works with both established automakers and startups. By Jane Lanhee Lee, Sarah Wu and Kevin Krolicki Aug 3 (Reuters) - The shortages of computer chips that forced global automakers to scrap production plans for millions of cars over the past two years are easing - at a new and permanent cost to the car companies. “No wonder you cannot get the support.” Thomas Caulfield, GlobalFoundries Inc GFS.O chief executive, said the auto industry understands it can no longer leave the risk of building multibillion-dollar chip factories to chipmakers.
|
“We have now people dedicated just to strategic semiconductor management.” Securing – and keeping – chip engineers will be a challenge for automakers, which will have to compete against the likes of Alphabet Inc's GOOGL.O Google, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who works with both established automakers and startups. By Jane Lanhee Lee, Sarah Wu and Kevin Krolicki Aug 3 (Reuters) - The shortages of computer chips that forced global automakers to scrap production plans for millions of cars over the past two years are easing - at a new and permanent cost to the car companies. Taken together, the changes represent a fundamental shift for the auto industry: higher costs, more hands-on work in chip development and more capital commitment in exchange for better visibility in their chip supplies, executives and analysts say.
|
“We have now people dedicated just to strategic semiconductor management.” Securing – and keeping – chip engineers will be a challenge for automakers, which will have to compete against the likes of Alphabet Inc's GOOGL.O Google, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who works with both established automakers and startups. That has shifted the risks and some of the costs to automakers. Taken together, the changes represent a fundamental shift for the auto industry: higher costs, more hands-on work in chip development and more capital commitment in exchange for better visibility in their chip supplies, executives and analysts say.
|
19920.0
|
2022-08-03 00:00:00 UTC
|
Should Engine No. 1 Transform 500 ETF (VOTE) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-engine-no.-1-transform-500-etf-vote-be-on-your-investing-radar-0
|
nan
|
nan
|
The Engine No. 1 Transform 500 ETF (VOTE) was launched on 06/22/2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Engine No. 1. It has amassed assets over $370.11 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.22%.
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 29.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.38% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 26.15% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has lost about -15.11% so far this year and is down about -7.73% in the last one year (as of 08/03/2022). In the past 52-week period, it has traded between $42.51 and $56.33.
The ETF has a beta of 1.01 and standard deviation of 19.99% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
Engine No. 1 Transform 500 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, VOTE 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 $303.58 billion in assets, SPDR S&P 500 ETF has $369.76 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Engine No. 1 Transform 500 ETF (VOTE): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.38% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 1 Transform 500 ETF (VOTE) was launched on 06/22/2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.38% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 1 Transform 500 ETF (VOTE) was launched on 06/22/2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.38% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.38% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
|
19921.0
|
2022-08-03 00:00:00 UTC
|
Stock Market Today: Dow Jones, S&P 500 Rebound Following Back To Back Losing Days
|
AAPL
|
https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-rebound-following-back-to-back-losing-days
|
nan
|
nan
|
Stock Market Today Mid Morning Updates
U.S. stock futures are trading higher early Wednesday morning. This comes on the heels of new economic data getting released on Wednesday morning. Additionally, investors await data from more notable names in the stock market on Wednesday. Such as Lucid Group (NASDAQ: LCID), Marathon Oil Corp. (NYSE: MRO), eBay, Inc. (NASDAQ: EBAY), and others.
The stock market on Wednesday morning broke back-to-back days of losses. This comes as investors react positively to earnings results from Moderna (NASDAQ: MRNA) and CVS Health (NYSE: CVS).
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) jumped by 2.16% on Wednesday, while Microsoft (NASDAQ: MSFT) is also up by 1.33%. Meanwhile, shares of Home Depot (NYSE: HD), and Nike (NYSE: NKE) shares are trading modestly higher on Wednesday. Among the Dow financial leaders, shares of Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are also trading higher during Wednesday morning’s trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) are up Wednesday by 0.55%. Rival EV companies like Rivian (NASDAQ: RIVN) are also trading up by 0.23%. Lucid Group (NASDAQ: LCID) stock gained 0.48% on Wednesday. Chinese EV leaders like Nio (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are both trading lower on Wednesday.
Dow Jones Today: U.S. Treasury Yield At 2.80%; Key Economic Data Reported
Following the stock market opening on Wednesday, the major indices opened higher. The Dow, S&P 500, and Nasdaq are trading higher at 0.53%, 0.72%, and 1.36%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has rallied by 1.43% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up by 0.72%. The benchmark 10-year U.S. Treasury yield is at 2.80% during Wednesday’s early morning trading session.
Moving on, The major averages moved higher on Wednesday following the release of stronger-than-expected U.S. services data. In detail, The ISM non-manufacturing purchasing managers index reported an unexpected recovery in July. Specifically, the reports came in at 56.7, which is higher than 55.3 in June. Consensus estimates were 54. Also, factor orders in June were stronger than expected, increasing by 2%. For context, economists were expecting estimates of a 1.2% increase.
[Read More] Good Stocks To Buy Right Now? 3 Growth Stocks For Your Watchlist
Moderna Stock (MRNA) Rallies On Earnings Beat
Next, shares of biotech company Moderna (MRNA) are rallying higher on Wednesday. MRNA stock is up over 16% early Wednesday morning at $187.02 per share. This rally comes after the company reported a beat for its second quarter 2022 fiscal earnings. In the report, Moderna posted earnings of $5.24 per share on revenue of $4.7 billion. This is compared with, wall street’s consensus earnings estimate of $4.50 per share on revenue of $4.2 billion.
“Today’s earnings represent a strong second quarter performance, with $10.8 billion in revenue for the first half of the year. We continue to have advance purchase agreements for expected delivery in 2022 of around $21 billion of sales. Given our strong financial position and commercial momentum, we are announcing today that the Board of Directors has approved a new share repurchase program for $3 billion,” stated Stéphane Bancel, Chief Executive Officer of Moderna.
Source: TD Ameritrade TOS
[Read More] Best Dividend Stocks To Buy Now? 5 For Your List
CVS Stock (CVS) Jumps On Stronger-Than-Expected Earnings
Next up, let’s take a look at CVS Health (CVS). The company reported its second quarter 2022 earnings on Wednesday morning. In it, CVS reported earnings of $2.40 per share on revenue of $80.6 billion. Wall street’s earnings estimate were $2.16 per share on revenue of $76.4 billion. This means CVS reported better-than-expected earnings. As a result shares of CVS stock are rallying on Wednesday morning by more than 4% at $99.72 per share.
Also, the company provided guidance for its full-year 2022 earnings. In detail, it anticipates full-year 2022 earnings of $8.40 to $8.60 per share. The company’s previous guidance was earnings of $8.20 to $8.40 per share. Meanwhile, analysts’ current consensus earnings estimate is $8.34 per share for the year.
Karen S. Lynch, CVS Health President, and CEO quoted, “Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments. The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care.“
Source: TD Ameritrade TOS
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.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) jumped by 2.16% on Wednesday, while Microsoft (NASDAQ: MSFT) is also up by 1.33%. In detail, The ISM non-manufacturing purchasing managers index reported an unexpected recovery in July. Given our strong financial position and commercial momentum, we are announcing today that the Board of Directors has approved a new share repurchase program for $3 billion,” stated Stéphane Bancel, Chief Executive Officer of Moderna.
|
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) jumped by 2.16% on Wednesday, while Microsoft (NASDAQ: MSFT) is also up by 1.33%. This comes as investors react positively to earnings results from Moderna (NASDAQ: MRNA) and CVS Health (NYSE: CVS). Dow Jones Today: U.S. Treasury Yield At 2.80%; Key Economic Data Reported Following the stock market opening on Wednesday, the major indices opened higher.
|
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) jumped by 2.16% on Wednesday, while Microsoft (NASDAQ: MSFT) is also up by 1.33%. Among the Dow financial leaders, shares of Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are also trading higher during Wednesday morning’s trading session. 3 Growth Stocks For Your Watchlist Moderna Stock (MRNA) Rallies On Earnings Beat Next, shares of biotech company Moderna (MRNA) are rallying higher on Wednesday.
|
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) jumped by 2.16% on Wednesday, while Microsoft (NASDAQ: MSFT) is also up by 1.33%. The company reported its second quarter 2022 earnings on Wednesday morning. In it, CVS reported earnings of $2.40 per share on revenue of $80.6 billion.
|
19922.0
|
2022-08-03 00:00:00 UTC
|
1 Surprising Catalyst for Apple Stock
|
AAPL
|
https://www.nasdaq.com/articles/1-surprising-catalyst-for-apple-stock
|
nan
|
nan
|
With the original iPhone announced over 15 years ago, you might think that the segment wouldn't still be a growth driver for Apple (NASDAQ: AAPL). And some investors might be surprised to find out that after all these years, the company is still driving strong switch rates from other devices to the iPhone.
Indeed, the tech company recently said its most recently ended quarter garnered a record number of people switching to iPhone from other phones than in any fiscal third quarter to date.
Here's a closer look at iPhone's momentum -- and why strong switching trends bode well for the company.
Strength in iPhone
It's always been management's belief that if it achieves high customer satisfaction, it would translate to a loyal customer base. While this is obviously easier said than done, Apple's largely been able to consistently do exactly this. In its earnings calls, Apple often cites impressive customer satisfaction for its devices.
For example, in its fiscal third-quarter earnings call, Apple CFO Luca Maestri cited a recent 451 Research survey of U.S. consumers that indicated an impressive 98% satisfaction rate for iPhone. This high satisfaction, combined with Apple's continued innovation in the segment, led to double-digit year-over-year growth in the number of customers who are switching from other phones to iPhone. This growth rate is particularly strong when viewed in the context of the quarter's 3% year-over-year growth in iPhone revenue.
Growing its installed base
Investors shouldn't underestimate the positive impact of iPhone switchers on Apple's business. For anyone who thinks it may not matter where the new iPhone buyer is coming from, they should reconsider. If an iPhone buyer is an existing iPhone owner, the company's installed base of active devices does not increase. But if the buyer comes from a different phone, the company adds another user to monetize across its App Store and other services. An iPhone buyer who is switching from another device, therefore, is arguably much more valuable than a repeat buyer.
This is why, in Apple's fiscal third-quarterearnings call Maestri drew attention to the company's installed base performance. "iPhone active installed base reached a new all-time high across all geographies as a result of this level of sales performance combined with unmatched customer loyalty," the CFO explained.
Apple's emphasis on growing its installed base is working across all of Apple's product categories and geographies, with the company achieving all-time high installed bases across every one of these segments in fiscal Q3. Further, Apple said it saw "increased customer engagement" with its services during the quarter, showing that the value of each user in its installed base continues to increase.
A good example of this is the growth in paid subscriptions -- including both third-party and native subscriptions -- on its platform. Paid subscriptions across its user base were 860 million by the end of fiscal Q3, up by more than 160 million over the year-ago period. Further, Maestri said its "transacting accounts, paid accounts, and accounts with paid subscriptions all grew double digits year over year."
All of this is to say that high switch rates for iPhone add significant fuel to an already powerful engine for the company: Apple's growing installed base of active devices. With the tech company increasingly finding ways to engage and transact with these customers, each user is becoming more valuable -- and the installed base likely still has plenty of room to grow, considering that every geography and product category hit a record level of active devices during the quarter.
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 July 27, 2022
Daniel Sparks has positions in Apple. His clients may own shares of the company. 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.
|
With the original iPhone announced over 15 years ago, you might think that the segment wouldn't still be a growth driver for Apple (NASDAQ: AAPL). For example, in its fiscal third-quarter earnings call, Apple CFO Luca Maestri cited a recent 451 Research survey of U.S. consumers that indicated an impressive 98% satisfaction rate for iPhone. "iPhone active installed base reached a new all-time high across all geographies as a result of this level of sales performance combined with unmatched customer loyalty," the CFO explained.
|
With the original iPhone announced over 15 years ago, you might think that the segment wouldn't still be a growth driver for Apple (NASDAQ: AAPL). Indeed, the tech company recently said its most recently ended quarter garnered a record number of people switching to iPhone from other phones than in any fiscal third quarter to date. Apple's emphasis on growing its installed base is working across all of Apple's product categories and geographies, with the company achieving all-time high installed bases across every one of these segments in fiscal Q3.
|
With the original iPhone announced over 15 years ago, you might think that the segment wouldn't still be a growth driver for Apple (NASDAQ: AAPL). If an iPhone buyer is an existing iPhone owner, the company's installed base of active devices does not increase. Apple's emphasis on growing its installed base is working across all of Apple's product categories and geographies, with the company achieving all-time high installed bases across every one of these segments in fiscal Q3.
|
With the original iPhone announced over 15 years ago, you might think that the segment wouldn't still be a growth driver for Apple (NASDAQ: AAPL). And some investors might be surprised to find out that after all these years, the company is still driving strong switch rates from other devices to the iPhone. This growth rate is particularly strong when viewed in the context of the quarter's 3% year-over-year growth in iPhone revenue.
|
19923.0
|
2022-08-03 00:00:00 UTC
|
Is Roku Stock a Buy Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-roku-stock-a-buy-now-1
|
nan
|
nan
|
Roku's (NASDAQ: ROKU) stock sank 23% to its lowest level in over three years after its second-quarter earnings report on July 29. The streaming device and software company's revenue rose 18% year over year to $764 million but missed analysts' estimates by $40 million. It also posted a net loss of $112 million, compared to a net profit of $73 million a year ago, while its net loss of $0.82 per share came in $0.13 below the consensus forecast.
Let's talk about Roku's unsightly quarter, why it's been struggling, and if its stock is worth buying after losing nearly 90% of its value over the past 12 months.
Image source: Getty Images.
How bad were Roku's numbers?
Roku's growth accelerated during the pandemic as people stayed at home and streamed more media. But as governments around the world eased the lockdown measuresures, Roku's growth decelerated against difficult year-over-year comparisons.
As that slowdown occurred, Roku's hardware business grappled with rising component costs and supply chain disruptions. Those headwinds also hurt its platform business, which generates most of its revenue from integrated ads, as companies (especially in the auto and consumer packaged goods sectors) reined in their marketing expenses to counter those rising costs.
But despite all those challenges, Roku's active accounts and average revenues per user (ARPU) both continued rising on a sequential and year-over-year basis over the past year. Its streaming hours dipped sequentially in Q2 but still improved from the previous year.
PERIOD
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Active Accounts (Millions)
55.1
56.4
60.1
61.3
63.1
Growth (YOY)
28%
23%
17%
14%
14%
Streaming Hours (Billions)
17.4
18.0
19.5
20.9
20.7
Growth (YOY)
19%
21%
15%
14%
19%
ARPU
$36.46
$40.10
$41.03
$42.91
$44.10
Growth (YOY)
46%
49%
43%
34%
21%
Data source: Roku. YOY = Year-over-year.
But in terms of revenues, the growth of Roku's platform business continues to decelerate, while its player revenues have declined for four consecutive quarters.
PERIOD
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Platform Revenue
$532.3
$582.5
$703.6
$646.9
$673.2
Growth (YOY)
117%
82%
49%
39%
26%
Player Revenue
$112.8
$97.4
$161.7
$86.8
$91.2
Growth (YOY)
1%
(26%)
(9%)
(19%)
(19%)
Total Revenue
$645.1
$680.0
$865.3
$733.7
$764.4
Growth (YOY)
81%
51%
33%
28%
18%
Data source: Roku. Millions of USD.
During the conference call, CEO Anthony Wood said Roku struggled with a "significant slowdown in TV advertising spend due to the macroeconomic environment" during the quarter. He also said the company would face an "increasingly difficult and uncertain environment" in Q3 as "recessionary fears, inflationary pressures, rising interest rates, and ongoing supply chain issues" continue to affect its platform and player businesses.
Roku's margins are still declining
As Roku's top-line growth slows down, its gross margins are contracting both sequentially and year over year.
PERIOD
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Platform Gross Margin
64.8%
65%
60.5%
58.7%
56%
Player Gross Margin
(5.9%)
(15%)
(28.4%)
(17.4%)
(24.1%)
Total Gross Margin
52.4%
53.5%
43.9%
49.7%
46.5%
Data source: Roku.
The platform business's declining gross margins largely reflect its waning pricing power in the weakening advertising market. That contraction is troubling because Roku relies on its higher-margin platform revenues to offset the player segment's low margins.
Roku had already been selling its players at razor-thin margins throughout the pandemic to widen its moat against Amazon's Fire TV, Alphabet's Android TV, Apple TV, and other set-top box makers, but the ongoing supply chain disruptions forced it to absorb its rising costs and take losses on its players.
At the same time, Roku has been ramping up its spending on new original content for its ad-supported Roku Channel. That combination of slowing revenue growth, contracting gross margins, and rising operating expenses has been toxic for its bottom line.
PERIOD
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Operating Income
$69.1
$68.8
$21.4
($23.5)
($110.5)
Adjusted EBITDA
$122.4
$130.1
$86.7
$57.6
($12.1)
Net Income
$73.5
$68.9
($23.7)
($26.3)
($112.3)
Data source: Roku. Millions of USD.
During the conference call, CFO Steve Louden warned that the "second half operating environment will be increasingly challenging." Louden expects Roku's platform margins to stabilize sequentially but for its player margins to continue sliding as it insulates consumers from higher costs.
Louden also withdrew Roku's previous full-year guidance for 35% growth due to "too much macro uncertainty." Analysts had expected its revenue to rise 32%. Based on those estimates, which might still be too optimistic, Roku's stock looks fairly cheap at just over two times this year's sales.
It's not the right time to buy Roku
Roku isn't down for the count yet, but its stock could continue to slide until it stabilizes its revenue growth and losses. It might look cheap now, but it could still get a lot cheaper over the next few months.
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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet (A shares), Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Roku. 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.
|
Those headwinds also hurt its platform business, which generates most of its revenue from integrated ads, as companies (especially in the auto and consumer packaged goods sectors) reined in their marketing expenses to counter those rising costs. During the conference call, CEO Anthony Wood said Roku struggled with a "significant slowdown in TV advertising spend due to the macroeconomic environment" during the quarter. He also said the company would face an "increasingly difficult and uncertain environment" in Q3 as "recessionary fears, inflationary pressures, rising interest rates, and ongoing supply chain issues" continue to affect its platform and player businesses.
|
Active Accounts (Millions) 55.1 56.4 60.1 61.3 63.1 Growth (YOY) 28% 23% 17% 14% 14% Streaming Hours (Billions) 17.4 18.0 19.5 20.9 20.7 Growth (YOY) 19% 21% 15% 14% 19% Platform Revenue $532.3 $582.5 $703.6 $646.9 $673.2 Growth (YOY) 117% 82% 49% 39% 26% Player Revenue $112.8 $97.4 $161.7 $86.8 $91.2 Growth (YOY) 1% (26%) (9%) (19%) (19%) Total Revenue $645.1 $680.0 $865.3 $733.7 $764.4 Growth (YOY) 81% 51% 33% 28% 18% Data source: Roku. Platform Gross Margin 64.8% 65% 60.5% 58.7% 56% Player Gross Margin (5.9%) (15%) (28.4%) (17.4%) (24.1%) Total Gross Margin 52.4% 53.5% 43.9% 49.7% 46.5% Data source: Roku.
|
Platform Revenue $532.3 $582.5 $703.6 $646.9 $673.2 Growth (YOY) 117% 82% 49% 39% 26% Player Revenue $112.8 $97.4 $161.7 $86.8 $91.2 Growth (YOY) 1% (26%) (9%) (19%) (19%) Total Revenue $645.1 $680.0 $865.3 $733.7 $764.4 Growth (YOY) 81% 51% 33% 28% 18% Data source: Roku. Roku's margins are still declining As Roku's top-line growth slows down, its gross margins are contracting both sequentially and year over year. It's not the right time to buy Roku Roku isn't down for the count yet, but its stock could continue to slide until it stabilizes its revenue growth and losses.
|
Active Accounts (Millions) 55.1 56.4 60.1 61.3 63.1 Growth (YOY) 28% 23% 17% 14% 14% Streaming Hours (Billions) 17.4 18.0 19.5 20.9 20.7 Growth (YOY) 19% 21% 15% 14% 19% But in terms of revenues, the growth of Roku's platform business continues to decelerate, while its player revenues have declined for four consecutive quarters. Roku's margins are still declining As Roku's top-line growth slows down, its gross margins are contracting both sequentially and year over year.
|
19924.0
|
2022-08-03 00:00:00 UTC
|
U.S. corporate profits, economic outlooks, surprisingly upbeat
|
AAPL
|
https://www.nasdaq.com/articles/u.s.-corporate-profits-economic-outlooks-surprisingly-upbeat-0
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy.
More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
Some 78% of earnings reports are beating Wall Street expectations, above the long-term average.
Profit growth estimates for the third and fourth quarters have come down, but remain sharply positive. S&P 500 earnings for all of 2022 are now forecast to grow 8.1% versus a 9.5% estimated in July, based on Refinitiv data.
Investors had been worried that if high inflation and rising interest rates were about to tip the economy into recession, earnings estimates for 2022 were too high.
Raising the risk that the economy was on the cusp of a recession, the U.S. Commerce Department said last week the American economy unexpectedly contracted in the second quarter - the second straight quarterly decline in gross domestic product.
Concerns over a possible recession had driven a sharp selloff in stocks in the first half of the year. But the S&P 500 .SPX and Nasdaq .IXIC ended July with their biggest monthly percentage gains since 2020, partly because of stronger-than-expected earnings.
"The consensus view (was) that earnings were going to just fall apart," said Jonathan Golub, chief U.S. equity strategist & head of quantitative research at Credit Suisse Securities. "And it just didn't play out that way."
Company reports are showing that demand remains robust and sales are holding up, he said.
"If you want to say, what's the health of the economy, it's measured in sales," Golub said.
Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues.
Apple said parts shortages were easing and that demand for iPhones was continuing, while Amazon.com forecast a jump in third-quarter revenue.
"It's held up pretty well, particularly for large-cap names, but of course people were expecting the worst," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
To be sure, the news has not been positive all around. Walmart WMT.Nrattled investors early last week when it cut its full-year profit forecast, blaming surging prices for food and fuel.
That's raised worried about the health of the consumer and prospects for other retailers, most of which have yet to report results on the last quarter.
Also, analysts have been cutting their third-quarter earnings growth estimates by more than usual when compared with "either pre-pandemic or over the last two years," Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.
Whether earnings forecasts hold up is key to valuations. The S&P 500's forward 12-month price-to-earnings ratio, at 17.5 as of Tuesday, is down from 22.1 at the end of December but still above the long-term average of about 16, Refinitiv data showed.
Other strategists said the season is following a normal pattern: Companies often are more negative than positive with their outlooks, so earnings forecasts for upcoming quarters tend to go down typically during a reporting period.
"So far, what's happened isn't something that's worse than feared. And the market was already braced for bad news," said Keith Lerner, chief market strategist at Truist Advisory Services in Atlanta.
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Nick Zieminski)
((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.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Also, analysts have been cutting their third-quarter earnings growth estimates by more than usual when compared with "either pre-pandemic or over the last two years," Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. "If you want to say, what's the health of the economy, it's measured in sales," Golub said.
|
19925.0
|
2022-08-03 00:00:00 UTC
|
TOGGLE Daily Brief: Why Are Investors Reloading on Tech Stocks?
|
AAPL
|
https://www.nasdaq.com/articles/toggle-daily-brief%3A-why-are-investors-reloading-on-tech-stocks
|
nan
|
nan
|
For one, the sector was considerably oversold. Last June 16, both SPX and Nasdaq traded at their lows for the year. With some portions of the tech space in bear market since 2021, the sector offered a compelling entry point.
Secondly, a narrative emerged that the Fed might be slowing down its hiking pace, which made everyone more relaxed about the fact that we might - just - avoid a recession in the style of Volker.
However, something else is happening in the perception of Big Tech. Big Tech might begin to look more and more like a safe bet. Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) manage a considerable portion of our tech infrastructure. If you were to pull the plug out of Big Tech, society would come to a standstill.
Source WSJ
20 years ago, perhaps Walmart was the safe choice if you were worried about a downturn. Or maybe you would turn to utilities or energy. Recession or not, we need to eat, rent and turn on the lightbulbs.
But now Big Tech has become so pervasive that some investors believe it might be the safe choice. Google & co are infrastructure plays that are here to stay. The role of Big Tech in your portfolio is shifting and could become the core of a new Nifty Fifty group of large caps that are well funded and poised to do well in a higher-rate environment.
Idea Spotlight: Comcast (CMCSA)
Price level indicators for CMCSA:NASD dropped abruptly to 37.68 and historically, this led to a median increase in price of 18.77% over the following 1M. TOGGLE analyzed 14 similar occasions in the past to produce the median projection and this insight received 6 out of 8 stars in our quality assessment.
In the wake of negative broadband subscriber growth at Comcast Corp. last week, a Barclays analyst downgraded CMCSA to equal weight from overweight.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) manage a considerable portion of our tech infrastructure. Secondly, a narrative emerged that the Fed might be slowing down its hiking pace, which made everyone more relaxed about the fact that we might - just - avoid a recession in the style of Volker. The role of Big Tech in your portfolio is shifting and could become the core of a new Nifty Fifty group of large caps that are well funded and poised to do well in a higher-rate environment.
|
Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) manage a considerable portion of our tech infrastructure. However, something else is happening in the perception of Big Tech. Idea Spotlight: Comcast (CMCSA) Price level indicators for CMCSA:NASD dropped abruptly to 37.68 and historically, this led to a median increase in price of 18.77% over the following 1M.
|
Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) manage a considerable portion of our tech infrastructure. But now Big Tech has become so pervasive that some investors believe it might be the safe choice. Idea Spotlight: Comcast (CMCSA) Price level indicators for CMCSA:NASD dropped abruptly to 37.68 and historically, this led to a median increase in price of 18.77% over the following 1M.
|
Google (GOOG), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) manage a considerable portion of our tech infrastructure. For one, the sector was considerably oversold. However, something else is happening in the perception of Big Tech.
|
19926.0
|
2022-08-03 00:00:00 UTC
|
Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-2
|
nan
|
nan
|
Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Fidelity. It has amassed assets over $4.07 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 48.10% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.84% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has lost about -21.31% so far this year and is down about -14.67% in the last one year (as of 08/03/2022). In the past 52-week period, it has traded between $41.77 and $62.46.
The ETF has a beta of 1.13 and standard deviation of 27.40% for the trailing three-year period, making it a medium risk choice in the space. With about 1015 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite 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, ONEQ is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $74.73 billion in assets, Invesco QQQ has $173.71 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
|
19927.0
|
2022-08-03 00:00:00 UTC
|
Want $1 Million in Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade
|
AAPL
|
https://www.nasdaq.com/articles/want-%241-million-in-retirement-invest-%24100000-in-these-3-stocks-and-wait-a-decade-2
|
nan
|
nan
|
Buying and holding stock in solid companies for the long run is a tried-and-tested way of multiplying one's wealth in the long run, as this strategy allows investors to gain from the power of compounding and also from secular growth trends in various industries.
The S&P 500, for instance, averaged annual returns of 13.9% from 2011 to 2020. However, certain stocks have outperformed the broader market's returns by huge margins over the past decade. The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years.
A $50,000 investment in Apple a decade ago is now worth almost $420,000, assuming the dividends paid out by the company were reinvested. Meanwhile, ASML has turned a $50,000 investment into more than $730,000 in a decade. So a $100,000 investment in these stocks would have made investors millionaires in 10 years.
Let's look at the reasons why these companies could replicate their terrific growth in the coming decade. We will also check out the prospects of Twilio (NYSE: TWLO), which has the potential to become a multibagger and multiply investors' wealth substantially in the long run.
1. Apple
Apple's iPhones and iPads have helped the company grow impressively over the years and turned it into a technology giant. Analysts expect the company to finish fiscal 2022 with $393 billion in revenue and $6.13 per share in earnings. That would translate into revenue growth of 7% and earnings growth of 9% over the prior year.
So, Apple needs some massive growth drivers in the next 10 years beyond its current offerings that could move the needle significantly. The good part is that Apple is reportedly working on a new line of products that could unlock the next growth frontier. The rumored Apple Car could be one such product.
According to a report by Nikkei and analytics firm Intellectual Property Landscape, Apple has reportedly filed 248 automotive patents. These patents cover a wide range of applications ranging from car seats to windows to connected car applications.
What's more, Apple has recently hired an executive from automotive firm Lamborghini to reportedly work on its autonomous electric vehicle. Apple has reportedly built a big team of automotive engineers that includes former employees from companies such as Tesla, Alphabet, Volvo, Rivian Automotive, and others.
The rumor mill suggests that Apple is aiming to launch its electric car by 2025. While that may seem ambitious, the company's entry into the electric car market could unlock a whole new opportunity for Apple, as this market is expected to grow at an annual rate of 22% through 2030.
Throw in other potential growth drivers such as the metaverse and the 5G smartphone boom, and it won't be surprising to see Apple clock impressive growth over the next decade and remain a top stock that could help make investors millionaires once again.
2. ASML Holding
ASML Holding has turned out to be a winning investment over the past decade, as mentioned. Looking ahead, it won't be surprising to see ASML step on the gas, as the company is now sitting on stronger prospects thanks to the semiconductor boom. A closer look at ASML's latest results will explain why that's the case.
ASML's second-quarter revenue shot up 35% year over year to 5.44 billion euros ($5.79 billion). The company supplies lithography machines to major chipmakers across the globe for printing semiconductors, and its offerings are in solid demand, as the impressive revenue spike showed. The company's net income also jumped 36% over the prior-year period to $1.44 billion.
More importantly, ASML is built for long-term growth. The company is sitting on an order backlog worth more than 33 billion euros, which translates into roughly $33.5 billion at the current exchange rate. The Dutch giant is expected to finish 2022 with nearly $22 billion in revenue. Its massive backlog is an indication that ASML could sustain its impressive growth in the future.
Even better, the demand for semiconductor manufacturing equipment that the likes of ASML sell is expected to jump to $260 billion by 2030 from $72 billion in 2020, according to a third-party estimate. Given that ASML is the leading supplier of lithography machines used to make chips, it is in a nice position to tap into this huge incremental revenue opportunity.
Analysts expect ASML's earnings to grow at an annual rate of close to 30% a year for the next five years. However, don't be surprised to see it grow at such an impressive pace even beyond that and remain a top semiconductor stock in the long run that could help make investors millionaires.
3. Twilio
Twilio operates in the rapidly growing cloud communications market, which is why the company has been reporting impressive growth. Analysts are expecting the company to finish 2022 with revenue growth of 36% to $3.86 billion. What's more, Twilio is expected to turn profitable on a non-GAAP basis next year. It is expected to report earnings of $0.22 per share in 2023, as compared to a loss of $0.39 per share in 2022.
More importantly, it is expected to clock 155% annual earnings growth for the next five years, per consensus estimates. It is not surprising to see why analysts are expecting Twilio to sustain its impressive momentum for a long time. According to a third-party estimate, the global cloud communications market is expected to clock a compound annual growth rate of 20% through 2030, generating $51 billion in revenue at the end of the forecast period.
Twilio commanded nearly 40% of this market last year, per third-party estimates. So Twilio is in a solid position to tap into this fast-growing opportunity and significantly increase its top and bottom lines in the long run.
That's why investors looking to buy a top cloud stock that could substantially multiply their investments over the next decade should consider scooping up Twilio stock following its 70% pullback in 2022. Twilio is trading at 4.8 times sales, as compared to its five-year average sales multiple of nearly 17. So, investors are getting a good deal on Twilio stock right now, and they may not want to miss this opportunity, considering the company's impressive long-term potential.
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 July 27, 2022
Suzanne Frey, an executive at Alphabet, 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 ASML Holding, Alphabet (A shares), Alphabet (C shares), Apple, Tesla, and Twilio. 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.
|
The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years. The company supplies lithography machines to major chipmakers across the globe for printing semiconductors, and its offerings are in solid demand, as the impressive revenue spike showed. However, don't be surprised to see it grow at such an impressive pace even beyond that and remain a top semiconductor stock in the long run that could help make investors millionaires.
|
The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years. Throw in other potential growth drivers such as the metaverse and the 5G smartphone boom, and it won't be surprising to see Apple clock impressive growth over the next decade and remain a top stock that could help make investors millionaires once again. According to a third-party estimate, the global cloud communications market is expected to clock a compound annual growth rate of 20% through 2030, generating $51 billion in revenue at the end of the forecast period.
|
The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years. While that may seem ambitious, the company's entry into the electric car market could unlock a whole new opportunity for Apple, as this market is expected to grow at an annual rate of 22% through 2030. Throw in other potential growth drivers such as the metaverse and the 5G smartphone boom, and it won't be surprising to see Apple clock impressive growth over the next decade and remain a top stock that could help make investors millionaires once again.
|
The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years. While that may seem ambitious, the company's entry into the electric car market could unlock a whole new opportunity for Apple, as this market is expected to grow at an annual rate of 22% through 2030. ASML Holding ASML Holding has turned out to be a winning investment over the past decade, as mentioned.
|
19928.0
|
2022-08-03 00:00:00 UTC
|
Warren Buffett's 3 Favorite Sectors to Invest His Money
|
AAPL
|
https://www.nasdaq.com/articles/warren-buffetts-3-favorite-sectors-to-invest-his-money
|
nan
|
nan
|
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is effectively in a class of his own when it comes to investing. Since taking the reins in 1965, he's led his company's Class A shares (BRK.A) to an aggregate gain of better than 3,600,000%, as of this past weekend. Put another way, Berkshire Hathaway's share price could collapse 99% and it would still be handily outperforming the benchmark S&P 500 since the beginning of 1965.
Although no investor is infallible, Buffett has a way of picking winners over the long term. It's why Wall Street and the investing community pay such close attention to the stocks he and his team buy and sell each quarter.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But an even more important exercise might be to note what sectors the Oracle of Omaha favors above all others. Though there are 11 different sectors to choose from, Buffett has demonstrated for more than a decade that he prefers to invest his money into three specific sectors.
Financials
Even though it's not the top sector in Berkshire Hathaway's portfolio, based on invested assets, there's little doubt in my mind that financial stocks are Warren Buffett's favorite place to put his money to work. By financials, I'm primarily talking about bank stocks, insurance companies, and payment processors.
Generally speaking, financial stocks aren't going to wow investors on the growth front. They're almost always cyclical businesses, which means they ebb and flow with the U.S. and global economy.
But there's an important distinction to make about these ebbs and flows. Whereas recessions typically last for a couple of quarters, periods of economic expansion are commonly measured in years. Disproportionately long bull markets are what allow bank stocks and payment processors to thrive over the long run.
Within the financial space, bank stocks tend to be Buffett's favorite, followed by insurance companies. Over the past decade, Bank of America (NYSE: BAC) and U.S. Bancorp (NYSE: USB) have been among Buffett's top buys.
The most appealing aspect of Bank of America is its interest rate sensitivity. Among money-center banks, none sees their net-interest income move up or down more due to interest rate yield curve shifts than BofA. This is particularly noteworthy with the Federal Reserve aggressively raising interest rates to counter historically high inflation, which hit 9.1% in June 2022.
Every rate hike allows BofA to collect more on its outstanding variable-rate loans. Bank of America estimates that a 100-basis-point parallel shift in the interest rate yield curve would generate $5 billion in extra net-interest income over the next 12 months.
As for U.S. Bancorp, the parent of U.S. Bank, I'm sure Buffett has come to appreciate its conservative management team and industry-leading digitization push. Whereas most money-center banks got themselves into trouble by chasing risky investments prior to the financial crisis (2007-2009), U.S. Bancorp has primarily stuck to the bread and butter of banking: growing its loans and deposits. Add to this the exceptionally high percentage of active users who bank digitally with U.S. Bank, and you have an efficient bank with superior return on assets.
Consumer staples
A second sector that Warren Buffett absolutely loves to put his money to work in is consumer staples. Even though consumer staples stocks represent a considerably smaller percentage of Berkshire Hathaway's total portfolio than they did 21 years ago -- 43.5% in Q1 2001 versus 11.3% in Q1 2022 -- stocks in this sector have often been a fixture in Buffett's portfolio for well over a decade.
The beauty of consumer staples stocks is they provide goods and services that people use daily. No matter how well or poorly the U.S. economy and stock market are performing, people still need to buy toothpaste, detergent, diapers, food, beverages, personal health and beauty items, and so on. It's a sector packed with businesses that generate highly predictable cash flow and often pay some of the most rock-solid dividends in the entire market.
Beverage giant Coca-Cola (NYSE: KO) is easily the most-recognized consumer staple stock, and also happens to be the longest-held Buffett stock (34 years). It has operations in all but three countries worldwide, which means it brings in consistent operating cash flow from developed markets and can generate higher organic growth from emerging markets.
It also doesn't hurt that Coca-Cola has raised its base annual dividend in each of the past 60 years. Since Buffett's company has such a low cost-basis on shares of Coke (approximately $3.25 a share), the Oracle of Omaha is more than doubling his initial investment from Coca-Cola's dividend alone every two years.
In addition to Coke, Berkshire Hathaway also owns shares of packaged foods and beverage company Kraft Heinz and Procter & Gamble. Kraft Heinz is doling out a market-topping 4.3% annual yield, while Procter & Gamble has raised its base annual payout a jaw-dropping 66 consecutive years.
Image source: Getty Images.
Technology (with an asterisk)
The third and final favorite sector where Warren Buffett loves to put his money to work is technology. However, this sector comes with a bit of an asterisk. Although it represents Berkshire's largest sector by invested assets at the moment and it's accounted for a double-digit percentage of invested assets in all but two quarters over the past 11 years, Buffett's love of tech stocks is narrowed to just a few businesses. In other words, when Buffett bets on tech stocks, it's often a sizable investment.
The allure of tech stocks is that they offer superior growth prospects, relative to most other sectors. Growth stocks have led the market higher since the Great Recession and taken full advantage of more than a decade of favorable monetary policy (i.e., low lending rates) from the nation's central bank.
It probably comes as no surprise to investors who monitor Warren Buffett's buying and selling activity that Apple (NASDAQ: AAPL) is his company's largest holding. At the end of July 2022, Apple comprised almost 42% of Berkshire Hathaway's $353.2 billion investment portfolio. It's no wonder Buffett has referred to Apple as one of his company's "four giants."
What makes Apple so grand is its innovation. The introduction of 5G-capable iPhones during the fourth quarter of 2020 helped propel the company to a U.S. smartphone market share of 50% or higher in five of the past six quarters (not counting the recently ended second quarter).
Innovation is also behind its rapidly growing subscription service segment. Subscription services typically generate high margins, keep customers extremely loyal to the Apple brand, and should help the company better navigate the peaks and troughs associated with product replacement cycles. This isn't to say that Apple is abandoning the products (iPhone, Mac, and iPad) that helped turn it into one of the most valuable brands in the world. Rather, it's a reflection of Apple's evolution based on innovation.
Other ventures into the tech sector by Buffett include piling into IBM in 2011 -- Buffett eventually exited this position in its entirety in 2018 -- and gobbling up an 11.7% stake in personal computing and printing solutions company HP in April 2022.
10 stocks we like better than Bank of America
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 Bank of America 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and HP. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It probably comes as no surprise to investors who monitor Warren Buffett's buying and selling activity that Apple (NASDAQ: AAPL) is his company's largest holding. No matter how well or poorly the U.S. economy and stock market are performing, people still need to buy toothpaste, detergent, diapers, food, beverages, personal health and beauty items, and so on. Growth stocks have led the market higher since the Great Recession and taken full advantage of more than a decade of favorable monetary policy (i.e., low lending rates) from the nation's central bank.
|
It probably comes as no surprise to investors who monitor Warren Buffett's buying and selling activity that Apple (NASDAQ: AAPL) is his company's largest holding. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is effectively in a class of his own when it comes to investing. In addition to Coke, Berkshire Hathaway also owns shares of packaged foods and beverage company Kraft Heinz and Procter & Gamble.
|
It probably comes as no surprise to investors who monitor Warren Buffett's buying and selling activity that Apple (NASDAQ: AAPL) is his company's largest holding. Financials Even though it's not the top sector in Berkshire Hathaway's portfolio, based on invested assets, there's little doubt in my mind that financial stocks are Warren Buffett's favorite place to put his money to work. Even though consumer staples stocks represent a considerably smaller percentage of Berkshire Hathaway's total portfolio than they did 21 years ago -- 43.5% in Q1 2001 versus 11.3% in Q1 2022 -- stocks in this sector have often been a fixture in Buffett's portfolio for well over a decade.
|
It probably comes as no surprise to investors who monitor Warren Buffett's buying and selling activity that Apple (NASDAQ: AAPL) is his company's largest holding. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bank of America wasn't one of them! See the 10 stocks *Stock Advisor returns as of July 27, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
|
19929.0
|
2022-08-03 00:00:00 UTC
|
As US eyes new China chip curbs, turmoil looms for global market
|
AAPL
|
https://www.nasdaq.com/articles/as-us-eyes-new-china-chip-curbs-turmoil-looms-for-global-market
|
nan
|
nan
|
By Joyce Lee
SEOUL, Aug 3 (Reuters) - Export restrictions being considered by Washington to halt China's advances in semiconductor manufacturing could come at a substantial cost, experts say, potentially disrupting fragile global chip supply chains - and hurting U.S. businesses.
Reuters reported on Monday that the United States is considering limiting shipments of American chipmaking equipment to memory chip producers in China that make advanced semiconductors used in everything from smartphones to data centres.
The curbs would stop chipmakers like South Korean giants Samsung Electronics 005930.KS and SK Hynix 000660.KS from shipping new technology tools to factories they operate in China, preventing them from upgrading plants that serve customers around the world.
Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, Amazon AMZN.O, Facebook owner Meta META.O and Google GOOGL.O. As well as computers and phones, the chips are used in products like electric vehicles that require digital data storage.
"Samsung's China production alone accounts for more than 15% of global NAND flash production ... If there's any production disruption, it will make chip prices surge," said Lee Min-hee, analyst at BNK Securities.
The potential for fresh turmoil - the curbs have yet to be approved - comes just as a global chip supply shortage that has disrupted businesses from autos to consumer devices for more than a year is finally showing signs of easing. Supply chain adjustments and weakening consumer demand amid the slowing global economy have combined to repair damage.
But the shortage has yet to be fully resolved. Any signs of fresh disruption could rekindle supply uncertainty, triggering a price surge - as seen earlier this year when China imposed COVID-19 restrictions in Xian where Samsung manufactures chips.
Chipmaking equipment has to be installed and fully tested months before production is due to start. Any delay in shipping the gear to China would pose a real challenge to chipmakers as they seek to manufacture more advanced chips in China facilities.
"Many U.S. companies, like Apple, use Samsung and SK Hynix memory chips. No matter what strategy (the South Korean firms) end up choosing, it will have global implications," said BNK Securities analyst Lee.
Samsung and SK Hynix declined to comment. Apple, Amazon, Meta and Google didn't respond to emails seeking comment outside regular U.S. business hours.
AMBITIONS, COMPLICATIONS
In Samsung's memory chip operation in Xian, central China, one of the largest foreign chip projects in the country, the company has invested a total of about $26 billion since it broke ground on the site in 2012, including chip production as well as testing and packaging.
The tech giant makes 128-layer NAND flash products in Xian, analysts said, chips that store data in devices such as smartphones and personal computers, as well as in data centres.
The facility accounts for 43% of Samsung's global NAND flash memory production capacity and 15% of the overall global output capacity, according to TrendForce late last year.
The U.S. crackdown, if approved, could also complicate SK Hynix's ambition to expand its presence in the NAND market where it is ranked third as of first quarter behind Samsung and Japan's Kioxia Holdings, which was spun out of Toshiba Corp 6502.T.
SK Hynix completed late last year the first phase of its $9 billion purchase of Intel's INTC.O NAND business, including its Dalian, China NAND manufacturing facility.
CHINA STRATEGIES
The move being considered by the United States is one of several recent signs of deepening tensions between Beijing and Washington over the tech sector.
Congress last week approved legislation to subsidise semiconductor production in the United States. It bars any company that receives federal subsidies from investing in certain chip technology in China during the subsidy period.
The deepening tensions could leave Samsung and SK Hynix having to review strategies on China investments, analysts and industry sources said.
"Until now, companies tended to invest in countries like China, where costs were cheap," said Kim Yang-jae, analyst at Daol Investment & Securities.
"That's no longer going to be the only consideration. The biggest change these potential limits will bring will be where the next chip factories are built."
They could also face potentially diminishing returns from their multi-billion dollar China plants, which could be stuck making older-technology, less lucrative chips.
SK Hynix has not been able to upgrade its DRAM memory chip production facilities in Wuxi, China with the latest extreme ultraviolet lithography (EUV) chipmaking machines made by Dutch firm ASML ASML.AS as U.S. officials do not want advanced equipment used in the process to enter the country.
The EUV machines are used to make more advanced and smaller chips that are used in high-end devices such as smartphones.
(Reporting by Joyce Lee; Editing by Miyoung Kim and Kenneth Maxwell)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, Amazon AMZN.O, Facebook owner Meta META.O and Google GOOGL.O. By Joyce Lee SEOUL, Aug 3 (Reuters) - Export restrictions being considered by Washington to halt China's advances in semiconductor manufacturing could come at a substantial cost, experts say, potentially disrupting fragile global chip supply chains - and hurting U.S. businesses. The curbs would stop chipmakers like South Korean giants Samsung Electronics 005930.KS and SK Hynix 000660.KS from shipping new technology tools to factories they operate in China, preventing them from upgrading plants that serve customers around the world.
|
Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, Amazon AMZN.O, Facebook owner Meta META.O and Google GOOGL.O. Reuters reported on Monday that the United States is considering limiting shipments of American chipmaking equipment to memory chip producers in China that make advanced semiconductors used in everything from smartphones to data centres. The curbs would stop chipmakers like South Korean giants Samsung Electronics 005930.KS and SK Hynix 000660.KS from shipping new technology tools to factories they operate in China, preventing them from upgrading plants that serve customers around the world.
|
Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, Amazon AMZN.O, Facebook owner Meta META.O and Google GOOGL.O. In Samsung's memory chip operation in Xian, central China, one of the largest foreign chip projects in the country, the company has invested a total of about $26 billion since it broke ground on the site in 2012, including chip production as well as testing and packaging. SK Hynix has not been able to upgrade its DRAM memory chip production facilities in Wuxi, China with the latest extreme ultraviolet lithography (EUV) chipmaking machines made by Dutch firm ASML ASML.AS as U.S. officials do not want advanced equipment used in the process to enter the country.
|
Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple AAPL.O, Amazon AMZN.O, Facebook owner Meta META.O and Google GOOGL.O. Reuters reported on Monday that the United States is considering limiting shipments of American chipmaking equipment to memory chip producers in China that make advanced semiconductors used in everything from smartphones to data centres. "Many U.S. companies, like Apple, use Samsung and SK Hynix memory chips.
|
19930.0
|
2022-08-02 00:00:00 UTC
|
SOFI or Block? [Which Stock Should You Buy?]
|
AAPL
|
https://www.nasdaq.com/articles/sofi-or-block-which-stock-should-you-buy
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These two point-of-sale companies are very similar. But Block (SQ) is for companies and businesses that sell goods, while SoFi (SOFI) is for consumers who buy goods.
Block is in direct competition with CashApp with its software and hardware systems. However, in the long run, I think that SoFi is far superior to Block.
I believe that SOFI has more growth potential. It’s a smaller company, and the market it’s going after is more fragmented. Block has more competition in the buy now, pay later space that it’s expanding into right now.
Even Apple (AAPL) is starting to offer buy now, pay later options. And that makes the competition much stiffer for smaller companies like Block.
Indeed, Block has already had its day in the sun, but SoFi hasn’t yet. So, we think it has much more upside potential than Block.
Watch the full episode at Hypergrowth Investing on YouTube!
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post SOFI or Block? [Which Stock Should You Buy?] appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Even Apple (AAPL) is starting to offer buy now, pay later options. Block is in direct competition with CashApp with its software and hardware systems. On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
|
Even Apple (AAPL) is starting to offer buy now, pay later options. InvestorPlace - Stock Market News, Stock Advice & Trading Tips These two point-of-sale companies are very similar. But Block (SQ) is for companies and businesses that sell goods, while SoFi (SOFI) is for consumers who buy goods.
|
Even Apple (AAPL) is starting to offer buy now, pay later options. InvestorPlace - Stock Market News, Stock Advice & Trading Tips These two point-of-sale companies are very similar. But Block (SQ) is for companies and businesses that sell goods, while SoFi (SOFI) is for consumers who buy goods.
|
Even Apple (AAPL) is starting to offer buy now, pay later options. InvestorPlace - Stock Market News, Stock Advice & Trading Tips These two point-of-sale companies are very similar. Block has more competition in the buy now, pay later space that it’s expanding into right now.
|
19931.0
|
2022-08-02 00:00:00 UTC
|
S&P 500 ends see-saw session lower as Pelosi visits Taiwan
|
AAPL
|
https://www.nasdaq.com/articles/sp-500-ends-see-saw-session-lower-as-pelosi-visits-taiwan
|
nan
|
nan
|
By Noel Randewich and Devik Jain
Aug 2 (Reuters) - The S&P 500 ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.
Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned that first such visit in 25 years as a threat to peace and stability.
Heavy hitters Microsoft MSFT.O and Visa V.N weighed on the S&P 500, and all 11 S&P 500 sector indexes lost ground, led lower by real estate .SPLRCR.
Shares of chipmakers heavily exposed to China were mixed. Advanced Micro Devices AMD.Orallied ahead of its quarterly report after the bell.
Industrial bellwether Caterpillar CAT.N tumbled after warning of a bigger drop in demand for its excavators in property crisis-hit China, piling more pain on the industrial bellwether grappling with supply-chain disruptions.
Financial markets have been roiled in recent months by the Ukraine war, soaring inflation and tightening financial conditions.
U.S. job openings in June fell by the most in just over two years, as demand for workers eased in the retail and wholesale trade industries. Overall the labor market remained tight.
After the U.S. Federal Reserve raised interest rates by 75 basis points in July, investors are speculating about whether the central bank's largest hikes are behind it.
"The market has to get really comfortable that they have fully baked in all the Fed's rate hikes, and I think that remains an open question," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. "The challenges and supply constraints aren't necessarily done. They aren't done and gone yet."
Shares of U.S. defense companies Raytheon Technologies Corp RTX.N, Lockheed Martin Corp LMT.N, Northrop Grumman Corp NOC.N and L3Harris Technologies Inc LHX.Nrallied for much of the session. The United States is Taiwan's main supporter and arms supplier.
According to preliminary data, the S&P 500 .SPX lost 26.78 points, or 0.65%, to end at 4,091.85 points, while the Nasdaq Composite .IXIC lost 19.48 points, or 0.16%, to 12,349.49. The Dow Jones Industrial Average .DJI fell 397.29 points, or 1.21%, to 32,401.11.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, eased from the day's high of 24.68 points.
A largely upbeat second-quarter reporting season has supported markets recently, with the benchmark S&P 500 index .SPX up about 12% from lows hit in mid-June.
Uber Technologies Inc UBER.Njumped after the ride-hailing firm reported positive quarterly cash flow for the first time ever and forecast upbeat third-quarter operating profit.
Tesla Inc TSLA.Ogained after Citigroup hiked its price target on the electric car maker's stock.
Pinterest Inc PINS.Nsurged after activist investor Elliott Investment Management became the largest shareholder of the digital pin-board firm.
Wall Street tradinghttps://tmsnrt.rs/3QjDEY1
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and David Gregorio)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Noel Randewich and Devik Jain Aug 2 (Reuters) - The S&P 500 ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan. Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned that first such visit in 25 years as a threat to peace and stability. "The market has to get really comfortable that they have fully baked in all the Fed's rate hikes, and I think that remains an open question," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
|
By Noel Randewich and Devik Jain Aug 2 (Reuters) - The S&P 500 ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan. According to preliminary data, the S&P 500 .SPX lost 26.78 points, or 0.65%, to end at 4,091.85 points, while the Nasdaq Composite .IXIC lost 19.48 points, or 0.16%, to 12,349.49. A largely upbeat second-quarter reporting season has supported markets recently, with the benchmark S&P 500 index .SPX up about 12% from lows hit in mid-June.
|
"The market has to get really comfortable that they have fully baked in all the Fed's rate hikes, and I think that remains an open question," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. According to preliminary data, the S&P 500 .SPX lost 26.78 points, or 0.65%, to end at 4,091.85 points, while the Nasdaq Composite .IXIC lost 19.48 points, or 0.16%, to 12,349.49. Wall Street tradinghttps://tmsnrt.rs/3QjDEY1 (Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and David Gregorio) ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
"The market has to get really comfortable that they have fully baked in all the Fed's rate hikes, and I think that remains an open question," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. According to preliminary data, the S&P 500 .SPX lost 26.78 points, or 0.65%, to end at 4,091.85 points, while the Nasdaq Composite .IXIC lost 19.48 points, or 0.16%, to 12,349.49. The Dow Jones Industrial Average .DJI fell 397.29 points, or 1.21%, to 32,401.11.
|
19932.0
|
2022-08-02 00:00:00 UTC
|
U.S. corporate profits, economic outlooks, surprisingly upbeat
|
AAPL
|
https://www.nasdaq.com/articles/u.s.-corporate-profits-economic-outlooks-surprisingly-upbeat
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy.
More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
Some 78% of earnings reports are beating Wall Street expectations, above the long-term average.
Profit growth estimates for the third and fourth quarters have come down, but remain sharply positive. S&P 500 earnings for all of 2022 are now forecast to grow 8.1% versus a 9.5% estimated in July, based on Refinitiv data.
Investors had been worried that if high inflation and rising interest rates were about to tip the economy into recession, earnings estimates for 2022 were too high.
Raising the risk that the economy was on the cusp of a recession, the U.S. Commerce Department said last week the American economy unexpectedly contracted in the second quarter - the second straight quarterly decline in gross domestic product.
Concerns over a possible recession had driven a sharp selloff in stocks in the first half of the year. But the S&P 500 .SPX and Nasdaq .IXIC ended July with their biggest monthly percentage gains since 2020, partly because of stronger-than-expected earnings.
"The consensus view (was) that earnings were going to just fall apart," said Jonathan Golub, chief U.S. equity strategist & head of quantitative research at Credit Suisse Securities. "And it just didn't play out that way."
Company reports are showing that demand remains robust and sales are holding up, he said.
"If you want to say, what's the health of the economy, it's measured in sales," Golub said.
Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues.
Apple said parts shortages were easing and that demand for iPhones was continuing, while Amazon.com forecast a jump in third-quarter revenue.
"It's held up pretty well, particularly for large-cap names, but of course people were expecting the worst," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
To be sure, the news has not been positive all around. Walmart WMT.Nrattled investors early last week when it cut its full-year profit forecast, blaming surging prices for food and fuel.
That's raised worried about the health of the consumer and prospects for other retailers, most of which have yet to report results on the last quarter.
Also, analysts have been cutting their third-quarter earnings growth estimates by more than usual when compared with "either pre-pandemic or over the last two years," Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.
Whether earnings forecasts hold up is key to valuations. The S&P 500's forward 12-month price-to-earnings ratio, at 17.5 as of Tuesday, is down from 22.1 at the end of December but still above the long-term average of about 16, Refinitiv data showed.
Other strategists said the season is following a normal pattern: Companies often are more negative than positive with their outlooks, so earnings forecasts for upcoming quarters tend to go down typically during a reporting period.
"So far, what's happened isn't something that's worse than feared. And the market was already braced for bad news," said Keith Lerner, chief market strategist at Truist Advisory Services in Atlanta.
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Nick Zieminski)
((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.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Also, analysts have been cutting their third-quarter earnings growth estimates by more than usual when compared with "either pre-pandemic or over the last two years," Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. Year-over-year revenue for S&P 500 companies in the quarter is expected to have risen 12.5% as of Tuesday, compared with 10.4% estimated at the start of July, based on Refinitiv data.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1% over the year-ago quarter, compared with a 5.6% estimate at the start of July, according to IBES data from Refinitiv as of Tuesday.
|
Upbeat forecasts from heavyweights Apple AAPL.O and Amazon.com AMZN.O boosted investors' mood late last week, while Chevron Corp CVX.N and Exxon Mobil XOM.N reported record quarterly revenues. By Caroline Valetkevitch NEW YORK, Aug 2 (Reuters) - U.S. companies are reporting mostly upbeat news this earnings season, surprising investors who had been bracing for a gloomier outlook on both businesses and the economy. "If you want to say, what's the health of the economy, it's measured in sales," Golub said.
|
19933.0
|
2022-08-02 00:00:00 UTC
|
Supply Chain Constraints Ease as Apple Reports $83 Billion in Revenue
|
AAPL
|
https://www.nasdaq.com/articles/supply-chain-constraints-ease-as-apple-reports-%2483-billion-in-revenue
|
nan
|
nan
|
One of the side effects of the coronavirus pandemic has been a wave of supply chain disruptions. Governments worldwide have maintained varying degrees of quarantine orders for folks who test positive for COVID-19. An outbreak at a manufacturing facility could halt production for weeks.
Apple (NASDAQ: AAPL) warned investors that supply chain constraints could cost the tech titan up to $8 billion in missed sales in the quarter that ended in June. Thankfully, the disruptions were less than expected, and Apple pleasantly surprised investors by delivering $83 billion in revenue in its recently completed quarter.
Supply chain impact at less than $4 billion
It's no surprise that Apple's stock was up by more than 3% on the day following the earnings announcement. Apple's $83 billion in sales were hardly greater than the $81.4 billion it reported in the same quarter the prior year. However, investors feared it would be worse after Apple warned of the potential for $8 billion in headwinds from supply chain constraints.
In the conference call that followed the earnings release, Apple CEO Tim Cook said, "Our supply constraints were less than we anticipated at the beginning of the quarter, coming in slightly below the range [$4 billion to $8 billion] we discussed during our last call."
Moreover, CFO Luca Maestri said: "We believe our year-over-year revenue growth will accelerate during the September quarter compared to the June quarter, despite approximately 600 basis points of negative year-over-year impact from foreign exchange. On the product side, we expect supply constraints to be lower than what we experienced during the June quarter."
The U.S. dollar has appreciated against a basket of foreign currencies, which makes Apple's sales from international markets worth less when converted into dollars. That said, currency fluctuations are an ordinary course of business, and investors need not worry about their movement. More importantly, Maestri noted that supply chain constraints would be less than in the June quarter, which, going by earlier statements, will be less than $3 billion.
AAPL Revenue (Quarterly) data by YCharts
Consumer demand for Apple's products has been resilient. If the situation can keep improving on the supply side, Apple is setting itself up for an excellent holiday quarter (which is two quarters from now). To put that potential into context, in the quarter that ended in December last year, Apple reported sales of $124 billion. It would not be surprising to see Apple hit $130 billion in this year's Q4.
It could be an excellent time to buy Apple stock
AAPL PE Ratio data by YCharts
If these excellent near-term prospects are making you consider buying Apple stock, it wouldn't be a bad idea. Trading at a price-to-free cash flow ratio of 25 and a price-to-earnings ratio of 26, it's relatively moderately priced. Paying a reasonable price for an excellent business can be a great way to build wealth over the long term.
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 July 27, 2022
Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ: AAPL) warned investors that supply chain constraints could cost the tech titan up to $8 billion in missed sales in the quarter that ended in June. AAPL Revenue (Quarterly) data by YCharts Consumer demand for Apple's products has been resilient. It could be an excellent time to buy Apple stock AAPL PE Ratio data by YCharts If these excellent near-term prospects are making you consider buying Apple stock, it wouldn't be a bad idea.
|
Apple (NASDAQ: AAPL) warned investors that supply chain constraints could cost the tech titan up to $8 billion in missed sales in the quarter that ended in June. It could be an excellent time to buy Apple stock AAPL PE Ratio data by YCharts If these excellent near-term prospects are making you consider buying Apple stock, it wouldn't be a bad idea. AAPL Revenue (Quarterly) data by YCharts Consumer demand for Apple's products has been resilient.
|
Apple (NASDAQ: AAPL) warned investors that supply chain constraints could cost the tech titan up to $8 billion in missed sales in the quarter that ended in June. It could be an excellent time to buy Apple stock AAPL PE Ratio data by YCharts If these excellent near-term prospects are making you consider buying Apple stock, it wouldn't be a bad idea. AAPL Revenue (Quarterly) data by YCharts Consumer demand for Apple's products has been resilient.
|
It could be an excellent time to buy Apple stock AAPL PE Ratio data by YCharts If these excellent near-term prospects are making you consider buying Apple stock, it wouldn't be a bad idea. Apple (NASDAQ: AAPL) warned investors that supply chain constraints could cost the tech titan up to $8 billion in missed sales in the quarter that ended in June. AAPL Revenue (Quarterly) data by YCharts Consumer demand for Apple's products has been resilient.
|
19934.0
|
2022-08-02 00:00:00 UTC
|
Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
|
AAPL
|
https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-0
|
nan
|
nan
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +16.3%, compared to the Zacks S&P 500 composite's +7.8% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 16.1%. The key question now is: What could be the stock's future direction?
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.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.26 per share, indicating a change of +1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.7% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.11 points to a change of +8.9% 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 $6.50 indicates a change of +6.4% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
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
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Apple, the consensus sales estimate of $87.38 billion for the current quarter points to a year-over-year change of +4.8%. The $391.51 billion and $412.74 billion estimates for the current and next fiscal years indicate changes of +7% and +5.4%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $82.96 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $1.20 for the same period compares with $1.30 a year ago.
Compared to the Zacks Consensus Estimate of $81.99 billion, the reported revenues represent a surprise of +1.19%. The EPS surprise was +5.26%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded 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.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks' Top Picks to Cash in on Electric Vehicles
Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors
See 5 EV Stocks With Extreme Upside Potential >>
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report And if earnings estimates go up for a company, the fair value for its stock goes up.
|
19935.0
|
2022-08-02 00:00:00 UTC
|
Pre-Market Most Active for Aug 2, 2022 : AMTD, KRKR, FFIE, NLY, UBER, SQQQ, REV, TQQQ, KMI, AAPL, AMD, PINS
|
AAPL
|
https://www.nasdaq.com/articles/pre-market-most-active-for-aug-2-2022-%3A-amtd-krkr-ffie-nly-uber-sqqq-rev-tqqq-kmi-aapl-amd
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is down -117.93 to 12,822.85. The total Pre-Market volume is currently 51,680,353 shares traded.
The following are the most active stocks for the pre-market session:
AMTD IDEA Group (AMTD) is +9.2 at $11.28, with 23,519,571 shares traded.
36Kr Holdings Inc. (KRKR) is +0.78 at $2.05, with 10,938,582 shares traded.
Faraday Future Intelligent Electric Inc. (FFIE) is +0.34 at $2.34, with 9,125,353 shares traded. FFIE's current last sale is 23.4% of the target price of $10.
Annaly Capital Management Inc (NLY) is -0.29 at $6.61, with 8,454,282 shares traded. NLY's current last sale is 94.43% of the target price of $7.
Uber Technologies, Inc. (UBER) is +3.36 at $27.96, with 5,231,451 shares traded. Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
ProShares UltraPro Short QQQ (SQQQ) is +0.99 at $40.88, with 3,323,419 shares traded. This represents a 45.22% increase from its 52 Week Low.
Revlon, Inc. (REV) is +0.41 at $8.90, with 3,097,597 shares traded.REV is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022.
ProShares UltraPro QQQ (TQQQ) is -0.81 at $32.50, with 2,552,527 shares traded. This represents a 52.44% increase from its 52 Week Low.
Kinder Morgan, Inc. (KMI) is -0.09 at $17.81, with 1,699,456 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 $0.29. KMI's current last sale is 89.05% of the target price of $20.
Apple Inc. (AAPL) is -1.39 at $160.12, with 1,416,265 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 $1.33. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is -0.85 at $95.93, with 1,208,968 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Pinterest, Inc. (PINS) is +3.61 at $23.60, with 887,540 shares traded. PINS's current last sale is 98.33% of the target price of $24.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc. (AAPL) is -1.39 at $160.12, with 1,416,265 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
|
As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.39 at $160.12, with 1,416,265 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
|
Apple Inc. (AAPL) is -1.39 at $160.12, with 1,416,265 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 51,680,353 shares traded.
|
Apple Inc. (AAPL) is -1.39 at $160.12, with 1,416,265 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 -117.93 to 12,822.85.
|
19936.0
|
2022-08-02 00:00:00 UTC
|
3 Bullish Comments From Apple Management
|
AAPL
|
https://www.nasdaq.com/articles/3-bullish-comments-from-apple-management
|
nan
|
nan
|
Shares of Apple (NASDAQ: AAPL) rose nicely last week, boosted by the company's stronger-than-expected fiscal third-quarter results. The tech giant's top and bottom line were both better than analysts were expecting.
While the strong quarterly results were nice, it may have been a few comments in the earnings call that solidified the Street's approval of the quarterly update. Among other things, management said it expected strong growth in fiscal Q4 and that iPhone demand remained robust. Here's a closer look at the commentary about these topics and more.
1. Apple expects accelerated growth
Though management once again refrained from providing specific quarterly guidance due to the uncertain macroeconomic environment, management did provide some directional context.
"Overall, we believe our year-over-year revenue growth will accelerate during the September quarter compared to the June quarter," said Apple CFO Luca Maestri. While an acceleration from Apple's 2% growth rate in fiscal Q3 may still ultimately translate to a small growth rate for fiscal Q4, investors should note that the tech company is up against a serious currency headwind; this guidance factors in a predicted 600 basis points of negative year-over-year foreign exchange impact.
Making the guidance even more impressive, it also includes some expected supply constraints. Though those supply constraints are expected to be lower than what Apple endured in fiscal Q3.
2. iPhone demand is strong
When asked whether the current macroeconomic environment is negatively impacting demand for its products, Apple CEO Tim Cook had an optimistic response, noting that there was "no obvious evidence of macroeconomic impact" to demand for iPhone. Further, Cook said Mac and iPad supply was so constrained that the gap between supply and demand made it impossible to even test demand levels of the products.
But Cook did note that its services segment is being negatively impacted by weaker digital advertising spend as the result of the macroeconomic environment. Management also said its "wearables, home, and accessories" segment saw "some impact" from the macroeconomic environment. iPhone, however, is by far Apple's largest product segment -- so investors should generally be happy with the level of demand for Apple's products.
3. Apple's cash gives it options
Revealing it had a $179 billion position in cash and marketable securities at the end of its fiscal third quarter, with net cash of $60 billion, one analyst asked if Apple is considering any potentially accretive acquisitions.
Based on Cook's response, the company seems happy with its war chest of cash at a time when potential acquisition targets will likely go for lower prices. In fact, the company could even make a meaningfully sized acquisition -- a move that would break from Apple's typical approach to only buying small companies.
"[W]e would buy something that is strategic for us," Cook said. "To date, we have concentrated on smaller [intellectual property] and people acquisitions. But I wouldn't rule anything out for the future, and obviously, we are constantly surveilling the market."
So even though there are signs of significant macroeconomic uncertainty around the world, the only major signs of these challenges in Apple's consolidated results are the company's foreign exchange headwinds and some weakness in advertising. Perhaps Apple's loyal customer base, pricing power, and continued product innovation are meaningful enough edges that the company can do well even in a tough operating environment.
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 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.
|
Shares of Apple (NASDAQ: AAPL) rose nicely last week, boosted by the company's stronger-than-expected fiscal third-quarter results. Based on Cook's response, the company seems happy with its war chest of cash at a time when potential acquisition targets will likely go for lower prices. Perhaps Apple's loyal customer base, pricing power, and continued product innovation are meaningful enough edges that the company can do well even in a tough operating environment.
|
Shares of Apple (NASDAQ: AAPL) rose nicely last week, boosted by the company's stronger-than-expected fiscal third-quarter results. While an acceleration from Apple's 2% growth rate in fiscal Q3 may still ultimately translate to a small growth rate for fiscal Q4, investors should note that the tech company is up against a serious currency headwind; this guidance factors in a predicted 600 basis points of negative year-over-year foreign exchange impact. 2. iPhone demand is strong When asked whether the current macroeconomic environment is negatively impacting demand for its products, Apple CEO Tim Cook had an optimistic response, noting that there was "no obvious evidence of macroeconomic impact" to demand for iPhone.
|
Shares of Apple (NASDAQ: AAPL) rose nicely last week, boosted by the company's stronger-than-expected fiscal third-quarter results. While an acceleration from Apple's 2% growth rate in fiscal Q3 may still ultimately translate to a small growth rate for fiscal Q4, investors should note that the tech company is up against a serious currency headwind; this guidance factors in a predicted 600 basis points of negative year-over-year foreign exchange impact. 2. iPhone demand is strong When asked whether the current macroeconomic environment is negatively impacting demand for its products, Apple CEO Tim Cook had an optimistic response, noting that there was "no obvious evidence of macroeconomic impact" to demand for iPhone.
|
Shares of Apple (NASDAQ: AAPL) rose nicely last week, boosted by the company's stronger-than-expected fiscal third-quarter results. While an acceleration from Apple's 2% growth rate in fiscal Q3 may still ultimately translate to a small growth rate for fiscal Q4, investors should note that the tech company is up against a serious currency headwind; this guidance factors in a predicted 600 basis points of negative year-over-year foreign exchange impact. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
19937.0
|
2022-08-02 00:00:00 UTC
|
3 Early Signs This Crushed Growth Stock Might Be in a Turnaround
|
AAPL
|
https://www.nasdaq.com/articles/3-early-signs-this-crushed-growth-stock-might-be-in-a-turnaround
|
nan
|
nan
|
Regrettably, Aurora Cannabis (NASDAQ: ACB) hasn't been a good growth stock for most of its investors. Its shares are down by just over 98% in the last three years, it's (still) nowhere near profitable despite being more than a year into a cost-cutting transformation, and its revenue has steadily declined over time.
But sometimes the best investments are the ones that nobody else can see the value of (yet). And while it's far too early to call it a comeback, there are three signs that could portend a brighter future for Aurora, so let's weigh each of them to see if they might be enough to justify a contrarian play.
1. It's paying down debt
Debt is only one component of Aurora's issues, but it's hard to argue that less is better. While the company isn't particularly indebted, with around $388.1 million Canadian dollars ($300.4 million) in debt and capital lease obligations, the cultivator is making steady progress in deleveraging, which eventually will free up more of its cash flow for reinvesting in growth.
On June 3, it repurchased $20 million of its convertible senior notes, which will lead to cash savings of around $7.5 million in interest payments annually. That's on top of the $100 million in convertible debt repurchased from earlier in the year.
If this progress continues, it'll be a positive sign for the company's long-term health, as it'll regain the ability to take out new debt at an attractive rate to finance expansion. Still, cutting production and distribution costs to approach profitability will probably need to happen first, so reducing debt load isn't a reason on its own to buy the company's shares.
2. It's accumulating some cash, and it can raise even more
Unprofitable businesses burn a lot of money, and with trailing-12-month operating expenses in excess of $182.2 million, Aurora is no exception. But thanks to a bought-deal offering that closed on June 1, it's sitting on a fresh cash infusion of $172.5 million. That leaves it with a total war chest of $354.4 million as of June 3. And it has the ability to raise an additional $186 million via its existing at-the-market facility should it need to.
In short, don't expect Aurora to go out of business anytime soon. It'll need to get its cost of goods sold a bit lower in the near term, however; its trailing-12-month cost of revenue was more than $153 million. Improvements in the efficiency of its cultivation operations could be key in paving the way, which might require it to make more cuts to its output capacity.
Investors should keep an eye on whether such cuts are expected to result in lost revenue from an inability to serve demand. Though seeing money left on the table might be painful, it would help the business to stretch the cash it has, and it could be favorable for its long-term survival.
3. Short interest is falling over time
One of the clearest indicators that the market expects a stock to drop is the amount of short interest in a company's shares. The more people who are shorting a stock, the more pessimistic the expectations are. And in Aurora's case, short interest is dropping over time, falling by more than 28% in the last 12 months. That leaves it with around 8.8% of its outstanding shares being held short, a far cry from the more than 25% toward the end of 2020.
For reference, Tilray Brands, a major competitor in the Canadian cannabis market, has nearly 13.6% of its shares held short; massive and stable companies like Apple tend to have less than 1%. So the market's pessimism about Aurora is dropping, and expectations are a bit higher than for some of its peers. But there's still a long way to go before the business is perceived as actually being solid.
In other words, don't buy the stock just because other people are less down on it, as they could easily change their minds if earnings disappoint.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 19 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Simply click here to get the full story now.
Learn more
Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Still, cutting production and distribution costs to approach profitability will probably need to happen first, so reducing debt load isn't a reason on its own to buy the company's shares. It's accumulating some cash, and it can raise even more Unprofitable businesses burn a lot of money, and with trailing-12-month operating expenses in excess of $182.2 million, Aurora is no exception. For reference, Tilray Brands, a major competitor in the Canadian cannabis market, has nearly 13.6% of its shares held short; massive and stable companies like Apple tend to have less than 1%.
|
Regrettably, Aurora Cannabis (NASDAQ: ACB) hasn't been a good growth stock for most of its investors. And in Aurora's case, short interest is dropping over time, falling by more than 28% in the last 12 months. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
While the company isn't particularly indebted, with around $388.1 million Canadian dollars ($300.4 million) in debt and capital lease obligations, the cultivator is making steady progress in deleveraging, which eventually will free up more of its cash flow for reinvesting in growth. Short interest is falling over time One of the clearest indicators that the market expects a stock to drop is the amount of short interest in a company's shares. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
In short, don't expect Aurora to go out of business anytime soon. Short interest is falling over time One of the clearest indicators that the market expects a stock to drop is the amount of short interest in a company's shares. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
19938.0
|
2022-08-02 00:00:00 UTC
|
Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-3
|
nan
|
nan
|
Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
FNDX is managed by Charles Schwab, and this fund has amassed over $9.56 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.25%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.95%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 15.90% of the portfolio. Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 19.73% of FNDX's total assets under management.
Performance and Risk
The ETF has lost about -7.08% and is up about 1.13% so far this year and in the past one year (as of 08/02/2022), respectively. FNDX has traded between $49.93 and $59.90 during this last 52-week period.
The fund has a beta of 0.99 and standard deviation of 24.63% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 731 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $53.38 billion in assets, Vanguard Value ETF has $97.95 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Before fees and expenses, this particular fund seeks to match the performance of the Russell RAFI US Large Co. Index.
|
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
|
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
|
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
|
19939.0
|
2022-08-02 00:00:00 UTC
|
1 Risk That Could Crush Meta Platforms Stock
|
AAPL
|
https://www.nasdaq.com/articles/1-risk-that-could-crush-meta-platforms-stock
|
nan
|
nan
|
Meta Platforms (NASDAQ: META), the owner of Facebook and Instagram, has dominated the social media landscape for over a decade.
Roughly half the world's population uses one of its apps at least monthly and it's one of the most profitable businesses in the world thanks to its strength in digital advertising.
However, with the stock down nearly 60% from its peak last September and the company just reporting its first-ever revenue decline from one quarter to the next (with another one expected in the third quarter), the Facebook parent looks more vulnerable than ever.
The company is facing multiple crises. Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. That's more than a handful of complications.
While each of those factors has played a role in the stock's collapse over the last year and its reversing revenue growth, one risk seems to be more pertinent than any other right now. That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok.
Can Reels beat TikTok?
The rapid rise of TikTok has upended the social media industry. The short-form video app reached 1 billion monthly active users nearly a year ago, earlier in its lifespan than either Facebook or Instagram. It has grabbed market share and advertising dollars from competitors like Meta, Snap, and YouTube.
Meta management doesn't often mention the China-based app by name, but it clearly views TikTok as a serious threat. In response to TikTok's rise, Meta has developed its own TikTok-like product, Reels, launching it on Instagram in 2020 and adding it to Facebook last year. Gradually, it's made Reels a bigger part of the experience on its apps, as it now makes up 20% of the time people spend on Instagram. However, there's a problem here.
Its users don't necessarily like Reels and may not want Instagram to become TikTok. In fact, Kylie Jenner and Kim Kardashian have led a backlash against the video product, sharing a post urging the company to "Make Instagram Instagram Again" rather than trying to be TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram.
Though Meta management is confident in the long-term success of Reels, it's not clear if it can beat TikTok at its own game. As Meta evolves to take on new competition, it also faces the classic innovator's dilemma, having to navigate the possibility of disrupting itself without hurting its highly profitable core business. Moreover, the Kardashian-led protest shows that morphing into TikTok carries its own risks, including losing the audience that likes the Facebook and Instagram products as they are now.
Will this tried-and-true tactic work again?
Meta seems confident in the Reels strategy in part because this same tactic worked against Snapchat. When Snapchat was gaining market share thanks to the success of Snapchat Stories, Meta simply copied Stories and offered it under a new name on Instagram and Facebook. The Snapchat threat was neutralized and Snap was forced to regroup after losing momentum.
However, TikTok is much bigger than Snapchat ever was, and the short-form video app is essentially all TikTok is, making it more difficult for Reels to beat it. Stories, on the other hand, was just one feature of Snapchat, so it wasn't the only reason people used that app. It won't be easy for Meta to out-TikTok TikTok, in other words, especially considering the disruptor's rapid growth and popularity.
Though Meta may need to evolve to keep its audience, the downside risk here seems greater than the upside potential. In a worst-case scenario, Meta stuffs Facebook and Instagram with Reels videos only to see its core audience balk at the changes, and engagement withers. In this scenario, it both loses the battle with TikTok and leaves its own user base feeling disenchanted.
In a best-case scenario, it neutralizes the TikTok threat and has a new product to feed its advertising machine, but even then the upside seems limited as Meta's user base appears to be reaching a ceiling -- it grew just 4% in the second quarter.
As Meta stock tries to recover its recent losses, the performance of Reels should be a key factor in the overall performance and trajectory of the business. If Reels can gain favor with users and advertisers, the Facebook parent should be able to return to full health. However, if TikTok continues to gain steam and the backlash against Reels persists, Meta could be in even more trouble than it is now.
10 stocks we like better than Meta Platforms, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms, Inc. and Snap Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. As Meta evolves to take on new competition, it also faces the classic innovator's dilemma, having to navigate the possibility of disrupting itself without hurting its highly profitable core business. In a best-case scenario, it neutralizes the TikTok threat and has a new product to feed its advertising machine, but even then the upside seems limited as Meta's user base appears to be reaching a ceiling -- it grew just 4% in the second quarter.
|
That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram. When Snapchat was gaining market share thanks to the success of Snapchat Stories, Meta simply copied Stories and offered it under a new name on Instagram and Facebook.
|
Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok. In response to TikTok's rise, Meta has developed its own TikTok-like product, Reels, launching it on Instagram in 2020 and adding it to Facebook last year.
|
Its users don't necessarily like Reels and may not want Instagram to become TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram. 10 stocks we like better than Meta Platforms, Inc.
|
19940.0
|
2022-08-02 00:00:00 UTC
|
EMERGING MARKETS-Stocks slide as rising U.S-China tensions trigger risk aversion
|
AAPL
|
https://www.nasdaq.com/articles/emerging-markets-stocks-slide-as-rising-u.s-china-tensions-trigger-risk-aversion
|
nan
|
nan
|
By Susan Mathew
Aug 2 (Reuters) - Emerging market stocks lost 1.1% on Tuesday as China's warnings over a likely U.S. visit to Taiwan raised worries about worsening Sino-U.S. relations.
Sources said U.S. House of Representatives Speaker Nancy Pelosi was expected to arrive in Taipei later on Tuesday, which Beijing said would undermine the relationship between China and the United States as it challenges Beijing's self-claimed sovereignty over Taiwan.
The White House said Beijing's responses could include firing missiles near Taiwan, large-scale air or naval activities, among others.
MSCI's index of emerging market stocks .MSCIEF was set for its worst session in three weeks, with Chinese blue-chips .CSI300 down 2%, while Taiwan's main index .TWII slid 1.6% to a two-week low.
Shares of Apple AAPL.O supplier Taiwan Semiconductor Manufacturing Co 2330.TW dropped 2.4%.
Most benchmark stock indexes in emerging Europe .BETI, .BUX, .WIG, Middle East .TASI, .DFMGI and Africa .JTOPI slid between 0.2% and 1%. Western European shares fell, as did U.S. stock futures. .EU
"The focus is going to shift on what sort of response China may make and it's really difficult to price that in because we've had really strong rhetoric from China but no specific details in terms of what sort of response it may make," said Piotr Matys, senior FX analyst at InTouch Capital Markets.
"So we are in a sort of wait-and-see mode at the moment."
Global sentiment was already dour as weak factory activity data for July from China, Europe as well as the United States on Monday had heightened recession worries.
Michael Every, global strategist at Rabobank warned volatility would likely last far longer than this week with flows moving into safe haven currencies such as the dollar and yen. FRX/
MSCI's index of developing world currencies .MIEM00000CUS was flat after a three-day rally.
"Asian currencies are more than likely going to be most vulnerable to risk aversion. To a less extent, central and eastern European currencies as they are not directly exposed (to Sino-U.S tensions)," said InTouch's Matys.
But on the day, the Chinese yuan CNY= rebounded after hitting an 11-week low, while the Indian rupee INR= extended gains to hit five-week highs.
"The price action indicates how difficult it is for investors to price in the risk."
As the euro slipped EUR=, Hungary's forint EURHUF= rallied 1.0%.
The rise in tension comes as the Biden administration debates whether to lift some tariffs on Chinese goods that were imposed under former President Donald Trump.
The tariff war that began in 2018 had slowed global growth and disrupted supply chains. Emerging market stocks fell almost 17% in 2018, while currencies dropped nearly 4%.
For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
(Reporting by Susan Mathew in Bengaluru; Editing by Robert Birsel)
((susan.mathew@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.
|
Shares of Apple AAPL.O supplier Taiwan Semiconductor Manufacturing Co 2330.TW dropped 2.4%. By Susan Mathew Aug 2 (Reuters) - Emerging market stocks lost 1.1% on Tuesday as China's warnings over a likely U.S. visit to Taiwan raised worries about worsening Sino-U.S. relations. Global sentiment was already dour as weak factory activity data for July from China, Europe as well as the United States on Monday had heightened recession worries.
|
Shares of Apple AAPL.O supplier Taiwan Semiconductor Manufacturing Co 2330.TW dropped 2.4%. By Susan Mathew Aug 2 (Reuters) - Emerging market stocks lost 1.1% on Tuesday as China's warnings over a likely U.S. visit to Taiwan raised worries about worsening Sino-U.S. relations. MSCI's index of emerging market stocks .MSCIEF was set for its worst session in three weeks, with Chinese blue-chips .CSI300 down 2%, while Taiwan's main index .TWII slid 1.6% to a two-week low.
|
Shares of Apple AAPL.O supplier Taiwan Semiconductor Manufacturing Co 2330.TW dropped 2.4%. MSCI's index of emerging market stocks .MSCIEF was set for its worst session in three weeks, with Chinese blue-chips .CSI300 down 2%, while Taiwan's main index .TWII slid 1.6% to a two-week low. .EU "The focus is going to shift on what sort of response China may make and it's really difficult to price that in because we've had really strong rhetoric from China but no specific details in terms of what sort of response it may make," said Piotr Matys, senior FX analyst at InTouch Capital Markets.
|
Shares of Apple AAPL.O supplier Taiwan Semiconductor Manufacturing Co 2330.TW dropped 2.4%. Sources said U.S. House of Representatives Speaker Nancy Pelosi was expected to arrive in Taipei later on Tuesday, which Beijing said would undermine the relationship between China and the United States as it challenges Beijing's self-claimed sovereignty over Taiwan. MSCI's index of emerging market stocks .MSCIEF was set for its worst session in three weeks, with Chinese blue-chips .CSI300 down 2%, while Taiwan's main index .TWII slid 1.6% to a two-week low.
|
19941.0
|
2022-08-01 00:00:00 UTC
|
Australian AI star Appen flags first-half loss, shares plunge
|
AAPL
|
https://www.nasdaq.com/articles/australian-ai-star-appen-flags-first-half-loss-shares-plunge
|
nan
|
nan
|
By Byron Kaye and Upasana Singh
Aug 2 (Reuters) - Australia's Appen Ltd APX.AX, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc AMZN.O, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling.
The warning on Tuesday shows how hefty spending cuts by global tech giants, facing raging inflation and rising interest rates, are filtering into the Australian share market where Appen has been an analyst favourite due to its high-profile customer base.
Adding to Appen's challenges, new privacy features in Apple Inc AAPL. products have reduced the ability of big advertisers including Facebook, which is owned by Meta Platforms Inc FB.O, and Alphabet Inc's GOOGL.O Google to target users, impacting their appetite for pinpoint-accurate user data, say analysts.
Appen's business model involves outsourcing hundreds of data-checking projects to contractors who manually check and label online content, which clients then feed into their algorithms.
After warning of a profit decline in May, Appen said it now expects a net loss of $3.8 million in the six months ended June, which would be its first interim loss since listing in 2015, from a net profit of $12.5 million a year earlier.
"Conditions have changed through the year," Chief Executive Officer Mark Brayan said on an analyst call.
"We believe this is a slowdown, rather than a competitive situation," he added, when asked if the company had lost business to rivals like Canada's Telus International TIXT.TO, which along with Appen dominates theglobal marketfor so-called artificial intelligence training.
Shares of Appen fell as much as 29% by midsession, against a half percentage point decline on the broader market .AXJO.
"Visibility of earnings has historically been low and in this environment of weakening global ad spend... it seems likely that visibility has taken a step down," Jefferies analyst John Campbell wrote in a research note.
RBC Capital Markets analyst Garry Sherriff said cooling investor sentiment was "likely to continue ... given multiple material downgrades and questions on revenue visibility and strategy".
(Reporting by Byron Kaye in Sydney and Upasana Singh in Bengaluru; Editing by Rashmi Aich)
((byron.kaye@thomsonreuters.com; +612 9171 7541; @byronkaye;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adding to Appen's challenges, new privacy features in Apple Inc AAPL. By Byron Kaye and Upasana Singh Aug 2 (Reuters) - Australia's Appen Ltd APX.AX, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc AMZN.O, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling. The warning on Tuesday shows how hefty spending cuts by global tech giants, facing raging inflation and rising interest rates, are filtering into the Australian share market where Appen has been an analyst favourite due to its high-profile customer base.
|
Adding to Appen's challenges, new privacy features in Apple Inc AAPL. By Byron Kaye and Upasana Singh Aug 2 (Reuters) - Australia's Appen Ltd APX.AX, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc AMZN.O, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling. After warning of a profit decline in May, Appen said it now expects a net loss of $3.8 million in the six months ended June, which would be its first interim loss since listing in 2015, from a net profit of $12.5 million a year earlier.
|
Adding to Appen's challenges, new privacy features in Apple Inc AAPL. By Byron Kaye and Upasana Singh Aug 2 (Reuters) - Australia's Appen Ltd APX.AX, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc AMZN.O, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling. The warning on Tuesday shows how hefty spending cuts by global tech giants, facing raging inflation and rising interest rates, are filtering into the Australian share market where Appen has been an analyst favourite due to its high-profile customer base.
|
Adding to Appen's challenges, new privacy features in Apple Inc AAPL. By Byron Kaye and Upasana Singh Aug 2 (Reuters) - Australia's Appen Ltd APX.AX, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc AMZN.O, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling. The warning on Tuesday shows how hefty spending cuts by global tech giants, facing raging inflation and rising interest rates, are filtering into the Australian share market where Appen has been an analyst favourite due to its high-profile customer base.
|
19942.0
|
2022-08-01 00:00:00 UTC
|
Apple drops mask requirements for most of its corporate workers - The Verge
|
AAPL
|
https://www.nasdaq.com/articles/apple-drops-mask-requirements-for-most-of-its-corporate-workers-the-verge
|
nan
|
nan
|
Aug 1 (Reuters) - Apple Inc AAPL.O is dropping its mask mandate for corporate employees at most locations, the Verge reported on Monday, citing an internal memo. (https://bit.ly/3oJ3EQN)
This comes even as COVID-19 infections in the United States have been on the rise with the BA.4 and BA.5 subvariants of the Omicron variant accounting for more than 90% of infections, according to the U.S. Centers for Disease Control and Prevention.
These subvariants have significant mutations from the earliest versions of Omicron and protection from vaccines wanes over time.
"Don't hesitate to continue wearing a face mask if you feel more comfortable doing so," the report quoted Apple as saying in the internal email. "Also, please respect every individual's decision to wear a mask or not."
Apple did not immediately respond to Reuters' request for comment outside regular business hours.
(Reporting by Kanjyik Ghosh in Bengaluru; Editing by Subhranshu Sahu)
((Kanjyik.Ghosh@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.
|
Aug 1 (Reuters) - Apple Inc AAPL.O is dropping its mask mandate for corporate employees at most locations, the Verge reported on Monday, citing an internal memo. These subvariants have significant mutations from the earliest versions of Omicron and protection from vaccines wanes over time. "Don't hesitate to continue wearing a face mask if you feel more comfortable doing so," the report quoted Apple as saying in the internal email.
|
Aug 1 (Reuters) - Apple Inc AAPL.O is dropping its mask mandate for corporate employees at most locations, the Verge reported on Monday, citing an internal memo. "Don't hesitate to continue wearing a face mask if you feel more comfortable doing so," the report quoted Apple as saying in the internal email. "Also, please respect every individual's decision to wear a mask or not."
|
Aug 1 (Reuters) - Apple Inc AAPL.O is dropping its mask mandate for corporate employees at most locations, the Verge reported on Monday, citing an internal memo. (https://bit.ly/3oJ3EQN) This comes even as COVID-19 infections in the United States have been on the rise with the BA.4 and BA.5 subvariants of the Omicron variant accounting for more than 90% of infections, according to the U.S. Centers for Disease Control and Prevention. "Don't hesitate to continue wearing a face mask if you feel more comfortable doing so," the report quoted Apple as saying in the internal email.
|
Aug 1 (Reuters) - Apple Inc AAPL.O is dropping its mask mandate for corporate employees at most locations, the Verge reported on Monday, citing an internal memo. (https://bit.ly/3oJ3EQN) This comes even as COVID-19 infections in the United States have been on the rise with the BA.4 and BA.5 subvariants of the Omicron variant accounting for more than 90% of infections, according to the U.S. Centers for Disease Control and Prevention. These subvariants have significant mutations from the earliest versions of Omicron and protection from vaccines wanes over time.
|
19943.0
|
2022-08-01 00:00:00 UTC
|
Should Investors Worry About Apple's Slowing Services Business?
|
AAPL
|
https://www.nasdaq.com/articles/should-investors-worry-about-apples-slowing-services-business
|
nan
|
nan
|
Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. However, the results mark a considerable slowdown compared to last year, with revenue growing by just 2% year-over-year with EPS also falling 7% versus the prior year due to rising operating expenses. There are multiple factors weighing on Apple’s financial performance, including the strong U.S. dollar and continuing supply chain issues, which Apple estimates hit revenue by $4 billion to $8 billion over the quarter. Moreover, the macroeconomic environment also remains tough, with U.S. GDP contracting over the last two quarters, and surging inflation eating into household budgets. Apple’s iPhone sales grew by just about 3% to $40.7 billion, and its services segment expanded by just about 12%, down from about 27% growth in the year-ago quarter, while marking the slowest quarter of growth in about six years. Apple’s iPad, Mac, and other product segments all saw revenue contract on a year-over-year basis. That said, Apple’s gross margins held up, coming in at 43.3%, roughly flat compared to last year.
Although the macro environment is likely to remain tough in the near term, Apple actually expects its year-over-year revenue growth to pick up during the September quarter versus June, as supply-related constraints are likely to ease. However, gross margins are expected to see some pressure, with the company projecting margins of between 41.5% and 42.5% due to continued currency headwinds and a weaker product mix. Apple also expects slower growth from its high-margin services business, as areas such as digital advertising see slower growth due to the economic slowdown. That said, we think this business should eventually pick up, as the economy improves and also considering that Apple is seeing a record number of people switching to its ecosystem from other platforms. Moreover, Apple has also grown its base of paid subscriptions considerably to 860 million , up 160 million over the last year and this should also drive services revenues going forward.
We are maintaining our $178 per share price estimate for Apple stock, which marks a premium of about 13% over the current market price. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? for an overview of what’s driving our price estimate for Apple.
With inflation rising and the Fed raising interest rates, Apple has fallen 11% this year. Can it drop more? See how low can Apple stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAPL Return 15% -11% 443%
S&P 500 Return 8% -15% 82%
Trefis Multi-Strategy Portfolio 11% -14% 240%
[1] Month-to-date and year-to-date as of 7/29/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap?
|
Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap?
|
Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
19944.0
|
2022-08-01 00:00:00 UTC
|
Big Tech in finance? There’s a regulator for that
|
AAPL
|
https://www.nasdaq.com/articles/big-tech-in-finance-theres-a-regulator-for-that-0
|
nan
|
nan
|
Reuters
Reuters
WASHINGTON (Reuters Breakingviews) - Technology companies have stormed the heights of consumer finance, but they don’t face the regulation that vexes their old-world rivals. While no single financial watchdog has oversight of Apple, Amazon.com or Facebook owner Meta Platforms, that could change. It all hangs on the views of a panel of watchdogs known as the Financial Stability Oversight Council.
When a company like Apple decides to offer financial services, the potential impact is huge. Take the iPhone maker’s new buy-now-pay-later service. It’s starting small, with six-week duration loans and a borrowing limit of $1,000. But unlike the Apple-branded credit card that’s effectively run by Goldman Sachs, the lending decisions and funding for buy-now-pay-later loans are Apple’s own. Tim Cook’s firm is doing some of what a Citigroup or Bank of America does, but without the onerous regulation.
It's a question of potential rather than actual risk. Imagine half the number of iPhone users in the United States, or about 59 million based on estimates by Counterpoint research, end up using the pay-installment service. That would give Apple about as many consumer customers as General Electric’s financing arm, GE Capital https://home.treasury.gov/system/files/261/General%20Electric%20Capital%20Corporation%2C%20Inc.pdf, had in 2013. GE Capital required a bailout to back nearly $140 billion of its debt after it unraveled during the 2008 financial crisis.
The cloud divisions of Silicon Valley giants also play a systemic role. The largest banks like JPMorgan rely on Amazon and others for various tasks, including housing data, processing transactions and running applications. About 45% of banks use Amazon while a similar proportion depends on Microsoft, with many using both, according to S&P Global’s 451 Research. A disruption or failure through a hack or natural disaster could upend operations and cause a panic.
In GE’s case, it was FSOC that stepped in when it became clear that the regulatory framework had holes in it. The 15-member panel was created after the 2008 financial crisis, and now includes Treasury Secretary Janet Yellen, Federal Reserve Chair Jay Powell, Securities and Exchange Commission chief Gary Gensler and Consumer Financial Protection Bureau head Rohit Chopra. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system.
Tech companies would be a timely fit for FSOC. The group doesn’t perform day-to-day watchdog functions but can farm such duties out to an appropriate panel member. The Fed also took supervision of insurer AIG after the 2008 financial crisis. Other FSOC members have their own expertise: the SEC’s is over capital markets, for example.
And as with GE, it wouldn’t need to throw a regulatory net around the whole of a company. Apple, say, could be asked to carve out its Apple Financing subsidiary into a separate holding company, which could then be subject to rules on underwriting, credit quality and stress testing. Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange.
None of this would stop tech firms’ financial march, but it would slow them down. Regulated entities would need to have their own chief executive, board and come up with rules on cybersecurity and other areas. British authorities recently floated a range of options https://www.bankofengland.co.uk/prudential-regulation/publication/2022/july/operational-resilience-critical-third-parties-uk-financial-sector to make sure the financial system could withstand a cloud-computing snafu, including regular cyber resilience tests. And financial regulators often parachute examiners into the offices of the companies they supervise, who regularly check operations for risk management. That would be an unfamiliar intrusion for Silicon Valley.
Even if FSOC drags its feet, more red tape for tech firms is inevitable. In October, the CFPB asked Apple, Alphabet’s Google, and Facebook about their payment systems. The agency can issue enforcement actions for violations of user privacy, among other concerns, and leader Chopra is no stranger to assertively using his position on other regulatory bodies – as he showed when he helped speed the exit of then-head of the Federal Deposit Insurance Corporation, Donald Trump appointee Jelena McWilliams.
Still, a more coordinated approach would be better. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing. Watchdogs, meanwhile, are often reacting to past threats. Putting Silicon Valley on FSOC’s agenda would help keep the financial cops ahead of the game.
Follow @GinaChon https://twitter.com/GinaChon on Twitter
(Editing by John Foley and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange. British authorities recently floated a range of options https://www.bankofengland.co.uk/prudential-regulation/publication/2022/july/operational-resilience-critical-third-parties-uk-financial-sector to make sure the financial system could withstand a cloud-computing snafu, including regular cyber resilience tests. The agency can issue enforcement actions for violations of user privacy, among other concerns, and leader Chopra is no stranger to assertively using his position on other regulatory bodies – as he showed when he helped speed the exit of then-head of the Federal Deposit Insurance Corporation, Donald Trump appointee Jelena McWilliams.
|
That would give Apple about as many consumer customers as General Electric’s financing arm, GE Capital https://home.treasury.gov/system/files/261/General%20Electric%20Capital%20Corporation%2C%20Inc.pdf, had in 2013. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing.
|
The 15-member panel was created after the 2008 financial crisis, and now includes Treasury Secretary Janet Yellen, Federal Reserve Chair Jay Powell, Securities and Exchange Commission chief Gary Gensler and Consumer Financial Protection Bureau head Rohit Chopra. Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange. And financial regulators often parachute examiners into the offices of the companies they supervise, who regularly check operations for risk management.
|
It all hangs on the views of a panel of watchdogs known as the Financial Stability Oversight Council. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing.
|
19945.0
|
2022-08-01 00:00:00 UTC
|
3 Dow Jones Industrial Average Stocks For Your August 2022 Watchlist
|
AAPL
|
https://www.nasdaq.com/articles/3-dow-jones-industrial-average-stocks-for-your-august-2022-watchlist
|
nan
|
nan
|
Check Out These Three Dow Jones Industrial Average Stocks In The Stock Market Today
The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies trading on the New York Stock Exchange (NYSE) and Nasdaq. The Dow is one of the oldest and most well-known indexes in the world. Specifically, it is often used as a barometer for the overall health of the stock market. Additionally, the Dow Jones is named after business partners Charles Dow & Edward Jones, who created the index in 1896.
The Dow is calculated by taking the average price of each of the stocks in its index. The Dow typically fluctuates with the overall direction of the stock market. For example, it rises when stocks are doing well and falls when they are not. While the Dow is not a perfect measure of the stock market. However, it can give investors a good idea of how it is performing. Some of the notable companies include; are Microsoft Corp (NASDAQ: MSFT), Apple, Inc. (NASDAQ: AAPL), and Amgen (NASDAQ: AMGN) to name a few.
As of Monday afternoon, the Dow Jones is down a modest 65 points at $32,780.06. All in all, if you’re an investor looking to invest in blue-chip stocks, check out these three dow jones industrial average stocks in the stock market today.
Dow Jones Industrial Stocks To Watch In August 2022
3M Company (NYSE: MMM)
Home Depot Inc. (NYSE: HD)
Walgreens Boots Alliance Inc. (NASDAQ: WBA)
3M Company
First up, we have 3M Company (MMM). 3M is a multinational conglomerate corporation that operates in the fields of industry, worker safety, and health care. It uses science to improve lives and help solve the world’s toughest challenges. The company continues to execute its plan to deliver exceptional value for its customers and also provide premium returns to its shareholders. This is evident in the company’s most recent earnings beat.
Last month, 3M reported its second-quarter earnings per share of $2.48 on revenue of $8.7 billion. For context, this is compared to wall street’s estimates of $2.41 per share on revenue of $8.8 billion. Aside from that, the company said it projects 2022 earnings of $10.30 to $10.80 per share on revenue of $34.47 billion to $35.18 billion. Previously, 3M provided guidance of $10.15 to $10.65 per share on revenue of $35.71 billion to $36.77 billion. Furthermore, MMM stock is currently up over 11% in the last month of trading action. On Monday afternoon, shares of 3M stock are currently trading at $143.31 a share.
3M chairman and CEO Mike Roman commented, “In a challenging macroeconomic environment, 3M executed well and delivered solid earnings, while continuing to drive growth through investments in large, fast-growing areas.” He continued, “Looking ahead, we updated our adjusted full-year expectations largely due to the strength of the U.S. dollar and uncertain macroeconomic environment. We remain focused on innovating for customers, driving operational improvements and advancing our environmental stewardship.” Considering all of this, does MMM stock deserve a spot on your watchlist today?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Invest In Right Now? 5 Consumer Staples Stocks To Know
Home Depot, Inc.
Following that, let’s dive into Home Depot (HD). In brief, Home Depot is the biggest home improvement specialty retailer in the world. As of its latest quarterly update, the company operates via a total of 2,316 retail stores. The likes of which span all 50 U.S. states, the District of Columbia, Guam, Canada, and Mexico among other locations. Through its massive workforce of over 500,000 employees, Home Depot offers consumers a vast array of home improvement items alongside relevant services.
Despite, prices continuing to rise, Home Depot’s operations continue to experience growth. For example, let’s look at the company’s most recent quarterly update from May. In the report, Home Depot reported its “highest first-quarter sales” to date. Specifically, Home Deport posted total sales for the first quarter of 2022 at $38.9 billion, a $1.4 billion increase year-over-year. Also, its comparable sales for the quarter also increased by 2.2%.
“Fiscal 2022 is off to a strong start as we delivered the highest first quarter sales in Company history,” said Ted Decker, CEO and president. “The solid performance in the quarter is even more impressive as we were comparing against last year’s historic growth and faced a slower start to spring this year. Because of this, investors may consider keeping an eye on HD stock ahead of its upcomingearnings callon July 28.” With that, should you be watching HD stock in the stock market today?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Defense Stocks To Watch
Walgreens Boots Alliance
Lastly, we have Walgreens (WBA). Walgreens Boots Alliance is a pharmacy store chain company. The company specializes in filling prescriptions, health and wellness products, health information, and photo services. As a whole, the company’s main divisions are its Retail Pharmacy USA segment and Retail Pharmacy International segment. The Retail Pharmacy USA arm entails Walgreens, which operates retail drugstores, health and wellness services, and mail and central specialty pharmacy services. While the Retail Pharmacy International segment includes the pharmacy-led health and beauty retail enterprises.
In late June, Walgreens Boots Alliance (WBA) reported its third-quarter 2022 earnings. In it, the company posted earnings per share of $0.96 on revenue of $32.6 billion. Meanwhile, the consensus earnings estimate was $0.95 per share on revenue of $32.0 billion. Additionally, Walgreens reported it continues its guidance expectations for its full-year 2022 fiscal earnings.
Chief Executive Officer Rosalind Brewer commented in her note to shareholders, “WBA delivered strong execution across operating segments and against very robust growth last year. Third quarter results were broadly in line with our expectations, demonstrating the resilience of our business through our deep community connections and relevance to consumers.” On Monday afternoon, shares of WBA stock are currently trading at $39.80 a share. Will you be keeping WBA stock on your radar this week?
Source: TD Ameritrade TOS
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.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some of the notable companies include; are Microsoft Corp (NASDAQ: MSFT), Apple, Inc. (NASDAQ: AAPL), and Amgen (NASDAQ: AMGN) to name a few. 3M chairman and CEO Mike Roman commented, “In a challenging macroeconomic environment, 3M executed well and delivered solid earnings, while continuing to drive growth through investments in large, fast-growing areas.” He continued, “Looking ahead, we updated our adjusted full-year expectations largely due to the strength of the U.S. dollar and uncertain macroeconomic environment. We remain focused on innovating for customers, driving operational improvements and advancing our environmental stewardship.” Considering all of this, does MMM stock deserve a spot on your watchlist today?
|
Some of the notable companies include; are Microsoft Corp (NASDAQ: MSFT), Apple, Inc. (NASDAQ: AAPL), and Amgen (NASDAQ: AMGN) to name a few. Check Out These Three Dow Jones Industrial Average Stocks In The Stock Market Today The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies trading on the New York Stock Exchange (NYSE) and Nasdaq. Dow Jones Industrial Stocks To Watch In August 2022 3M Company (NYSE: MMM) Home Depot Inc. (NYSE: HD) Walgreens Boots Alliance Inc. (NASDAQ: WBA) 3M Company First up, we have 3M Company (MMM).
|
Some of the notable companies include; are Microsoft Corp (NASDAQ: MSFT), Apple, Inc. (NASDAQ: AAPL), and Amgen (NASDAQ: AMGN) to name a few. Check Out These Three Dow Jones Industrial Average Stocks In The Stock Market Today The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies trading on the New York Stock Exchange (NYSE) and Nasdaq. All in all, if you’re an investor looking to invest in blue-chip stocks, check out these three dow jones industrial average stocks in the stock market today.
|
Some of the notable companies include; are Microsoft Corp (NASDAQ: MSFT), Apple, Inc. (NASDAQ: AAPL), and Amgen (NASDAQ: AMGN) to name a few. All in all, if you’re an investor looking to invest in blue-chip stocks, check out these three dow jones industrial average stocks in the stock market today. Dow Jones Industrial Stocks To Watch In August 2022 3M Company (NYSE: MMM) Home Depot Inc. (NYSE: HD) Walgreens Boots Alliance Inc. (NASDAQ: WBA) 3M Company First up, we have 3M Company (MMM).
|
19946.0
|
2022-08-01 00:00:00 UTC
|
How to Invest for a Recession
|
AAPL
|
https://www.nasdaq.com/articles/how-to-invest-for-a-recession
|
nan
|
nan
|
A sharp decline in the stock market is often an indicator of an impending recession – that is, a temporary period of economic decline. With the S&P 500 Index falling 1,000 points, or about one-fifth, from January through June, a consensus is emerging that a recession is coming, perhaps next year.
Recessions have wildly varying durations and depths. The official judge is the National Bureau of Economic Research, which counts nine of them since 1960, lasting an average of about a year. Recent recessions have been the result of severe shocks to the system: the 2008 financial crisis and the 2020 pandemic. The COVID recession was the shortest in history (two months) but the most intense (gross domestic product down by nearly one-third).
SEE MORE 10 Defensive ETFs to Protect Your Portfolio
A 2022 or 2023 recession will be very different. If it happens, it will follow a more traditional pattern, triggered by the Federal Reserve Board raising interest rates sharply as a way to reduce consumer and business demand to tame inflation. For investors, there are three important facts about recessions:
They are uncertain. The Fed raised rates nine times from late 2015 to late 2018 without triggering a recession. Nobel Prize-winning economist Paul Samuelson once famously quipped that the stock market had predicted nine of the last five recessions. Economists have a poor record, too, though two-thirds of them, including Samuelson's nephew Larry Summers, expect one next year.
They end. This is a critical point for long-term investors, who should keep buying stocks on a regular basis. Using a process called dollar-cost averaging, you can invest a set amount at regular intervals – when stocks are cheaper, you can afford more shares.
They deliver opportunities. Finally, there is little shelter in the stock market from recessions, but at the same time, they offer remarkable opportunities.
If you have a reasonably diversified stock portfolio, it has likely lost roughly 20% of its value during the first six months of the year. Those losses anticipate a recession – or at least a very rough patch for businesses. The hit has been felt across the board, with the exception of the energy sector, which has benefited from oil and gas shortages caused by the war in Ukraine and the spike in demand as the pandemic economy reopened.
SEE MORE Kip ETF 20: The Best Cheap ETFs You Can Buy
Healthcare, consumer staples and utilities – that is, things that consumers can't do without, even in a recession – have fallen the least, on average about half as much as the rest of the market. These are the classic sectors for safety.
If you are worried about a deep and prolonged recession, consider stocks such as Merck (MRK), the pharmaceutical giant. Merck shares are actually up this year, and analysts see profits holding steady through 2023. The stock carries a price-earnings ratio, based on estimated earnings for the year ahead, of 13 and yields 3.0%. (Stocks and funds I like are in bold; prices and other data are as of July 8.)
Another strong healthcare company to consider is AbbVie (ABBV), whose products include Botox (a wrinkle-remover and migraine medicine) and Humira, the autoimmune injectable that was the top-selling drug last year after Pfizer's (PFE) COVID-19 vaccine. Humira's primary patent will soon expire, and analysts foresee a decline in profits for AbbVie next year; the stock trades at a P/E of just 11. Shares are up so far in 2022; they have a current yield of 3.7%.
During a recession, dividends are especially important because they give you a cushion even if the stock price falls. Also, stocks like Merck and AbbVie, with reliable, high payouts, provide good competition for the bonds to which many investors flee in tough times. Merck's yield tops that of a 10-year Treasury.
Fund investors can consider T. Rowe Price Dividend Growth (PRDGX), which invests primarily in firms with a track record of increasing quarterly payouts. A top holding is another healthcare stock, UnitedHealth Group (UNH), the nation's largest health insurer. United is down for the year but has still vastly outperformed the market.
SEE MORE 10 Best Low-Volatility Stocks to Buy Now
The Price fund's only drawback is that its portfolio is larded with stocks whose dividends may be growing but are tiny, including Apple (AAPL), yielding 0.6%. The Vanguard High Dividend Yield Index Fund (VYM), by contrast, is an exchange-traded fund that stresses elevated dividends paid by strong companies, including drug companies such as Johnson & Johnson (JNJ), yielding 2.5%, and Bristol-Myers Squibb (BMY), with a P/E of just 10 and a yield of 2.9%.
The Vanguard fund is overweight with consumer staples stocks. Among them are Procter & Gamble (PG), yielding 2.5%. Even in a recession, consumers buy brands such as Pampers, Gillette, Tampax and Oral-B. Other consumer defensive stocks that held up comparatively well in the 2001, 2008 and 2020 recessions are Coca-Cola (KO), yielding 2.8%, and Walmart (WMT), yielding 1.8%. A good ETF in this sector is the iShares U.S. Consumer Staples (IYK), which yields 2.1% and was down only 1.4%, including dividends, for the year-to-date. The fund holds Mondelez International (MDLZ), whose brands include Oreo cookies and Tang breakfast drink. Mondelez, which dipped modestly in the 2020 recession, yields 2.2%.
The other category that has withstood the 2022 market downturn is more troublesome: utilities. These companies are heavy borrowers. Many also rely heavily on natural gas, whose price has quintupled over the past two years. Regulated large utilities can buffer these higher costs through mandated rate increases, but I still worry about their exposure.
Don't Overlook the Stock Deals
Now for the opportunity. Technology has taken the hardest pre-recession hit. My theory is that these stocks are already priced for a serious recession and may bottom out before the rest. And they are modern versions of consumer-staples stocks.
Take Netflix (NFLX). It's down by more than two-thirds this year and trades at a P/E of 17. A basic Netflix subscription is just $10 a year. Yes, the company has competition, but it is preeminent in a field that is unlikely to suffer – and might actually thrive – as the going gets tough. Amazon.com (AMZN) is the quintessential 2022 staples stock, yet it’s down nearly one-third this year. Amazon’s cloud-computing business would seem impervious to recession as well. Meta Platforms (META) has declined by nearly half. It provides loads of free entertainment with Facebook and Instagram. With most of its revenues coming from advertising, it has more exposure to a recession, but its P/E is just 14, even though the analysts see sales growing 16% next year.
Will there be a recession? I have no idea. What is certain is that parts of the market are priced as if there will be a bad one. My recommendation, then, is for investors to strive for a balance between traditional defensive stocks and exceptional growth companies that have taken a big hit.
James K. Glassman chairs Glassman Advisory, a public-affairs consulting firm. He does not write about his clients. Of the stocks mentioned here, he owns Netflix and Amazon.com. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence. You can reach him at James_Glassman@kiplinger.com.
SEE MORE 10 Stocks to Buy When They're Down
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SEE MORE 10 Best Low-Volatility Stocks to Buy Now The Price fund's only drawback is that its portfolio is larded with stocks whose dividends may be growing but are tiny, including Apple (AAPL), yielding 0.6%. If it happens, it will follow a more traditional pattern, triggered by the Federal Reserve Board raising interest rates sharply as a way to reduce consumer and business demand to tame inflation. The hit has been felt across the board, with the exception of the energy sector, which has benefited from oil and gas shortages caused by the war in Ukraine and the spike in demand as the pandemic economy reopened.
|
SEE MORE 10 Best Low-Volatility Stocks to Buy Now The Price fund's only drawback is that its portfolio is larded with stocks whose dividends may be growing but are tiny, including Apple (AAPL), yielding 0.6%. Fund investors can consider T. Rowe Price Dividend Growth (PRDGX), which invests primarily in firms with a track record of increasing quarterly payouts. The Vanguard High Dividend Yield Index Fund (VYM), by contrast, is an exchange-traded fund that stresses elevated dividends paid by strong companies, including drug companies such as Johnson & Johnson (JNJ), yielding 2.5%, and Bristol-Myers Squibb (BMY), with a P/E of just 10 and a yield of 2.9%.
|
SEE MORE 10 Best Low-Volatility Stocks to Buy Now The Price fund's only drawback is that its portfolio is larded with stocks whose dividends may be growing but are tiny, including Apple (AAPL), yielding 0.6%. The Vanguard High Dividend Yield Index Fund (VYM), by contrast, is an exchange-traded fund that stresses elevated dividends paid by strong companies, including drug companies such as Johnson & Johnson (JNJ), yielding 2.5%, and Bristol-Myers Squibb (BMY), with a P/E of just 10 and a yield of 2.9%. Other consumer defensive stocks that held up comparatively well in the 2001, 2008 and 2020 recessions are Coca-Cola (KO), yielding 2.8%, and Walmart (WMT), yielding 1.8%.
|
SEE MORE 10 Best Low-Volatility Stocks to Buy Now The Price fund's only drawback is that its portfolio is larded with stocks whose dividends may be growing but are tiny, including Apple (AAPL), yielding 0.6%. Merck's yield tops that of a 10-year Treasury. The Vanguard High Dividend Yield Index Fund (VYM), by contrast, is an exchange-traded fund that stresses elevated dividends paid by strong companies, including drug companies such as Johnson & Johnson (JNJ), yielding 2.5%, and Bristol-Myers Squibb (BMY), with a P/E of just 10 and a yield of 2.9%.
|
19947.0
|
2022-08-01 00:00:00 UTC
|
Oracle starts job cuts in U.S. - The Information
|
AAPL
|
https://www.nasdaq.com/articles/oracle-starts-job-cuts-in-u.s.-the-information
|
nan
|
nan
|
Aug 1 (Reuters) - Oracle Corp ORCL.N has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter.
The publication in July reported that Oracle was considering cutting thousands of jobs in its global workforce after targeting cost cuts of up to $1 billion. https://bit.ly/3OVYkoq
The company had about 143,000 full-time employees as of May 31, according to its latest annual report.
The layoffs at Oracle will affect employees at its offices in the San Francisco Bay Area, Monday's report said, but it did not mention the number of employees affected. https://bit.ly/3Q7awTC
Oracle did not immediately respond to a Reuters request for comment.
The report also said layoffs in Canada, India and parts of Europe were expected in the coming weeks and months.
Technology giants Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O have also discussed cuts or a slowdown in hiring plans in response to rising costs and fears of a recession.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Technology giants Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O have also discussed cuts or a slowdown in hiring plans in response to rising costs and fears of a recession. Aug 1 (Reuters) - Oracle Corp ORCL.N has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter. The report also said layoffs in Canada, India and parts of Europe were expected in the coming weeks and months.
|
Technology giants Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O have also discussed cuts or a slowdown in hiring plans in response to rising costs and fears of a recession. Aug 1 (Reuters) - Oracle Corp ORCL.N has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter. The publication in July reported that Oracle was considering cutting thousands of jobs in its global workforce after targeting cost cuts of up to $1 billion.
|
Technology giants Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O have also discussed cuts or a slowdown in hiring plans in response to rising costs and fears of a recession. Aug 1 (Reuters) - Oracle Corp ORCL.N has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter. The publication in July reported that Oracle was considering cutting thousands of jobs in its global workforce after targeting cost cuts of up to $1 billion.
|
Technology giants Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O have also discussed cuts or a slowdown in hiring plans in response to rising costs and fears of a recession. Aug 1 (Reuters) - Oracle Corp ORCL.N has started to lay off employees in the United States, The Information said on Monday, citing a person with direct knowledge of the matter. The publication in July reported that Oracle was considering cutting thousands of jobs in its global workforce after targeting cost cuts of up to $1 billion.
|
19948.0
|
2022-08-01 00:00:00 UTC
|
Big Tech in finance? There’s a regulator for that
|
AAPL
|
https://www.nasdaq.com/articles/big-tech-in-finance-theres-a-regulator-for-that
|
nan
|
nan
|
Reuters
Reuters
WASHINGTON (Reuters Breakingviews) - Technology companies have stormed the heights of consumer finance, but they don’t face the regulation that vexes their old-world rivals. While no single financial watchdog has oversight of Apple, Amazon.com or Facebook owner Meta Platforms, that could change. It all hangs on the views of a panel of watchdogs known as the Financial Stability Oversight Council.
When a company like Apple decides to offer financial services, the potential impact is huge. Take the iPhone maker’s new buy-now-pay-later service. It’s starting small, with six-week duration loans and a borrowing limit of $1,000. But unlike the Apple-branded credit card that’s effectively run by Goldman Sachs, the lending decisions and funding for buy-now-pay-later loans are Apple’s own. Tim Cook’s firm is doing some of what a Citigroup or Bank of America does, but without the onerous regulation.
It's a question of potential rather than actual risk. Imagine half the number of iPhone users in the United States, or about 59 million based on estimates by Counterpoint research, end up using the pay-installment service. That would give Apple about as many consumer customers as General Electric’s financing arm, GE Capital https://home.treasury.gov/system/files/261/General%20Electric%20Capital%20Corporation%2C%20Inc.pdf, had in 2013. GE Capital required a bailout to back nearly $140 billion of its debt after it unraveled during the 2008 financial crisis.
The cloud divisions of Silicon Valley giants also play a systemic role. The largest banks like JPMorgan rely on Amazon and others for various tasks, including housing data, processing transactions and running applications. About 45% of banks use Amazon while a similar proportion depends on Microsoft, with many using both, according to S&P Global’s 451 Research. A disruption or failure through a hack or natural disaster could upend operations and cause a panic.
In GE’s case, it was FSOC that stepped in when it became clear that the regulatory framework had holes in it. The 15-member panel was created after the 2008 financial crisis, and now includes Treasury Secretary Janet Yellen, Federal Reserve Chair Jay Powell, Securities and Exchange Commission chief Gary Gensler and Consumer Financial Protection Bureau head Rohit Chopra. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system.
Tech companies would be a timely fit for FSOC. The group doesn’t perform day-to-day watchdog functions but can farm such duties out to an appropriate panel member. The Fed also took supervision of insurer AIG after the 2008 financial crisis. Other FSOC members have their own expertise: the SEC’s is over capital markets, for example.
And as with GE, it wouldn’t need to throw a regulatory net around the whole of a company. Apple, say, could be asked to carve out its Apple Financing subsidiary into a separate holding company, which could then be subject to rules on underwriting, credit quality and stress testing. Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange.
None of this would stop tech firms’ financial march, but it would slow them down. Regulated entities would need to have their own chief executive, board and come up with rules on cybersecurity and other areas. British authorities recently floated a range of options https://www.bankofengland.co.uk/prudential-regulation/publication/2022/july/operational-resilience-critical-third-parties-uk-financial-sector to make sure the financial system could withstand a cloud-computing snafu, including regular cyber resilience tests. And financial regulators often parachute examiners into the offices of the companies they supervise, who regularly check operations for risk management. That would be an unfamiliar intrusion for Silicon Valley.
Even if FSOC drags its feet, more red tape for tech firms is inevitable. In October, the CFPB asked Apple, Alphabet’s Google, and Facebook about their payment systems. The agency can issue enforcement actions for violations of user privacy, among other concerns, and leader Chopra is no stranger to assertively using his position on other regulatory bodies – as he showed when he helped speed the exit of then-head of the Federal Deposit Insurance Corporation, Donald Trump appointee Jelena McWilliams.
Still, a more coordinated approach would be better. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing. Watchdogs, meanwhile, are often reacting to past threats. Putting Silicon Valley on FSOC’s agenda would help keep the financial cops ahead of the game.
Follow @GinaChon https://twitter.com/GinaChon on Twitter
(Editing by John Foley and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange. British authorities recently floated a range of options https://www.bankofengland.co.uk/prudential-regulation/publication/2022/july/operational-resilience-critical-third-parties-uk-financial-sector to make sure the financial system could withstand a cloud-computing snafu, including regular cyber resilience tests. The agency can issue enforcement actions for violations of user privacy, among other concerns, and leader Chopra is no stranger to assertively using his position on other regulatory bodies – as he showed when he helped speed the exit of then-head of the Federal Deposit Insurance Corporation, Donald Trump appointee Jelena McWilliams.
|
That would give Apple about as many consumer customers as General Electric’s financing arm, GE Capital https://home.treasury.gov/system/files/261/General%20Electric%20Capital%20Corporation%2C%20Inc.pdf, had in 2013. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing.
|
The 15-member panel was created after the 2008 financial crisis, and now includes Treasury Secretary Janet Yellen, Federal Reserve Chair Jay Powell, Securities and Exchange Commission chief Gary Gensler and Consumer Financial Protection Bureau head Rohit Chopra. Cloud businesses like Amazon Web Service or Microsoft Azure could be deemed systemically important financial utilities, a label already applied to other forms of market plumbing like the Chicago Mercantile Exchange. And financial regulators often parachute examiners into the offices of the companies they supervise, who regularly check operations for risk management.
|
It all hangs on the views of a panel of watchdogs known as the Financial Stability Oversight Council. The council designated GE Capital a systemic risk in 2013, and put it under the supervision of the Fed, where it stayed until 2016 https://www.ge.com/news/reports/u-s-regulators-ge-capital-no-longer-systematically-important-to-the-financial-system. With billions of users and lax regulation, the risks to consumers and the broader system from big tech firms are growing.
|
19949.0
|
2022-08-01 00:00:00 UTC
|
No-Brainer Dividend Stocks to Buy Now
|
AAPL
|
https://www.nasdaq.com/articles/no-brainer-dividend-stocks-to-buy-now
|
nan
|
nan
|
Sometimes in investing, the simplest answer is the right one. In today's market, I'm trying to make simple decisions and I'm asking questions like: Is a company profitable? Does it pay a dividend? Will people buy its products even if they have to cut back spending a little?
Three companies that have positive answers to all of these questions are Apple (NASDAQ: AAPL), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM). These may not be growth stocks, but they're great dividend stocks that won't blow a hole in your portfolio.
Dominating mobile
Apple isn't known as a great dividend stock, but maybe it should be. The company is likely past its higher growth days, and now it's monetizing the computing platforms that have been developed and attracted hundreds of millions of users worldwide. You can see below that as Apple has focused on expanding from hardware to high-margin software and products that lock in customers, free cash flow has surged to over $100 billion per year.
AAPL Dividends Paid (TTM) data by YCharts
Despite paying a modest dividend, Apple could do much more. The stock only yields 0.6% today, but that's in large part because management only pays out about 15% of earnings as a dividend. The payout could triple and still be a comfortable payout ratio, and leave plenty of room for buybacks with excess cash.
I see Apple as having one of the best businesses in the world and it's a cash flow machine, which means there's great upside for this dividend stock.
No growth but big dividend stock
Investors don't generally like high-capital-expense businesses like Verizon, but it may be time to take another look. The U.S. wireless market has only three major competitors with AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS), and Verizon, with Verizon having arguably the best network of the three. This puts it in a strong position to generate strong cash flow long-term.
While second-quarter earnings results showed disappointing results in the value segment of the wireless market, there were bright spots in business and fixed wireless (wireless broadband). Verizon added 256,000 fixed wireless connections, up 32% from a quarter earlier.
There are ups and downs in the wireless business, and right now there's a downtrend for Verizon's overall business. But that's an opportunity for investors to buy a stock that has a dividend yield of 5.6% and a price-to-earnings (P/E) ratio of 8.8. Wireless isn't going anywhere, and Verizon is one of only three major service providers. Given the value in the stock, this is a simple dividend buy today.
The future of oil is cash flow
The oil business is relatively simple today. Executives know a threat from electric vehicles is coming, so they're being more prudent in their capital spending, despite high oil prices. In other words, cash generation is up sharply with oil prices, but they're not rushing out to "drill baby, drill."
ExxonMobil may not be a growth play anymore, but it's a great value stock with a P/E ratio of 15.4 and a dividend yield of 3.8%. Management's conservative operations led to a $4.3 billion increase in cash on the balance sheet while returning $5.8 billion to shareholders and reducing debt by $0.7 billion.
The world is going to be using oil and natural gas for a long time, even if clean energy and electric vehicles continue to take market share. ExxonMobil may not grow as a result, but it's a great cash flow company and it pays a nice dividend, which has been a recipe for great returns long-term.
Keep it simple
Apple, Verizon, and ExxonMobil may not be great growth stocks, but they don't have to be to beat the market. They all generate solid cash flows and they're in businesses that are sticky whether the economy slows or inflation continues. That's why I think they're great buys for dividend investors today.
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 July 27, 2022
Travis Hoium has positions in Apple and Verizon Communications. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends T-Mobile US and Verizon Communications 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.
|
Three companies that have positive answers to all of these questions are Apple (NASDAQ: AAPL), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM). AAPL Dividends Paid (TTM) data by YCharts Despite paying a modest dividend, Apple could do much more. The company is likely past its higher growth days, and now it's monetizing the computing platforms that have been developed and attracted hundreds of millions of users worldwide.
|
Three companies that have positive answers to all of these questions are Apple (NASDAQ: AAPL), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM). AAPL Dividends Paid (TTM) data by YCharts Despite paying a modest dividend, Apple could do much more. This puts it in a strong position to generate strong cash flow long-term.
|
Three companies that have positive answers to all of these questions are Apple (NASDAQ: AAPL), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM). AAPL Dividends Paid (TTM) data by YCharts Despite paying a modest dividend, Apple could do much more. I see Apple as having one of the best businesses in the world and it's a cash flow machine, which means there's great upside for this dividend stock.
|
Three companies that have positive answers to all of these questions are Apple (NASDAQ: AAPL), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM). AAPL Dividends Paid (TTM) data by YCharts Despite paying a modest dividend, Apple could do much more. Given the value in the stock, this is a simple dividend buy today.
|
19950.0
|
2022-08-01 00:00:00 UTC
|
Company News for Aug 1, 2022
|
AAPL
|
https://www.nasdaq.com/articles/company-news-for-aug-1-2022
|
nan
|
nan
|
Shares of Phillips 66 PSX rose 1.1% after it reported second-quarter 2022 adjusted earnings of $6.77 per share, beating the Zacks Consensus Estimate of $5.92 per share.
Intel Corporation’s INTC shares plunged 8.6% after it reported second-quarter fiscal 2022 revenues of $15.32 billion, missing the Zacks Consensus Estimate of $17.92 billion.
Shares of Imperial Oil Limited IMO gained 4.1% after it reported second-quarter 2022 adjusted earnings of $2.84 per share, surpassing the Zacks Consensus Estimate of $2.32.
Apple Inc.’s AAPL shares jumped 3.3% after it reported third-quarter 2022 adjusted earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Imperial Oil Limited (IMO): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc.’s AAPL shares jumped 3.3% after it reported third-quarter 2022 adjusted earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%.
|
Apple Inc.’s AAPL shares jumped 3.3% after it reported third-quarter 2022 adjusted earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report Shares of Phillips 66 PSX rose 1.1% after it reported second-quarter 2022 adjusted earnings of $6.77 per share, beating the Zacks Consensus Estimate of $5.92 per share.
|
Apple Inc.’s AAPL shares jumped 3.3% after it reported third-quarter 2022 adjusted earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report Shares of Phillips 66 PSX rose 1.1% after it reported second-quarter 2022 adjusted earnings of $6.77 per share, beating the Zacks Consensus Estimate of $5.92 per share.
|
Apple Inc.’s AAPL shares jumped 3.3% after it reported third-quarter 2022 adjusted earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report See Stocks Now >>
|
19951.0
|
2022-08-01 00:00:00 UTC
|
How Smart Investors Should React to Apple Earnings
|
AAPL
|
https://www.nasdaq.com/articles/how-smart-investors-should-react-to-apple-earnings
|
nan
|
nan
|
After going on an absolute tear from the March 2020 pandemic lows through the end of 2021, technology stocks have changed course of late. Year to date, the Nasdaq Composite has cratered 21% in light of doggedly high inflation and aggressive monetary policy by the Federal Reserve. Some of big tech's finest companies, like Meta Platforms and Netflix, have experienced never-seen-before struggles in recent periods. Apple (NASDAQ: AAPL) posted third-quarter earnings on July 28 after market close, a highly anticipated moment for investors eager to see how the world-renowned tech firm held up in a dwindling economy.
Let's consider Apple's latest financial performance and what it means for investors.
Image source: Getty Images.
Dissecting Apple's latest financial performance
Apple did it again in its third-quarter outing -- total sales inched upward 1.9% year over year to $83 billion, finishing on par with analysts' expectations, and its diluted earnings per share of $1.20 beat estimates by 3.9%. Its products segment slightly contracted 0.9% to end at $63.4 billion, whereas its services category carried the weight, expanding 12.1% to $19.6 billion. Apple's products segment is split into iPhone, Mac, iPad, and Wearables, Home and Accessories, and its services segment is composed of Advertising, Cloud Services, Digital Content (i.e. the App Store, Apple Music, Apple TV+), and Payment Services (i.e. Apple Card and Apple Pay).
Likewise, the company's margins remained largely intact from a year ago, with its gross margin staying constant at 43.3% and its operating margin dropping 181 basis points to 27.8%.
The company also generated $23 billion in operating cash flow during the quarter and now has a cash and cash equivalents position of $27.5 billion. The iPhone maker didn't post what many would consider jaw-dropping results, but what the tech juggernaut was able to accomplish in the current economic environment was quite impressive, in my opinion. Down 13.6% year to date, Apple pegs a price-to-earnings multiple of 25.5, approaching its five-year average of 23.1. I don't know about you, but I think a world-leading tech company that is hovering around its historical average valuation presents an interesting case for long-term investors.
For the full fiscal year, Wall Street analysts anticipate that Apple will generate $393.5 billion in revenues, translating to 7.6% growth year over year, and its diluted earnings per share to ascend 9.3% to $6.13. Again, in a market environment where most of the technology sector is being pressed by runaway inflation and repeated interest rate hikes, those are sturdy growth rates. But above growth, Apple's one-of-a-kind economic moat, marvelous balance sheet, and unrivaled cash-flow generation make it a no-sweat investment at this time.
It's time to pounce on Apple stock
A technology company that has demonstrated resiliency in today's market environment is a rare feat, but Apple has managed to do just that. The iPhone maker may not be growing at the level it once did, but upside is still present, plus you're getting a company that is as consistent as they come. Its fresh pullback that is largely due to broader macro conditions has presented investors with a nice window of opportunity to purchase shares of the stock. In my view, Apple is a great investment right now, especially given the downward trend of the global economy.
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 July 27, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Luke Meindl has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., and Netflix. The Motley Fool recommends Nasdaq and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ: AAPL) posted third-quarter earnings on July 28 after market close, a highly anticipated moment for investors eager to see how the world-renowned tech firm held up in a dwindling economy. But above growth, Apple's one-of-a-kind economic moat, marvelous balance sheet, and unrivaled cash-flow generation make it a no-sweat investment at this time. Its fresh pullback that is largely due to broader macro conditions has presented investors with a nice window of opportunity to purchase shares of the stock.
|
Apple (NASDAQ: AAPL) posted third-quarter earnings on July 28 after market close, a highly anticipated moment for investors eager to see how the world-renowned tech firm held up in a dwindling economy. Dissecting Apple's latest financial performance Apple did it again in its third-quarter outing -- total sales inched upward 1.9% year over year to $83 billion, finishing on par with analysts' expectations, and its diluted earnings per share of $1.20 beat estimates by 3.9%. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., and Netflix.
|
Apple (NASDAQ: AAPL) posted third-quarter earnings on July 28 after market close, a highly anticipated moment for investors eager to see how the world-renowned tech firm held up in a dwindling economy. Dissecting Apple's latest financial performance Apple did it again in its third-quarter outing -- total sales inched upward 1.9% year over year to $83 billion, finishing on par with analysts' expectations, and its diluted earnings per share of $1.20 beat estimates by 3.9%. Apple's products segment is split into iPhone, Mac, iPad, and Wearables, Home and Accessories, and its services segment is composed of Advertising, Cloud Services, Digital Content (i.e. the App Store, Apple Music, Apple TV+), and Payment Services (i.e. Apple Card and Apple Pay).
|
Apple (NASDAQ: AAPL) posted third-quarter earnings on July 28 after market close, a highly anticipated moment for investors eager to see how the world-renowned tech firm held up in a dwindling economy. Dissecting Apple's latest financial performance Apple did it again in its third-quarter outing -- total sales inched upward 1.9% year over year to $83 billion, finishing on par with analysts' expectations, and its diluted earnings per share of $1.20 beat estimates by 3.9%. Its products segment slightly contracted 0.9% to end at $63.4 billion, whereas its services category carried the weight, expanding 12.1% to $19.6 billion.
|
19952.0
|
2022-08-01 00:00:00 UTC
|
Here's Why Alphabet Has Done Relatively Well Amid Apple's Privacy Changes
|
AAPL
|
https://www.nasdaq.com/articles/heres-why-alphabet-has-done-relatively-well-amid-apples-privacy-changes
|
nan
|
nan
|
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Social media companies like Meta Platforms (NASDAQ: META) are suffering. They rely heavily on selling targeted ads, and marketers are unwilling to pay as much without the feature.
Impressively, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has fared reasonably well amid these changes. Let's dive deeper into the impact of these changes on Meta Platforms and why Alphabet is not hurting as badly.
Meta Platforms to take a $10 billion hit in 2022.
Apple's iOS 14.5 update, released last year, includes an app tracking transparency tool that limits the amount of data app developers can collect. These companies now need to ask users for permission before they can track their activity, an option many choose not to give. Of course, marketers are willing to pay higher prices for precise, targeted advertising. It all but eliminates the instances when advertisements for a steak restaurant in Denver are sent to a vegetarian living in Omaha, Nebraska.
Meta's management has highlighted the change as a substantial headwind, noting it would cost the company upwards of $10 billion in revenue in 2022. To put that figure into context, Meta reported $118 billion in revenue in 2021. The social media giant reported fiscal 2022 second-quarter results on July 27, showing its revenue declined for the first time in its history. Meta forecasts a similar fall in its third quarter.
Alphabet's Android operating system is insulated from decisions by Apple
That said, Alphabet has done relatively well amid Apple's changes. Meta's CFO, David Wehner, has suggested Alphabet has performed better because it faces a different set of restrictions as it pays to be the default search engine on iOS devices. He said Apple designed these changes to carve out browsers giving search ads more access to data for measurement and optimization (targeting). That might all be true. Understandably, Apple would not want to alienate a partner that pays it to become the default search engine.
However, another reason Alphabet is effectively dealing with these changes (it reported a revenue increase of 13% in its most recent quarter, while Meta's decreased by 1%) is that its own Android operating system boasts more than 3 billion active devices worldwide. Users on the Android platform are not affected by the changes made by Apple. On Android devices, Alphabet sets the rules so that it can set policies in its favor.
Overall, both factors collectively boost Alphabet's position in the advertising industry. In 2021, marketers spent $763 billion globally, an increase of 22.5% from 2020. Within the market, digital's share grew to 64.4% in 2021 from 52.1% in 2019. Part of the reason marketers are shifting dollars to digital channels is because of the greater return on investment. It remains to be seen whether that trend will continue amid Apple's iOS changes. Nevertheless, it's a high-stakes outcome for all the players involved, and investors should stay tuned.
10 stocks we like better than Alphabet (A shares)
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 Alphabet (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 July 27, 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. Parkev Tatevosian has positions in Alphabet (C shares) and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Meta's CFO, David Wehner, has suggested Alphabet has performed better because it faces a different set of restrictions as it pays to be the default search engine on iOS devices. However, another reason Alphabet is effectively dealing with these changes (it reported a revenue increase of 13% in its most recent quarter, while Meta's decreased by 1%) is that its own Android operating system boasts more than 3 billion active devices worldwide.
|
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Social media companies like Meta Platforms (NASDAQ: META) are suffering. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc.
|
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Alphabet's Android operating system is insulated from decisions by Apple That said, Alphabet has done relatively well amid Apple's changes. However, another reason Alphabet is effectively dealing with these changes (it reported a revenue increase of 13% in its most recent quarter, while Meta's decreased by 1%) is that its own Android operating system boasts more than 3 billion active devices worldwide.
|
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Social media companies like Meta Platforms (NASDAQ: META) are suffering. However, another reason Alphabet is effectively dealing with these changes (it reported a revenue increase of 13% in its most recent quarter, while Meta's decreased by 1%) is that its own Android operating system boasts more than 3 billion active devices worldwide.
|
19953.0
|
2022-08-01 00:00:00 UTC
|
Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-2
|
nan
|
nan
|
The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $7.06 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.73%.
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 52.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 52.22% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has lost about -18.96% so far this year and is down about -9.74% in the last one year (as of 08/01/2022). In the past 52-week period, it has traded between $209.99 and $305.94.
The ETF has a beta of 1.04 and standard deviation of 26.85% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOOG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $75.12 billion in assets, Invesco QQQ has $176.12 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $7.06 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
|
19954.0
|
2022-08-01 00:00:00 UTC
|
Is SPDR MSCI USA StrategicFactors ETF (QUS) a Strong ETF Right Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-spdr-msci-usa-strategicfactors-etf-qus-a-strong-etf-right-now-3
|
nan
|
nan
|
Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. QUS has been able to amass assets over $884.72 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index.
The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for QUS are 0.15%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 26.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ).
QUS's top 10 holdings account for about 20.11% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR MSCI USA StrategicFactors ETF has lost about -10.87% so far, and is down about -4.48% over the last 12 months (as of 08/01/2022). QUS has traded between $103.89 and $131.16 in this past 52-week period.
The fund has a beta of 0.92 and standard deviation of 23.05% for the trailing three-year period, which makes QUS a medium risk choice in this particular space. With about 628 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $306.38 billion in assets, SPDR S&P 500 ETF has $377.02 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
|
19955.0
|
2022-08-01 00:00:00 UTC
|
Should Vanguard LargeCap ETF (VV) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-vanguard-largecap-etf-vv-be-on-your-investing-radar-3
|
nan
|
nan
|
The Vanguard LargeCap ETF (VV) was launched on 01/27/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $25.34 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.41% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 25.68% of total assets under management.
Performance and Risk
VV seeks to match the performance of the CRSP US Large Cap Index before fees and expenses. The CRSP US Large Cap Index includes U.S. companies that comprise the top 85% of investable market capitalization and are traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has lost about -14.47% so far this year and is down about -7.58% in the last one year (as of 08/01/2022). In the past 52-week period, it has traded between $167.29 and $221.75.
The ETF has a beta of 1.01 and standard deviation of 24.41% for the trailing three-year period, making it a medium risk choice in the space. With about 592 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VV is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $306.38 billion in assets, SPDR S&P 500 ETF has $377.02 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard LargeCap ETF (VV): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.41% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard LargeCap ETF (VV) was launched on 01/27/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.41% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard LargeCap ETF (VV) was launched on 01/27/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.41% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.41% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
|
19956.0
|
2022-08-01 00:00:00 UTC
|
Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-3
|
nan
|
nan
|
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $377.02 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 27.34% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF has lost about -13.14% so far this year and is down about -5.14% in the last one year (as of 08/01/2022). In the past 52-week period, it has traded between $365.86 and $477.71.
The ETF has a beta of 1 and standard deviation of 23.81% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 500 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, SPY is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $260.09 billion in assets, iShares Core S&P 500 ETF has $306.38 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): 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
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $377.02 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
|
19957.0
|
2022-08-01 00:00:00 UTC
|
U.S. considers crackdown on memory chip makers in China
|
AAPL
|
https://www.nasdaq.com/articles/u.s.-considers-crackdown-on-memory-chip-makers-in-china
|
nan
|
nan
|
By Alexandra Alper and Karen Freifeld
WASHINGTON, Aug 1 (Reuters) - The United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), according to four people familiar with the matter, part of a bid to halt China's semiconductor sector advances and protect U.S. companies.
If President Joe Biden's administration proceeds with the move, it could also hurt South Korean memory chip juggernauts Samsung Electronics Co Ltd 005930.KS and SK Hynix Inc 000660.KS, the sources said, speaking on condition of anonymity. Samsung has two big factories in China while SK Hynix Inc is buying Intel Corp's INTC.O NAND flash memory chips manufacturing business in China.
The crackdown, if approved, would involve barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips.
It would mark the first U.S. bid through export controls to target Chinese production of memory chips without specialized military applications, representing a more expansive view of American national security, according to export control experts.
The move also would seek to protect the only U.S. memory chip producers, Western Digital Corp WDC.O and Micron Technology Inc MU.O, which together represent about a quarter of the NAND chips market.
NAND chips store data in devices such as smartphones and personal computers and at data centers for the likes of Amazon AMZN.O, Facebook FB.O and Google GOOGL.O. How many gigabytes of data a phone or laptop can hold is determined by how many NAND chips it includes and how advanced they are.
Under the action being considered, U.S. officials would ban the export of tools to China used to make NAND chips with more than 128 layers, according to two of the sources. LAM Research Corp LRCX.O and Applied Materials AMAT.O, both based in Silicon Valley, are the primary suppliers of such tools.
All the sources described the administration's consideration of the matter as in the early stages, with no proposed regulations yet drafted.
Asked to comment on the possible move, a spokesperson for the Commerce Department, which oversees export controls, did not discuss potential restrictions but noted that "the Biden administration is focused on impairing (China's) efforts to manufacture advanced semiconductors to address significant national security risks to the United States."
FAST-GROWING COMPANY
YMTC, founded in 2016, is a rising power in manufacturing NAND chips. Micron and Western Digital are under pressure from YMTC's low prices, as the White House wrote in a June 2021 report. YMTC's expansion and low-price offerings present "a direct threat" to Micron and Western Digital, that report said. The report described YMTC as China's "national champion" and the recipient of some $24 billion in Chinese subsidies.
YMTC, already under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei, is in talks with Apple Inc AAPL.O to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report.
LAM Research Corp, SK Hynix and Micron declined comment on the U.S. policy. Samsung, Applied Materials Inc, YMTC and Western Digital Corp did not immediately respond to requests for comment.
CONGRESS ACTS
Tensions between China and the United States over the tech sector deepened under Biden's predecessor Donald Trump and have continued since. Reuters reported on July 8 that Biden's administration is also considering restrictions on shipments to China of tools to make advanced logic chips, seeking to hamstring China's largest chipmaker, SMIC 0981.HK.
The U.S. Congress last week approved legislation aimed at helping the United States compete with China by investing billions of dollars in domestic chip production.
Chipmakers that take money under the measure would be prohibited from building or expanding manufacturing for certain advanced chips, including advanced memory chips at a level to be determined by the administration, in countries including China.
According to Walt Coon of the consulting firm Yole Intelligence, YMTC accounts for about 5% of worldwide NAND flash memory chip production, almost double from a year ago. Western Digital stands at about 13% and Micron 11%. Coon said YMTC would be greatly hurt by restrictions like those that Biden's administration is contemplating.
"If they were stuck at 128, I don't know how they would really have a path forward," Coon said.
Production of NAND chips in China has grown to more than 23% of the worldwide total this year from under 14% in 2019, while production in the United States has decreased from 2.3% to 1.6% over the same period, Yole data showed. For the American companies, nearly all of their chip production is done overseas.
It was unclear what impact the potential restrictions might have on other players in China. Intel, which retains a contract to manage operations in the factory it is selling to SK Hynix in China, is already producing memory chips with 144 layers at the Chinese site, according to an Intel press release.
U.S. Congress passes long-awaited bill to boost chipmakers, compete with China
BREAKINGVIEWS-Chip sector's bright spot brings back bad memory
U.S. mulls fresh bid to restrict chipmaking tools for China's SMIC
(Reporting by Alexandra Alper and Karen Freifeld; Additional reporting by Stephen Nellis; Editing by Chris Sanders and Will Dunham)
((Alexandra.Alper@thomsonreuters.com; +1(202)354-5865; https://twitter.com/alexalper?lang=en))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
YMTC, already under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei, is in talks with Apple Inc AAPL.O to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report. If President Joe Biden's administration proceeds with the move, it could also hurt South Korean memory chip juggernauts Samsung Electronics Co Ltd 005930.KS and SK Hynix Inc 000660.KS, the sources said, speaking on condition of anonymity. Asked to comment on the possible move, a spokesperson for the Commerce Department, which oversees export controls, did not discuss potential restrictions but noted that "the Biden administration is focused on impairing (China's) efforts to manufacture advanced semiconductors to address significant national security risks to the United States."
|
YMTC, already under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei, is in talks with Apple Inc AAPL.O to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report. By Alexandra Alper and Karen Freifeld WASHINGTON, Aug 1 (Reuters) - The United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), according to four people familiar with the matter, part of a bid to halt China's semiconductor sector advances and protect U.S. companies. Reuters reported on July 8 that Biden's administration is also considering restrictions on shipments to China of tools to make advanced logic chips, seeking to hamstring China's largest chipmaker, SMIC 0981.HK.
|
YMTC, already under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei, is in talks with Apple Inc AAPL.O to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report. By Alexandra Alper and Karen Freifeld WASHINGTON, Aug 1 (Reuters) - The United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), according to four people familiar with the matter, part of a bid to halt China's semiconductor sector advances and protect U.S. companies. Samsung has two big factories in China while SK Hynix Inc is buying Intel Corp's INTC.O NAND flash memory chips manufacturing business in China.
|
YMTC, already under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei, is in talks with Apple Inc AAPL.O to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report. By Alexandra Alper and Karen Freifeld WASHINGTON, Aug 1 (Reuters) - The United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), according to four people familiar with the matter, part of a bid to halt China's semiconductor sector advances and protect U.S. companies. Samsung has two big factories in China while SK Hynix Inc is buying Intel Corp's INTC.O NAND flash memory chips manufacturing business in China.
|
19958.0
|
2022-08-01 00:00:00 UTC
|
GLOBAL MARKETS-World stocks hit 7-week highs, dollar squeezed vs yen
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-world-stocks-hit-7-week-highs-dollar-squeezed-vs-yen
|
nan
|
nan
|
By Carolyn Cohn and Wayne Cole
LONDON/SYDNEY, Aug 1 (Reuters) - World stocks hit seven-week highs on Monday, buoyed by recent strong corporate earnings and declining expectations for hefty interest rate rises, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions.
Global shares gained 7% last month and bond markets rallied as investors started to look for a peak in official interest rates, given slowing economic growth.
Markets have gathered steam after last week's 75-basis-point Federal Reserve hike and comments on the economy from Fed chair Jerome Powell.
"There's a sense of relief that the Fed have at least got an eye on slowing growth. They are not going to be pig-headed and keep hiking interest rates as the economy falls into deep dark recession," said Giles Coghlan, chief currency analyst at HYCM.
In addition, upbeat forecasts from Apple AAPL.O and Amazon AMZN.O on Friday pushed the S&P 500 .SPX and the Nasdaq index .IXIC to their biggest monthly percentage gains since 2020.
MSCI's world equity index .MIWD00000PUS rose 0.23%. S&P futures ESc1 dipped 0.18%, however, indicating a lower open on Wall Street, after the index rose 1.42% on Friday, also to seven-week highs.
The U.S. ISM manufacturing survey for July is due at 1400 GMT, forecast to give an expansionary reading of 52, according to a Reuters poll.
"We don't think the U.S. is in a typical recession yet but will almost certainly be within a few quarters," Deutsche Bank analysts said in a note.
"That delay is supportive for markets relative to what was priced a few weeks ago, but it's hard to say the outlook is positive."
Data on Monday showed contraction in manufacturing in France and Germany.
European stocks gained 0.17% and Britain's FTSE .FTSE was up 0.33%. Central banks in Britain, Australia and India are all expected to hike again this week.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.15% but stayed within recent ranges.
China's official measure of factory activity contracted in July as fresh virus flare-ups weighed on demand, and the Caixin PMI also missed forecasts.
Chinese blue chips .CSI300 hit six-week lows before recovering ground to trade 0.25% higher.
Japan's Nikkei .N225 added 0.7% and South Korea .KS11 held steady.
Speculators had been massively short on the yen against the dollar on rate hike bets and found themselves squeezed out by the sudden turnaround. The dollar was down 0.5% at 132.60 yen JPY=EBS, after hitting six-week lows.
The dollar fared a little better on the euro, which has a European energy crisis to contend with, and made hardly any headway last week. The euro was last up 0.13% at $1.0231 EUR=.
The dollar was down 0.3% at 105.650 =USD on a basket of currencies, compared with its recent 20-year peak of 109.290.
Bond markets have also been rallying hard, with U.S. 10-year yields US10YT=RR falling 35 basis points last month in the biggest decline since the start of the pandemic. Yields were last at 2.6848%, after hitting their lowest in nearly four months on Friday.
The yield curve remains sharply inverted, suggesting bond investors are more pessimistic on the economy than their equity brethren. US/
Italy's 10-year government bond yield IT10YT=RR fell to two-month lows.
The drop in the dollar and yields has been a relief for gold, which was steady at $1,763 an ounce XAU= after bouncing 2.2% last week. GOL/
Oil prices softened as weak manufacturing data from China and Japan weighed on the outlook for demand, while investors braced for this week's meeting of officials from OPEC and other top producers on supply adjustments. O/R
U.S. crude CLc1 fell 48 cents to $98.13 per barrel, while Brent LCOc1 was steady at $104.17.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Editing by Sam Holmes and Bradley Perrett)
((carolyn.cohn@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.
|
In addition, upbeat forecasts from Apple AAPL.O and Amazon AMZN.O on Friday pushed the S&P 500 .SPX and the Nasdaq index .IXIC to their biggest monthly percentage gains since 2020. By Carolyn Cohn and Wayne Cole LONDON/SYDNEY, Aug 1 (Reuters) - World stocks hit seven-week highs on Monday, buoyed by recent strong corporate earnings and declining expectations for hefty interest rate rises, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions. Global shares gained 7% last month and bond markets rallied as investors started to look for a peak in official interest rates, given slowing economic growth.
|
In addition, upbeat forecasts from Apple AAPL.O and Amazon AMZN.O on Friday pushed the S&P 500 .SPX and the Nasdaq index .IXIC to their biggest monthly percentage gains since 2020. By Carolyn Cohn and Wayne Cole LONDON/SYDNEY, Aug 1 (Reuters) - World stocks hit seven-week highs on Monday, buoyed by recent strong corporate earnings and declining expectations for hefty interest rate rises, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions. Global shares gained 7% last month and bond markets rallied as investors started to look for a peak in official interest rates, given slowing economic growth.
|
In addition, upbeat forecasts from Apple AAPL.O and Amazon AMZN.O on Friday pushed the S&P 500 .SPX and the Nasdaq index .IXIC to their biggest monthly percentage gains since 2020. By Carolyn Cohn and Wayne Cole LONDON/SYDNEY, Aug 1 (Reuters) - World stocks hit seven-week highs on Monday, buoyed by recent strong corporate earnings and declining expectations for hefty interest rate rises, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions. Global shares gained 7% last month and bond markets rallied as investors started to look for a peak in official interest rates, given slowing economic growth.
|
In addition, upbeat forecasts from Apple AAPL.O and Amazon AMZN.O on Friday pushed the S&P 500 .SPX and the Nasdaq index .IXIC to their biggest monthly percentage gains since 2020. "There's a sense of relief that the Fed have at least got an eye on slowing growth. The dollar was down 0.5% at 132.60 yen JPY=EBS, after hitting six-week lows.
|
19959.0
|
2022-07-31 00:00:00 UTC
|
These Metaverse Stocks Are Best Positioned to Outperform
|
AAPL
|
https://www.nasdaq.com/articles/these-metaverse-stocks-are-best-positioned-to-outperform
|
nan
|
nan
|
Virtual reality (VR), augmented reality (AR), the metaverse, and all the sorts have been intriguing technological trends that excited many investors last year. Though most of the hype has died down and valuations have contracted, such themes are not going anywhere. In fact, it may be wise to reconsider many of the fallen VR/AR stocks before they have a chance to heat up again.
Understandably, investors have soured on technology stocks, with rates poised to rise quickly. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse.
Further, nobody is really sure when the metaverse will be ready for prime time. Mark Zuckerberg thinks the metaverse represents a multi-billion-dollar opportunity. He may very well be right. However, the timeline is less certain.
In an era of COVID-19 and Monkeypox, which was recently declared a global health emergency, the metaverse as Zuckerberg sees it may be closer than we think, as consumers look to stay in during periods when outbreaks are at a high point. Remote work isn't going anywhere, and the surge in at-home entertainment may very well be just beginning.
In this piece, we used TipRanks' Comparison Tool to evaluate three stock giants that could become dominant forces in a metaverse market that could hit $475 billion in 2028.
Nvidia (NVDA)
Nvidia is a hardware innovator that could lay down the foundation for the metaverse. The chipmaker has an incredibly expensive stock due to its front-row seat to many of the hottest tech trends, from AI to the metaverse.
The company's Omniverse real-time graphics platform is nothing short of exciting. The Omniverse Enterprise platform can help drive a revolution in automation. However, its applications could also help power the metaverses of tomorrow.
Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time. Nvidia is already a video-gaming powerhouse, with many of today's popular gaming PCs sporting Nvidia hardware.
On the GPU front, Nvidia is a standout player that could continue to flex its muscles. Though shares are expensive, the magnitude of growth on the horizon could have the potential to be unfathomably high.
Despite the lofty price tag on shares, Nvidia still has the Street’s support; The stock has no fewer than 30 analyst reviews on record, and they break down 25 to 5 (or 5 to 1, if you prefer) in favor of the Buys over Holds, for a Strong Buy analyst consensus view. NVDA is currently priced at $181.63 and its $245.55 average price target indicates room for ~35% share appreciation from that level. (See NVDA stock forecast on TipRanks)
Apple (AAPL)
Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. Though only a select few apps make the most of the latest iPhone's AR capabilities, we could see a surge in developers leveraging Apple's powerful AR toolkit once Apple launches a headset.
All eyes are open to Apple's coming headset, rumored to include the powerful M2 chip and incredibly high-resolution screens. Simply put, the device will be expensive, perhaps pricier than an upscale iPhone.
Accompanying the headset will likely be a cutting-edge operating system (rumored to be called realityOS or rOS). It seems like Apple is using the same playbook (or launchpad) it used when launching the first iPhone. I think Apple's headset could be a game-changer that gradually erodes the smartphone market.
It's not just the visual aspect that Apple may have down. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive. Undeniably, Apple's a force to be reckoned with in the audio department, with its hot-selling AirPods and Apple Music.
Apple is no stranger to cannibalizing its own products, and it could be ready to do it again in 2023.
Tech stocks tend to attract a lot of attention, especially Apple – the stock has 27 analyst reviews on record, and they include 20 Buys against 6 Holds and a single Sell, to give the company its Moderate Buy consensus rating. The shares have an average price target of $179.89, indicating room for 11% growth from the current price of $162.51. (See AAPL stock forecast on TipRanks)
Microsoft (MSFT)
Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Though Microsoft is best-known for enterprise software, the firm has steadily grown its share in the video-gaming market with its impressive Xbox console, Xbox Game Pass subscription service, and Xbox Cloud Gaming.
Microsoft's expertise in gaming and the cloud could help smoothen the firm's transition into the metaverse. Indeed, the metaverse may not be just for play but for work.
On that front, Microsoft's Teams Mesh product is an intriguing environment that could be the next step up from the conference calls that we're all too familiar with. A digital office environment would be more engaging and could bring back a lot of the presence lost with the transition to remote work.
Microsoft is a fine pick to play software within the metaverse. Gaming and workplace collaboration will be two of the biggest draws to the metaverse, and it's hard to find a company that's excelled in both fields as well as Microsoft.
What does the Street think? With 29 Buy ratings and no Holds or Sells, the message is clear: MSFT is a Strong Buy. The $331 average price target puts the upside potential at ~18%. (See MSFT stock forecast on TipRanks)
Bottom line
The metaverse will be a game-changing technology, but the transition will not happen overnight. It's a trend that could accompany sizeable rewards over the next 10-15 years. The three stocks mentioned, I believe, are among the best ways to play the technological shift. Of the three metaverse plays in this piece, Wall Street expects the most from Nvidia over the next year, with around 35% expected returns.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. At the time of publication the writer did not have a position in any of the securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse.
|
(See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time.
|
(See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Despite the lofty price tag on shares, Nvidia still has the Street’s support; The stock has no fewer than 30 analyst reviews on record, and they break down 25 to 5 (or 5 to 1, if you prefer) in favor of the Buys over Holds, for a Strong Buy analyst consensus view.
|
(See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive.
|
19960.0
|
2022-07-31 00:00:00 UTC
|
3 Tech Companies That Should Initiate a Stock Split
|
AAPL
|
https://www.nasdaq.com/articles/3-tech-companies-that-should-initiate-a-stock-split
|
nan
|
nan
|
Amid the recent stock splits in Amazon (NASDAQ: AMZN) and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), investors seem anxious to hear about the next company that wants to employ this strategy.
Stock splits do not change the financials of a company on the surface. The process merely divides shares, meaning a 2-for-1 stock split would double the number of shares while cutting the share price in half. However, a lower nominal price makes whole shares more affordable to small investors, providing a possible psychological boost. Given high nominal prices, we feel Palo Alto Networks (NASDAQ: PANW), MercadoLibre (NASDAQ: MELI), and Broadcom (NASDAQ: AVGO) could benefit from such a move.
With this cybersecurity star's shares trading near $500, is it time for a stock split?
Jake Lerch (Palo Alto Networks): With shares trading around $480 each, Palo Alto Networks is my choice for a technology stock that should initiate a stock split.
Palo Alto provides cybersecurity solutions to medium to large-scale organizations, including governments, businesses, and non-profits. The company operates across two segments: Product, which includes physical and virtual firewall offerings, and Subscription and Support, comprised of its cloud-based threat intelligence software and consulting services.
With cybercrime a huge and growing problem, Palo Alto is well-positioned to benefit from the increased need for cybersecurity. One study suggests that the global cybersecurity market may triple from $140 billion in 2021 to $376 billion by 2029.
What's more, the company's integrated approach seems to be winning over customers. By providing a comprehensive suite of hardware and software solutions, Palo Alto seeks to reduce its clients' overall cost of cybersecurity. With over 80,000 enterprise customers alone, the results speak for themselves.
Palo Alto generated $5.17 billion of revenue over the last 12 months; quarterly revenue grew 29% from a year ago. Analysts expect the company to grow sales 21.5% this fiscal year (the period ending July 31, 2022) and a further 24% next fiscal year.
Yet, for investors who are bullish on Palo Alto, the prospect of paying nearly $500 for a single share might seem like a bridge too far. However, a hypothetical 5-for-1 stock split would lower the share price to a more manageable $97/share. That may entice more retail investors who are hesitant to shell out for high-priced stocks or do not want to deal with fractional shares in their accounts.
This fast-growing e-commerce company is worth a closer look
Justin Pope (MercadoLibre): Investors seem to overlook e-commerce company MercadoLibre because of its Latin American roots and $800 share price, making it difficult for retail investors to accumulate many shares at a time. A stock split could be just the medicine the stock needs.
For example, a 10-for-1 stock split would reduce the share price from $800 to $80 per share while giving investors 10 shares for each one they already own. Stock splits often attract attention, but that's a good thing considering how strong a business MercadoLibre is.
MercadoLibre has roughly 25% market share of all e-commerce sales in the Latin American region. The company was founded in 1999 and has spent years investing and building logistics to fulfill e-commerce orders throughout the region.
Additionally, MercadoLibre has become an ecosystem for the Latin American consumer. The company has its e-commerce marketplace, of course, but it also has a full-fledged logistics business, digital wallet, and payments segment, and functions as a lender.
MercadoLibre has maintained strong growth from the pandemic. Net revenue grew 67% year over year in the first quarter of 2022 and averaged 53% annual growth over the past five years.
Latin America is an emerging market where the economy is behind countries like the U.S. but is rapidly growing. According to Statista, e-commerce sales in the region were $85 billion in 2020 and could double to $165 billion by 2025, meaning that MercadoLibre's strong growth could continue for several years.
The ongoing bear market hasn't spared MercadoLibre; the stock has fallen nearly 60% from its peak. The good news? The stock's valuation has become a deal to consider. The price-to-sales ratio is now just 5, its lowest in more than five years.
A split could boost this company's already impressive stock and dividend returns
Will Healy (Broadcom): Perhaps no tech stock has delivered higher dividend returns than Broadcom. The current 3.2% cash return on its $16.40 per share annual dividend makes it a high-yield tech stock. Additionally, its payout hikes are so impressive that those who bought in 2009 and held may earn more than their initial investment back every year in dividend income alone!
Additionally, this dividend may have contributed to its considerable long-term growth. Even after dropping by around 25% from its 52-week high, its stock sells for more than $530 per share. And given its business, investors should expect it to move higher over time.
Its largest enterprise is its semiconductor solutions segment. It collaborates with large clients to develop specialized chips that will serve client needs, though it gets some indirect consumer exposure. A Broadcom chip powers the personal hotspot on late-model Apple (NASDAQ: AAPL) iPhones, for example.
Broadcom also derives revenue from an infrastructure software segment. It provides management and security-related software to other businesses. This segment will also receive a considerable boost, assuming Broadcom successfully closes its upcoming merger with VMware (NYSE: VMW). This purchase will enhance Broadcom's hybrid cloud and digital workspace capabilities and lead to a rebranding of Broadcom's software segment under the VMware name.
And it continues to grow. In the first two quarters of fiscal 2022 (ending May 1), Broadcom reported $15.8 billion in revenue, 19% more than the same period in fiscal 2021. Thanks to reductions in the cost of revenue and operating expenses, net income for the first half rose to $4.9 billion, 81% more than the first two quarters of fiscal 2021.
Such growth makes it more compelling, considering its 26 price-to-earnings ratio. That is close to the lowest earnings multiple in three years and could help increase the stock's appeal once the market recovers. And with a lower price initiated by a stock split, more investors could profit from its fast-growing dividend and potential for further increases.
10 stocks we like better than Palo Alto Networks
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 Palo Alto Networks 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Alphabet (C shares) and Amazon. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in MercadoLibre. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, MercadoLibre, and Palo Alto Networks. The Motley Fool recommends Broadcom Ltd and VMware and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A Broadcom chip powers the personal hotspot on late-model Apple (NASDAQ: AAPL) iPhones, for example. The company operates across two segments: Product, which includes physical and virtual firewall offerings, and Subscription and Support, comprised of its cloud-based threat intelligence software and consulting services. Additionally, its payout hikes are so impressive that those who bought in 2009 and held may earn more than their initial investment back every year in dividend income alone!
|
A Broadcom chip powers the personal hotspot on late-model Apple (NASDAQ: AAPL) iPhones, for example. This fast-growing e-commerce company is worth a closer look Justin Pope (MercadoLibre): Investors seem to overlook e-commerce company MercadoLibre because of its Latin American roots and $800 share price, making it difficult for retail investors to accumulate many shares at a time. A split could boost this company's already impressive stock and dividend returns Will Healy (Broadcom): Perhaps no tech stock has delivered higher dividend returns than Broadcom.
|
A Broadcom chip powers the personal hotspot on late-model Apple (NASDAQ: AAPL) iPhones, for example. Jake Lerch (Palo Alto Networks): With shares trading around $480 each, Palo Alto Networks is my choice for a technology stock that should initiate a stock split. This fast-growing e-commerce company is worth a closer look Justin Pope (MercadoLibre): Investors seem to overlook e-commerce company MercadoLibre because of its Latin American roots and $800 share price, making it difficult for retail investors to accumulate many shares at a time.
|
A Broadcom chip powers the personal hotspot on late-model Apple (NASDAQ: AAPL) iPhones, for example. For example, a 10-for-1 stock split would reduce the share price from $800 to $80 per share while giving investors 10 shares for each one they already own. A split could boost this company's already impressive stock and dividend returns Will Healy (Broadcom): Perhaps no tech stock has delivered higher dividend returns than Broadcom.
|
19961.0
|
2022-07-30 00:00:00 UTC
|
2 Leading Tech Stocks to Buy in 2022 and Beyond
|
AAPL
|
https://www.nasdaq.com/articles/2-leading-tech-stocks-to-buy-in-2022-and-beyond-3
|
nan
|
nan
|
Technology stocks have gone from being the best-performing sector of the past decade to one of the worst this year. The tech-heavy Nasdaq 100 gained 4,000% over the past 30 years but is down 26% in 2022. The other broad-based indexes aren't faring much better, either.
Yet despite the sector's miserable performance, smart investors see this as an opportunity to pick up shares of beaten-down good tech growth stocks that haven't been as affordable as they are today. The following pair of leading tech stocks are ones to buy this year and own in the years to come.
Image source: Getty Images.
Pinterest
Social sharing platform Pinterest (NYSE: PINS) has fallen hard over the past year because people rediscovered out-of-home activities during the pandemic lockdowns. When people were forced to be cooped up, they used Pinterest's virtual corkboard technology to pin ideas for sprucing up their homes or activities they could perform as a family. Once freedom of movement was permitted again, pinning ideas online became a back burner idea, and monthly active users decreased 9% to 433 million last quarter.
More recently, though, Pinterest is suffering from concerns about a recession causing a cutback in advertising, as well as Apple updating its privacy settings to allow users to opt out of being tracked by advertisers because almost all of its revenue comes from ads. Yet these could be overblown worries when it comes to Pinterest.
Snap, for example, got crushed the other day because its revenue growth slowed dramatically on slowing ad sales, but Pinterest is actually an advertiser's dream. Snap and other social media platforms are trying to shoehorn an ad-based model onto their apps, but Pinterest users are commonly looking for things to spend money on, so it melds perfectly with an advertising model.
Certainly, a recession will dent consumers' ability to shop, but this is a comparatively short-term concern at best. Global revenue per user still jumped 28% in the first quarter, showing Pinterest is still able to monetize its users. And after having lost over three-quarters of its value in the past year, the Pinterest stock is at a level that makes it attractive for investors with a long-term mindset and the patience to see it grow into an online e-commerce powerhouse.
Amazon
Amazon (NASDAQ: AMZN) has suffered the same meltdown in its stock as Pinterest has (the e-commerce giant is down "only" 37% in the last 12 months), even though its growth seems assured. The recent two-day Prime Day sales event resulted in $12 billion in global sales, a new record, and on a sales-per-day basis, it far exceeded JD.com's three-week-long 618 sales extravaganza. While JD racked up over $56 billion in sales, that works out to less than $2 billion a day. Amazon generated over $6 billion a day for its event.
Yet that's not even the exciting part about Amazon, because its cloud services business Amazon Web Services remains the fastest-growing part of its operations and is still the most profitable. Revenue in the segment jumped 37% last year, hitting $62 billion, and rose by a like percentage in the first quarter.
Amazon is further expanding AWS's capabilities for leading-edge technologies such as streaming video, online gaming, and augmented and virtual reality by creating "local zones" that bring the storage and database infrastructure closer to the customer. Doing so allows for split-second data travel times, which increases efficiency.
Amazon recently completed its 20-for-1 stock split, bringing the stock down to an accessible $114 per share. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come.
10 stocks we like better than Pinterest
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Pinterest wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 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, Apple, JD.com, and Pinterest. The Motley Fool recommends Nasdaq and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Yet despite the sector's miserable performance, smart investors see this as an opportunity to pick up shares of beaten-down good tech growth stocks that haven't been as affordable as they are today. And after having lost over three-quarters of its value in the past year, the Pinterest stock is at a level that makes it attractive for investors with a long-term mindset and the patience to see it grow into an online e-commerce powerhouse. Amazon is further expanding AWS's capabilities for leading-edge technologies such as streaming video, online gaming, and augmented and virtual reality by creating "local zones" that bring the storage and database infrastructure closer to the customer.
|
Pinterest Social sharing platform Pinterest (NYSE: PINS) has fallen hard over the past year because people rediscovered out-of-home activities during the pandemic lockdowns. Snap, for example, got crushed the other day because its revenue growth slowed dramatically on slowing ad sales, but Pinterest is actually an advertiser's dream. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come.
|
Amazon Amazon (NASDAQ: AMZN) has suffered the same meltdown in its stock as Pinterest has (the e-commerce giant is down "only" 37% in the last 12 months), even though its growth seems assured. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come. See the 10 stocks *Stock Advisor returns as of June 2, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
|
More recently, though, Pinterest is suffering from concerns about a recession causing a cutback in advertising, as well as Apple updating its privacy settings to allow users to opt out of being tracked by advertisers because almost all of its revenue comes from ads. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, JD.com, and Pinterest.
|
19962.0
|
2022-07-29 00:00:00 UTC
|
What Recession? 5 Stocks Leading the Nasdaq to Its Best Month Since 2020
|
AAPL
|
https://www.nasdaq.com/articles/what-recession-5-stocks-leading-the-nasdaq-to-its-best-month-since-2020
|
nan
|
nan
|
One day after a government report showed that the U.S. economy had shrunk for a second consecutive quarter -- an indicator the country may indeed be in a recession -- the Nasdaq Composite is up 228 points, or about 1.9% in mid-afternoon trading on Friday. Those gains put the index up by about 10.6% for the month. If the market holds onto that rise, July will go in the books as the best month for the tech-heavy index since late 2020.
Leading Friday's move higher were tech giants Amazon (NASDAQ: AMZN), up 12%, and Apple (NASDAQ: AAPL), up 3.7% after their quarterly reports -- delivered before the market opened -- beat expectations. A host of smaller tech companies' shares are up as well, including Five9 (NASDAQ: FIVN), which also rose 12% after reporting its own earnings.
Most of the clean energy stocks in the Nasdaq are also racing higher. The group includes SolarEdge Technologies (NASDAQ: SEDG) and Sunrun (NASDAQ: RUN), with shares up around 6% as of this writing. Those gains came after Thursday's news that the U.S. Senate is moving forward with a spending bill that would provide significant funding and incentives to the renewable energy industry.
Amazon, Apple buck supply chain and macro pressures
While Amazon reported a GAAP loss for the second quarter in part due to rising costs in its e-commerce business, its shares surged due to its generally positive results and forward guidance. Revenue was up 10% (adjusted for foreign currency changes), and a significant portion of its losses were tied to the drop in value of electric vehicle maker Rivian, in which Amazon owns a large stake. Investors are rewarding Amazon because of what's working well for it -- namely, advertising and its Amazon Web Services (AWS) cloud infrastructure unit. Ad sales were up 10%, while AWS revenue was up 33% and operating income rose by 36%. The company guided for revenue growth in the 13% to 17% range in the third quarter.
Apple also shook off investor concerns, beating expectations with modest revenue growth and reporting iPhone sales that outpaced the rest of the smartphone market, which seems to be cooling off. This is especially important for Apple. Not only is the iPhone its most important and profitable product, but it's also central to how most people access the tech giant's services ecosystem. Apple's services segment grew revenues by 12%; a significant portion of those $19.6 billion in quarterly revenues came from iPhone users.
Tech earnings have investors growing more optimistic
Five9 investors have had a tough go of it, especially since its failed merger with Zoom Video Communications last year. But the earnings report it delivered Thursday is helping reverse that downbeat sentiment. The company reported 32% revenue growth to a record $189.4 million. In particular, its enterprise business looks great, with 41% growth in subscription revenue. Its gross margins on a GAAP and adjusted basis fell modestly to 53% and 61%, respectively, but those results were in line with expectations. Based on the accelerating momentum of its business, management raised guidance for the year for both sales and operating results.
Like many other high-growth cloud and software-as-a-service companies, Five9 is still operating at a loss, and it generated negative operating cash flow in the quarter (though it has been operating-cash-positive in prior periods). Investors will want to keep monitoring its growth, and should also look for improved cash flow metrics. That's particularly true in today's interest rate environment, where capital access is growing more limited and borrowing is becoming more expensive.
Clean energy stocks surge on climate bill deal
Many of the Nasdaq's clean energy stocks also moved higher Friday on Thursday's news that congressional Democrats appear to have crafted a compromise bill that can win passage in the Senate and would provide $369 billion to support technologies to combat climate change. Much of that funding would go toward various incentives that favor clean energy tech companies. These include SolarEdge, which makes power management electronics used in residential and commercial solar power systems, and Sunrun, one of the largest installers of solar power systems in the U.S.
While government incentives will always be helpful to these companies, they're not thesis-changing or thesis-building. SolarEdge and Sunrun, for example, have grown to become significant players in their respective segments by focusing on providing high-quality products and services at competitive prices. While federal incentives can sweeten the pot, their competitors will have access to the same programs. At the end of the day, it will be the clean energy industry scaling up and global competition increasing that do the most to keep reducing the costs of wind and solar power and energy storage -- not federal subsidies or tax incentives.
10 stocks we like better than Amazon
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jason Hall has positions in Zoom Video Communications. The Motley Fool has positions in and recommends Amazon, Apple, Five9, and Zoom Video Communications. The Motley Fool recommends SolarEdge Technologies 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.
|
Leading Friday's move higher were tech giants Amazon (NASDAQ: AMZN), up 12%, and Apple (NASDAQ: AAPL), up 3.7% after their quarterly reports -- delivered before the market opened -- beat expectations. One day after a government report showed that the U.S. economy had shrunk for a second consecutive quarter -- an indicator the country may indeed be in a recession -- the Nasdaq Composite is up 228 points, or about 1.9% in mid-afternoon trading on Friday. Revenue was up 10% (adjusted for foreign currency changes), and a significant portion of its losses were tied to the drop in value of electric vehicle maker Rivian, in which Amazon owns a large stake.
|
Leading Friday's move higher were tech giants Amazon (NASDAQ: AMZN), up 12%, and Apple (NASDAQ: AAPL), up 3.7% after their quarterly reports -- delivered before the market opened -- beat expectations. Those gains came after Thursday's news that the U.S. Senate is moving forward with a spending bill that would provide significant funding and incentives to the renewable energy industry. Amazon, Apple buck supply chain and macro pressures While Amazon reported a GAAP loss for the second quarter in part due to rising costs in its e-commerce business, its shares surged due to its generally positive results and forward guidance.
|
Leading Friday's move higher were tech giants Amazon (NASDAQ: AMZN), up 12%, and Apple (NASDAQ: AAPL), up 3.7% after their quarterly reports -- delivered before the market opened -- beat expectations. Amazon, Apple buck supply chain and macro pressures While Amazon reported a GAAP loss for the second quarter in part due to rising costs in its e-commerce business, its shares surged due to its generally positive results and forward guidance. Clean energy stocks surge on climate bill deal Many of the Nasdaq's clean energy stocks also moved higher Friday on Thursday's news that congressional Democrats appear to have crafted a compromise bill that can win passage in the Senate and would provide $369 billion to support technologies to combat climate change.
|
Leading Friday's move higher were tech giants Amazon (NASDAQ: AMZN), up 12%, and Apple (NASDAQ: AAPL), up 3.7% after their quarterly reports -- delivered before the market opened -- beat expectations. Apple's services segment grew revenues by 12%; a significant portion of those $19.6 billion in quarterly revenues came from iPhone users. The Motley Fool has positions in and recommends Amazon, Apple, Five9, and Zoom Video Communications.
|
19963.0
|
2022-07-29 00:00:00 UTC
|
EMERGING MARKETS-Dollar strength weighs on FX; Colombian peso rallies ahead of c.bank meeting
|
AAPL
|
https://www.nasdaq.com/articles/emerging-markets-dollar-strength-weighs-on-fx-colombian-peso-rallies-ahead-of-c.bank
|
nan
|
nan
|
By Susan Mathew
July 29 (Reuters) - Colombia's peso jumped 1.7% ahead of a likely interest rate hike, while most other emerging market currencies lost as the dollar regained momentum following worrying inflation data from the United States.
Data showed U.S. inflation did not moderate in June, giving the Federal Reserve more reason to hike, spurring the dollar. FRX/
Brazil's real BRBY slipped 0.7%, while Mexico's peso MXN= was flat.
Capping losses for Mexico's peso MXN=, data showed Mexico's economy expanded 1% between April and June from the prior three-month period, beating forecasts and marking the third consecutive quarter of growth.
But analysts point to deceleration through the rest of the year.
"Indicators of economic activity (in Mexico) began showing mixed readings at the end of H1, highlighting the loss of growth momentum," said Wilson Ferrarezi, an economist with TS Lombard.
"FX inflows are likely to weaken later this year and into 2023 as U.S. economic activity slows. Meanwhile, inflation will remain high for the remainder of the year, capping the upside in consumer spending."
As oil prices rose, crude exporter Colombia's peso COP= rallied for fourth straight session. The country's central bank is seen hiking the key rate by 150 basis points to 9%, the highest level since February 2009.
Among stocks, Brazil's Bovespa index BVSP hit six-week highs, before trading flat as a rally in oil major Petrobras PETR4.SA after bumper results offset a slide in miner Vale following a profit slip.
Most other Latin American bourses also rose, with Argentina's Merval .MERV up 1.7%.
Argentine President Alberto Fernandez picked the ruling coalition's most powerful figures to lead a new "superministry" to tackle the country's economic crisis.
On the same day, the central bank hiked interest rates to 60% with analysts expecting Argentine inflation to hit 80% this year.
"Although the hike was insufficient to bring real rates to positive territory, it has at least substantially narrowed the gap between the policy rate and the FX rate of crawl," Citigroup strategists said.
A gauge of Argentina's country risk fell 28 basis points.
Broader sentiment got a lift from upbeat earnings from mega-cap U.S. firms Amazon AMZN.O and Apple AAPL.O. But worries about China growth clouded outlook for global growth. MKTS/GLOB
Amid China's property sector crisis, the company at the thick of it, Evergrande Group 3333.HK, on Friday said it will arrange asset packages that may include equity in its two offshore listed units as a sweetener for restructured offshore debt.
Key Latin American stock indexes and currencies:
Stock indexes
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
992.08
-0.55
MSCI LatAm .MILA00000PUS
2127.82
0.91
Brazil Bovespa .BVSP
102708.63
0.11
Mexico IPC .MXX
48173.90
0.13
Chile IPSA .SPIPSA
5278.96
0.38
Argentina MerVal .MERV
129728.12
1.827
Colombia COLCAP .COLCAP
1320.77
0.04
Currencies
Latest
Daily % change
Brazil real BRBY
5.1954
-0.66
Mexico peso MXN=D2
20.2934
-0.14
Chile peso CLP=CL
904.5
0.38
Colombia peso COP=
4290.6
1.65
Peru sol PEN=PE
3.91
0.00
Argentina peso (interbank) ARS=RASL
131.2200
-0.07
(Reporting by Susan Mathew in Bengaluru; editing by Barbara Lewis)
((susan.mathew@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.
|
Broader sentiment got a lift from upbeat earnings from mega-cap U.S. firms Amazon AMZN.O and Apple AAPL.O. By Susan Mathew July 29 (Reuters) - Colombia's peso jumped 1.7% ahead of a likely interest rate hike, while most other emerging market currencies lost as the dollar regained momentum following worrying inflation data from the United States. "Indicators of economic activity (in Mexico) began showing mixed readings at the end of H1, highlighting the loss of growth momentum," said Wilson Ferrarezi, an economist with TS Lombard.
|
Broader sentiment got a lift from upbeat earnings from mega-cap U.S. firms Amazon AMZN.O and Apple AAPL.O. By Susan Mathew July 29 (Reuters) - Colombia's peso jumped 1.7% ahead of a likely interest rate hike, while most other emerging market currencies lost as the dollar regained momentum following worrying inflation data from the United States. On the same day, the central bank hiked interest rates to 60% with analysts expecting Argentine inflation to hit 80% this year.
|
Broader sentiment got a lift from upbeat earnings from mega-cap U.S. firms Amazon AMZN.O and Apple AAPL.O. By Susan Mathew July 29 (Reuters) - Colombia's peso jumped 1.7% ahead of a likely interest rate hike, while most other emerging market currencies lost as the dollar regained momentum following worrying inflation data from the United States. Capping losses for Mexico's peso MXN=, data showed Mexico's economy expanded 1% between April and June from the prior three-month period, beating forecasts and marking the third consecutive quarter of growth.
|
Broader sentiment got a lift from upbeat earnings from mega-cap U.S. firms Amazon AMZN.O and Apple AAPL.O. "Indicators of economic activity (in Mexico) began showing mixed readings at the end of H1, highlighting the loss of growth momentum," said Wilson Ferrarezi, an economist with TS Lombard. On the same day, the central bank hiked interest rates to 60% with analysts expecting Argentine inflation to hit 80% this year.
|
19964.0
|
2022-07-29 00:00:00 UTC
|
Apple, Amazon & Big Tech Showcase Their Earnings Power Once Again
|
AAPL
|
https://www.nasdaq.com/articles/apple-amazon-big-tech-showcase-their-earnings-power-once-again
|
nan
|
nan
|
Amazon’s quarterly release made up for the preceding period’s disappointment. The report not only checks all the appropriate boxes for Q2, but it sent a clear all-is-well signal about Q3 as well.
This became doubly important for the market to see after what we heard from Walmart WMT a few days back. Reading the Amazon release almost feels like they operate in a parallel universe where logistical challenges don’t exist and customers aren’t pressured by inflation.
Among the Big 5 Tech players – Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Meta META and Amazon AMZN – Amazon, Apple and Microsoft really stood out for the resilience and stability of their business. No company is completely immune from cyclical forces and we saw some of that with advertising spending trends in the Alphabet and Meta quarterly reports. But even after conceding that point, it is hard not to be impressed with the strength of the Apple, Amazon and Microsoft numbers.
Apple made $19.44 billion in earnings on $83 billion in revenues in Q2. Earnings were down -10.6% from the year-earlier level as a result of all-around higher expenses, China troubles, cyclical weakness in product categories like Mac and iPad and currency translation issues. But Apple was nevertheless able to provide reassuring guidance for the September period even though all of these headwinds will still be very much with us.
As a contrast to Apple and what it had to deal with, we also saw Exxon XOM come out with $17.55 billion in earnings on $115.7 billion in revenues. Exxon is the quintessential old-economy operator that is currently enjoying a very favorable commodity-price environment.
Apple brought in $19.44 billion in a seasonally weak quarter; it had earned $25 billion in 2022 Q1 and $34.6 billion in 2021 Q4. Even the ‘cyclically exposed’ Alphabet brought in $16 billion in earnings in Q2.
On an unrelated note, we generally see the likes of Exxon as having ‘more money than god’ when the boundless riches are actually with these Tech titans.
Total Q2 earnings for the ‘Big 5 Tech’ players are down -20% from the same period last year on +6.8% higher revenues and a 585 basis-points (bps) compression in net margins. Q2 net margins are down for each of the 5 Tech leaders, with the biggest declines at Meta and Alphabet at -1255 and -851 bps, respectively.
The chart below shows the group’s quarterly earnings and revenue growth picture, with the group’s Q2 performance highlighted.
Image Source: Zacks Investment Research
The chart below that shows the group’s earnings and revenue growth on an annual basis.
Image Source: Zacks Investment Research
The table below shows the year-over-year change in net margins for the group, on an annual basis. As you can see, Microsoft is the only one in the group whose margins are expected to expand in 2022, with Alphabet keeping them intact.
Image Source: Zacks Investment Research
Beyond the big 5 Tech players, total Q2 earnings for the Technology sector as a whole are expected to be down -8.4% from the same period last year on +2.4% higher revenues.
The dramatic looking chart below shows the sector’s Q2 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
Image Source: Zacks Investment Research
This big picture view of the ‘Big 5’ players as well as the sector as a whole shows a decelerating growth trend. That said, unlike this ‘quarterly view’, the annual picture shows a lot more stability, as the chart below shows.
Image Source: Zacks Investment Research
For those of you out there on the ‘recession watch’, please note that the sector’s 2022 earnings growth rate has come down from +2.7% from three months back. Growth estimates for 2023 have come down +13.1% over the same time period.
Q2 Earnings Season Scorecard
Through Friday, July 29th, we have seen Q2 results from 279 S&P 500 members or 55.8% of the index’s total membership. Total earnings for these companies are up +4.7% on +14.1% higher revenues, with 75.6% beating EPS estimates and 65.6% beating revenue estimates.
The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context.
Image Source: Zacks Investment Research
The Finance sector has been a big drag on the ‘headline’ year-over-year growth rate for the companies that have reported already. Q2 earnings growth for the Finance sector companies that have reported already are down -23.5% from the same period last year.
Excluding this Finance sector drag, Q2 earnings growth for the rest of the index improves to +13.8%.
The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
The EPS and revenue beats percentages are still tracking on the low side relative to historical periods, as you can see above.
This Week’s Docket
We will have another very jam-packed reporting docket this week, with almost 1,300 companies on deck to report quarterly results, including 151 S&P 500 members. We have a host of reporters from the Energy, Tech, Consumer Staples and Discretionary sectors this week.
I will be keeping an eye on the evolving guidance picture, with a particularl focus on the broader ‘travel’ space, with results from Uber UBER, Airbnb ABNB, Expedia EXPE, Booking BKNG and others coming out this week.
By this time next week, we will have seen Q2 results from 86% of the S&P 500 members.
The Current Earnings Backdrop
The chart below shows current expectations (and actuals) on a quarterly basis.
Image Source: Zacks Investment Research
Please note that the +5.7% earnings growth expected in 2022 Q2 is solely due to strong gains in the Energy sector. On an ex-Energy basis, Q2 earnings growth drops to a decline of -4.2%.
The chart below presents the earnings picture on an annual basis.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>A Stable Earnings Picture Despite Many Headwinds
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Expedia Group, Inc. (EXPE): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
Airbnb, Inc. (ABNB): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the Big 5 Tech players – Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Meta META and Amazon AMZN – Amazon, Apple and Microsoft really stood out for the resilience and stability of their business. Apple Inc. (AAPL): Free Stock Analysis Report Reading the Amazon release almost feels like they operate in a parallel universe where logistical challenges don’t exist and customers aren’t pressured by inflation.
|
Among the Big 5 Tech players – Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Meta META and Amazon AMZN – Amazon, Apple and Microsoft really stood out for the resilience and stability of their business. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Beyond the big 5 Tech players, total Q2 earnings for the Technology sector as a whole are expected to be down -8.4% from the same period last year on +2.4% higher revenues.
|
Among the Big 5 Tech players – Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Meta META and Amazon AMZN – Amazon, Apple and Microsoft really stood out for the resilience and stability of their business. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research The chart below that shows the group’s earnings and revenue growth on an annual basis.
|
Among the Big 5 Tech players – Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Meta META and Amazon AMZN – Amazon, Apple and Microsoft really stood out for the resilience and stability of their business. Apple Inc. (AAPL): Free Stock Analysis Report The dramatic looking chart below shows the sector’s Q2 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
|
19965.0
|
2022-07-29 00:00:00 UTC
|
S&P 500, Nasdaq register biggest monthly gains since 2020
|
AAPL
|
https://www.nasdaq.com/articles/sp-500-nasdaq-register-biggest-monthly-gains-since-2020
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Apple sees continued strength in demand for iPhone
Amazon expects higher revenue in third quarter
Intel cuts annual forecasts, shares slide
Oil giants Exxon, Chevron jump after record revenue
Indexes: Dow up 1%, S&P 500 up 1.4%, Nasdaq up 1.9%
Updates close with volume, other details
By Caroline Valetkevitch
NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020.
Most S&P 500 sectors ended higher, with energy .SPNY rising 4.5%, the most of any S&P sector. Chevron Corp CVX.N rose 8.9% and Exxon Mobil XOM.N shares jumped 4.6% after the companies reported record quarterly revenues.
Apple Inc shares gained 3.3% after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon.com Inc shot up 10.4% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
"In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
Stocks have also rallied this week on investor speculation that the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.
The Dow Jones Industrial Average .DJI rose 315.5 points, or 0.97%, to 32,845.13; the S&P 500 .SPX gained 57.86 points, or 1.42%, to 4,130.29 and the Nasdaq Composite .IXIC added 228.10 points, or 1.88%, to 12,390.69.
All three major indexes gained for the month and for the week. The S&P 500 gained about 9.1% for July in its biggest monthly percentage gain since November 2020, while the Nasdaq jumped about 12.3% in July in its biggest monthly gain since April 2020.
In other earnings, Intel Corp INTC.O shares fell 8.6% after the company cut annual sales and profit forecasts and missed second-quarter estimates.
Second-quarter U.S. corporate results have mostly been stronger than expected.
Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations. Earnings for S&P 500 companies now are expected to have increased 7.1% in the quarter versus an estimated 5.6% at the start of July, according to IBES data from Refinitiv.
The day's economic data showed U.S. labor costs increased strongly in the second quarter as a tight jobs market boosted wage growth.
But on Thursday, a government report showed the American economy unexpectedly contracted in the second quarter, suggesting to some investors that the economy was on the cusp of a recession. They said it might deter the Fed from continuing to aggressively increase rates as it battles high inflation.
Volume on U.S. exchanges was 11.35 billion shares, compared with the 10.79 billion-share average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 2.92-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.
The S&P 500 posted three new 52-week highs and 33 new lows; the Nasdaq Composite recorded 63 new highs and 82 new lows.
(Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D'Silva and Jonathan Oatis)
((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.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes: Dow up 1%, S&P 500 up 1.4%, Nasdaq up 1.9% Updates close with volume, other details By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. In other earnings, Intel Corp INTC.O shares fell 8.6% after the company cut annual sales and profit forecasts and missed second-quarter estimates. The day's economic data showed U.S. labor costs increased strongly in the second quarter as a tight jobs market boosted wage growth.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes: Dow up 1%, S&P 500 up 1.4%, Nasdaq up 1.9% Updates close with volume, other details By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. Chevron Corp CVX.N rose 8.9% and Exxon Mobil XOM.N shares jumped 4.6% after the companies reported record quarterly revenues. In other earnings, Intel Corp INTC.O shares fell 8.6% after the company cut annual sales and profit forecasts and missed second-quarter estimates.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes: Dow up 1%, S&P 500 up 1.4%, Nasdaq up 1.9% Updates close with volume, other details By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. Chevron Corp CVX.N rose 8.9% and Exxon Mobil XOM.N shares jumped 4.6% after the companies reported record quarterly revenues. The S&P 500 gained about 9.1% for July in its biggest monthly percentage gain since November 2020, while the Nasdaq jumped about 12.3% in July in its biggest monthly gain since April 2020.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes: Dow up 1%, S&P 500 up 1.4%, Nasdaq up 1.9% Updates close with volume, other details By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. In other earnings, Intel Corp INTC.O shares fell 8.6% after the company cut annual sales and profit forecasts and missed second-quarter estimates. Earnings for S&P 500 companies now are expected to have increased 7.1% in the quarter versus an estimated 5.6% at the start of July, according to IBES data from Refinitiv.
|
19966.0
|
2022-07-29 00:00:00 UTC
|
US STOCKS-Wall St extends recent rally, set for strong monthly gains
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-extends-recent-rally-set-for-strong-monthly-gains
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Apple sees continued strength in demand for iPhone
Amazon expects higher revenue in third quarter
Intel cuts annual forecasts, shares slide
Oil giants Exxon, Chevron jump after record revenue
Indexes up: Dow 0.9%, S&P 500 1.4%, Nasdaq 1.8%
Updates to late afternoon, changes byline, adds NEW YORK dateline
By Caroline Valetkevitch
NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, putting the Nasdaq on course for its biggest monthly percentage gain since April 2020.
Most S&P 500 sectors were higher in afternoon trading, led by a more than 4% rise in energy .SPNY. Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumped after they reported record quarterly revenue.
Apple Inc shares gained 3.5% after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon.com Inc AMZN.O shot up 11.8% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
"In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
Stocks have also rallied this week on investor speculation that the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.
The Dow Jones Industrial Average .DJI rose 288.73 points, or 0.89%, to 32,818.36; the S&P 500 .SPX gained 56.97 points, or 1.40%, to 4,129.4; and the Nasdaq Composite .IXIC added 222.07 points, or 1.83%, to 12,384.66.
In other earnings, Intel Corp INTC.O shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates.
Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations.
Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
Advancing issues outnumbered declining ones on the NYSE by a 2.81-to-1 ratio; on Nasdaq, a 1.36-to-1 ratio favored advancers.
The S&P 500 posted three new 52-week highs and 33 new lows; the Nasdaq Composite recorded 53 new highs and 70 new lows.
(Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D'Silva and Jonathan Oatis)
((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.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.9%, S&P 500 1.4%, Nasdaq 1.8% Updates to late afternoon, changes byline, adds NEW YORK dateline By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, putting the Nasdaq on course for its biggest monthly percentage gain since April 2020. In other earnings, Intel Corp INTC.O shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates. Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.9%, S&P 500 1.4%, Nasdaq 1.8% Updates to late afternoon, changes byline, adds NEW YORK dateline By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, putting the Nasdaq on course for its biggest monthly percentage gain since April 2020. Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumped after they reported record quarterly revenue. In other earnings, Intel Corp INTC.O shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.9%, S&P 500 1.4%, Nasdaq 1.8% Updates to late afternoon, changes byline, adds NEW YORK dateline By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, putting the Nasdaq on course for its biggest monthly percentage gain since April 2020. "In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. (Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D'Silva and Jonathan Oatis) ((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.
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.9%, S&P 500 1.4%, Nasdaq 1.8% Updates to late afternoon, changes byline, adds NEW YORK dateline By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, putting the Nasdaq on course for its biggest monthly percentage gain since April 2020. Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumped after they reported record quarterly revenue. Apple Inc shares gained 3.5% after the company said parts shortages were easing and that demand for iPhones was continuing.
|
19967.0
|
2022-07-29 00:00:00 UTC
|
After Hours Most Active for Jul 29, 2022 : CORZ, AAPL, AMZN, WBD, OPEN, CAN, BAC, TAL, NEM, T, WFC, SCHW
|
AAPL
|
https://www.nasdaq.com/articles/after-hours-most-active-for-jul-29-2022-%3A-corz-aapl-amzn-wbd-open-can-bac-tal-nem-t-wfc
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is down -9.55 to 12,938.43. The total After hours volume is currently 100,967,303 shares traded.
The following are the most active stocks for the after hours session:
Core Scientific, Inc. (CORZ) is -0.01 at $2.50, with 5,879,057 shares traded. As reported by Zacks, the current mean recommendation for CORZ is in the "strong buy range".
Apple Inc. (AAPL) is unchanged at $162.51, with 3,807,524 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $134.95, with 3,284,827 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Warner Bros. Discovery, Inc. (WBD) is unchanged at $15.00, with 2,377,365 shares traded.WBD is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.03 per share, which represents a 83 percent increase over the EPS one Year Ago
Opendoor Technologies Inc (OPEN) is unchanged at $4.91, with 2,308,137 shares traded.OPEN is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.02 per share, which represents a -27 percent increase over the EPS one Year Ago
Canaan Inc. (CAN) is +0.01 at $3.94, with 2,298,134 shares traded. As reported by Zacks, the current mean recommendation for CAN is in the "strong buy range".
Bank of America Corporation (BAC) is -0.01 at $33.80, with 1,640,619 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
TAL Education Group (TAL) is unchanged at $4.92, with 1,408,835 shares traded. TAL's current last sale is 111.82% of the target price of $4.4.
Newmont Corporation (NEM) is unchanged at $45.28, with 1,064,819 shares traded. NEM's current last sale is 75.47% of the target price of $60.
AT&T Inc. (T) is unchanged at $18.78, with 1,049,554 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.54. T's current last sale is 82.55% of the target price of $22.75.
Wells Fargo & Company (WFC) is unchanged at $43.87, with 974,711 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.11. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
The Charles Schwab Corporation (SCHW) is unchanged at $69.05, with 970,328 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.06. As reported by Zacks, the current mean recommendation for SCHW 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.
|
Apple Inc. (AAPL) is unchanged at $162.51, with 3,807,524 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Discovery, Inc. (WBD) is unchanged at $15.00, with 2,377,365 shares traded.WBD is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022.
|
Apple Inc. (AAPL) is unchanged at $162.51, with 3,807,524 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Discovery, Inc. (WBD) is unchanged at $15.00, with 2,377,365 shares traded.WBD is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022.
|
Apple Inc. (AAPL) is unchanged at $162.51, with 3,807,524 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Discovery, Inc. (WBD) is unchanged at $15.00, with 2,377,365 shares traded.WBD is scheduled to provide an earnings report on 8/4/2022, for the fiscal quarter ending Jun2022.
|
Apple Inc. (AAPL) is unchanged at $162.51, with 3,807,524 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is unchanged at $134.95, with 3,284,827 shares traded.
|
19968.0
|
2022-07-29 00:00:00 UTC
|
Why Apple Stock Climbed Today
|
AAPL
|
https://www.nasdaq.com/articles/why-apple-stock-climbed-today-0
|
nan
|
nan
|
What happened
Shares of Apple (NASDAQ: AAPL) rose more than 3% on Friday after the technology titan reported third-quarter profits Thursday that surpassed Wall Street's expectations.
So what
Apple's net sales grew by 2% to a whopping $83 billion in its fiscal 2022 third quarter, which ended June 25. The gains came even as inflation forced many consumers to pare back their discretionary spending and supply chain disruptions resulted in shortages of key components.
Apple's iPhone business proved particularly resilient. Sales of the popular smartphone increased by 3% to $40.7 billion. During a conference call with analysts, CEO Tim Cook said the iPhone continues to please Apple loyalists while also enticing more people to ditch their Android-powered devices.
"The latest survey of U.S. consumers from 451 Research indicates iPhone customer satisfaction of 98%," Cook said. "We also attracted a record number of switchers for the June quarter, with strong double-digit year-over-year growth."
Still, supply chain constraints weighed on Apple's profits. Mac sales fell 10% to $7.4 billion, while iPad sales slipped 2% to $7.2 billion.
Yet Apple's services revenue expanded by 12% to $19.6 billion, as the number of paid subscriptions on its platform grew to over 860 million.
All told, Apple's earnings per share declined by 8% to $1.20. That was above Wall Street's estimates, which had called for per-share profits of $1.16.
Now what
Apple did not offer specific guidance for its fourth-quarter sales and profits, but Cook's comments during an interview with CNBC gave investors cause for optimism. "In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness," Cook said.
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 July 27, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of Apple (NASDAQ: AAPL) rose more than 3% on Friday after the technology titan reported third-quarter profits Thursday that surpassed Wall Street's expectations. The gains came even as inflation forced many consumers to pare back their discretionary spending and supply chain disruptions resulted in shortages of key components. During a conference call with analysts, CEO Tim Cook said the iPhone continues to please Apple loyalists while also enticing more people to ditch their Android-powered devices.
|
What happened Shares of Apple (NASDAQ: AAPL) rose more than 3% on Friday after the technology titan reported third-quarter profits Thursday that surpassed Wall Street's expectations. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple.
|
What happened Shares of Apple (NASDAQ: AAPL) rose more than 3% on Friday after the technology titan reported third-quarter profits Thursday that surpassed Wall Street's expectations. So what Apple's net sales grew by 2% to a whopping $83 billion in its fiscal 2022 third quarter, which ended June 25. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple.
|
What happened Shares of Apple (NASDAQ: AAPL) rose more than 3% on Friday after the technology titan reported third-quarter profits Thursday that surpassed Wall Street's expectations. So what Apple's net sales grew by 2% to a whopping $83 billion in its fiscal 2022 third quarter, which ended June 25. "The latest survey of U.S. consumers from 451 Research indicates iPhone customer satisfaction of 98%," Cook said.
|
19969.0
|
2022-07-29 00:00:00 UTC
|
AAPL Crosses Above Key Moving Average Level
|
AAPL
|
https://www.nasdaq.com/articles/aapl-crosses-above-key-moving-average-level
|
nan
|
nan
|
In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed above their 200 day moving average of $158.83, changing hands as high as $163.63 per share. Apple Inc shares are currently trading up about 2.1% on the day. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average:
Looking at the chart above, AAPL's low point in its 52 week range is $129.04 per share, with $182.94 as the 52 week high point — that compares with a last trade of $161.15. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed above their 200 day moving average of $158.83, changing hands as high as $163.63 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $129.04 per share, with $182.94 as the 52 week high point — that compares with a last trade of $161.15. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed above their 200 day moving average of $158.83, changing hands as high as $163.63 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $129.04 per share, with $182.94 as the 52 week high point — that compares with a last trade of $161.15. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed above their 200 day moving average of $158.83, changing hands as high as $163.63 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $129.04 per share, with $182.94 as the 52 week high point — that compares with a last trade of $161.15. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Apple Inc (Symbol: AAPL) crossed above their 200 day moving average of $158.83, changing hands as high as $163.63 per share. The chart below shows the one year performance of AAPL shares, versus its 200 day moving average: Looking at the chart above, AAPL's low point in its 52 week range is $129.04 per share, with $182.94 as the 52 week high point — that compares with a last trade of $161.15. The AAPL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
19970.0
|
2022-07-29 00:00:00 UTC
|
US STOCKS-Wall St extends recent rally, posts strong monthly gains
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-extends-recent-rally-posts-strong-monthly-gains
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020.
Most S&P 500 sectors ended higher. Energy .SPNY was up the most, with Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumping after the companies reported record quarterly revenues.
Apple Inc shares rose after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon.com Inc AMZN.O shot up after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
"In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
Stocks have also rallied this week on investor speculation that the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.
According to preliminary data, the S&P 500 .SPX gained 58.05 points, or 1.43%, to end at 4,130.48 points, while the Nasdaq Composite .IXIC gained 225.81 points, or 1.86%, to 12,388.40. The Dow Jones Industrial Average .DJI rose 323.51 points, or 0.99%, to 32,853.14.
In other earnings, Intel Corp INTC.O shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates.
Second-quarter U.S. corporate results have mostly been stronger than expected.
Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations. Earnings for S&P 500 companies now are expected to have increased 7.1% in the quarter versus an estimated 5.6% at the start of July, according to IBES data from Refinitiv.
Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
(Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D'Silva and Jonathan Oatis)
((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.
|
By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. In other earnings, Intel Corp INTC.O shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates. Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
|
By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. Energy .SPNY was up the most, with Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumping after the companies reported record quarterly revenues. Apple Inc shares rose after the company said parts shortages were easing and that demand for iPhones was continuing.
|
By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. "In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. According to preliminary data, the S&P 500 .SPX gained 58.05 points, or 1.43%, to end at 4,130.48 points, while the Nasdaq Composite .IXIC gained 225.81 points, or 1.86%, to 12,388.40.
|
By Caroline Valetkevitch NEW YORK, July 29 (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple AAPL.O and Amazon.com AMZN.O, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. Energy .SPNY was up the most, with Chevron Corp CVX.N and Exxon Mobil XOM.N shares jumping after the companies reported record quarterly revenues. According to preliminary data, the S&P 500 .SPX gained 58.05 points, or 1.43%, to end at 4,130.48 points, while the Nasdaq Composite .IXIC gained 225.81 points, or 1.86%, to 12,388.40.
|
19971.0
|
2022-07-29 00:00:00 UTC
|
Daily Dividend Report: STE,VST,AAPL,MCD,UNP
|
AAPL
|
https://www.nasdaq.com/articles/daily-dividend-report%3A-stevstaaplmcdunp
|
nan
|
nan
|
STERIS announced today that the Company will distribute a quarterly interim dividend of $0.47 per share. This represents a $0.04 increase in the dividend and the Company's 17th consecutive year of dividend growth. The dividend is payable September 23, 2022 to shareholders of record at the close of business on September 7, 2022.
Vistra announced today that its board of directors has declared a third quarter dividend of $0.184 per share of Vistra's common stock, reflecting an aggregate payment of approximately $75 million this quarter, and together with the dividends paid in the first and second quarters, approximately $225 million cumulatively in 2022. This represents a ~23% increase in the company's quarterly common stock dividend per share from its third quarter 2021 dividend. The common dividend is payable on Sept. 30, 2022, to common stockholders of record as of Sept. 21, 2022. The ex-dividend date for the common dividend will be Sept. 20, 2022.
Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.
Today, McDonald's Board of Directors declared a quarterly cash dividend of $1.38 per share of common stock payable on September 16, 2022 to shareholders of record at the close of business on September 1, 2022.
The Board of Directors of Union Pacific has declared a quarterly dividend of $1.30 per share on the company's common stock, payable September 30, 2022, to shareholders of record August 31, 2022
VIDEO: Daily Dividend Report: STE,VST,AAPL,MCD,UNP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Board of Directors of Union Pacific has declared a quarterly dividend of $1.30 per share on the company's common stock, payable September 30, 2022, to shareholders of record August 31, 2022 VIDEO: Daily Dividend Report: STE,VST,AAPL,MCD,UNP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. STERIS announced today that the Company will distribute a quarterly interim dividend of $0.47 per share. Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock.
|
The Board of Directors of Union Pacific has declared a quarterly dividend of $1.30 per share on the company's common stock, payable September 30, 2022, to shareholders of record August 31, 2022 VIDEO: Daily Dividend Report: STE,VST,AAPL,MCD,UNP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vistra announced today that its board of directors has declared a third quarter dividend of $0.184 per share of Vistra's common stock, reflecting an aggregate payment of approximately $75 million this quarter, and together with the dividends paid in the first and second quarters, approximately $225 million cumulatively in 2022. Today, McDonald's Board of Directors declared a quarterly cash dividend of $1.38 per share of common stock payable on September 16, 2022 to shareholders of record at the close of business on September 1, 2022.
|
The Board of Directors of Union Pacific has declared a quarterly dividend of $1.30 per share on the company's common stock, payable September 30, 2022, to shareholders of record August 31, 2022 VIDEO: Daily Dividend Report: STE,VST,AAPL,MCD,UNP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vistra announced today that its board of directors has declared a third quarter dividend of $0.184 per share of Vistra's common stock, reflecting an aggregate payment of approximately $75 million this quarter, and together with the dividends paid in the first and second quarters, approximately $225 million cumulatively in 2022. Today, McDonald's Board of Directors declared a quarterly cash dividend of $1.38 per share of common stock payable on September 16, 2022 to shareholders of record at the close of business on September 1, 2022.
|
The Board of Directors of Union Pacific has declared a quarterly dividend of $1.30 per share on the company's common stock, payable September 30, 2022, to shareholders of record August 31, 2022 VIDEO: Daily Dividend Report: STE,VST,AAPL,MCD,UNP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This represents a ~23% increase in the company's quarterly common stock dividend per share from its third quarter 2021 dividend. The ex-dividend date for the common dividend will be Sept. 20, 2022.
|
19972.0
|
2022-07-29 00:00:00 UTC
|
Meta's Mark Zuckerberg: Company's pandemic-era forecast was too rosy
|
AAPL
|
https://www.nasdaq.com/articles/metas-mark-zuckerberg%3A-companys-pandemic-era-forecast-was-too-rosy
|
nan
|
nan
|
By Katie Paul and Paresh Dave
July 29 (Reuters) - Meta Platforms Inc META.O Chief Executive Mark Zuckerberg told staffers the world's biggest social media company had planned for growth too optimistically, mistakenly expecting that a bump in usage and revenue growth during COVID-19 lockdowns would be sustained.
Zuckerberg, responding to an employee question at a company-wide meeting on Thursday, said he had hired too aggressively and failed to account for the possibility of an economic downturn, according to a person who heard the remarks.
The employee had asked about mistakes Zuckerberg had made, the person said.
Meta declined to comment.
The comments were more pointed than those Zuckerberg had delivered during an investor call the prior day, after Facebook-owner Meta recorded its first ever quarterly drop in revenue and forecast another fall to come in the third quarter.
On the investor call, Zuckerberg said he believed the economy was entering a downturn that would have a "broad impact" on the digital advertising business.
"It's always hard to predict how deep or how long these cycles will be, but I'd say that the situation seems worse than it did a quarter ago," he said.
He told investors the company planned to "steadily reduce headcount growth" over the next year.
At the company meeting on Thursday, another employee asked Zuckerberg if senior managers at Meta had been "coasting," referencing an ongoing debate over the term since an executive this month told managers to "move to exit" any employees who were "coasting" or performing poorly.
Zuckerberg responded by discussing Meta's performance reviews generally, according to the person who heard him speak, as well as another briefed on the response.
The employee who raised the question then took to the comments section of an internal discussion board, writing that in his view Zuckerberg had not answered his question.
The exchanges come as Zuckerberg is battling intensifying morale issues at Meta, on top of economic woes and business challenges from Apple Inc AAPL.O and ByteDance's TikTok.
At a tense company-wide meeting last month, Zuckerberg told employees he expected them to work with more "intensity," as he cut hiring targets and cranked up performance standards that were relaxed during the pandemic.
Meta staffers, who like many tech employees are paid partly in stock units, saw their compensation effectively slashed this year as the stock price tumbled on news of stalling growth.
(Reporting by Katie Paul and Paresh Dave; Editing by Peter Henderson and Chris Reese)
((Katie.Paul@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.
|
The exchanges come as Zuckerberg is battling intensifying morale issues at Meta, on top of economic woes and business challenges from Apple Inc AAPL.O and ByteDance's TikTok. Zuckerberg, responding to an employee question at a company-wide meeting on Thursday, said he had hired too aggressively and failed to account for the possibility of an economic downturn, according to a person who heard the remarks. At a tense company-wide meeting last month, Zuckerberg told employees he expected them to work with more "intensity," as he cut hiring targets and cranked up performance standards that were relaxed during the pandemic.
|
The exchanges come as Zuckerberg is battling intensifying morale issues at Meta, on top of economic woes and business challenges from Apple Inc AAPL.O and ByteDance's TikTok. By Katie Paul and Paresh Dave July 29 (Reuters) - Meta Platforms Inc META.O Chief Executive Mark Zuckerberg told staffers the world's biggest social media company had planned for growth too optimistically, mistakenly expecting that a bump in usage and revenue growth during COVID-19 lockdowns would be sustained. At the company meeting on Thursday, another employee asked Zuckerberg if senior managers at Meta had been "coasting," referencing an ongoing debate over the term since an executive this month told managers to "move to exit" any employees who were "coasting" or performing poorly.
|
The exchanges come as Zuckerberg is battling intensifying morale issues at Meta, on top of economic woes and business challenges from Apple Inc AAPL.O and ByteDance's TikTok. By Katie Paul and Paresh Dave July 29 (Reuters) - Meta Platforms Inc META.O Chief Executive Mark Zuckerberg told staffers the world's biggest social media company had planned for growth too optimistically, mistakenly expecting that a bump in usage and revenue growth during COVID-19 lockdowns would be sustained. The comments were more pointed than those Zuckerberg had delivered during an investor call the prior day, after Facebook-owner Meta recorded its first ever quarterly drop in revenue and forecast another fall to come in the third quarter.
|
The exchanges come as Zuckerberg is battling intensifying morale issues at Meta, on top of economic woes and business challenges from Apple Inc AAPL.O and ByteDance's TikTok. By Katie Paul and Paresh Dave July 29 (Reuters) - Meta Platforms Inc META.O Chief Executive Mark Zuckerberg told staffers the world's biggest social media company had planned for growth too optimistically, mistakenly expecting that a bump in usage and revenue growth during COVID-19 lockdowns would be sustained. Zuckerberg, responding to an employee question at a company-wide meeting on Thursday, said he had hired too aggressively and failed to account for the possibility of an economic downturn, according to a person who heard the remarks.
|
19973.0
|
2022-07-29 00:00:00 UTC
|
Nasdaq, S&P 500 rise on upbeat forecasts from Apple, Amazon
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-sp-500-rise-on-upbeat-forecasts-from-apple-amazon-0
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Apple sees continued strength in demand for iPhone
Amazon expects higher revenue in third quarter
Intel cuts annual forecasts, shares slide
Oil giants Exxon, Chevron jump after record revenue
Indexes up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92%
Adds comments, updates prices to early afternoon
By Aniruddha Ghosh and Shreyashi Sanyal
July 29 (Reuters) - The Nasdaq and the S&P 500 indexes rose on Friday and were on track for their biggest monthly gain in nearly 20 months, after upbeat earnings updates from Apple and Amazon and on hopes of a less aggressive monetary policy.
Mega-cap companies have largely fared better this reporting season and are predicting less impact from the current economic turmoil, allaying investor fears that a potential recession could dent their earnings power.
By early afternoon, Apple Inc AAPL.O shares gained 2.9% after the company said parts shortages were easing and that demand for iPhones was unceasing despite consumers tightening other spending.
Amazon.com Inc AMZN.O shot up 11.4% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
The S&P 500 technology index .SPLRCT was up 0.7% and looked set to record a 12% gain for the month, its biggest since April 2020.
However, gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 8.9% after it cut annual sales and profit forecasts and missed second-quarter estimates.
Meanwhile, investor worries of bigger interest rate hikes eased a bit on Thursday after GDP data showed the American economy contracted for the second straight quarter.
"Within the context of a bear market phase, we haven't seen the low for 2022 just yet, because headwinds like inflationary pressures, and everything else are still very real," said David Keller, chief market strategist at StockCharts.com.
The Philadelphia SE Semiconductor index .SOX slipped 0.4%, while consumer discretionary stocks .SPLRCD jumped 3.4%.
Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
At 12:09 p.m. ET, the Dow Jones Industrial Average .DJI was up 81.34 points, or 0.25%, at 32,610.97, the S&P 500 .SPX was up 28.57 points, or 0.70%, at 4,101.00, and the Nasdaq Composite .IXIC was up 112.19 points, or 0.92%, at 12,274.78.
The three indexes were also set for their second straight weekly gain.
The S&P 500 energy sector .SPNY jumped 3.9% on gains of 8.2% in Chevron Corp CVX.N and 4.3% in Exxon Mobil XOM.N, following their record quarterly revenue on the back of soaring crude prices.
Phillips 66 PSX.N rose 0.5% after the refiner reported a jump in second-quarter profit.
Procter & Gamble Co PG.N fell 5.5% after predicting full-year earnings below analysts' estimates.
Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations.
Analysts now expect S&P 500 profits to grow 7.6% for the second quarter, up from their 6.8% projection at the start of the three-month period, according to Refinitiv data.
The CBOE Volatility index .VIX, also know as Wall Street's fear gauge, hit a 3-month low.
Advancing issues outnumbered decliners by a 1.93-to-1 ratio on the NYSE and by a 1.05-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 33 new lows, while the Nasdaq recorded 42 new highs and 51 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By early afternoon, Apple Inc AAPL.O shares gained 2.9% after the company said parts shortages were easing and that demand for iPhones was unceasing despite consumers tightening other spending. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92% Adds comments, updates prices to early afternoon By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and the S&P 500 indexes rose on Friday and were on track for their biggest monthly gain in nearly 20 months, after upbeat earnings updates from Apple and Amazon and on hopes of a less aggressive monetary policy. Mega-cap companies have largely fared better this reporting season and are predicting less impact from the current economic turmoil, allaying investor fears that a potential recession could dent their earnings power.
|
By early afternoon, Apple Inc AAPL.O shares gained 2.9% after the company said parts shortages were easing and that demand for iPhones was unceasing despite consumers tightening other spending. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92% Adds comments, updates prices to early afternoon By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and the S&P 500 indexes rose on Friday and were on track for their biggest monthly gain in nearly 20 months, after upbeat earnings updates from Apple and Amazon and on hopes of a less aggressive monetary policy. However, gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 8.9% after it cut annual sales and profit forecasts and missed second-quarter estimates.
|
By early afternoon, Apple Inc AAPL.O shares gained 2.9% after the company said parts shortages were easing and that demand for iPhones was unceasing despite consumers tightening other spending. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92% Adds comments, updates prices to early afternoon By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and the S&P 500 indexes rose on Friday and were on track for their biggest monthly gain in nearly 20 months, after upbeat earnings updates from Apple and Amazon and on hopes of a less aggressive monetary policy. The S&P 500 energy sector .SPNY jumped 3.9% on gains of 8.2% in Chevron Corp CVX.N and 4.3% in Exxon Mobil XOM.N, following their record quarterly revenue on the back of soaring crude prices.
|
By early afternoon, Apple Inc AAPL.O shares gained 2.9% after the company said parts shortages were easing and that demand for iPhones was unceasing despite consumers tightening other spending. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Oil giants Exxon, Chevron jump after record revenue Indexes up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92% Adds comments, updates prices to early afternoon By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and the S&P 500 indexes rose on Friday and were on track for their biggest monthly gain in nearly 20 months, after upbeat earnings updates from Apple and Amazon and on hopes of a less aggressive monetary policy. Mega-cap companies have largely fared better this reporting season and are predicting less impact from the current economic turmoil, allaying investor fears that a potential recession could dent their earnings power.
|
19974.0
|
2022-07-29 00:00:00 UTC
|
Drilling Down into Apple's 3Q Print
|
AAPL
|
https://www.nasdaq.com/articles/drilling-down-into-apples-3q-print
|
nan
|
nan
|
Apple AAPL reported relatively encouraging numbers in the third quarter, despite all the pressures that the whole world continues to see as a backlash from COVID, including the lockdowns in China, supply chain issues, the effect of inflation on consumers, the Ukraine war that had Russia shut down, as well as the increased economic uncertainty overall.
Of course, things could have been better. It would, for instance, have been nice to have China open all the time. But the fact that Apple achieved what it did despite all these headwinds just goes to show the strength of its innovation engine and the brand loyalty it continues to enjoy.
Its strategy of continuing to grow the installed base even as it continues to expand its services is solid, and is paying off big time for the company. As a result, Apple was able to grow its Services revenue 12.1% from a year ago (although it was down 1.1% sequentially). Services sales missed analyst estimates by less than a percentage point in the last quarter.
Product sales have posted double-digit sequential declines in the last two quarters. But because of seasonality that impacts most of its product lines, year-on-year comparisons are more appropriate, at least in case of product sales.
iPhones still top the list of Apple products, up nearly 3% from last June. More importantly, they topped analyst estimates by 4.4% (close to the +4.5% average surprise in the last five quarters). Management has said that there were a record number of switchers in the last quarter, which grew double-digits.
Macs were down 10% from a year ago, missing analyst estimates by 15% (average surprise was +3.4% in the last five quarters).
iPads dropped about 2% but beat analyst estimates by 2.5% (average surprise in the last five quarters was +4.4%).
Wearables etc. declined around 8%.
Overall, product sales declined by less than a percentage point on a year-on-year basis, but were 2.2% better than what analysts were expecting. The average surprise in the last five quarters was around +3.8%.
The biggest disappointment was in China and Japan, which together make up about 24% of sales. China alone contributed over 17%, declining just 1% despite the shutdowns. It was however 3.9% short of analyst estimates.
Japan was down nearly 16%, missing analyst estimates by 12.6%.
Europe grew 1.8% despite Russia but analysts expected more. Sales were about a percentage point short of estimates.
Strength in the last quarter was driven by the Americas and the Rest of Asia regions, both of which grew and also beat analyst estimates.
The Americas grew 4.5% and beat estimates by 4.6%. The Rest of Asia grew 14% and beat estimates by 9.7%.
The Product gross margin shrank 152 basis points (bps) year over year, while the Services gross margin expanded 169 bps. Business was impacted by supply chain challenges and foreign exchange headwinds.
Analysts are strongly upbeat about Apple’s fiscal fourth quarter and are looking for growth across all product lines except iPads, as well as in Services. The strength is expected to be broad-based across geographies.
Apple shares carry a Zacks Rank #3 (Hold) but could be up for an upgrade given its recent performance and outlook. Technology stocks with a Zacks Rank #1 (Strong Buy) recommendation that you may be also consider are Axcelis Technologies, Inc. ACLS, Arco Platform Ltd. ARCE, Badger Meter, Inc. BMI and Cadence Design Systems, Inc. CDNS.
One-Month Price Performance
Image Source: Zacks Investment Research
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
Badger Meter, Inc. (BMI): Free Stock Analysis Report
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
Arco Platform Limited (ARCE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL reported relatively encouraging numbers in the third quarter, despite all the pressures that the whole world continues to see as a backlash from COVID, including the lockdowns in China, supply chain issues, the effect of inflation on consumers, the Ukraine war that had Russia shut down, as well as the increased economic uncertainty overall. Apple Inc. (AAPL): Free Stock Analysis Report But the fact that Apple achieved what it did despite all these headwinds just goes to show the strength of its innovation engine and the brand loyalty it continues to enjoy.
|
Apple AAPL reported relatively encouraging numbers in the third quarter, despite all the pressures that the whole world continues to see as a backlash from COVID, including the lockdowns in China, supply chain issues, the effect of inflation on consumers, the Ukraine war that had Russia shut down, as well as the increased economic uncertainty overall. Apple Inc. (AAPL): Free Stock Analysis Report The Product gross margin shrank 152 basis points (bps) year over year, while the Services gross margin expanded 169 bps.
|
Apple AAPL reported relatively encouraging numbers in the third quarter, despite all the pressures that the whole world continues to see as a backlash from COVID, including the lockdowns in China, supply chain issues, the effect of inflation on consumers, the Ukraine war that had Russia shut down, as well as the increased economic uncertainty overall. Apple Inc. (AAPL): Free Stock Analysis Report Services sales missed analyst estimates by less than a percentage point in the last quarter.
|
Apple AAPL reported relatively encouraging numbers in the third quarter, despite all the pressures that the whole world continues to see as a backlash from COVID, including the lockdowns in China, supply chain issues, the effect of inflation on consumers, the Ukraine war that had Russia shut down, as well as the increased economic uncertainty overall. Apple Inc. (AAPL): Free Stock Analysis Report Services sales missed analyst estimates by less than a percentage point in the last quarter.
|
19975.0
|
2022-07-29 00:00:00 UTC
|
Friday's ETF with Unusual Volume: DIVB
|
AAPL
|
https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-divb
|
nan
|
nan
|
The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Friday, with over 110,000 shares traded versus three month average volume of about 75,000. Shares of DIVB were up about 0.3% on the day.
Components of that ETF with the highest volume on Friday were Intel, trading off about 8.9% with over 64.1 million shares changing hands so far this session, and Apple, up about 3.1% on volume of over 50.5 million shares. Chevron is the component faring the best Friday, up by about 8.4% on the day.
VIDEO: Friday's ETF with Unusual Volume: DIVB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Friday, with over 110,000 shares traded versus three month average volume of about 75,000. Components of that ETF with the highest volume on Friday were Intel, trading off about 8.9% with over 64.1 million shares changing hands so far this session, and Apple, up about 3.1% on volume of over 50.5 million shares. VIDEO: Friday's ETF with Unusual Volume: DIVB The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Friday, with over 110,000 shares traded versus three month average volume of about 75,000. Components of that ETF with the highest volume on Friday were Intel, trading off about 8.9% with over 64.1 million shares changing hands so far this session, and Apple, up about 3.1% on volume of over 50.5 million shares. VIDEO: Friday's ETF with Unusual Volume: DIVB The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Friday, with over 110,000 shares traded versus three month average volume of about 75,000. Components of that ETF with the highest volume on Friday were Intel, trading off about 8.9% with over 64.1 million shares changing hands so far this session, and Apple, up about 3.1% on volume of over 50.5 million shares. VIDEO: Friday's ETF with Unusual Volume: DIVB The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Friday, with over 110,000 shares traded versus three month average volume of about 75,000. Shares of DIVB were up about 0.3% on the day. Components of that ETF with the highest volume on Friday were Intel, trading off about 8.9% with over 64.1 million shares changing hands so far this session, and Apple, up about 3.1% on volume of over 50.5 million shares.
|
19976.0
|
2022-07-29 00:00:00 UTC
|
Dollar snares U.S. firms in $4 trln endurance test
|
AAPL
|
https://www.nasdaq.com/articles/dollar-snares-u.s.-firms-in-%244-trln-endurance-test
|
nan
|
nan
|
Reuters
Reuters
NEW YORK (Reuters Breakingviews) - The strong dollar is becoming a test of nerves for global companies. From drugmaker Pfizer to iPhone peddler Apple and crafty online marketplace Etsy, executives say the U.S. currency’s rise to levels not seen in nearly 20 years is cutting into their profit. Some dismal earnings could lie ahead for firms that sell U.S. goods overseas. But weigh up the pros and cons, and the Teflon dollar is still in America’s interest.
The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. And when investors fear global disease or war, as they do now, they tend to seek deep, liquid markets. For those, the United States remains nonpareil.
The soaring greenback that results is great for U.S. holidaymakers abroad, but a pain in the neck for American companies with foreign cash flows. Around 30% of the revenue of S&P 500 Index firms comes from outside of the United States according to Morgan Stanley. That’s equivalent to around $4 trillion, based on Refinitiv estimates for this year. Earnings estimates tend to fall as the dollar works its way upwards.
Too much strength for too long could be a problem. Companies that rely on earnings overseas have less to invest once they get the spoils back home. They also have an incentive to relocate production to cheaper countries. That, though, seems less of a risk when part of the dollar’s outperformance comes from abundant risks elsewhere. The euro’s fall reflects not an investment opportunity but a region in turmoil, partly because of soaring energy costs.
That makes the strong dollar mostly a stock-market problem for now. Federal Reserve chief Jay Powell, for example, is unfazed by falling equity markets. President Joe Biden has remained quiet on the currency question, while Treasury Secretary Janet Yellen says the rising dollar is “understandable.” A tendency not to meddle in currency markets, and a historical White House preference for a strong dollar, is another reason the United States retains its global investment appeal.
In any case, what companies lose today, they are likely to regain tomorrow. Markets are already pricing in rate cuts https://www.atlantafed.org/cenfis/market-probability-tracker in early 2023, suggesting a belief inflation will be under control by then. When that happens, investors are likely to regain their taste for risk and buy back into equities. Companies now singing the strong-dollar blues may change their tune before long.
Follow @johnsfoley https://twitter.com/johnsfoley on Twitter
CONTEXT NEWS
The U.S dollar has strengthened 15% over the past year against a basket of trading-partner currencies, as of July 29. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc.
The annual pace of change of the dollar over the period since April is the fastest rise since September 2015, according to Datastream.
Many global companies have warned that currency moves will eat into their revenue and profit. Apple said on July 29 that foreign exchange wiped 300 basis points off its revenue for the quarter ending in June.
Drugmaker Pfizer warned a day earlier that the strengthening dollar would reduce its revenue for the year by around $2 billion. And Etsy, the online marketplace, told analysts on July 27 that currency moves would shave “several percentage points” from the value of goods sold on its platforms.
(Editing by Lauren Silva Laughlin and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
From drugmaker Pfizer to iPhone peddler Apple and crafty online marketplace Etsy, executives say the U.S. currency’s rise to levels not seen in nearly 20 years is cutting into their profit. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. And Etsy, the online marketplace, told analysts on July 27 that currency moves would shave “several percentage points” from the value of goods sold on its platforms.
|
The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc.
|
The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. President Joe Biden has remained quiet on the currency question, while Treasury Secretary Janet Yellen says the rising dollar is “understandable.” A tendency not to meddle in currency markets, and a historical White House preference for a strong dollar, is another reason the United States retains its global investment appeal. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc.
|
The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. Earnings estimates tend to fall as the dollar works its way upwards. When that happens, investors are likely to regain their taste for risk and buy back into equities.
|
19977.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-Wall Street extends July rebound, led by tech, energy
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-wall-street-extends-july-rebound-led-by-tech-energy-0
|
nan
|
nan
|
By Lawrence Delevingne
July 29 (Reuters) - U.S. stocks extended their July rebound on Friday, with the dollar and some Treasury yields dipping, as traders acted on positive corporate news despite increased labor costs and other inflation indicators.
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.Oshowed resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.
The two largest U.S. oil companies, Exxon Mobil XOM.N and Chevron Corp CVX.N, also posted record revenue on Friday, bolstered by surging crude oil and natural gas prices.
The Nasdaq Composite .IXIC added 115.75 points, or 0.95%, to 12,278.34 and the S&P 500 .SPX gained 29.06 points, or 0.71%, to 4,101.49. The Dow Jones Industrial Average .DJI rose 78.8 points, or 0.24%, to 32,608.43.
U.S. labor costs increased strongly in the second quarter as a tight jobs market continued to boost wage growth, which could keep inflation elevated for a while.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, also rose 1.1% last month, the U.S. Commerce Department said on Friday.
As inflation surges across major markets and central bankers scramble to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of the war in Ukraine.
"Our view is that earnings for all equity classes likely will peak in 2022 and move lower as the economy weakens, revenue growth stalls, and input costs remain elevated," strategists with the Wells Fargo Investment Institute wrote in a note on Thursday.
The MSCI World index .MIWD00000PUS was last up about 0.8%, on course for its best month since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up around 1.26%.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution.
"In the near term, we think the risk-reward for broad equity indexes will be muted. Equities are pricing in a 'soft landing', yet the risk of a deeper 'slump' in economic activity is elevated."
Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.5%.
Amid contracting U.S. gross domestic product, the yield on benchmark 10-year notes US10YT=RR dipped to 2.6469%, from 2.681% late on Friday. But Treasury yields at the short end edged higher on Friday after data on labor costs and wage growth suggested inflation remains elevated. The 2-year note US2YT=RR yield increased to 2.8905%, from 2.877%.
The U.S. dollar rebounded from a three-week low in choppy trading on Friday, as the round of U.S. economic data suggested more inflation -- and higher interest rates. The dollar was last down about 0.2% against a basket of its major peers =USD- still on course for a second month of gains.
Futures markets now predict that U.S. interest rates will peak by December this year, rather than June 2023, and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth. [0#FF:]
"Strong hiring and falling GDP mean an unsustainable collapse in productivity. The labor market should slow quickly, soon," Bank of America economists Ethan S. Harris and Aditya Bhave wrote in a note Friday. "The Fed is likely to respond slowly to a recession. We think market optimism about a dovish Fed pivot is premature."
Across commodities, Brent crude futures LCOc1 rose about 3%, while U.S. West Texas Intermediate crude CLc1 extended early gains, up more than 5%, as concerns about supply shortages ahead of the next meeting of OPEC ministers offset doubts around the economic outlook.
Spot gold XAU= gained around 0.5% to $1,765 an ounce, a more than three-week high, supported by a softer dollar and bets that the Federal Reserve may cool the pace of rate hikes as economic risks deepen.
Global asset performancehttp://tmsnrt.rs/2yaDPgn
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
(Reporting by Lawrence Delevingne in Boston and Simon Jessop in London; editing by Mark Heinrich and Nick Zieminski)
((lawrence.delevingne@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.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.Oshowed resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. "Our view is that earnings for all equity classes likely will peak in 2022 and move lower as the economy weakens, revenue growth stalls, and input costs remain elevated," strategists with the Wells Fargo Investment Institute wrote in a note on Thursday. Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.Oshowed resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. By Lawrence Delevingne July 29 (Reuters) - U.S. stocks extended their July rebound on Friday, with the dollar and some Treasury yields dipping, as traders acted on positive corporate news despite increased labor costs and other inflation indicators. After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.Oshowed resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. By Lawrence Delevingne July 29 (Reuters) - U.S. stocks extended their July rebound on Friday, with the dollar and some Treasury yields dipping, as traders acted on positive corporate news despite increased labor costs and other inflation indicators. As inflation surges across major markets and central bankers scramble to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.Oshowed resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. The 2-year note US2YT=RR yield increased to 2.8905%, from 2.877%. "The Fed is likely to respond slowly to a recession.
|
19978.0
|
2022-07-29 00:00:00 UTC
|
Apple Posts Record Revenues, Beats on Earnings: ETFs to Buy
|
AAPL
|
https://www.nasdaq.com/articles/apple-posts-record-revenues-beats-on-earnings%3A-etfs-to-buy
|
nan
|
nan
|
After the closing bell yesterday, Apple Inc. AAPL came up with robust third-quarter fiscal 2022 results. The tech giant once again beat the estimates on both the top and bottom lines and posted record quarterly revenues. The solid performance came despite the strong dollar, inflationary fears, supply chain shortages and factory shutdowns in China.
As such, Apple shares rose about 4.2% in after-hours trading on elevated volume, putting ETFs having the largest allocation to the tech titan in focus. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Apple Results in Focus
Earnings per share came in at $1.20, outpacing the Zacks Consensus Estimate of $1.14 but declining from the year-ago earnings of $1.30. Revenues increased 1.9% year over year to a record $83 billion and edged past the estimate of $82 billion (see: all the Technology ETFs here).
iPhone sales grew 2.8% to a record $40.7 billion despite economic challenges. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 12% year over year to a record $19.6 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, dipped 8% to $8.1 billion. iPad sales dropped 2% to $7.2 billion, while Mac sales decined 10% to $7.4 billion. The slumping economy is hurting sales of advertising, accessories and home products.
The iPhone maker expects revenues to accelerate in the ongoing quarter. It expects to launch the iPhone 14 line along with its Apple Watch Series 8 later this fall.
ETFs to Buy
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 76 securities in its basket, with Apple making up for a 23.8% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment and IT services.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $40.2 billion and an average daily volume of 7.7 million shares. The fund charges 10 bps in fees per year (read: Microsoft Q4 Earnings Miss, Outlook Solid: ETFs to Tap).
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $43 billion in its asset base and provides exposure to 379 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.9% share.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 613,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 368 technology stocks with AUM of $5.3 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.9% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 248,000 shares a day.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 148 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 19% of the assets (read: 5 ETFs Up in Double-Digits Post Fed's Fourth Rate Hike).
iShares Dow Jones US Technology ETF has AUM of $6.6 billion and charges 41 bps in fees and expenses. Volume is good as it exchanges nearly 394,000 shares a day.
iShares Russell Top 200 Growth ETF (IWY)
iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 111 stocks in its basket. Apple accounts for 15.3% of total assets. iShares Russell Top 200 Growth ETF has key holdings in information technology, consumer discretionary and healthcare with double-digit exposure each.
iShares Russell Top 200 Growth ETF has amassed $4.5 billion in its asset base and trades in an average daily volume of 392,000 shares. It has an expense ratio of 0.20%.
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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
iShares Russell Top 200 Growth ETF (IWY): 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.
|
After the closing bell yesterday, Apple Inc. AAPL came up with robust third-quarter fiscal 2022 results. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $40.2 billion and an average daily volume of 7.7 million shares.
|
After the closing bell yesterday, Apple Inc. AAPL came up with robust third-quarter fiscal 2022 results. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
|
After the closing bell yesterday, Apple Inc. AAPL came up with robust third-quarter fiscal 2022 results. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
|
After the closing bell yesterday, Apple Inc. AAPL came up with robust third-quarter fiscal 2022 results. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
|
19979.0
|
2022-07-29 00:00:00 UTC
|
Technology Sector Update for 07/29/2022: XLK, INTC, AAPL, NAAS
|
AAPL
|
https://www.nasdaq.com/articles/technology-sector-update-for-07-29-2022%3A-xlk-intc-aapl-naas
|
nan
|
nan
|
Technology stocks were mixed in early Friday afternoon trading, with the SPDR Technology Select Sector ETF (XLK) rising roughly 0.8% and the Philadelphia Semiconductor Index edging 0.3% lower.
In company news, Intel (INTC) shares slumped about 9% after it reported Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier and well below the $0.70 estimate in a Capital IQ poll of analysts. The company also lowered its 2022 non-GAAP revenue guidance to between $65 billion and $68 billion from about $76 billion previously.
Apple (AAPL) rose more than 3% after reporting fiscal Q3 net income late Thursday of $1.20 per share, down from $1.30 a year earlier, although net sales grew 2% year over year to $82.96 billion. Analysts at Morgan Stanley described the results as "better than feared."
NaaS Technology (NAAS) was flat, erasing earlier gains of about 3%, after saying it is working with electric vehicle maker Li Auto (LI) on a new smart charging navigation system.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) rose more than 3% after reporting fiscal Q3 net income late Thursday of $1.20 per share, down from $1.30 a year earlier, although net sales grew 2% year over year to $82.96 billion. Technology stocks were mixed in early Friday afternoon trading, with the SPDR Technology Select Sector ETF (XLK) rising roughly 0.8% and the Philadelphia Semiconductor Index edging 0.3% lower. Analysts at Morgan Stanley described the results as "better than feared."
|
Apple (AAPL) rose more than 3% after reporting fiscal Q3 net income late Thursday of $1.20 per share, down from $1.30 a year earlier, although net sales grew 2% year over year to $82.96 billion. In company news, Intel (INTC) shares slumped about 9% after it reported Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier and well below the $0.70 estimate in a Capital IQ poll of analysts. NaaS Technology (NAAS) was flat, erasing earlier gains of about 3%, after saying it is working with electric vehicle maker Li Auto (LI) on a new smart charging navigation system.
|
Apple (AAPL) rose more than 3% after reporting fiscal Q3 net income late Thursday of $1.20 per share, down from $1.30 a year earlier, although net sales grew 2% year over year to $82.96 billion. In company news, Intel (INTC) shares slumped about 9% after it reported Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier and well below the $0.70 estimate in a Capital IQ poll of analysts. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) rose more than 3% after reporting fiscal Q3 net income late Thursday of $1.20 per share, down from $1.30 a year earlier, although net sales grew 2% year over year to $82.96 billion. Technology stocks were mixed in early Friday afternoon trading, with the SPDR Technology Select Sector ETF (XLK) rising roughly 0.8% and the Philadelphia Semiconductor Index edging 0.3% lower. Analysts at Morgan Stanley described the results as "better than feared."
|
19980.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-Wall Street extends July rebound, led by tech, energy
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-wall-street-extends-july-rebound-led-by-tech-energy
|
nan
|
nan
|
By Lawrence Delevingne and Simon Jessop
July 29 (Reuters) - U.S. stocks extended their July rebound on Friday morning, with the dollar and Treasury yields also advancing, as traders acted on positive corporate news despite increased labor costs and other inflation indicators.
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.O indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.
The two largest U.S. oil companies, Exxon Mobil XOM.N and Chevron Corp CVX.N, also posted record revenue on Friday, bolstered by surging crude oil and natural gas prices.
The Nasdaq Composite .IXIC added 119.52 points, or around 1%, to 12,282.11 and the S&P 500 .SPX gained 25.97 points, or 0.64%, to 4,098.4. The Dow Jones Industrial Average .DJI rose 24.34 points, or 0.07%, to 32,553.97.
U.S. labor costs increased strongly in the second quarter as a tight jobs market continued to boost wage growth, which could keep inflation elevated for a while.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, also rose 1.1% last month, the U.S. Commerce Department said on Friday.
As inflation surges across major markets and central bankers scramble to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of the war in Ukraine.
The MSCI World index .MIWD00000PUS was last up 0.55%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up around 1%.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution.
"In the near term, we think the risk-reward for broad equity indexes will be muted. Equities are pricing in a 'soft landing', yet the risk of a deeper 'slump' in economic activity is elevated."
Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.66%.
News in the prior session that U.S. gross domestic product had shrunk 0.9% last quarter, on top of a 1.6% contraction in the quarter before that, initially weighed on the U.S. bond yields and the greenback. But both ticked up on Friday.
The yield on benchmark 10-year Treasury notes US10YT=RR recovered slightly from its overnight lows to trade at 2.693% while the two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was also up on the day to 2.918%.
After earlier flirting with positive territory, the dollar was last up 0.37% against a basket of its major peers =USD - on course for a second month of gains.
Futures markets now predict that U.S. interest rates will peak by December this year, rather than June 2023, and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth. [0#FF:]
Across commodities, Brent crude futures LCOc1rose nearly 3%, while U.S. West Texas Intermediate crude CLc1 extended early gains, up around 3.5%, as concerns about supply shortages ahead of the next meeting of OPEC ministers offset doubts around the economic outlook.
Spot gold XAU=traded flat, holding around $1,753 an ounce, after hitting a more than three-week high, supported by a softer dollar and bets that the Federal Reserve may cool the pace of rate hikes as economic risks deepen. [nL4N2ZA2CQ]
Global asset performancehttp://tmsnrt.rs/2yaDPgn
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
(Reporting by Lawrence Delevingne in Boston and Simon Jessop in London; editing by Mark Heinrich)
((lawrence.delevingne@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.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.O indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of the war in Ukraine. Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.O indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. By Lawrence Delevingne and Simon Jessop July 29 (Reuters) - U.S. stocks extended their July rebound on Friday morning, with the dollar and Treasury yields also advancing, as traders acted on positive corporate news despite increased labor costs and other inflation indicators. U.S. labor costs increased strongly in the second quarter as a tight jobs market continued to boost wage growth, which could keep inflation elevated for a while.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.O indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. By Lawrence Delevingne and Simon Jessop July 29 (Reuters) - U.S. stocks extended their July rebound on Friday morning, with the dollar and Treasury yields also advancing, as traders acted on positive corporate news despite increased labor costs and other inflation indicators. As inflation surges across major markets and central bankers scramble to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
|
Positive forecasts from Apple Inc AAPL.O and Amazon.com Inc AMZN.O indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. By Lawrence Delevingne and Simon Jessop July 29 (Reuters) - U.S. stocks extended their July rebound on Friday morning, with the dollar and Treasury yields also advancing, as traders acted on positive corporate news despite increased labor costs and other inflation indicators. U.S. labor costs increased strongly in the second quarter as a tight jobs market continued to boost wage growth, which could keep inflation elevated for a while.
|
19981.0
|
2022-07-29 00:00:00 UTC
|
Top Stock Market News For Today July 29, 2022
|
AAPL
|
https://www.nasdaq.com/articles/top-stock-market-news-for-today-july-29-2022
|
nan
|
nan
|
Stock Market Futures Gain Ahead Of Key Inflation Data
U.S. stock futures are trading higher early Friday morning. In general, this could be due to better-than-expected big tech earnings, and key GDP data released on Thursday. Investors will get earnings data from more notable names in the stock on Friday. Such as Chevron (NYSE: CVX), AbbVie (NYSE: ABBV), Colgate-Palmolive (NYSE: CL), and many others.
The stock market was looking to log its third straight day of gains. This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Additionally, the news adds fuel to a positively-received second quarter U.S. corporate earnings season. Specifically, almost half of the companies already reporting. According to Refinitiv, the S&P 500 has notched in a blended profit growth rate of 7.6%, with 76% exceeding profit estimates. Moving along, as of 6:07 am ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.28%, 0.76%, and 1.20% respectively.
Amazon (AMZN Stock) Jumps After Posting Strong Earnings Beat
Starting us off, let’s look at Amazon.com, Inc. (AMZN). Shares of AMZN stock jumped more than 12% in after-hours trading on Thursday to $137 per share. This comes after the company reported its second quarter of 2022 fiscal earnings.
In the report, Amazon reported earnings per share of $0.10 on revenue of $121.2 billion. Compared with, wall street consensus estimates of $0.15 per share on revenue of $119.5 billion. Furthermore, The company reported upbeat guidance for the third quarter. In detail, it estimates third-quarter revenue of $125.0 billion to $130.0 billion. The current consensus revenue estimate is $127.8 billion.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” stated Andy Jassy, Amazon CEO.
Source: TD Ameritrade TOS
[Read More] Food Stocks To Invest In 2022? 4 In Focus
Shares Of Apple (AMZN Stock) Rally After Reporting Stronger-Than-Expected Third Quarter Earnings
Next, let’s check out consumer tech giant Apple. Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share. This is contributed to the company reporting better-than-expected third-quarter fiscal earnings.
Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion. The consensus earnings estimate was $1.14 per share on revenue of $82.4 billion. Furthermore, the company noted on its conference call that it estimates fourth-quarter revenue to be higher than $84.92 billion. This is in comparison with current wall street estimates of $89.92 billion for the quarter.
“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.“
Source: TD Ameritrade TOS
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.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share. Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion.
|
This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share. Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion.
|
Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion. This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share.
|
This comes as investors react positively to earnings results from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Diving right in, Apple (AAPL) reported earnings of $1.20 per share on revenue of $83.0 billion. Shares of AAPL stock rallied over 2% in Thursday’s extended trading session to $161.10 per share.
|
19982.0
|
2022-07-29 00:00:00 UTC
|
Nasdaq, S&P 500 rise on upbeat forecasts from Apple, Amazon
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-sp-500-rise-on-upbeat-forecasts-from-apple-amazon
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple sees continued strength in demand for iPhone
Amazon expects higher revenue in third quarter
Intel cuts annual forecasts, shares slide
Consumer spending beats expectations in June
Oil giants Exxon, Chevron jump after record revenue
Indexes up: S&P 0.68%, Nasdaq 1.05%, Dow 0.09%
Updates to open
By Aniruddha Ghosh and Shreyashi Sanyal
July 29 (Reuters) - The Nasdaq and S&P 500 indexes rose on Friday, as positive forecasts from Apple and Amazon pointed to resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.
Apple Inc AAPL.O shares rose 3.4% after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending.
Amazon.com Inc AMZN.O shot up 11.9% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
"Big tech has been a mixed bag this earnings season, but Amazon proved that the strong can survive even the toughest environments," said Laura Hoy, equity analyst at Hargreaves Lansdown.
Meanwhile, investor worries of bigger interest rate increases eased a bit on Thursday after data showed the American economy contracted for the second straight quarter.
"The Fed is really between a rock and a hard place because are they going to fight inflation or are they going to cave to slower economic growth," said Paul Nolte, portfolio manager at Kingsview Investment Management.
Gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 10.2% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.
While the broader S&P 500 technology index .SPLRCT gained 0.9%, chipmakers fell, with the Philadelphia SE Semiconductor index .SOX slipping 0.6%. Consumer discretionary stocks .SPLRCD jumped 3.5%.
Toward the end of a power-packed week, all three of Wall Street's main indexes were set for their second straight weekly gain.
Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
At 9:49 a.m. ET the Dow Jones Industrial Average .DJI was up 28.21 points, or 0.09%, at 32,557.84, the S&P 500 .SPX was up 27.86 points, or 0.68%, at 4,100.29 and the Nasdaq Composite .IXIC was up 127.98 points, or 1.05%, at 12,290.57.
The CBOE Volatility index .VIX, also know as Wall Street's fear gauge, hit a 3-month low.
The S&P 500 energy sector .SPNY added 3.2%, boosted by shares of Chevron Corp CVX.N and Exxon Mobil XOM.N rose 6.8% and 3.6%, respectively, after the oil majors posted record quarterly revenue on the back of soaring crude prices.
Phillips 66 PSX.N rose 0.2% after the refiner reported a jump in second-quarter profit, boosted by surging demand for fuel and refined products amid tight supplies.
Procter & Gamble Co PG.N fell 5.0% after predicting full-year earnings below analysts' estimates as the consumer goods giant struggles with surging transportation and commodity costs.
Advancing issues outnumbered decliners by a 1.30-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.20-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 32 new lows, while the Nasdaq recorded 25 new highs and 25 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O shares rose 3.4% after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Oil giants Exxon, Chevron jump after record revenue Indexes up: S&P 0.68%, Nasdaq 1.05%, Dow 0.09% Updates to open By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and S&P 500 indexes rose on Friday, as positive forecasts from Apple and Amazon pointed to resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 10.2% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.
|
Apple Inc AAPL.O shares rose 3.4% after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Oil giants Exxon, Chevron jump after record revenue Indexes up: S&P 0.68%, Nasdaq 1.05%, Dow 0.09% Updates to open By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and S&P 500 indexes rose on Friday, as positive forecasts from Apple and Amazon pointed to resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Data showed U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.
|
Apple Inc AAPL.O shares rose 3.4% after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Oil giants Exxon, Chevron jump after record revenue Indexes up: S&P 0.68%, Nasdaq 1.05%, Dow 0.09% Updates to open By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and S&P 500 indexes rose on Friday, as positive forecasts from Apple and Amazon pointed to resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 10.2% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.
|
Apple Inc AAPL.O shares rose 3.4% after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Oil giants Exxon, Chevron jump after record revenue Indexes up: S&P 0.68%, Nasdaq 1.05%, Dow 0.09% Updates to open By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq and S&P 500 indexes rose on Friday, as positive forecasts from Apple and Amazon pointed to resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Gains on the Dow Jones Industrial Average .DJI were capped by Intel Corp INTC.O, which tumbled 10.2% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.
|
19983.0
|
2022-07-29 00:00:00 UTC
|
Amazon, Apple raise hopes as investors brace for slowdown
|
AAPL
|
https://www.nasdaq.com/articles/amazon-apple-raise-hopes-as-investors-brace-for-slowdown
|
nan
|
nan
|
By Eva Mathews
July 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O added about $175 billion to their combined market value on Friday after upbeat results boosted investor confidence on the ability of these firms to weather a slowdown in the economy.
While analysts noted these companies were not completely immune to broader economic hurdles, they said the weakness in consumer spending is not likely to send these firms into the red, deeming them "always reliable to buck the trend."
Amazon's shares rose about 11% to $135.50 after the e-commerce titan forecast upbeat third-quarter revenue, while those of Apple rose more than 3% as the company said appetite for iPhones remained strong despite consumers tightening spending.
"The results are good enough to support Apple's stock which has done much better in the current market rout, further justifying the company's 'safe haven' status when the going gets tough," Haris Anwar, Investing.com analyst, said.
The U.S. stock market's hyper surge in the past decade has been fuelled by high-growth and megacap companies, but rising interest rates to combat decades-high inflation as well as a sharp rally in the dollar have taken a toll since the start of the year.
Earlier this week, upbeat results from Alphabet GOOGL.O and Microsoft MSFT.O reassured investors burnt by a slump in their shares in the first half of the year.
Amazon, like much of the retail industry, is bracing for a pullback in consumer spending as people stick to lower-priced essentials to tide over economic woes.
The e-commerce giant's booming cloud business, coupled with a ramp up in service offerings, is likely to help cushion the impact of soaring costs.
Kingsview Investment Management portfolio manager Paul Nolte, however, was more skeptical in the light of warnings from some major retailers including Walmart WMT.N.
"We think that the consumer is not as strong as maybe portrayed by the reaction to Amazon."
UPDATE 1-Meta to keep facing Apple privacy pinch, TikTok heat for now
Amazon's margins fall as costs, investments risehttps://tmsnrt.rs/3Q4sh5X
(Reporting by Eva Mathews and Aniruddha Ghosh in Bengaluru, Graphic by Akash Sriram; editing by Ankur Banerjee and Saumyadeb Chakrabarty)
((Eva.Mathews@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Eva Mathews July 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O added about $175 billion to their combined market value on Friday after upbeat results boosted investor confidence on the ability of these firms to weather a slowdown in the economy. While analysts noted these companies were not completely immune to broader economic hurdles, they said the weakness in consumer spending is not likely to send these firms into the red, deeming them "always reliable to buck the trend." The U.S. stock market's hyper surge in the past decade has been fuelled by high-growth and megacap companies, but rising interest rates to combat decades-high inflation as well as a sharp rally in the dollar have taken a toll since the start of the year.
|
By Eva Mathews July 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O added about $175 billion to their combined market value on Friday after upbeat results boosted investor confidence on the ability of these firms to weather a slowdown in the economy. Amazon's shares rose about 11% to $135.50 after the e-commerce titan forecast upbeat third-quarter revenue, while those of Apple rose more than 3% as the company said appetite for iPhones remained strong despite consumers tightening spending. UPDATE 1-Meta to keep facing Apple privacy pinch, TikTok heat for now Amazon's margins fall as costs, investments risehttps://tmsnrt.rs/3Q4sh5X (Reporting by Eva Mathews and Aniruddha Ghosh in Bengaluru, Graphic by Akash Sriram; editing by Ankur Banerjee and Saumyadeb Chakrabarty) ((Eva.Mathews@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Eva Mathews July 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O added about $175 billion to their combined market value on Friday after upbeat results boosted investor confidence on the ability of these firms to weather a slowdown in the economy. Amazon's shares rose about 11% to $135.50 after the e-commerce titan forecast upbeat third-quarter revenue, while those of Apple rose more than 3% as the company said appetite for iPhones remained strong despite consumers tightening spending. UPDATE 1-Meta to keep facing Apple privacy pinch, TikTok heat for now Amazon's margins fall as costs, investments risehttps://tmsnrt.rs/3Q4sh5X (Reporting by Eva Mathews and Aniruddha Ghosh in Bengaluru, Graphic by Akash Sriram; editing by Ankur Banerjee and Saumyadeb Chakrabarty) ((Eva.Mathews@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Eva Mathews July 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O added about $175 billion to their combined market value on Friday after upbeat results boosted investor confidence on the ability of these firms to weather a slowdown in the economy. While analysts noted these companies were not completely immune to broader economic hurdles, they said the weakness in consumer spending is not likely to send these firms into the red, deeming them "always reliable to buck the trend." Amazon's shares rose about 11% to $135.50 after the e-commerce titan forecast upbeat third-quarter revenue, while those of Apple rose more than 3% as the company said appetite for iPhones remained strong despite consumers tightening spending.
|
19984.0
|
2022-07-29 00:00:00 UTC
|
Apple faces lukewarm demand in China after quarterly revenue drop -analysts
|
AAPL
|
https://www.nasdaq.com/articles/apple-faces-lukewarm-demand-in-china-after-quarterly-revenue-drop-analysts
|
nan
|
nan
|
By Josh Horwitz
SHANGHAI, July 29 (Reuters) - Apple AAPL.O should brace for a weakening of demand in China as shoppers curb spending in an anemic economy, some analysts warned on Friday, after the iPhone maker said demand had rebounded in mid-June after COVID-19 lockdowns hampered sales.
The iPhone maker on Thursday reported quarterly revenue in Greater China fell 1%, snapping a streak of strong quarters in the region.
Overall, Apple's revenue rose 2%, beating estimates, and the company said there had been no slowdown in demand for iPhones globally despite macroeconomic indicators turning negative.
Apple boss Tim Cook blamed the drop in Greater China revenue on strict lockdowns in Chinese cities, which forced millions to stay home and hammered the Chinese economy.
"We did see lower demand based on the COVID lockdowns in the cities the COVID lockdowns affected. And we did see a rebound in those same cities toward the end of the quarter in the June time frame," he said.
China's strict curbs to stamp out COVID have undercut a recovery in the world's second-largest economy, with consumer confidence hovering near record lows, private investment slowing and youth unemployment at a record 19.3%, prompting calls for more urgent government stimulus.
Apple this week announced discounts on iPhones and other hardware for Chinese customers, a move it occasionally makes when sales are slow.
Still, the company is more insulated from a weak economy because it is the only leading brand offering expensive devices, analysts said.
Apple's chief competitor in the high-end segment, Huawei, has seen sales collapse after U.S. sanctions prevented it from sourcing key components. Honor, a Huawei spin-off, is growing fast but is yet to break into the high-end market.
Overall Chinese smartphone sales in April-June fell 14.2% on year and volumes hit a decade low, Counterpoint Research said on Wednesday.
Apple's market share in China rose slightly to 15.5% in the quarter even as its sales volumes dropped 5.8%, Counterpoint said, a smaller blow compared with Oppo, Xiaomi 1810.HK, and vivo.
IDC analyst Will Wong said that unlike in late 2020, when demand for phones in China surged after the first COVID lockdown, phone sales are expected to shrink.
"It's not just the lockdown, but other factors, like the government tech crackdown and the slowdown on the property market, all have a negative effect on consumer sentiment," he said.
Apple is set to release a new iPhone model in the autumn.
But sales of the new device in China is unlikely to exceed those of last year's iPhone 13, said Canalys analyst Nicole Peng.
"High-end phone sales tend to be resilient in China, but Apple may worry that demand itself is weakening."
(Reporting by Josh Horwitz; Additional reporting by Jamie Freed in Sydney; Editing by Sayantani Ghosh and Lincoln Feast.)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Josh Horwitz SHANGHAI, July 29 (Reuters) - Apple AAPL.O should brace for a weakening of demand in China as shoppers curb spending in an anemic economy, some analysts warned on Friday, after the iPhone maker said demand had rebounded in mid-June after COVID-19 lockdowns hampered sales. Overall, Apple's revenue rose 2%, beating estimates, and the company said there had been no slowdown in demand for iPhones globally despite macroeconomic indicators turning negative. Apple this week announced discounts on iPhones and other hardware for Chinese customers, a move it occasionally makes when sales are slow.
|
By Josh Horwitz SHANGHAI, July 29 (Reuters) - Apple AAPL.O should brace for a weakening of demand in China as shoppers curb spending in an anemic economy, some analysts warned on Friday, after the iPhone maker said demand had rebounded in mid-June after COVID-19 lockdowns hampered sales. The iPhone maker on Thursday reported quarterly revenue in Greater China fell 1%, snapping a streak of strong quarters in the region. Apple boss Tim Cook blamed the drop in Greater China revenue on strict lockdowns in Chinese cities, which forced millions to stay home and hammered the Chinese economy.
|
By Josh Horwitz SHANGHAI, July 29 (Reuters) - Apple AAPL.O should brace for a weakening of demand in China as shoppers curb spending in an anemic economy, some analysts warned on Friday, after the iPhone maker said demand had rebounded in mid-June after COVID-19 lockdowns hampered sales. Apple boss Tim Cook blamed the drop in Greater China revenue on strict lockdowns in Chinese cities, which forced millions to stay home and hammered the Chinese economy. IDC analyst Will Wong said that unlike in late 2020, when demand for phones in China surged after the first COVID lockdown, phone sales are expected to shrink.
|
By Josh Horwitz SHANGHAI, July 29 (Reuters) - Apple AAPL.O should brace for a weakening of demand in China as shoppers curb spending in an anemic economy, some analysts warned on Friday, after the iPhone maker said demand had rebounded in mid-June after COVID-19 lockdowns hampered sales. The iPhone maker on Thursday reported quarterly revenue in Greater China fell 1%, snapping a streak of strong quarters in the region. Overall Chinese smartphone sales in April-June fell 14.2% on year and volumes hit a decade low, Counterpoint Research said on Wednesday.
|
19985.0
|
2022-07-29 00:00:00 UTC
|
US STOCKS-Nasdaq set to open higher on positive forecasts from Apple, Amazon
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-nasdaq-set-to-open-higher-on-positive-forecasts-from-apple-amazon
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple sees continued strength in demand for iPhone
Amazon expects higher revenue in third quarter
Intel cuts annual forecasts, shares slide
Consumer spending beats expectations in June
Futures: Nasdaq 0.68, Dow flat, S&P 0.42%
Adds commentary, updates prices throughout
By Aniruddha Ghosh and Shreyashi Sanyal
July 29 (Reuters) - The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending.
Amazon.com Inc AMZN.O shot up 10.7% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
High-growth stocks also benefited from the yield on benchmark 10-year Treasury notes retreating 0.2% US10YT=RR.US/
"Big tech has been a mixed bag this earnings season, but Amazon proved that the strong can survive even the toughest environments," said Laura Hoy, equity analyst at Hargreaves Lansdown.
Meanwhile, investor worries of bigger interest rate increases eased a bit on Thursday after data showed the American economy contracted for the second straight quarter.
"The Fed is really between a rock and a hard place because are they going to fight inflation or are they going to cave to slower economic growth," said Paul Nolte, portfolio manager at Kingsview Investment Management.
Toward the end of a power-packed week, all three of Wall Street's main indexes were set for their second straight weekly gain.
Futures briefly pared back gains after data showed U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 were up 17 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were up 86 points, or 0.68%.
The Dow .DJI looked set to be weighed by Intel Corp INTC.O, which tumbled 11% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.
Shares of Chevron Corp CVX.N and Exxon Mobil XOM.N rose 2.9% and 2.1%, respectively, after the oil majors posted their biggest quarterly earnings on the back of soaring energy prices.
Phillips 66 PSX.N rose 0.9% after the refiner reported a jump in second-quarter profit, boosted by surging demand for fuel and refined products amid tight supplies.
Procter & Gamble Co PG.N fell 3.6% after predicting full-year earnings below analysts' estimates as the consumer goods giant struggles with surging transportation and commodity costs.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Futures: Nasdaq 0.68, Dow flat, S&P 0.42% Adds commentary, updates prices throughout By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. High-growth stocks also benefited from the yield on benchmark 10-year Treasury notes retreating 0.2% US10YT=RR.US/ "Big tech has been a mixed bag this earnings season, but Amazon proved that the strong can survive even the toughest environments," said Laura Hoy, equity analyst at Hargreaves Lansdown.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Futures: Nasdaq 0.68, Dow flat, S&P 0.42% Adds commentary, updates prices throughout By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Futures briefly pared back gains after data showed U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Futures: Nasdaq 0.68, Dow flat, S&P 0.42% Adds commentary, updates prices throughout By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Futures briefly pared back gains after data showed U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Apple sees continued strength in demand for iPhone Amazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slide Consumer spending beats expectations in June Futures: Nasdaq 0.68, Dow flat, S&P 0.42% Adds commentary, updates prices throughout By Aniruddha Ghosh and Shreyashi Sanyal July 29 (Reuters) - The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. Futures briefly pared back gains after data showed U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.
|
19986.0
|
2022-07-29 00:00:00 UTC
|
Technology Sector Update for 07/29/2022: INTC, AAPL, SONY, XLK, SOXX
|
AAPL
|
https://www.nasdaq.com/articles/technology-sector-update-for-07-29-2022%3A-intc-aapl-sony-xlk-soxx
|
nan
|
nan
|
Technology stocks were mixed premarket Friday. The Technology Select Sector SPDR ETF (XLK) was up 0.39% and the Semiconductor Sector Index Fund (SOXX) was slipping past 1% recently.
Intel (INTC) was over 11% lower after it posted Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier. Analysts polled by Capital IQ estimated earnings of $0.70 per share.
Apple (AAPL) was climbing past 2% even after it reported a fiscal Q3 net income of $1.20 per share, down from $1.30 per share during the same quarter in 2021. Analysts, on average, estimated a $1.16 per share normalized profit.
Sony Group (SONY) reported fiscal Q1 net earnings of 175.21 yen ($1.31) per diluted share, up from 169.22 yen a year earlier. Sony was over 4% lower recently.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) was climbing past 2% even after it reported a fiscal Q3 net income of $1.20 per share, down from $1.30 per share during the same quarter in 2021. The Technology Select Sector SPDR ETF (XLK) was up 0.39% and the Semiconductor Sector Index Fund (SOXX) was slipping past 1% recently. Analysts polled by Capital IQ estimated earnings of $0.70 per share.
|
Apple (AAPL) was climbing past 2% even after it reported a fiscal Q3 net income of $1.20 per share, down from $1.30 per share during the same quarter in 2021. Intel (INTC) was over 11% lower after it posted Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier. Sony Group (SONY) reported fiscal Q1 net earnings of 175.21 yen ($1.31) per diluted share, up from 169.22 yen a year earlier.
|
Apple (AAPL) was climbing past 2% even after it reported a fiscal Q3 net income of $1.20 per share, down from $1.30 per share during the same quarter in 2021. Intel (INTC) was over 11% lower after it posted Q2 adjusted earnings of $0.29 per diluted share, down from $1.36 per share a year earlier. Sony Group (SONY) reported fiscal Q1 net earnings of 175.21 yen ($1.31) per diluted share, up from 169.22 yen a year earlier.
|
Apple (AAPL) was climbing past 2% even after it reported a fiscal Q3 net income of $1.20 per share, down from $1.30 per share during the same quarter in 2021. Technology stocks were mixed premarket Friday. Sony Group (SONY) reported fiscal Q1 net earnings of 175.21 yen ($1.31) per diluted share, up from 169.22 yen a year earlier.
|
19987.0
|
2022-07-29 00:00:00 UTC
|
Apple Aces Earnings and Amazon's Outlook Cheers Investors as Stocks Rise
|
AAPL
|
https://www.nasdaq.com/articles/apple-aces-earnings-and-amazons-outlook-cheers-investors-as-stocks-rise
|
nan
|
nan
|
U
S Stocks rose for the second consecutive session on Thursday as investors shrugged off another quarter of negative growth in favor of an optimistic reading of Wednesday's three quarter point rate hike and recent comments from some significant tech firms' earnings about their outlook.
The S & P 500 rose 1.2%, The Dow Jones Industrial Average added 1% or 329 points, and Nasdaq Composite Index added 1.1% on Thursday.
The U.S. economy contracted 0.9% last quarter, marking a second straight quarterly decline in the gross domestic product, the Commerce Department said Thursday.
Frontier Airlines (US:ULCC) shares rose more than 13% on Thursday, a day after it dropped its hostile bid for Spirit Airlines agreed to drop its bid for the low cost carrier. Investors are relieved that the company won't get dragged into a bidding war. The move gives Spirit (US:SAVE) a clear flight path to agree to sell to JetBlue (US:JBLU), another suitor with a higher offer.
Fellow transportation sector favorite, motorcycle manufacturer Harley Davidson (US:HOG) shares accelerated 7.7% after it said its customers are still spending. Chief Executive Officer Jochen Zeitz told conference call listeners on Thursday, "We do not see a softening among our core consumers."
However, he said sales fell in the quarter, and he cited the pandemic and supply chain issues, as well as having shut down production for a bit in the quarter.
Investors have waited for results from major blue-chip and technology companies for further guidance about the state of the real economy.
Gains continued after hours as earnings arrived from Apple (US:AAPL) and Amazon (US:AMZN), lifting both firms' shares further into the green.
Apple shares added 2.8% in late trading after it reported that its iPhone sales remain strong and that it has not cut hiring, contrary to some market perception.
Apple revealed its best June quarter for revenue, selling $83 billion worth of goods and services, up two percent from a year ago. The company earned $1.20 a share in the quarter.
Said Tim Cook, Apple's CEO, "Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans."
Intel (US:INTC), the iconic chipmaker, reported an unexpected loss after the bell, which sunk its shares by almost nine percent. Rival Qualcomm also reported a surprise loss, and its shares dropped 5.2%.
The Silicon Valley pioneer posted 29 cents a share second quarter adjusted earnings, nowhere near Wall Street analysts' consensus estimate of 69 cents a share. Revenue tanked, falling to $15.3 billion, well below analysts' expectations of $17.94 billion.
Intel executives estimate the company will post similar revenues in the present quarter and put the range at $15 to $16 billion, against current analysts' $18.72 billion revenue estimate.
Facebook parent Meta Platforms (US:META) fell $8.86, or 5.2%, to $160.72 after reporting its first-ever decline in quarterly revenue on Wednesday.
After the bell, Amazon reported posting a 20 cents a share loss on about $121 billion of revenue.
Its shares rose in after hours trading by 12%, bolstered by the company's outlook, which called for break-even to $3.5 billion third quarter profit and $125 billion to $130 billion revenue.
"Despite continued inflationary pressures in fuel, energy, and transportation costs, we're making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network," company CEO Andy Jassy said Thursday.
By Greg Morcroft for Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Gains continued after hours as earnings arrived from Apple (US:AAPL) and Amazon (US:AMZN), lifting both firms' shares further into the green. The move gives Spirit (US:SAVE) a clear flight path to agree to sell to JetBlue (US:JBLU), another suitor with a higher offer. Apple shares added 2.8% in late trading after it reported that its iPhone sales remain strong and that it has not cut hiring, contrary to some market perception.
|
Gains continued after hours as earnings arrived from Apple (US:AAPL) and Amazon (US:AMZN), lifting both firms' shares further into the green. Frontier Airlines (US:ULCC) shares rose more than 13% on Thursday, a day after it dropped its hostile bid for Spirit Airlines agreed to drop its bid for the low cost carrier. Said Tim Cook, Apple's CEO, "Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment.
|
Gains continued after hours as earnings arrived from Apple (US:AAPL) and Amazon (US:AMZN), lifting both firms' shares further into the green. S Stocks rose for the second consecutive session on Thursday as investors shrugged off another quarter of negative growth in favor of an optimistic reading of Wednesday's three quarter point rate hike and recent comments from some significant tech firms' earnings about their outlook. Intel executives estimate the company will post similar revenues in the present quarter and put the range at $15 to $16 billion, against current analysts' $18.72 billion revenue estimate.
|
Gains continued after hours as earnings arrived from Apple (US:AAPL) and Amazon (US:AMZN), lifting both firms' shares further into the green. Investors are relieved that the company won't get dragged into a bidding war. The company earned $1.20 a share in the quarter.
|
19988.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-World stocks eye best month since late 2020, dollar dips
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-world-stocks-eye-best-month-since-late-2020-dollar-dips
|
nan
|
nan
|
By Simon Jessop
LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates.
As inflation surges across major markets and central bankers fight to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of conflict in Ukraine.
The MSCI World index .MIWD00000PUSwas last up 0.3%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXXup 0.9%.
U.S. stocks look set to gain at the open, with futures for the S&P 500 and Nasdaq ESc1NQc1up 0.8% and 1.1%, respectively, with all eyes on fresh wages and consumer price data for clues to the health of the economy.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution.
"In the near term, we think the risk-reward for broad equity indexes will be muted. Equities are pricing in a 'soft landing', yet the risk of a deeper 'slump' in economic activity is elevated."
Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUSfell 0.3%.
News in the prior session that U.S. gross domestic product had shrunk 0.9% last quarter, to add to a 1.6% contraction in the quarter before that, weighed on the country's bond yields and the greenback, but both staged a partial recovery on Friday.
The yield on benchmark 10-year Treasury notes US10YT=RR recovered slightly from its overnight lows to trade at 2.7029% while the two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was at 2.8703%.
After earlier flirting with positive territory, the dollar was last down 0.4% against a basket of its major peers =USD - yet still on course for a second month of gains.
Futures markets now predict that U.S. interest rates will peak by December this year compared to June 2023 and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth. [0#FF:]
Against the weakening U.S. backdrop, second-quarter GDP data from the euro zone beat expectations, up 0.7%, although growth in the region's biggest economy, Germany, lagged.
In response, Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - was last up at 0.89%.
Across commodities, Brent crude futures LCOc1 and U.S. West Texas Intermediate crude CLc1 extended early gains and were last up around 2.3% as concerns about supply shortages ahead of the next meeting of OPEC ministers offset doubts around the economic outlook.
Gold gave back some of its early gains to trade up 0.4% to $1,759 an ounce, helped by the weaker dollar.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan, Jacqueline Wong and Chizu Nomiyama)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates. Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting. [0#FF:] Against the weakening U.S. backdrop, second-quarter GDP data from the euro zone beat expectations, up 0.7%, although growth in the region's biggest economy, Germany, lagged.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates. [0#FF:] Against the weakening U.S. backdrop, second-quarter GDP data from the euro zone beat expectations, up 0.7%, although growth in the region's biggest economy, Germany, lagged. World FX rates YTDhttp://tmsnrt.rs/2egbfVh Global asset performancehttp://tmsnrt.rs/2yaDPgn Asian stock marketshttps://tmsnrt.rs/2zpUAr4 (Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan, Jacqueline Wong and Chizu Nomiyama) ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates. The MSCI World index .MIWD00000PUSwas last up 0.3%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXXup 0.9%. World FX rates YTDhttp://tmsnrt.rs/2egbfVh Global asset performancehttp://tmsnrt.rs/2yaDPgn Asian stock marketshttps://tmsnrt.rs/2zpUAr4 (Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan, Jacqueline Wong and Chizu Nomiyama) ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates. The MSCI World index .MIWD00000PUSwas last up 0.3%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXXup 0.9%. In response, Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - was last up at 0.89%.
|
19989.0
|
2022-07-29 00:00:00 UTC
|
Apple (AAPL) Q3 Earnings Top Estimates, Revenues Increase Y/Y
|
AAPL
|
https://www.nasdaq.com/articles/apple-aapl-q3-earnings-top-estimates-revenues-increase-y-y
|
nan
|
nan
|
Apple AAPL reported third-quarter fiscal 2022 earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 5.26% and our estimate of $1.10 per share.
However, the reported figure decreased 7.7% year over year.
Net sales increased 1.9% year over year to $82.96 billion, which beat the Zacks Consensus Estimate by 1.19% and our estimate of $81.47 billion.
Apple’s second-quarter results benefited from steady demand for iPhone 13. Services business maintained momentum in the reported quarter.
iPhone sales increased 2.8% from the year-ago quarter to $40.67 billion and accounted for 49% of total sales. Although the figure beat the consensus mark of $38.94 billion, it missed our estimate of $41.75 billion.
Apple Inc. Price, Consensus and EPS Surprise
Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote
iPhone sales were driven by strong demand for the iPhone 13 family of devices.
Services revenues grew 12.1% from the year-ago quarter to $19.60 billion and accounted for 23.6% of sales. The figure lagged the Zacks Consensus Estimate by 0.68% and our estimate of $19.70 billion.
Services revenues were negatively impacted by unfavorable forex, the absence of revenues from Russia and the challenging macroeconomic environment.
Apple now has more than 860 million paid subscribers across its Services portfolio, up 35 million sequentially and 160 million year over year.
The segment benefited from the robust performance of Apple TV+ and Apple Arcade.
Strong Americas & Rest of Asia Pacific Sales Aid Growth
Americas sales increased 4.5% year over year to $37.47 billion and accounted for 45.2% of total sales. The figure beat the Zacks Consensus Estimate by 4.63% and our estimate of $34.99 billion.
Europe generated $19.29 billion in sales, up 1.8% on a year-over-year basis. The region accounted for 23.2% of total sales. Europe sales lagged the consensus mark by 0.91% and our estimate of $19.58 billion.
Greater China sales decreased 1.1% from the year-ago quarter to $14.60 billion, accounting for 17.6% of total sales. The figure lagged the consensus mark by 3.94% and our estimate of $15.33 billion.
Japan’s sales of $5.45 billion missed the Zacks Consensus Estimate by 12.64% and our estimate of $5.87 billion. Japan’s sales decreased 15.7% year over year, accounting for 6.6% of total sales.
Rest of the Asia Pacific generated sales of $6.15 billion, up 14% year over year. The region accounted for 7.4% of total sales. The figure beat the consensus mark by 9.68% and our estimate of $5.70 billion.
Top-Line Details
Product sales (76.4% of sales) decreased 0.9% year over year to $63.36 billion. Non-iPhone revenues (iPad, Mac and Wearables) declined 6.9% on a combined basis.
iPad sales of $7.22 billion declined 2% year over year and accounted for 8.7% of total sales. The figure beat the consensus mark by 2.52% and our estimate of $6.65 billion.
The year-over-year decline in iPad sales was attributed to supply-chain constraints and unfavorable forex.
Mac sales of $7.38 billion decreased 10.4% from the year-ago quarter and accounted for 8.9% of total sales. The figure lagged the consensus mark by 15.10% and our estimate of $8.27 billion.
Wearables, Home and Accessories sales decreased 7.9% year over year to $8.08 billion and accounted for 9.7% of total sales. The figure lagged the Zacks Consensus Estimate by 2.33% but handsomely beat our estimate of $5.09 billion.
The category sales suffered from unfavorable forex, different launch timing for Home and Accessories products and supply constraints.
Apple Watch’s adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased the Apple Watch during the reported quarter were first-time customers.
Operating Details
Gross margin of 43.3% was unchanged on a year-over-year basis, better than our estimate of 42.2%.
However, gross margin decreased 40 bps sequentially due to unfavorable forex.
Products’ gross margin contracted 190 bps sequentially to 34.5% due to unfavorable forex and revenues mix.
Services’ gross margin was 71.5%, down 110 bps sequentially due to a different mix and unfavorable forex.
Operating expenses rose 15.1% year over year to $12.81 billion due to higher research & development (R&D), and selling, general & administrative (SG&A) expenses, which increased 18.9% and 11.1%, respectively.
Operating margin contracted 180 bps on a year-over-year basis to 27.8%.
Balance Sheet
As of Jun 25, 2022, cash & marketable securities were $179.31 billion compared with $192.73 billion as of Mar 22, 2022.
Term debt, as of Jun 25, 2022, was $108.71 billion, down from $112.98 billion as of Mar 26, 2022.
Apple returned $28 billion in the reported quarter through dividend payouts ($3.8 billion) and share repurchases ($21.7 billion).
Guidance
Apple did not provide revenue guidance for the fourth quarter of fiscal 2022.
Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter compared to the third quarter, despite approximately 600 bps of unfavorable year-over-year impact from forex.
Management expects supply constraints to be lower in the fiscal fourth quarter compared with the third quarter.
Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
Gross margin is expected between 41.5% and 42.5% in the fourth quarter. Operating expenses are expected between $12.9 billion and $13.1 billion.
Zacks Rank & Stocks to Consider
Currently, Apple has a Zacks Rank #3 (Hold).
Apple shares have outperformed the Zacks Computer & Technology sector year to date. While AAPL shares have lost 11.4%, the Computer & Technology sector decreased 25.1%.
Airbnb ABNB, Aspen Technology AZPN, and Fastly FSLY are some better-ranked stocks that investors can consider in the broader sector. All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Airbnb shares are down 34.6% year to date. ABNB is set to report second-quarter 2022 results on Aug 2.
Aspen shares are up 28.2% year to date. AZPN is set to report fourth-quarter fiscal 2022 results on Aug 8.
Fastly shares are down 67.8% year to date. FSLY is set to report second-quarter 2022 results on Aug 3.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Aspen Technology, Inc. (AZPN): Free Stock Analysis Report
Fastly, Inc. (FSLY): Free Stock Analysis Report
Airbnb, Inc. (ABNB): Free Stock Analysis Report
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.
|
Apple AAPL reported third-quarter fiscal 2022 earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 5.26% and our estimate of $1.10 per share. While AAPL shares have lost 11.4%, the Computer & Technology sector decreased 25.1%. Apple Inc. (AAPL): Free Stock Analysis Report
|
Apple AAPL reported third-quarter fiscal 2022 earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 5.26% and our estimate of $1.10 per share. While AAPL shares have lost 11.4%, the Computer & Technology sector decreased 25.1%. Apple Inc. (AAPL): Free Stock Analysis Report
|
Apple AAPL reported third-quarter fiscal 2022 earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 5.26% and our estimate of $1.10 per share. While AAPL shares have lost 11.4%, the Computer & Technology sector decreased 25.1%. Apple Inc. (AAPL): Free Stock Analysis Report
|
Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL reported third-quarter fiscal 2022 earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 5.26% and our estimate of $1.10 per share. While AAPL shares have lost 11.4%, the Computer & Technology sector decreased 25.1%.
|
19990.0
|
2022-07-29 00:00:00 UTC
|
Apple Loses Steam, but iPhone Demand Remains Strong -- Is the Stock a Buy?
|
AAPL
|
https://www.nasdaq.com/articles/apple-loses-steam-but-iphone-demand-remains-strong-is-the-stock-a-buy
|
nan
|
nan
|
Apple (NASDAQ: AAPL) beat Wall Street expectations for its third quarter of fiscal 2022 (the three months ended on June 25). Revenue was $82.96 billion (versus $82.97 billion estimated, no worries fretting over a $10 million miss) and earnings per share were $1.20 (beating the $1.16 consensus among analysts).
Apple has been a bulwark this year. Shares have rallied in recent months and are now down just 13% so far in 2022 -- not bad for a bear market. Other tech giants have said in recent weeks that consumer electronics (smartphones included) are headed for a big cool-off in the second half of this year. This appears to be impacting Apple in some areas too, but the flagship iPhone segment is bucking the trend and holding strong. Is Apple stock and its premium price tag a buy at this juncture?
Overcoming multiple headwinds in the spring
First, let's acknowledge that Apple's overall results were impressive considering the issues it's been facing around the world. Supply chains are a mess (particularly in regard to the chip shortage) and are constraining supply of some devices.
A strong U.S. dollar is also lowering the value of international revenue, Apple isn't doing business in Russia anymore, and ongoing COVID-19 lockdowns (like in Asia) are reducing demand among households for discretionary products. Given all this, the overall year-over-year revenue rise of 2% is nothing to get too upset about. Earnings per share fell 7.7% year over year as profit margins took a small hit.
Apple acknowledged things could be better, confirming comments from other tech companies about weakening consumer demand for some product types and ongoing supply chain wonkiness impacting the ability to deliver a finished product where consumer demand is still strong. iPad, Watch, and Mac sales in the last quarter bear this out.
APPLE PRODUCT SEGMENT
Q3 FISCAL 2022 REVENUE
YOY INCREASE (DECREASE)
iPhone
$40.7 billion
2.8%
Mac
$7.38 billion
(10%)
iPad
$7.22 billion
(2%)
Wearables, home, and accessories
$8.08 billion
(7.9%)
Services
$19.6 billion
12%
Data source: Apple. YOY = year over year.
The iPhone is holding strong, though. In fact, just a day prior to Apple's report, mobile chip giant Qualcomm (NASDAQ: QCOM) -- which is a top supplier for Android phones -- said it expects full-year smartphone unit sales to now decrease by a mid-single-digit percentage compared to 2021. As far as Apple CEO Tim Cook and the company are concerned, there's no observable impact from a weak consumer on the iPhone. The upgrade to 5G-capable phones isn't the strong tailwind it was a year or two ago, but all indications are that global 5G iPhone uptake is still going just fine.
In particular, the iPhone is doing well in emerging markets where there's very little Apple presence currently. And though some device sales were weak last quarter, Apple reported its total user base worldwide rose, which helps drive the continued expansion of its higher-margin "services" business.
A slowdown may linger, but focus on the long term
Overall, Q3 was a good one for Apple shareholders. The outlook for the final months of the company's 2022 fiscal year wasn't particularly exciting but did contain some positive news. Cook and management see further headwinds from the strong U.S. dollar versus foreign currencies. However, revenue is still expected to accelerate compared to the just-finished quarter.
Gross margins could be down to a range of 41.5% to 42.5% (compared to 43.3% just reported), but that isn't the end of the world, either. Apple sees value in its own stock, so it continues to repurchase shares ($65 billion during the three months ended in June alone). This ongoing activity should help mitigate lower profit margins and resulting earnings-per-share pressure.
After the report, Apple stock trades for just shy of 24 times trailing-12-month free cash flow. It's a premium-priced stock, especially for a company that isn't growing much these days. But Apple is a well-oiled machine that can continue to churn out solid financial results even in difficult times. If you're looking for fast-growing stocks, this one isn't it. But if you want consistent returns over time, Apple stock remains a great company to build a portfolio around.
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 July 27, 2022
Nicholas Rossolillo and his clients have positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple 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.
|
Apple (NASDAQ: AAPL) beat Wall Street expectations for its third quarter of fiscal 2022 (the three months ended on June 25). A strong U.S. dollar is also lowering the value of international revenue, Apple isn't doing business in Russia anymore, and ongoing COVID-19 lockdowns (like in Asia) are reducing demand among households for discretionary products. In fact, just a day prior to Apple's report, mobile chip giant Qualcomm (NASDAQ: QCOM) -- which is a top supplier for Android phones -- said it expects full-year smartphone unit sales to now decrease by a mid-single-digit percentage compared to 2021.
|
Apple (NASDAQ: AAPL) beat Wall Street expectations for its third quarter of fiscal 2022 (the three months ended on June 25). Apple acknowledged things could be better, confirming comments from other tech companies about weakening consumer demand for some product types and ongoing supply chain wonkiness impacting the ability to deliver a finished product where consumer demand is still strong. iPhone $40.7 billion 2.8% Mac $7.38 billion (10%) iPad $7.22 billion (2%) Wearables, home, and accessories $8.08 billion (7.9%) Services $19.6 billion 12% Data source: Apple.
|
Apple (NASDAQ: AAPL) beat Wall Street expectations for its third quarter of fiscal 2022 (the three months ended on June 25). Apple acknowledged things could be better, confirming comments from other tech companies about weakening consumer demand for some product types and ongoing supply chain wonkiness impacting the ability to deliver a finished product where consumer demand is still strong. iPhone $40.7 billion 2.8% Mac $7.38 billion (10%) iPad $7.22 billion (2%) Wearables, home, and accessories $8.08 billion (7.9%) Services $19.6 billion 12% Data source: Apple.
|
Apple (NASDAQ: AAPL) beat Wall Street expectations for its third quarter of fiscal 2022 (the three months ended on June 25). The iPhone is holding strong, though. The outlook for the final months of the company's 2022 fiscal year wasn't particularly exciting but did contain some positive news.
|
19991.0
|
2022-07-29 00:00:00 UTC
|
Nasdaq, S&P 500 open higher on positive forecasts from Apple, Amazon
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-sp-500-open-higher-on-positive-forecasts-from-apple-amazon
|
nan
|
nan
|
July 29 (Reuters) - The Nasdaq and the S&P 500 opened higher on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.
The S&P 500 .SPX opened higher by 14.90 points, or 0.37%, at 4,087.33, while the Nasdaq Composite .IXIC gained 77.10 points, or 0.63%, to 12,239.69 at the opening bell.
The Dow Jones Industrial Average .DJI fell 14.01 points, or 0.04%, at the open to 32,515.62.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 29 (Reuters) - The Nasdaq and the S&P 500 opened higher on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. The Dow Jones Industrial Average .DJI fell 14.01 points, or 0.04%, at the open to 32,515.62. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 29 (Reuters) - The Nasdaq and the S&P 500 opened higher on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. The S&P 500 .SPX opened higher by 14.90 points, or 0.37%, at 4,087.33, while the Nasdaq Composite .IXIC gained 77.10 points, or 0.63%, to 12,239.69 at the opening bell. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 29 (Reuters) - The Nasdaq and the S&P 500 opened higher on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. The S&P 500 .SPX opened higher by 14.90 points, or 0.37%, at 4,087.33, while the Nasdaq Composite .IXIC gained 77.10 points, or 0.63%, to 12,239.69 at the opening bell. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 29 (Reuters) - The Nasdaq and the S&P 500 opened higher on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment. The S&P 500 .SPX opened higher by 14.90 points, or 0.37%, at 4,087.33, while the Nasdaq Composite .IXIC gained 77.10 points, or 0.63%, to 12,239.69 at the opening bell. The Dow Jones Industrial Average .DJI fell 14.01 points, or 0.04%, at the open to 32,515.62.
|
19992.0
|
2022-07-29 00:00:00 UTC
|
PBF Energy and Southern Copper have been highlighted as Zacks Bull and Bear of the Day
|
AAPL
|
https://www.nasdaq.com/articles/pbf-energy-and-southern-copper-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
|
nan
|
nan
|
For Immediate Release
Chicago, IL – July 29, 2022 – Zacks Equity Research shares PBF Energy PBF as the Bull of the Day and Southern Copper SCCO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Intel INTC.
Here is a synopsis of all five stocks:
Bull of the Day:
PBF Energy, a Zacks Rank #1 (Strong Buy), has been a substantial beneficiary of higher commodity prices over the past year. PBF had been steadily outperforming the market before pulling back along with the energy sector over the past month. With oil looking to stabilize in the short-term, along with hints from the Fed regarding the potential for slower rate hikes in the future, energy stocks such as PBF are looking to begin the next leg up. The retreat in price over the past few weeks presents investors with a solid buying opportunity.
PBF sports the highest Zacks Growth and Value Style Scores of ‘A’. The company is part of the Zacks Oil and Gas – Refining and Marketing industry group, which ranks in the top 2% out of more than 250 Zacks Ranked Industries. This group has widely outperformed the market this year, advancing more than 26% while the S&P 500 is in a deep correction.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
PBF Energy is a leading refiner that produces gasoline, diesel, heating oil, jet fuel, and petrochemicals. The company sells its products in the United States, Canada, and Mexico. PBF also provides rail, truck, and marine transportation services. PBF Energy was founded in 2008 and is headquartered in Parsippany, NJ.
Earnings Trends and Future Estimates
PBF has surpassed earnings estimates in each of the past four quarters. The refiner reported Q2 EPS just yesterday of $10.58/share, a 43.75% surprise over the $7.36 consensus estimate. PBF has delivered a trailing four-quarter average earnings surprise of 77.97%.
Analysts are in agreement in terms of earnings revisions and have increased their estimates across the board. For the third quarter, analysts covering PBF have increased their estimates by 123.03% in the past 60 days. The Q3 Zacks Consensus EPS estimate now stands at $3.68, translating to a staggering potential growth rate of 2,966.67% relative to the same quarter last year.
For the full year, analysts have bumped up their earnings projections by 164.11% in the past 60 days. The 2022 Zacks Consensus EPS Estimate is now $12.73, reflecting anticipated growth of 609.2% relative to last year. Revenues are expected to climb 39.36% to $37.98 billion. Clearly, the growth is there for PBF investors.
Stock Performance & Valuation
PBF shares have advanced over 230% in the past year. Only stocks that are in extremely powerful uptrends are able to make this type of price move while the major indices are in a correction. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions. Shares have advanced over 140% this year alone.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. And as we know, PBF Energy has recently witnessed positive revisions. As long as this trend remains intact (and PBF continues to deliver earnings beats), the stock will likely continue its bullish run this year. Cautious investors may feel hesitant about investing in a stock that has come this far, but the fact is this elite company is still outperforming.
Despite the impressive performance, PBF remains relatively undervalued, irrespective of the metric used:
Bottom Line
Solid institutional buying should continue to provide a tailwind for the stock price. PBF is ranked favorably by our Style Score Categories with an ‘A’ for Value and ‘A’ for Growth, paving the way for an overall ‘A’ VGM score. This indicates that there’s a strong likelihood that PBF’s outperformance will continue on the heels of strong sales and earnings growth.
Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. Backed by a leading industry group and robust history of earnings beats, it’s not difficult to see why this company is a compelling investment. This market winner continues to prove its doubters wrong, and investors would be wise to consider PBF as a portfolio candidate if they haven’t already done so.
Bear of the Day:
Southern Copper is engaged in the mining, smelting, and refining processes of copper and other minerals. The company operates internationally in Peru, Mexico, Argentina, Ecuador, and Chile. SCCO is also involved in the production of refined gold, silver, and other materials. In addition, the company operates a host of underground mines that produce zinc and lead. SCCO was incorporated in 1952. Based in Phoenix, AZ, Southern Copper operates as a subsidiary of Americas Mining Corporation.
The Zacks Rundown
SCCO, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Mining – Non Ferrous industry group, which ranks in the bottom 8% out of more than 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months. This group has fallen over 25% year-to-date, widely underperforming the -15% decline from the S&P 500.
Candidates in the bottom tiers of industries can often be solid potential short candidates. While individual stocks have the ability to outperform even when included in a poor-performing industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much tougher.
The odds are stacked against SCCO, and the stock is agreeing with this notion. SCCO experienced a climax top back in April and has been in a price downtrend ever since. The share price is hitting a series of 52-week lows and represents a compelling short opportunity as the market continues its volatile start to the year.
Southern Copper is also relatively overvalued, irrespective of the valuation metric used.
Recent Earnings Misses and Deteriorating Forecasts
SCCO has fallen short of earnings estimates in two of the last three quarters. The mining company most recently reported Q2 earnings earlier this week of $0.56/share, missing the $0.95/share consensus estimate by -41.05%. The stock has moved steadily lower since the announcement, even as the market has rallied.
The company has posted a trailing four-quarter average earnings miss of -10.91%. Consistently falling short of earnings estimates is a recipe for underperformance, and SCCO is no exception.
Analysts are in agreement in terms of earnings revisions, and have slashed estimates across the board. For the full year, EPS projections have declined 10.39% to $3.71/share, reflecting negative growth of -15.49% relative to last year.
Declining earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
SCCO is in a sustained downtrend. The stock has plunged below both the 50-day and 200-day moving averages. The stock is making a series of lower lows, with no respite from the selling in sight. Also, both moving averages have rolled over and are sloping down – another good sign for the bears.
While not the most accurate indicator, SCCO has also experienced what is known as a 'death cross,' wherein the stock's 50-day moving average crosses below its 200-day moving average. SCCO would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. The stock has fallen nearly 20% this year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to print new highs anytime soon. The fact that SCCO is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Our Zacks Style Scores depict a weakening outlook for this stock, as SCCO is rated a 'C' in our Growth category. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of an overvalued SCCO until the situation shows major signs of improvement.
Additional content:
Amazon, Apple Up on Earnings, Intel Takes a Bath
Market indices rallied off yesterday morning's lineup of economic data that in more unforgiving times (say, a month or two ago) might have met the buzzsaw; nowadays, we see grow across the board: the Dow was +332 points on the day, +1.03%, while the Nasdaq grew +130 points, +1.08%. Further, the S&P 500 at +1.21% and the small-cap Russell 200 +1.34% rounded out a positive trading day.
Renowned investor Leon Cooperman recently described a market "bottom" as having occurred when trading is impervious to bad news. Well, bad news is what we got ahead of Thursday's open, where Q2 GDP posted a negative headline for the second-straight quarter while jobless claims' 4-week moving average keeps climbing. It's been a rough quarter but a "so far, so good" Q2 earnings season — at least ahead of yesterday afternoon's marquee reports:
Apple notched its third-straight earnings beat in its fiscal Q3 results, reaching $1.20 per share for a 6-cent beat (though still below the year-ago's $1.30 per share). Revenues posted a slight beat to $82.96 billion from $81.99 billion in the Zacks consensus. Shares of the world's largest gadget maker were up +3% in after-market trading.
iPhone sales are still the bread and butter of Apple, and these came in better than expected to 40.67 billion units sold in the past three months. Its Services revenue was a tad below expectations at $19.6 billion, while Mac sales dropped -10% on supply constraints and foreign exchange headwinds. But considering its China business only came in -1% in a very challenging quarter, we'd have to see this quarter from Apple as not only being better than expected, but as strong as reasonably expected.
Shares of Amazon bloomed +10% in late trading, even though the company posted a -20 cent loss per share in Q2, as opposed to a 15-cent gain. Revenues came in better than expected, however: $121.23 billion versus $119.67 billion expected. The company took a $6 billion charge in the quarter to adjust for extra labor and capacity, which may explain the bottom-line big miss.
Amazon Web Services (AWS), the company's cloud-based profit engine outpaced expectations in the quarter: $19.74 billion surpassed the anticipated $19.54 billion, while Advertising revenue grew +21% year over year to $8.76 billion, above the expected $8.65 billion. Online Stores and Subscribers came in a little short of estimates, but overall results were, just like Apple, better than expected.
Intel, however, is a different story: in an absolute nightmare quarter, the chip-making giant posted earnings of 29 cents per share, less than half the 69 cents expected and more than 4x lower than the $1.28 per share in the year-ago quarter. CEO Pat Gelsinger said the quarter was "below standard" and that they "can and must do better." It's the company's first miss in more than eight years.
Guidance for Q3 was abysmal, as well: 30 cents per share is expected on the bottom line, less than half the 90 cents in the Zacks consensus, while revenues next quarter, which had previously been expected to reach $18.91 billion, are now guiding to a range of $15-16 billion. The company also posted its worst Data Center revenue, perhaps ever, -16%. Shares were down -10% in late-session trading.
In other news, the Chips Act passed Congress Thursday, which will allot more than $50 billion to semiconductor companies to begin generating chips in the U.S. This is widely seen as not only good for supply-chain initiatives that rely on advanced technology, like automobile dashboards, but a win for national security. It's also seen as a hedge against possible aggression in Taiwan by China.
Questions or comments about this article and/or its author? Click here>>
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Southern Copper Corporation (SCCO): Free Stock Analysis Report
PBF Energy Inc. (PBF): 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.
|
In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Intel INTC. Apple Inc. (AAPL): Free Stock Analysis Report Here is a synopsis of all five stocks: Bull of the Day: PBF Energy, a Zacks Rank #1 (Strong Buy), has been a substantial beneficiary of higher commodity prices over the past year.
|
In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Intel INTC. Apple Inc. (AAPL): Free Stock Analysis Report Despite the impressive performance, PBF remains relatively undervalued, irrespective of the metric used: Bottom Line Solid institutional buying should continue to provide a tailwind for the stock price.
|
In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Intel INTC. Apple Inc. (AAPL): Free Stock Analysis Report Here is a synopsis of all five stocks: Bull of the Day: PBF Energy, a Zacks Rank #1 (Strong Buy), has been a substantial beneficiary of higher commodity prices over the past year.
|
In addition, Zacks Equity Research provides analysis on Apple AAPL, Amazon AMZN and Intel INTC. Apple Inc. (AAPL): Free Stock Analysis Report Earnings Trends and Future Estimates PBF has surpassed earnings estimates in each of the past four quarters.
|
19993.0
|
2022-07-29 00:00:00 UTC
|
US STOCKS-Nasdaq futures surge as Apple, Amazon hold out against weak consumer spending
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-surge-as-apple-amazon-hold-out-against-weak-consumer-spending
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Nasdaq 1.06%, Dow 0.27%, S&P 0.72%
July 29 (Reuters) - U.S. stocks futures gained led by the Nasdaq on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies in the face of weaker consumer spending, with hopes of a less aggressive monetary policy boosting sentiment.
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending.
Amazon.com Inc AMZN.O shot up 12.1% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
High-growth stocks also benefited from the yield on benchmark 10-year Treasury notes retreating 0.2% US10YT=RR, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O adding between 0.5% and 1.6%. US/
Investor worries of bigger interest rate increases began to ease after the U.S. Commerce Department said on Thursday said the American economy unexpectedly contracted for the second straight quarter.
Data later in the day will show consumer spending, which accounts for more than two-thirds of economic activity, likely accelerated 0.9% in June following a 0.2% gain in May.
The so-called core PCE price index, a closely watched metric by the Fed, likely remained unchanged in June at 4.7%.
Toward the end of a power-packed week, all three of Wall Street's main indexes were set for their second straight weekly gain.
At 7:07 a.m. ET, Dow e-minis 1YMcv1 were up 87 points, or 0.27%, S&P 500 e-minis EScv1 were up 29.25 points, or 0.72%, and Nasdaq 100 e-minis NQcv1 were up 135.25 points, or 1.06%.
Shares of Chevron Corp CVX.N and Exxon Mobil XOM.N rose 4.0% and 2.8%, respectively, after the oil majors posted their biggest quarterly earnings on the back of soaring energy prices.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. High-growth stocks also benefited from the yield on benchmark 10-year Treasury notes retreating 0.2% US10YT=RR, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Meta Platforms Inc META.O adding between 0.5% and 1.6%. US/ Investor worries of bigger interest rate increases began to ease after the U.S. Commerce Department said on Thursday said the American economy unexpectedly contracted for the second straight quarter.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Futures up: Nasdaq 1.06%, Dow 0.27%, S&P 0.72% July 29 (Reuters) - U.S. stocks futures gained led by the Nasdaq on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies in the face of weaker consumer spending, with hopes of a less aggressive monetary policy boosting sentiment. Toward the end of a power-packed week, all three of Wall Street's main indexes were set for their second straight weekly gain.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Futures up: Nasdaq 1.06%, Dow 0.27%, S&P 0.72% July 29 (Reuters) - U.S. stocks futures gained led by the Nasdaq on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies in the face of weaker consumer spending, with hopes of a less aggressive monetary policy boosting sentiment. ET, Dow e-minis 1YMcv1 were up 87 points, or 0.27%, S&P 500 e-minis EScv1 were up 29.25 points, or 0.72%, and Nasdaq 100 e-minis NQcv1 were up 135.25 points, or 1.06%.
|
Apple Inc AAPL.O shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Nasdaq 1.06%, Dow 0.27%, S&P 0.72% July 29 (Reuters) - U.S. stocks futures gained led by the Nasdaq on Friday as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies in the face of weaker consumer spending, with hopes of a less aggressive monetary policy boosting sentiment.
|
19994.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-World stocks eye best month since late 2020, dollar recovers
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-world-stocks-eye-best-month-since-late-2020-dollar-recovers
|
nan
|
nan
|
By Simon Jessop
LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day's lows as traders await fresh U.S. data for clues to the outlook for rates.
As inflation surges across major markets and central bankers fight to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of conflict in Ukraine.
The MSCI World index .MIWD00000PUS was last up 0.2%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up 0.9%.
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.1%, respectively, with all eyes on fresh wages and consumer price data for clues to the health of the economy.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution.
"In the near term, we think the risk-reward for broad equity indexes will be muted. Equities are pricing in a 'soft landing', yet the risk of a deeper 'slump' in economic activity is elevated."
Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%.
News in the prior session that U.S. gross domestic product had shrunk 0.9% last quarter, to add to a 1.6% contraction in the quarter before that, weighed on the country's bond yields and the greenback, but both staged a recovery on Friday.
The yield on benchmark 10-year Treasury notes US10YT=RR recovered slightly from its overnight lows to trade at 2.7229% while the two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was at 2.8885%.
The dollar was last flat against a basket of its major peers =USD - yet still on course for a second month of gains.
Futures markets now predict that U.S. interest rates will peak by December this year compared to June 2023 and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth. [0#FF:]
Against the weakening U.S. backdrop, second-quarter GDP data from the euro zone beat expectations, up 0.7%, although growth in the region's biggest economy, Germany, lagged.
In response, Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - was last up at 0.91%.
Across commodities, Brent crude futures LCOc1 and U.S. West Texas Intermediate crude CLc1 extended early gains and were last up 2.3% as concerns about supply shortages ahead of the next meeting of OPEC ministers offset doubts around the economic outlook.
Gold gave back some of its early gains to trade up 0.3% to $1,759 an ounce, helped by the weaker dollar.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan and Jacqueline Wong)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day's lows as traders await fresh U.S. data for clues to the outlook for rates. Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution. Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target following a high-level Communist Party meeting.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day's lows as traders await fresh U.S. data for clues to the outlook for rates. [0#FF:] Against the weakening U.S. backdrop, second-quarter GDP data from the euro zone beat expectations, up 0.7%, although growth in the region's biggest economy, Germany, lagged. World FX rates YTDhttp://tmsnrt.rs/2egbfVh Global asset performancehttp://tmsnrt.rs/2yaDPgn Asian stock marketshttps://tmsnrt.rs/2zpUAr4 (Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan and Jacqueline Wong) ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day's lows as traders await fresh U.S. data for clues to the outlook for rates. The MSCI World index .MIWD00000PUS was last up 0.2%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up 0.9%. World FX rates YTDhttp://tmsnrt.rs/2egbfVh Global asset performancehttp://tmsnrt.rs/2yaDPgn Asian stock marketshttps://tmsnrt.rs/2zpUAr4 (Additional reporting by Kanupriya Kapoor and Tom Westbrook; Editing by Angus MacSwan and Jacqueline Wong) ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
By Simon Jessop LONDON, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day's lows as traders await fresh U.S. data for clues to the outlook for rates. The MSCI World index .MIWD00000PUS was last up 0.2%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up 0.9%. In response, Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - was last up at 0.91%.
|
19995.0
|
2022-07-29 00:00:00 UTC
|
5 Factors That Led to Meta Platforms First Revenue Decline
|
AAPL
|
https://www.nasdaq.com/articles/5-factors-that-led-to-meta-platforms-first-revenue-decline
|
nan
|
nan
|
It wasn't all too surprising when Meta Platforms (NASDAQ: META) reported a year-over-year decline in revenue in the second quarter. The results were foreshadowed by weak results from its peers in social media, and analysts expected revenue to come in roughly flat, compared to the year-ago period.
There are a lot of factors negatively impacting Meta's revenue right now. Some will stick around for awhile; others will dissipate quickly. Here are five big ones for investors to know.
1. Economic uncertainty
We're in the midst of global economic uncertainty. Rising inflation has affected food, gasoline, and other essentials and has left many households with less money to spend for discretionary purchases.
Supply chain bottlenecks have left many store shelves empty. U.S. gross domestic product (GDP) has now fallen for two consecutive quarters. It's a lot harder to justify ad spend for a lot of businesses in this environment.
That's reflected in both the second-quarter results and management's outlook for the third quarter. It's unclear when the economy will turn around and advertising demand will improve. But the impact is being seen throughout the industry, so it doesn't indicate a weakness from Meta itself.
2. Stronger dollar
The dollar strengthened against foreign currencies during the first half of 2022. Meta generates a significant portion of its revenue -- over 54% last quarter -- from countries outside of the United States. As a result, management said revenue growth would have been 3% on an foreign exchange neutral basis, versus the 1% decline it experienced.
Exchange rates will continue to weigh on third-quarter results. "Foreign currency will be an approximately 6% headwind to year-over-year total revenue growth in the third quarter, based on current exchange rates," management shared in the earnings release.
Again, this is an industrywide issue. But Meta has greater exposure to foreign markets than many of its peers, which means foreign-exchange rates will play a bigger factor in its results.
3. Apple iOS changes
Apple (NASDAQ: AAPL) made changes in iOS 14, released last fall, that required apps to ask for permission to track users' data across other apps. The ability to track users who saw an ad on Facebook or Instagram and then made a purchase at a store's website or mobile app was key for Meta. It let advertisers know how well their ads converted into sales.
Without that data, advertisers are less sure how valuable Facebook and Instagram ads are. That's impacting their willingness to pay, and pushing them to seek platforms with more measurable advertising.
The good news for investors is that Meta (and the rest of the industry) will mostly lap the impact of iOS 14 in the third quarter. While it remains a challenge for Meta, which is working on artificial intelligence (AI) to improve ad measurement, the impact on revenue growth will be neutral going forward.
4. Reels growth
One big area of investment for Meta is its Reels format, which it features on both Instagram and Facebook. Management said Reels accounts for 20% of time spent on Instagram during the first quarter, and engagement with the format across Facebook and Instagram increased 30% in the second quarter.
That's notable because Reels still monetizes at lower rates than Feed and Stories in Instagram and Facebook. While management says Reels is additive in time spent, it's still somewhat cannibalistic of those other formats. As a result, average ad prices and revenue per minute of engagement declined.
Long term, investors should expect the growth of Reels to become additive to overall user monetization, but there's an adjustment period, just as we saw with the growth of Stories.
5. Competition
While most of Meta's competition in social media is experiencing similar headwinds, it shouldn't be lost that there's an impact from advertisers having more choices in the space. The growth of TikTok, specifically, has had a clear impact on Meta, and CEO Mark Zuckerberg hasn't been shy about addressing the competitive pressure of the app in the past.
When marketers cut spending on social media advertising as a group, the impact of competition is most apparent. And that's what happened in the second quarter. The pressure is on Meta to win share of digital ad spending by offering superior ad products and maintaining engagement on its apps.
To that end, Meta has copied a lot of what's made Tiktok successful, including the short-form video format and AI-generated content recommendations. It's gotten some pushback for the changes, but it could ultimately make the apps more engaging.
Overall, Meta remains a strong option for advertiser dollars with more data and more users than any of its competitors. As it works through some of the headwinds, it could come out much stronger, proving the sell-off after its latest earnings report is a great buying opportunity for Meta stock.
10 stocks we like better than Meta Platforms, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple iOS changes Apple (NASDAQ: AAPL) made changes in iOS 14, released last fall, that required apps to ask for permission to track users' data across other apps. "Foreign currency will be an approximately 6% headwind to year-over-year total revenue growth in the third quarter, based on current exchange rates," management shared in the earnings release. While it remains a challenge for Meta, which is working on artificial intelligence (AI) to improve ad measurement, the impact on revenue growth will be neutral going forward.
|
Apple iOS changes Apple (NASDAQ: AAPL) made changes in iOS 14, released last fall, that required apps to ask for permission to track users' data across other apps. It wasn't all too surprising when Meta Platforms (NASDAQ: META) reported a year-over-year decline in revenue in the second quarter. "Foreign currency will be an approximately 6% headwind to year-over-year total revenue growth in the third quarter, based on current exchange rates," management shared in the earnings release.
|
Apple iOS changes Apple (NASDAQ: AAPL) made changes in iOS 14, released last fall, that required apps to ask for permission to track users' data across other apps. It wasn't all too surprising when Meta Platforms (NASDAQ: META) reported a year-over-year decline in revenue in the second quarter. Management said Reels accounts for 20% of time spent on Instagram during the first quarter, and engagement with the format across Facebook and Instagram increased 30% in the second quarter.
|
Apple iOS changes Apple (NASDAQ: AAPL) made changes in iOS 14, released last fall, that required apps to ask for permission to track users' data across other apps. It wasn't all too surprising when Meta Platforms (NASDAQ: META) reported a year-over-year decline in revenue in the second quarter. The results were foreshadowed by weak results from its peers in social media, and analysts expected revenue to come in roughly flat, compared to the year-ago period.
|
19996.0
|
2022-07-29 00:00:00 UTC
|
Taiwan Q2 GDP grows at slowest in two years on China lockdowns, COVID
|
AAPL
|
https://www.nasdaq.com/articles/taiwan-q2-gdp-grows-at-slowest-in-two-years-on-china-lockdowns-covid
|
nan
|
nan
|
Preliminary Q2 GDP +3.08% y/y vs Q1 +3.14% (Reuters poll +3.1%)
Q2 exports +15.38% y/y in U.S. dollar terms
Recasts, adds details
TAIPEI, July 29 (Reuters) - Taiwan's economy grew at its slowest pace in two years in the second quarter and performed slightly worse than expected, hit by supply chain woes and a domestic surge in COVID-19 cases.
For the April-June period, annual gross domestic product(GDP) grew by 3.08% from the same period a year earlier, compared with 3.14% for the previous quarter, preliminary data from the statistics agency showed on Friday.
That was below an increase of 3.1% forecast in a Reuters poll, and the slowest pace since eking out 0.63% growth in the second quarter of 2020 when the pandemic began to race around the world.
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy has outperformed many regional peers during the COVID-19 pandemic, benefiting from robust demand for tech exports as more people have turned to working and studying from home.
A global shortage of semiconductors has also filled Taiwan chip makers' order books and driven them to expand production at home.
But supply chain problems caused by lockdowns in its largest trading partner China to control COVID-19, plus a domestic coronavirus outbreak have weighed on Taiwan's trade-dependent economy.
The statistics office said exports in the second quarter had been impacted by both China's lockdowns and slowing demand for consumer electronics, while domestic consumption was affected by Taiwan's own COVID-19 outbreak.
Total second-quarter exports rose 15.38% from a year earlier in U.S. dollar terms, the agency said.
(Reporting by Roger Tung and Meg Shen; Writing by Ben Blanchard; Editing by Kim Coghill)
((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.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy has outperformed many regional peers during the COVID-19 pandemic, benefiting from robust demand for tech exports as more people have turned to working and studying from home. But supply chain problems caused by lockdowns in its largest trading partner China to control COVID-19, plus a domestic coronavirus outbreak have weighed on Taiwan's trade-dependent economy. The statistics office said exports in the second quarter had been impacted by both China's lockdowns and slowing demand for consumer electronics, while domestic consumption was affected by Taiwan's own COVID-19 outbreak.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy has outperformed many regional peers during the COVID-19 pandemic, benefiting from robust demand for tech exports as more people have turned to working and studying from home. Preliminary Q2 GDP +3.08% y/y vs Q1 +3.14% (Reuters poll +3.1%) Q2 exports +15.38% y/y in U.S. dollar terms Recasts, adds details TAIPEI, July 29 (Reuters) - Taiwan's economy grew at its slowest pace in two years in the second quarter and performed slightly worse than expected, hit by supply chain woes and a domestic surge in COVID-19 cases. For the April-June period, annual gross domestic product(GDP) grew by 3.08% from the same period a year earlier, compared with 3.14% for the previous quarter, preliminary data from the statistics agency showed on Friday.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy has outperformed many regional peers during the COVID-19 pandemic, benefiting from robust demand for tech exports as more people have turned to working and studying from home. Preliminary Q2 GDP +3.08% y/y vs Q1 +3.14% (Reuters poll +3.1%) Q2 exports +15.38% y/y in U.S. dollar terms Recasts, adds details TAIPEI, July 29 (Reuters) - Taiwan's economy grew at its slowest pace in two years in the second quarter and performed slightly worse than expected, hit by supply chain woes and a domestic surge in COVID-19 cases. For the April-June period, annual gross domestic product(GDP) grew by 3.08% from the same period a year earlier, compared with 3.14% for the previous quarter, preliminary data from the statistics agency showed on Friday.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy has outperformed many regional peers during the COVID-19 pandemic, benefiting from robust demand for tech exports as more people have turned to working and studying from home. Preliminary Q2 GDP +3.08% y/y vs Q1 +3.14% (Reuters poll +3.1%) Q2 exports +15.38% y/y in U.S. dollar terms Recasts, adds details TAIPEI, July 29 (Reuters) - Taiwan's economy grew at its slowest pace in two years in the second quarter and performed slightly worse than expected, hit by supply chain woes and a domestic surge in COVID-19 cases. A global shortage of semiconductors has also filled Taiwan chip makers' order books and driven them to expand production at home.
|
19997.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-World stocks eye best month since late 2020, dollar slips
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-world-stocks-eye-best-month-since-late-2020-dollar-slips
|
nan
|
nan
|
By Simon Jessop and Kanupriya Kapoor
LONDON/SINGAPORE, July 29 (Reuters) - Global stocks rose on Friday, on course for their best month since late 2020 as traders bet a weakening U.S. economy could slow the pace of monetary tightening in the world's largest economy, while the dollar struggled broadly against its rivals.
As inflation surges across major markets and central bankers fight to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any softening in sentiment on the part of policymakers.
After Thursday data showing a second-quarter contraction for the U.S. economy helped U.S. markets rise strongly, European shares shrugged off weakness in Asian markets overnight to gain at the open.
Futures markets now predict that U.S. interest rates will peak by December this year compared to June 2023 at the start of July month and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth. [0#FF:]
The MSCI World index .MIWD00000PUS was last up 0.3%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up 0.8%.
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.4%, respectively, buoyed in part by strong overnight earnings from Amazon AMZN.O and Apple AAPL.O.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution.
"In the near term, we think the risk-reward for broad equity indexes will be muted. Equities are pricing in a 'soft landing', yet the risk of a deeper 'slump' in economic activity is elevated."
Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target after a high-level Communist Party meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3%.
News in the prior session that U.S. gross domestic product had shrunk 0.9% last quarter, to add to a 1.6% contraction in the quarter before that, weighed on the country's bond yields and the greenback and both remained subdued on Friday.
The weakness came despite the Federal Reserve on Wednesday k delivering an aggressive interest rate hike of 75 basis points, its third this year.
The yield on benchmark 10-year Treasury notes US10YT=RR recovered slightly from its overnight lows to trade at 2.6975% while the two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was at 2.8500%.
The dollar was last down 0.5% against a basket of its major peers =USD - yet still on course for a second month of gains - leaving the yen eyeing its best month in two years as the fall in U.S. Treasury yields weighed on the greenback.
In Europe, Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - was up almost 5 basis points in early trade at 0.85% yet that still leaves it down 50 bps on the month, on course for its weakest showing since 2010.
Across commodities, Brent crude futures LCOc1 and U.S. West Texas Intermediate crude CLc1 were last up 1.3%-1.7% as concerns about supply shortages ahead of the next meeting of OPEC ministers just about offset doubts around the economic outlook.
Gold extended its overnight gains to trade up 0.6% to $1,765 an ounce, helped by the weaker dollar.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Tom Westbrook; Editing by Richard Pullin, Sam Holmes and Angus MacSwan)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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.
|
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.4%, respectively, buoyed in part by strong overnight earnings from Amazon AMZN.O and Apple AAPL.O. Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said investors should proceed with caution. Some of that concern had been evident in Asian stock markets overnight, after Beijing omitted reference to its full-year GDP growth target after a high-level Communist Party meeting.
|
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.4%, respectively, buoyed in part by strong overnight earnings from Amazon AMZN.O and Apple AAPL.O. After Thursday data showing a second-quarter contraction for the U.S. economy helped U.S. markets rise strongly, European shares shrugged off weakness in Asian markets overnight to gain at the open. Futures markets now predict that U.S. interest rates will peak by December this year compared to June 2023 at the start of July month and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth.
|
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.4%, respectively, buoyed in part by strong overnight earnings from Amazon AMZN.O and Apple AAPL.O. After Thursday data showing a second-quarter contraction for the U.S. economy helped U.S. markets rise strongly, European shares shrugged off weakness in Asian markets overnight to gain at the open. Futures markets now predict that U.S. interest rates will peak by December this year compared to June 2023 at the start of July month and the Federal Reserve will cut interest rates by nearly 50 bps next year to support slowing growth.
|
U.S. stocks look set to gain later in the session, with futures for the S&P 500 and Nasdaq ESc1NQc1 up 0.7% and 1.4%, respectively, buoyed in part by strong overnight earnings from Amazon AMZN.O and Apple AAPL.O. After Thursday data showing a second-quarter contraction for the U.S. economy helped U.S. markets rise strongly, European shares shrugged off weakness in Asian markets overnight to gain at the open. [0#FF:] The MSCI World index .MIWD00000PUS was last up 0.3%, on course for a near-6% monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 .STOXX up 0.8%.
|
19998.0
|
2022-07-29 00:00:00 UTC
|
GLOBAL MARKETS-Stocks shrug off Wall St rally as focus shifts to China worries
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-stocks-shrug-off-wall-st-rally-as-focus-shifts-to-china-worries
|
nan
|
nan
|
By Kanupriya Kapoor
SINGAPORE, July 29 (Reuters) - Asian stocks were mixed on Friday as fresh concerns about Chinese growth trumped any fillip regional markets received from brisk Wall Street earnings and some tempering of more aggressive expectations about U.S. interest rate hikes.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.31%, swinging into the red. Japan's Nikkei share average .N225 fell 0.26%, also erasing earlier gains.
Pulling broader sentiment down were Chinese markets, with Hong Kong's Hang Seng index .HIS and the Shanghai composite index .SSEC falling as much as 2.3% and 0.72% respectively. The Seoul index .KS11 and Australia's index .AXJO were up 0.40% and 0.88%, respectively.
Futures markets pointed to a brisk European session with EUROSTOXX 50 futures STXEc1 up 0.38% and FTSE futures FFIc1 climbing 0.25%.
The yen firmed against the dollar at 133.44, heading for its best month in two years as a fall in U.S. Treasury yields hit the greenback.
Analysts say the overnight Wall Street rally could point to a disconnect between the dire reality consumers face and markets trying to leap forward and price in a Federal Reserve rate cut.
"Enjoy the rally while it's there, but look carefully at the Fed messaging which depends on the course of inflation, look at the gas crisis in Europe where markets might panic, look at China still stuck in the mud because of their COVID policy," said Stephen Innes of SPI Asset Management. "We could go into deeper downswing because CPI data is slipping globally."
Overnight, the Dow Jones Industrial Average .DJI rose 1.03%, the S&P 500 .SPX gained 1.21% and the Nasdaq Composite .IXIC added 1.08%.
Economists are debating whether the world's biggest economy is already in or on the verge of a recession, as it battles its highest inflation in four decades and gross domestic product shrinks - at a 0.9% annualized rate last quarter, after a 1.6% contraction in the quarter before that.
The Federal Reserve delivered another aggressive interest rate hike of 75 basis points this week, its third this year.
In Asia, investors focused on headlines that showed Beijing omitting reference to its full-year GDP growth target after a high-level Communist Party meeting, instead focusing on achieving the best possible results for the economy this year.
Equities, however, rallied this week as comments by Fed Chair Jerome Powell led to speculation that rate hikes would begin to slow and eventually turn to rate cuts in 2023. Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3%, respectively, after hours as the tech giants reported better-than-expected earnings.
The yield on benchmark 10-year Treasury notes US10YT=RR was at 2.6704% while the two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was at 2.8399%.
"There's this see-saw at the moment with inflation and growth concerns," said Tom Nash, fixed income portfolio manager at UBS Asset Management in Sydney, with surprisingly soft U.S. growth figures putting the focus on the latter.
"When it's inflation concerns, yields are going up, when it's growth concerns yields are going down. What we're seeing at the moment is the market is putting less emphasis on inflation and more on growth."
Brent crude futures LCOc1 turned negative, dropping 0.14% to $106.99 a barrel after hitting $108 in previous trade, and U.S. West Texas Intermediate crude (WTI) CLc1 was at $96.64.
Gold rose 0.38% to $1,762 an ounce, pressured by a strong dollar and Treasury yields.
To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/marketsFor the state of play of Asian stock markets please click on: 0#.INDEXA
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Additional reporting by Tom Westbrook; Editing by Richard Pullin and Sam Holmes)
((kanupriya.kapoor@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.
|
Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3%, respectively, after hours as the tech giants reported better-than-expected earnings. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks were mixed on Friday as fresh concerns about Chinese growth trumped any fillip regional markets received from brisk Wall Street earnings and some tempering of more aggressive expectations about U.S. interest rate hikes. Analysts say the overnight Wall Street rally could point to a disconnect between the dire reality consumers face and markets trying to leap forward and price in a Federal Reserve rate cut.
|
Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3%, respectively, after hours as the tech giants reported better-than-expected earnings. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks were mixed on Friday as fresh concerns about Chinese growth trumped any fillip regional markets received from brisk Wall Street earnings and some tempering of more aggressive expectations about U.S. interest rate hikes. The Federal Reserve delivered another aggressive interest rate hike of 75 basis points this week, its third this year.
|
Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3%, respectively, after hours as the tech giants reported better-than-expected earnings. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks were mixed on Friday as fresh concerns about Chinese growth trumped any fillip regional markets received from brisk Wall Street earnings and some tempering of more aggressive expectations about U.S. interest rate hikes. "There's this see-saw at the moment with inflation and growth concerns," said Tom Nash, fixed income portfolio manager at UBS Asset Management in Sydney, with surprisingly soft U.S. growth figures putting the focus on the latter.
|
Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3%, respectively, after hours as the tech giants reported better-than-expected earnings. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks were mixed on Friday as fresh concerns about Chinese growth trumped any fillip regional markets received from brisk Wall Street earnings and some tempering of more aggressive expectations about U.S. interest rate hikes. "There's this see-saw at the moment with inflation and growth concerns," said Tom Nash, fixed income portfolio manager at UBS Asset Management in Sydney, with surprisingly soft U.S. growth figures putting the focus on the latter.
|
19999.0
|
2022-07-29 00:00:00 UTC
|
80% of Warren Buffett's Portfolio Is Invested in These 7 Stocks
|
AAPL
|
https://www.nasdaq.com/articles/80-of-warren-buffetts-portfolio-is-invested-in-these-7-stocks
|
nan
|
nan
|
For the better part of six decades, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has put on a moneymaking clinic for Wall Street. He's created more than $630 billion in value for his company's shareholders since becoming CEO in 1965, as well as delivered an aggregate return of 3,641,613% for his company's Class A shares (BRK.A). That compares to a total return, including dividends, of 30,209% for the benchmark S&P 500 over the same time frame.
The Oracle of Omaha's success as an investor is based on a multitude of factors, including his love of cyclical businesses, his willingness to hold stocks for years and decades at a time, and packing Berkshire's portfolio with dividend stocks. But what's often overlooked is that Buffett shuns diversification in favor of concentration. He doesn't believe diversification is necessary if you know what you're doing.
Although Berkshire Hathaway's portfolio was packed with more than 50 securities, as of this past weekend, just seven stocks accounted for 80% of the company's invested assets.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
1. Apple: 41.4% of invested assets
All the evidence you need that Warren Buffett shuns unnecessary diversification can be seen in Berkshire's Apple (NASDAQ: AAPL) position, which accounted for better than 41% of Buffett's company's $339.5 billion in invested assets, as of July 24.
Apple is what Buffett considers a core business for Berkshire Hathaway. It has an exceptionally loyal customer base, is one of the most-recognized brands in the world, and it's relied on innovation to drive its results for decades. Since introducing a 5G-capable iPhone during the fourth quarter of 2020, Apple has maintained a 50% or greater share of the U.S. smartphone market in five out of six quarters, according to Counterpoint Research.
Apple finds itself in the middle of an operating transition that'll place added emphasis on its higher-margin services. By becoming more of a platform company, Apple should be able to better manage the revenue peaks and troughs often associated with product replacement cycles.
Also, Apple has repurchased nearly $499 billion worth of its common stock since the beginning of 2013. Repurchasing stock and paying a hearty dividend is an easy way to win over Warren Buffett.
2. Bank of America: 10.2% of invested assets
I'd argue there isn't an industry on the planet that Warren Buffett loves putting Berkshire Hathaway's money to work in more than bank stocks. And based on Berkshire's portfolio, there's not a big bank the Oracle of Omaha loves more than Bank of America (NYSE: BAC).
The great thing about banks is they're cyclical. Even though they're exposed to inevitable recessions in the U.S. economy, these recessions tend to last only a couple of quarters. By comparison, periods of economic expansion can go on for years. Buffett is playing a simple numbers game with his bank holdings that allows Berkshire to take advantage of the natural expansion of the U.S. economy.
What makes BofA extra special is its interest rate sensitivity. No money-center bank is more sensitive to interest rates moving up or down. In Bank of America's case, rapidly rising interest rates are having a positive effect on its net-interest income earning capacity from outstanding variable-rate loans. BofA estimates that a 100-basis-point parallel shift in the interest rate yield curve will produce an estimated $5 billion in extra net-interest income over 12 months.
Image source: Coca-Cola.
3. Coca-Cola: 7.3% of invested assets
Beverage stock Coca-Cola (NYSE: KO) is a literal fixture in Warren Buffett's portfolio. It's his company's longest-tenured stock, with Coke being a continuous holding since 1988.
One reason Buffett has hung on to his Coca-Cola shares is the company's geographic diversity. Except for just three countries (North Korea, Cuba, and Russia), Coke is operating in every other nation worldwide. This means it's generating highly predictable cash flow in mature markets, and is taking advantage of organic growth opportunities in emerging markets.
Coca-Cola has a top-notch marketing department as well. Few companies have a brand as recognized as Coca-Cola or are able to transcend generational gaps quite like Coke.
As a final point, Coca-Cola has increased its base annual dividend in each of the last 60 years. Because Berkshire Hathaway has a diminutive cost basis of $3.25 on its shares of Coca-Cola, it's netting an annual yield on cost of a jaw-dropping 54%.
4. American Express: 6.8% of invested assets
Have I mentioned that Warren Buffett likes bank stocks? Next to Coca-Cola, credit services company American Express (NYSE: AXP) is Berkshire's longest-held stock (a continuous holding since 1993).
Similar to BofA, the cyclical numbers game is AmEx's biggest weapon. During long-winded periods of economic expansion, it's able to "double-dip": It collects a processing fee from merchants, as well as interest income and/or annual fees from its credit cardholders (consumers and businesses).
American Express also benefits from its strong ties to the well-to-do. Few credit providers are more successful in attracting affluent clientele. People with higher incomes are less likely to change their spending and repayment habits when minor economic hiccups arise. This key point has allowed AmEx to navigate recessions better than most financial stocks.
And like Coke, American Express is generating a huge yield on cost for Buffett's company. Based on a cost basis of $8.49, AmEx's annual payout of $2.08 equates to a yield of cost of more than 24%.
West Texas Intermediate crude oil prices have soared over the past year. WTI Crude Oil Spot Price data by YCharts.
5. Chevron: 6.8% of invested assets
Although it's a relatively newer holding, oil and gas major Chevron (NYSE: CVX) has quickly ascended the ladder to become one of Warren Buffett's top holdings. Berkshire acquired more than 120.9 million shares of Chevron during the first quarter of 2022.
The simple reason behind Buffett's big bet on Chevron looks to be the expectation that oil, natural gas, and natural gas liquid prices remain elevated for years. The lack of capital investment from major energy companies during the pandemic, coupled with supply chain disruptions stemming from Russia's invasion of Ukraine, could provide upward pressure on commodity prices for a long time to come.
However, Buffett can likely take solace in Chevron's integrated operating model. In addition to its higher-margin upstream drilling and exploration assets, Chevron operates pipelines, refineries, and chemical plants. If commodity prices weaken, it can lean on the predictable cash flow of its pipelines, or rely on its downstream refineries and chemical plants as a hedge. Lower oil prices reduce input costs for downstream assets.
6. Kraft Heinz: 3.7% of invested assets
There aren't many duds within Warren Buffett's portfolio, but it could be argued that packaged foods and beverage company Kraft Heinz (NASDAQ: KHC) is exactly that.
The Oracle of Omaha has admitted that Heinz overpaid for Kraft Foods, which resulted in a $15.4 billion goodwill write-down in 2019. Even after this write-down, Kraft Heinz is still lugging around a hefty amount of goodwill and debt, leaving the company with minimal financial flexibility or capital to reignite interest in its brands.
If there's a silver lining here, it's that the COVID-19 pandemic has encouraged consumers to purchase easy-to-prepare meals and eat at home more often. That's provided a nice lift to Kraft's organic growth rate in the near term. What's unknown is if this organic growth lift can be sustained once the pandemic is put into the rearview mirror.
With a 26.6% stake in Kraft Heinz, Berkshire is effectively locked into its position. Despite providing a hearty annual dividend, Kraft Heinz leaves a lot to be desired from an investment standpoint.
OXY Total Long Term Debt (Annual) data by YCharts.
7. Occidental Petroleum: 3.3% of invested assets
Last, but not least, Warren Buffett has piled into oil stock Occidental Petroleum (NYSE: OXY). Seemingly every couple of weeks, Berkshire Hathaway files paperwork with the Securities and Exchange Commission noting that it's added to its now 19.4% stake in Occidental.
Similar to Chevron, Buffett's affinity for Occidental Petroleum has to do with the likelihood that oil and natural gas prices will remain higher than normal for an extended period of time. Occidental has a significant presence as a deepwater producer in the Gulf of Mexico, and it could benefit even more than Chevron due to the high margins of its upstream assets.
However, Occidental Petroleum is carrying quite a bit of debt on its balance sheet. Acquiring Anadarko in 2019, shortly before oil and gas demand fell off of a cliff due to COVID-19, put Occidental in a huge hole that it's still trying to dig its way out of. Even with the company generating historically high operating cash flow, it's still buried beneath $25.9 billion in net debt.
While Buffett's long-term investing track record speaks for itself, this looks to be one of his more questionable investments of the past decade.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple: 41.4% of invested assets All the evidence you need that Warren Buffett shuns unnecessary diversification can be seen in Berkshire's Apple (NASDAQ: AAPL) position, which accounted for better than 41% of Buffett's company's $339.5 billion in invested assets, as of July 24. The lack of capital investment from major energy companies during the pandemic, coupled with supply chain disruptions stemming from Russia's invasion of Ukraine, could provide upward pressure on commodity prices for a long time to come. Even after this write-down, Kraft Heinz is still lugging around a hefty amount of goodwill and debt, leaving the company with minimal financial flexibility or capital to reignite interest in its brands.
|
Apple: 41.4% of invested assets All the evidence you need that Warren Buffett shuns unnecessary diversification can be seen in Berkshire's Apple (NASDAQ: AAPL) position, which accounted for better than 41% of Buffett's company's $339.5 billion in invested assets, as of July 24. For the better part of six decades, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has put on a moneymaking clinic for Wall Street. Next to Coca-Cola, credit services company American Express (NYSE: AXP) is Berkshire's longest-held stock (a continuous holding since 1993).
|
Apple: 41.4% of invested assets All the evidence you need that Warren Buffett shuns unnecessary diversification can be seen in Berkshire's Apple (NASDAQ: AAPL) position, which accounted for better than 41% of Buffett's company's $339.5 billion in invested assets, as of July 24. Bank of America: 10.2% of invested assets I'd argue there isn't an industry on the planet that Warren Buffett loves putting Berkshire Hathaway's money to work in more than bank stocks. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
|
Apple: 41.4% of invested assets All the evidence you need that Warren Buffett shuns unnecessary diversification can be seen in Berkshire's Apple (NASDAQ: AAPL) position, which accounted for better than 41% of Buffett's company's $339.5 billion in invested assets, as of July 24. Bank of America: 10.2% of invested assets I'd argue there isn't an industry on the planet that Warren Buffett loves putting Berkshire Hathaway's money to work in more than bank stocks. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.