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20000.0
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2022-07-28 00:00:00 UTC
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Apple Q3 Results Beat Wall Street View; Shares Up 3%
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AAPL
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https://www.nasdaq.com/articles/apple-q3-results-beat-wall-street-view-shares-up-3
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nan
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nan
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(RTTNews) - Shares of Apple Inc. (AAPL) gained over 3% in extended trading session on Thursday after the California-based tech giant reported third-quarter results, with both earnings and revenues beating Wall Street view.
Apple said its third-quarter profit dropped to $19.44 billion or $1.20 per share from $21.74 billion or $1.30 per share last year. Twenty-nine analysts polled by Thomson Reuters had predicted earnings of $1.16 per share for the quarter.
Third-quarter revenues rose 2 percent to $82.96 billion from $81.43 billion last year. Twenty-six analysts estimated revenues of $82.81 billion for the quarter.
The revenue was primarily driven by an increase in the sales of iPhones and services year-over-year. Revenues from iPhones were $40.67 billion, compared to $39.57 billion last year. Apple's services revenues increased to $19.60 billion from $17.49 billion last year.
"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category," said Luca Maestri, Apple's CFO.
Apple's board of directors has declared a cash dividend of $0.23 per share, which is payable on August 11 to shareholders as of August 8.
AAPL closed Thursday's trading at $157.35, up $0.56 or 0.36%, on the Nasdaq. The stock further gained $5.09 or 3.23% in the after-hours trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Shares of Apple Inc. (AAPL) gained over 3% in extended trading session on Thursday after the California-based tech giant reported third-quarter results, with both earnings and revenues beating Wall Street view. AAPL closed Thursday's trading at $157.35, up $0.56 or 0.36%, on the Nasdaq. "Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment.
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(RTTNews) - Shares of Apple Inc. (AAPL) gained over 3% in extended trading session on Thursday after the California-based tech giant reported third-quarter results, with both earnings and revenues beating Wall Street view. AAPL closed Thursday's trading at $157.35, up $0.56 or 0.36%, on the Nasdaq. Apple's services revenues increased to $19.60 billion from $17.49 billion last year.
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(RTTNews) - Shares of Apple Inc. (AAPL) gained over 3% in extended trading session on Thursday after the California-based tech giant reported third-quarter results, with both earnings and revenues beating Wall Street view. AAPL closed Thursday's trading at $157.35, up $0.56 or 0.36%, on the Nasdaq. Apple said its third-quarter profit dropped to $19.44 billion or $1.20 per share from $21.74 billion or $1.30 per share last year.
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AAPL closed Thursday's trading at $157.35, up $0.56 or 0.36%, on the Nasdaq. (RTTNews) - Shares of Apple Inc. (AAPL) gained over 3% in extended trading session on Thursday after the California-based tech giant reported third-quarter results, with both earnings and revenues beating Wall Street view. Apple said its third-quarter profit dropped to $19.44 billion or $1.20 per share from $21.74 billion or $1.30 per share last year.
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20001.0
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2022-07-28 00:00:00 UTC
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Apple Inc. Announces Decline In Q3 Income, but beats estimates
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-announces-decline-in-q3-income-but-beats-estimates
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) reported a profit for third quarter that decreased from last year but beat the Street estimates.
The company's bottom line came in at $19.44 billion, or $1.20 per share. This compares with $21.74 billion, or $1.30 per share, in last year's third quarter.
Analysts on average had expected the company to earn $1.16 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.9% to $82.96 billion from $81.43 billion last year.
Apple Inc. earnings at a glance (GAAP) :
-Earnings (Q3): $19.44 Bln. vs. $21.74 Bln. last year. -EPS (Q3): $1.20 vs. $1.30 last year. -Analyst Estimates: $1.16 -Revenue (Q3): $82.96 Bln vs. $81.43 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for third quarter that decreased from last year but beat the Street estimates. Analysts on average had expected the company to earn $1.16 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for third quarter that decreased from last year but beat the Street estimates. Analysts' estimates typically exclude special items. The company's revenue for the quarter rose 1.9% to $82.96 billion from $81.43 billion last year.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for third quarter that decreased from last year but beat the Street estimates. This compares with $21.74 billion, or $1.30 per share, in last year's third quarter. The company's revenue for the quarter rose 1.9% to $82.96 billion from $81.43 billion last year.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for third quarter that decreased from last year but beat the Street estimates. This compares with $21.74 billion, or $1.30 per share, in last year's third quarter. Apple Inc. earnings at a glance (GAAP) : -Earnings (Q3): $19.44 Bln.
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20002.0
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2022-07-28 00:00:00 UTC
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GLOBAL MARKETS-Shares rally as markets bet on more gradual rate hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-rally-as-markets-bet-on-more-gradual-rate-hikes
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nan
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nan
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By Kanupriya Kapoor
SINGAPORE, July 29 (Reuters) - Asian stocks took their cue on Friday from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a U.S. recession after data showed its economy shrinking for a second straight quarter.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.41%. Japan's Nikkei share average .N225 opened up 0.36%, while the Seoul index .KS11 and Australia's index .AXJO opened up 0.75% and 0.76% respectively.
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.
Meanwhile, China, still in the throes of COVID-19 outbreaks and lockdowns, did not mention its full-year GDP growth target after a high-level Communist Party meeting and said instead it will try hard to achieve the best possible results for the economy this year.
U.S. equities, however, rallied this week as comments by Federal Reserve 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% each after hours after the tech giants reported earnings that beat expectations.
The Dow Jones Industrial Average .DJI rose 332.04 points, or 1.03%, to 32,529.63, the S&P 500 .SPX gained 48.82 points, or 1.21%, to 4,072.43 and the Nasdaq Composite .IXIC added 130.17 points, or 1.08%, to 12,162.59.
But analysts warned the rally could be short-lived.
"Financial markets have taken the combination of the ... (Fed) announcement and ... the negative U.S. GDP print as confirmation that policymakers will ease off their aggressive monetary tightening cycle before too long. Our sense, however, is that such hopes are premature and that some of this year's dominant trends, notably the rise of the U.S. dollar, will reassert themselves before too long," Capital Economics said in a note.
The dollar stayed near a six-week low against the yen for similar reasons, trading at 134.39 yen JPY=EBS, bouncing 0.13% after an overnight plunge of 1.74%, the most since March 2020. It touched a low of 134.2 on Thursday, the weakest since June 17.
U.S. Treasuries slipped on the weak economic data, with the yield on benchmark 10-year Treasury notes US10YT=RR retreating to 2.6759%. The two-year note's US2YT=RR yield, which typically moves in step with interest-rate expectations, was at 2.8703%.
"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 rose 0.8% to $108 a barrel and U.S. West Texas Intermediate crude (WTI) CLc1 was up 1.08% at $97.46.
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)
((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.
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Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3% each after hours after the tech giants reported earnings that beat expectations. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks took their cue on Friday from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a U.S. recession after data showed its economy shrinking for a second straight quarter. Meanwhile, China, still in the throes of COVID-19 outbreaks and lockdowns, did not mention its full-year GDP growth target after a high-level Communist Party meeting and said instead it will try hard to achieve the best possible results for the economy this year.
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Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3% each after hours after the tech giants reported earnings that beat expectations. Japan's Nikkei share average .N225 opened up 0.36%, while the Seoul index .KS11 and Australia's index .AXJO opened up 0.75% and 0.76% respectively. The Federal Reserve delivered another aggressive interest rate hike of 75 basis points this week, its third this year.
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Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3% each after hours after the tech giants reported earnings that beat expectations. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks took their cue on Friday from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a U.S. recession after data showed its economy shrinking for a second straight quarter. "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.
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Shares of Amazon AMZN.O and Apple AAPL.O shot up 12% and 3% each after hours after the tech giants reported earnings that beat expectations. By Kanupriya Kapoor SINGAPORE, July 29 (Reuters) - Asian stocks took their cue on Friday from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a U.S. recession after data showed its economy shrinking for a second straight quarter. The Federal Reserve delivered another aggressive interest rate hike of 75 basis points this week, its third this year.
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20003.0
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2022-07-28 00:00:00 UTC
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Amazon, Apple Up on Earnings; Intel Takes a Bath
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AAPL
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https://www.nasdaq.com/articles/amazon-apple-up-on-earnings-intel-takes-a-bath
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nan
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nan
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Market indices rallied off a morning’s lineup of economic data that in more unforgiving times (say, a month or two ago) might have met the buzzsaw; today, 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% round 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 today’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 this afternoon’s marquee reports:
Apple AAPL 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 are 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 AMZN 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 INTC, 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 are down -10% in late-session trading.
In other news, the Chips Act passed Congress today, 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>>
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
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL 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). Apple Inc. (AAPL): Free Stock Analysis Report Renowned investor Leon Cooperman recently described a market “bottom” as having occurred when trading is impervious to bad news.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL 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). 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.
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Apple AAPL 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). Apple Inc. (AAPL): Free Stock Analysis Report 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.
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Apple AAPL 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). Apple Inc. (AAPL): Free Stock Analysis Report 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.
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20004.0
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2022-07-28 00:00:00 UTC
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Kip ETF 20: What's In, What's Out and Why
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AAPL
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https://www.nasdaq.com/articles/kip-etf-20%3A-whats-in-whats-out-and-why
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nan
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nan
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These days, checking on how your investments are doing feels a little like asking for a hard punch in the gut. Nearly every major asset class has suffered losses in recent months. It has been a total disaster.
Over the past six months, the S&P 500 Index surpassed the 20%-loss threshold that typically defines a bear market, though it recovered some. The bond market, which is supposed to provide ballast in a portfolio in times like these, is suffering its own rout. The Bloomberg U.S. Aggregate Bond Index is down 9.2%. Foreign stocks have spiraled down, too. The MSCI EAFE Index, the traditional benchmark for foreign stocks in developed countries, slipped 19.2%; the MSCI Emerging Markets Index fell 17.1%.
SEE MORE ETFs Are Now Mainstream. Here's Why They're So Appealing.
It's in this environment that we conduct our annual review of the Kiplinger ETF 20, our favorite exchange-traded funds, and the ETF industry as a whole. As you can imagine, there's little green – as in positive gains – to be found among our Kip ETF 20. It's a sea of red. But losses are an inevitable fact of investing. "This is part of the price of admission," says Ben Johnson, head of global ETF research at Morningstar, the financial data firm. "If it's too hard to watch, then step out and look at the trees, which at this time of year are mostly green, unlike the markets."
We don't make changes to our Kiplinger ETF 20 roster lightly. But in order to make room for tactical strategies, something had to come out. This year, we made three such changes; a fourth change was related to an underperforming fund.
What's In, What's Out and Why
We're removing the Fidelity MSCI Industrials Index ETF (FIDU). Stocks in this sector thrive in the early-to-mid part of the economic cycle, but we're now firmly in the late stage, likely heading toward a recession. That said, if you own shares in this fund, stick with it. In a well-diversified portfolio, some parts will work when others do not.
However, we wanted to make room for a new strategy – a commodities fund, the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC). Commodities are in year three of a positive cycle, and such cycles typically last more than a dozen years, say strategists at Wells Fargo Investment Institute. Commodities are effective inflation foils and good portfolio diversifiers, too; when other assets are in decline, commodities tend to do well.
SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
On the bond side, the value in municipal bonds was too good to overlook. Returns are down this year for all major muni-bond categories. But the selloff has created opportunities unseen in years, says a recent report from the Schwab Center for Financial Research. Most municipal bonds pay interest that is exempt from federal taxes. That benefit, coupled with rising yields, means that on a tax-equivalent basis, muni bonds currently yield as much or more than Treasuries and corporate debt.
For that reason, we are replacing the Vanguard Total International Bond ETF (BNDX), which currently yields 2.1%, with the Vanguard Tax-Exempt Bond ETF (VTEB), which pays a tax-equivalent yield of 3.8% for investors in the 24% federal income tax bracket.
We're also swapping out the Vanguard Intermediate-Term Bond ETF (BIV) for an investment-grade corporate bond fund with a target maturity, the Invesco BulletShares 2026 Corporate Bond ETF (BSCQ). The Vanguard ETF is solid, but BulletShares 2026 Corporate Bond offers better reward for the risk. Its duration (a measure of interest-rate sensitivity) is 3.8 years, but it yields 4.3%. By contrast, the Vanguard ETF has a duration of 6.5 years and yields 3.8%.
For the extra yield in the BulletShares fund, you give up a little in credit quality. The fund's bonds have an average credit rating of triple-B, the lowest rung of investment-grade credit. The Vanguard ETF, on the other hand, has an average credit quality of double-A. But over the past 12 months, the BulletShares ETF has lost 9.2%; the Vanguard fund, 12.1%.
A Few Words About Ark Innovation
The ARK Innovation ETF (ARKK), which invests in "innovation that's going to change lives," says manager Cathie Wood, is now the poster child for fizzled-out growth funds.
All of the fund's 35 stocks – which Wood had identified as the best ideas in an array of future trends, including DNA sequencing and gene therapies, energy storage, and robotic and artificial intelligence – are down since the start of the year. The ETF has plummeted 62% over the past 12 months. Readers who bought the fund when we added it to the Kip ETF 20 in 2019 were able to experience outsize gains in 2020, so their losses aren't quite as severe: The fund has posted a meager 0.8% cumulative gain since we added it to the Kip ETF 20 in mid 2019.
What went wrong? Investors spurned shares in fast-growing, nascent businesses as worries about inflation, rising interest rates and lofty valuations overran promises of future growth. "This is risk-off behavior," says manager Wood. Investors sought safety instead in well-known, profitable benchmark stocks, she says. "Most of the names in our portfolios are not in the broad-based Indexes. This is a continuation of fears around inflation and interest rates. It started a year ago, and it remains the case today."
SEE MORE 7 Megatrend Stock ETFs With Massive Potential
Many of the companies in Ark Innovation's portfolio will likely survive a recession, if one arrives, including Exact Sciences (EXAS), the maker of at-home colon cancer tests; semiconductor leader Nvidia (NVDA); and Teladoc Health (TDOC). Indeed, most of the fund's top 10 holdings, which make up 61% of the portfolio, pull in billions of dollars in annual revenue; half are profitable, including Tesla (TSLA) and Zoom Video Communications (ZM).
But others may not survive an economic downturn. The fund has a good share of smaller positions in companies that are not profitable. Annual revenues at a handful of these companies come in under $100 million. That's a risk with a recession looming. And it's hard to see the market bottom from here; shares look likely to fall further.
So we're removing Ark Innovation from the Kip ETF 20. When we added the fund, we cautioned readers that this was a "shoot-the-moon investment, not a core holding." A long-term view and an iron stomach are necessary if you invest in this type of fund. Even Wood says she invests with a five-year time horizon in mind.
If you sized your investment appropriately with that in mind, the fund accounts for a tiny slice of your overall portfolio, and you could hang on to your shares. Eventually, growth stocks will come back, and by holding on you'd avoid locking in losses. "If you believe in the long-term growth of these trends, then this could be a blip," says Todd Rosenbluth, head of research at ETF data and analytics firm VettaFi, who adds he's not "for or against" the ETF. "If you don't believe in the long-term trends, then it's not the right fund for you."
But if you unload your Ark Innovation shares, it may pay to wait for a bear-market rally before you sell. These sharp, short-term stock-price rebounds that occur during a broader and longer market decline tend to be fast and ferocious, so be on the lookout.
We are replacing Ark Innovation with the Technology Select Sector SPDR Fund (XLK), a tech fund that invests in more-established companies.
The Kiplinger ETF 20 at a Glance
Kiplinger
SEE MORE 3 Preferred Stock ETFs for High, Stable Dividends
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All of the fund's 35 stocks – which Wood had identified as the best ideas in an array of future trends, including DNA sequencing and gene therapies, energy storage, and robotic and artificial intelligence – are down since the start of the year. SEE MORE 7 Megatrend Stock ETFs With Massive Potential Many of the companies in Ark Innovation's portfolio will likely survive a recession, if one arrives, including Exact Sciences (EXAS), the maker of at-home colon cancer tests; semiconductor leader Nvidia (NVDA); and Teladoc Health (TDOC). Indeed, most of the fund's top 10 holdings, which make up 61% of the portfolio, pull in billions of dollars in annual revenue; half are profitable, including Tesla (TSLA) and Zoom Video Communications (ZM).
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However, we wanted to make room for a new strategy – a commodities fund, the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC). For that reason, we are replacing the Vanguard Total International Bond ETF (BNDX), which currently yields 2.1%, with the Vanguard Tax-Exempt Bond ETF (VTEB), which pays a tax-equivalent yield of 3.8% for investors in the 24% federal income tax bracket. We're also swapping out the Vanguard Intermediate-Term Bond ETF (BIV) for an investment-grade corporate bond fund with a target maturity, the Invesco BulletShares 2026 Corporate Bond ETF (BSCQ).
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For that reason, we are replacing the Vanguard Total International Bond ETF (BNDX), which currently yields 2.1%, with the Vanguard Tax-Exempt Bond ETF (VTEB), which pays a tax-equivalent yield of 3.8% for investors in the 24% federal income tax bracket. We're also swapping out the Vanguard Intermediate-Term Bond ETF (BIV) for an investment-grade corporate bond fund with a target maturity, the Invesco BulletShares 2026 Corporate Bond ETF (BSCQ). Readers who bought the fund when we added it to the Kip ETF 20 in 2019 were able to experience outsize gains in 2020, so their losses aren't quite as severe: The fund has posted a meager 0.8% cumulative gain since we added it to the Kip ETF 20 in mid 2019.
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Nearly every major asset class has suffered losses in recent months. Stocks in this sector thrive in the early-to-mid part of the economic cycle, but we're now firmly in the late stage, likely heading toward a recession. The fund has a good share of smaller positions in companies that are not profitable.
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20005.0
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2022-07-28 00:00:00 UTC
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Apple (AAPL) Tops Q3 Earnings and Revenue Estimates
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-tops-q3-earnings-and-revenue-estimates
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nan
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nan
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Apple (AAPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.30 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 5.26%. A quarter ago, it was expected that this maker of iPhones, iPads and other products would post earnings of $1.43 per share when it actually produced earnings of $1.52, delivering a surprise of 6.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $82.96 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.19%. This compares to year-ago revenues of $81.43 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Apple shares have lost about 11.7% since the beginning of the year versus the S&P 500's decline of -15.6%.
What's Next for Apple?
While Apple has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Apple: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.32 on $89.9 billion in revenues for the coming quarter and $6.09 on $393.11 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Mini computers is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, HP (HPQ), has yet to report results for the quarter ended July 2022.
This personal computer and printer maker is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +5%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
HP's revenues are expected to be $15.8 billion, up 3.3% from the year-ago quarter.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Apple (AAPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $82.96 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.19%.
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Apple (AAPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $82.96 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.19%.
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Apple (AAPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.14 per share. Apple Inc. (AAPL): Free Stock Analysis Report The company has topped consensus revenue estimates three times over the last four quarters.
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20006.0
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2022-07-28 00:00:00 UTC
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Wall St ends up sharply for 2nd day; Amazon.com, Apple jump after hours
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AAPL
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https://www.nasdaq.com/articles/wall-st-ends-up-sharply-for-2nd-day-amazon.com-apple-jump-after-hours
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, July 28 (Reuters) - U.S. stocks on Thursday rallied for a second day, with all three major indexes ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.
The yield on benchmark 10-year Treasury notes retreated US10YT=RR following the data, while utilities .SPLRCU and real estate .SPLRCR - both of which tend to rise when yields fall - were the day's best-performing S&P 500 sectors.
The decline in yields may suggest "that markets think the Fed will have to pivot and move rates lower at some point, maybe in the next 12-month period," said Mona Mahajan, senior investment strategist at Edward Jones.
"It does imply the pace of tightening will become more gradual going forward."
In addition, the growth forecast for second-quarter earnings has risen this week as more S&P 500 companies reported results and beat analyst expectations. Among them, Ford Motor Co F.N shares jumped 6.1% after it reported a better-than-expected quarterly net income.
After the closing bell, Amazon.com > shares shot up more than 12% as the online retailer reported quarterly sales that beat Wall Street estimates. Amazon.com ended the regular session up 1.1%. Shares of Apple AAPL.O were up more than 3% after hours following the company's quarterly report and upbeat forecast, and S&P 500 e-mini futures EScv1 were up 2% late.
Early in the day, the U.S. Commerce Department said the American economy unexpectedly contracted in the second quarter - the second straight quarterly decline in gross domestic product (GDP) reported by the government.
The news increased the possibility that the economy was on the cusp of a recession, and some investors said it might deter the Fed from continuing to aggressively increase rates as it battles high inflation.
The Dow Jones Industrial Average .DJI rose 332.04 points, or 1.03%, to 32,529.63 the S&P 500 .SPX gained 48.82 points, or 1.21%, to 4,072.43 and the Nasdaq Composite .IXIC added 130.17 points, or 1.08%, to 12,162.59.
The Nasdaq registered its biggest two-day percentage gain since May 27.
Stocks had rallied in the previous session when the Fed raised rates and comments by Fed Chairman Jerome Powell eased some worries about the pace of rate hikes.
"More investors are getting in now because they think at least there's not going to be any big surprises over the balance of the summer," as far as rates are concerned, said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo, Ohio.
The Fed on Wednesday raised the benchmark overnight rate by three-quarters of a percentage point. The move followed a 75 basis points hike last month and smaller moves in May and March, in an effort by the U.S. central bank to tamp down soaring inflation.
Investors have expressed concern that inflation and aggressive Fed rate hikes could at some point tip the economy into a recession.
Among declining stocks, Facebook and Instagram parent Meta Platforms Inc META.O fell 5.2% after it posted its first-ever quarterly drop in revenue.
Volume on U.S. exchanges was 11.21 billion shares, compared with the 10.86 billion-share average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 3.56-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored advancers.
The S&P 500 posted three new 52-week highs and 31 new lows; the Nasdaq Composite recorded 67 new highs and 97 new lows.
(Reporting by Caroline Valetkevitch; Editing by Jonathan Oatis)
((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were up more than 3% after hours following the company's quarterly report and upbeat forecast, and S&P 500 e-mini futures EScv1 were up 2% late. By Caroline Valetkevitch NEW YORK, July 28 (Reuters) - U.S. stocks on Thursday rallied for a second day, with all three major indexes ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared. The decline in yields may suggest "that markets think the Fed will have to pivot and move rates lower at some point, maybe in the next 12-month period," said Mona Mahajan, senior investment strategist at Edward Jones.
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Shares of Apple AAPL.O were up more than 3% after hours following the company's quarterly report and upbeat forecast, and S&P 500 e-mini futures EScv1 were up 2% late. Stocks had rallied in the previous session when the Fed raised rates and comments by Fed Chairman Jerome Powell eased some worries about the pace of rate hikes. "More investors are getting in now because they think at least there's not going to be any big surprises over the balance of the summer," as far as rates are concerned, said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo, Ohio.
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Shares of Apple AAPL.O were up more than 3% after hours following the company's quarterly report and upbeat forecast, and S&P 500 e-mini futures EScv1 were up 2% late. By Caroline Valetkevitch NEW YORK, July 28 (Reuters) - U.S. stocks on Thursday rallied for a second day, with all three major indexes ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared. Stocks had rallied in the previous session when the Fed raised rates and comments by Fed Chairman Jerome Powell eased some worries about the pace of rate hikes.
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Shares of Apple AAPL.O were up more than 3% after hours following the company's quarterly report and upbeat forecast, and S&P 500 e-mini futures EScv1 were up 2% late. By Caroline Valetkevitch NEW YORK, July 28 (Reuters) - U.S. stocks on Thursday rallied for a second day, with all three major indexes ending up more than 1% as data showing a second consecutive quarterly contraction in the economy fueled investor speculation 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 332.04 points, or 1.03%, to 32,529.63 the S&P 500 .SPX gained 48.82 points, or 1.21%, to 4,072.43 and the Nasdaq Composite .IXIC added 130.17 points, or 1.08%, to 12,162.59.
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20007.0
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2022-07-28 00:00:00 UTC
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After-Hours Earnings Report for July 28, 2022 : AAPL, AMZN, INTC, EW, KLAC, LHX, DLR, AJG, DXCM, SGEN, CLR, EIX
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AAPL
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-july-28-2022-%3A-aapl-amzn-intc-ew-klac-lhx-dlr-ajg-dxcm
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nan
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nan
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The following companies are expected to report earnings after hours on 07/28/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Apple Inc. (AAPL)is reporting for the quarter ending June 30, 2022. The computer company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.14. This value represents a 12.31% decrease compared to the same quarter last year. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 25.75 vs. an industry ratio of 3.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Amazon.com, Inc. (AMZN)is reporting for the quarter ending June 30, 2022. The internet company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.15. This value represents a 80.26% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AMZN is 108.01 vs. an industry ratio of 14.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Intel Corporation (INTC)is reporting for the quarter ending June 30, 2022. The semiconductor company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.69. This value represents a 46.09% decrease compared to the same quarter last year. In the past year INTC has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 8.75%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for INTC is 11.61 vs. an industry ratio of 8.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Edwards Lifesciences Corporation (EW)is reporting for the quarter ending June 30, 2022. The medical instruments company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.63. This value represents a 1.56% decrease compared to the same quarter last year. EW missed the consensus earnings per share in the 4th calendar quarter of 2021 by -7.27%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EW is 41.25 vs. an industry ratio of 21.20, implying that they will have a higher earnings growth than their competitors in the same industry.
KLA Corporation (KLAC)is reporting for the quarter ending June 30, 2022. The electrical instrument company's consensus earnings per share forecast from the 10 analysts that follow the stock is $5.46. This value represents a 23.25% increase compared to the same quarter last year. In the past year KLAC has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.87%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for KLAC is 17.29 vs. an industry ratio of -1.00, implying that they will have a higher earnings growth than their competitors in the same industry.
L3Harris Technologies, Inc. (LHX)is reporting for the quarter ending June 30, 2022. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.16. This value represents a 3.07% decrease compared to the same quarter last year. In the past year LHX has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.31%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LHX is 16.52 vs. an industry ratio of -12.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Digital Realty Trust, Inc. (DLR)is reporting for the quarter ending June 30, 2022. The reit company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.64. This value represents a 6.49% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DLR is 18.89 vs. an industry ratio of 21.70.
Arthur J. Gallagher & Co. (AJG)is reporting for the quarter ending June 30, 2022. The insurance brokers company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.68. This value represents a 43.59% increase compared to the same quarter last year. In the past year AJG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.44%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AJG is 22.36 vs. an industry ratio of 20.70, implying that they will have a higher earnings growth than their competitors in the same industry.
DexCom, Inc. (DXCM)is reporting for the quarter ending June 30, 2022. The medical instruments company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.17. This value represents a 10.53% decrease compared to the same quarter last year. The last two quarters DXCM had negative earnings surprises; the latest report they missed by -38.46%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DXCM is 104.63 vs. an industry ratio of 21.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Seagen Inc. (SGEN)is reporting for the quarter ending June 30, 2022. The biomedical (gene) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $-0.82. This value represents a 74.47% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SGEN is -50.66 vs. an industry ratio of -0.50.
Continental Resources, Inc. (CLR)is reporting for the quarter ending June 30, 2022. The oil (us exp & production) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.17. This value represents a 248.35% increase compared to the same quarter last year. CLR missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -3.23%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CLR is 5.66 vs. an industry ratio of 5.70.
Edison International (EIX)is reporting for the quarter ending June 30, 2022. The electric power utilities company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.90. This value represents a 4.26% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EIX is 14.41 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL)is reporting for the quarter ending June 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 25.75 vs. an industry ratio of 3.10, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 25.75 vs. an industry ratio of 3.10, implying that they will have a higher earnings growth than their competitors in the same industry. Apple Inc. (AAPL)is reporting for the quarter ending June 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters.
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Apple Inc. (AAPL)is reporting for the quarter ending June 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 25.75 vs. an industry ratio of 3.10, implying that they will have a higher earnings growth than their competitors in the same industry.
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Apple Inc. (AAPL)is reporting for the quarter ending June 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 25.75 vs. an industry ratio of 3.10, implying that they will have a higher earnings growth than their competitors in the same industry.
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20008.0
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2022-07-28 00:00:00 UTC
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Apple’s aging clout
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AAPL
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https://www.nasdaq.com/articles/apples-aging-clout
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nan
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nan
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Reuters
Reuters
(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
NEW YORK (Reuters Breakingviews) - Apple’s quarterly results, released on Thursday, were mainly about flexing some aging clout. Revenue grew 2% https://www.apple.com/newsroom/2022/07/apple-reports-third-quarter-results compared to the same quarter last year as the $2.5 trillion company eked out slightly higher iPhone sales and faster expansion in services outweighed sales shrinkage in Macs, iPads and accessories. Investors seemed happy enough though, sending the stock up 3% after hours, as the company’ churned out cash flow from operations and returned over $28 billion to shareholders in the quarter.
Consumers are pulling back, but for Apple’s users, there’s no replacement for their iPhones, except for another one. Last quarter, the company had over half of the American smartphone market by shipments, said Canalys. More importantly, the firm continues to squeeze more out of them by selling financial services, apps and especially ads recently.
While 2% growth isn’t great for Apple historically, there’s nothing within the next several quarters that will obviously displace the iPhone or its ability to sell more services to users, short of government action. With Apple keeping a careful eye on its bottom line, that means a lot more cash for shareholders, even if growth lacks newness. (By Robert Cyran)
Follow @Breakingviews https://twitter.com/Breakingviews on Twitter
Capital Calls - More concise insights on global finance:
Spotify hums along
Rio’s dividend is not yet a cause for concern
Aussie climate ambition pulls timidly ahead
Shopify’s mea culpa
UK shoppers test “buy now, pay much later” model
(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.
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Investors seemed happy enough though, sending the stock up 3% after hours, as the company’ churned out cash flow from operations and returned over $28 billion to shareholders in the quarter. While 2% growth isn’t great for Apple historically, there’s nothing within the next several quarters that will obviously displace the iPhone or its ability to sell more services to users, short of government action. (By Robert Cyran) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Spotify hums along Rio’s dividend is not yet a cause for concern Aussie climate ambition pulls timidly ahead Shopify’s mea culpa UK shoppers test “buy now, pay much later” model (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.
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Reuters Reuters NEW YORK (Reuters Breakingviews) - Apple’s quarterly results, released on Thursday, were mainly about flexing some aging clout. (By Robert Cyran) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Spotify hums along Rio’s dividend is not yet a cause for concern Aussie climate ambition pulls timidly ahead Shopify’s mea culpa UK shoppers test “buy now, pay much later” model (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.
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Revenue grew 2% https://www.apple.com/newsroom/2022/07/apple-reports-third-quarter-results compared to the same quarter last year as the $2.5 trillion company eked out slightly higher iPhone sales and faster expansion in services outweighed sales shrinkage in Macs, iPads and accessories. While 2% growth isn’t great for Apple historically, there’s nothing within the next several quarters that will obviously displace the iPhone or its ability to sell more services to users, short of government action. (By Robert Cyran) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Spotify hums along Rio’s dividend is not yet a cause for concern Aussie climate ambition pulls timidly ahead Shopify’s mea culpa UK shoppers test “buy now, pay much later” model (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.
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Reuters Reuters (The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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20009.0
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2022-07-28 00:00:00 UTC
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Apple results top estimates as iPhone escapes economic slump
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AAPL
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https://www.nasdaq.com/articles/apple-results-top-estimates-as-iphone-escapes-economic-slump
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nan
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nan
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(Adds CFO comments from interview)
By Stephen Nellis, Nivedita Balu and Paresh Dave
July 28 (Reuters) - Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending.
Shares rose 3.2% after hours following the release of the results.
Apple said sales and profit for the quarter ended June 25 were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data.
Apple is expected to give a forecast for the current fiscal fourth quarter during an investor call, but Chief Financial Officer Luca Maestri told Reuters there had been no slowdown in demand for iPhones.
The slumping economy is hurting sales of advertising, accessories and home products, though, Maestri said.
"Fortunately, we have a very broad portfolio, so we know we're going to be able to navigate that," he added. Parts shortages will continue to limit Mac and iPad sales, Maestri said, though the impact has been easing.
Investors are watching Apple closely as economic indicators turn negative. In the past, the iPhone maker's loyal and relatively affluent customer base has helped it weather dips better than other consumer brands.
While sales of iPhones and iPads topped expectations, revenue from services, Mac computers and accessories missed Wall Street targets and sales in the crucial China market fell 1%.
The rising U.S. dollar has hit many companies such as Apple that generate substantial foreign revenue and are getting less cash back when they convert it. Apple said currency fluctuations would slash sales by 6% in the current quarter.
The most recent economic woes include supply chain disruptions from COVID-19 lockdowns in China that have hit production of some Apple products such as iPads and Macs. Apple, like many of its tech industry peers, is reportedly slowing hiring and cutting costs given the tough economic climate.
Apple shares closed Thursday down about 11% so far this year, slightly less than the broader S&P 500 index and also less than other consumer hardware makers such as Sonos Inc and Samsung Electronics Co .
It will be a key test of whether Apple's years-long effort to diversify its business beyond the iPhone has paid off.
Apple said iPhone sales were $40.7 billion, up about 3% from a year earlier and well ahead of the overall global smartphone market, which fell 9% during the just-ended quarter, according to Canalys data.
Growth in the company's services business, which has provided a boost to sales and profits in recent years, was 12%, below the previous year's 33% rate and resulting in $19.6 billion in revenue, below estimates of $19.7 billion.
Apple said it now has 860 million paying subscribers on either its paid services or to paid software in its App Store, up from the previous quarter's 825 million.
Apple had told investors to expect a hit of between $4 billion and $8 billion from supply chain disruptions, though it did not give an overall revenue forecast from which to subtract those numbers. Analysts believed the disruptions hardest hit sales of Macs and iPads whose assembly locations were clustered near regions of China that went into COVID lockdowns.
"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment," Maestri said in a statement.
Sales of iPads and Macs were $7.2 billion and $7.4 billion, compared with estimates of $6.9 billion and $8.7 billion. Mac sales represented a 10% contraction, after record sales since 2020, first from a work-from-home boost and then from Apple's new proprietary processor chips.
In its most recent fiscal year, nearly a fifth of Apple's sales came from its Greater China region after two years of struggling sales there. But now Apple is confronting slow overall economic growth in China, where its fiscal third-quarter sales were $14.6 billion, down 1%.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Nellis, Nivedita Balu and Paresh Dave; Editing by Peter Henderson and Lisa Shumaker) ((paresh.dave@thomsonreuters.com; 415-565-1302;)) Keywords: APPLE RESULTS/ (UPDATE 2, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(Adds CFO comments from interview) By Stephen Nellis, Nivedita Balu and Paresh Dave July 28 (Reuters) - Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending. Apple is expected to give a forecast for the current fiscal fourth quarter during an investor call, but Chief Financial Officer Luca Maestri told Reuters there had been no slowdown in demand for iPhones. Apple said iPhone sales were $40.7 billion, up about 3% from a year earlier and well ahead of the overall global smartphone market, which fell 9% during the just-ended quarter, according to Canalys data.
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(Adds CFO comments from interview) By Stephen Nellis, Nivedita Balu and Paresh Dave July 28 (Reuters) - Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending. While sales of iPhones and iPads topped expectations, revenue from services, Mac computers and accessories missed Wall Street targets and sales in the crucial China market fell 1%. The most recent economic woes include supply chain disruptions from COVID-19 lockdowns in China that have hit production of some Apple products such as iPads and Macs.
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(Adds CFO comments from interview) By Stephen Nellis, Nivedita Balu and Paresh Dave July 28 (Reuters) - Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending. Apple said sales and profit for the quarter ended June 25 were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data. Sales of iPads and Macs were $7.2 billion and $7.4 billion, compared with estimates of $6.9 billion and $8.7 billion.
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(Adds CFO comments from interview) By Stephen Nellis, Nivedita Balu and Paresh Dave July 28 (Reuters) - Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending. Apple said sales and profit for the quarter ended June 25 were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data. Growth in the company's services business, which has provided a boost to sales and profits in recent years, was 12%, below the previous year's 33% rate and resulting in $19.6 billion in revenue, below estimates of $19.7 billion.
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20010.0
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2022-07-28 00:00:00 UTC
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Why Do Gas Prices Go Up? Why Do Gas Prices Go Down?
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AAPL
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https://www.nasdaq.com/articles/why-do-gas-prices-go-up-why-do-gas-prices-go-down
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re wondering what drives gas prices, and easy answer is that gas prices are driven by supply and demand. However, it’s more complicated than that.
It takes oil months to go from the wellhead to your gas tank. During that time, it’s transported, refined and transported again. Each player in this dance is seeking maximum profit. They’re only constrained by their own needs for revenue and the cost of holding inventory. No one has found a better way to ration scarcity than price.
Storage Matters
The keys to today’s gas prices can be found in this chart and this spreadsheet, from the Energy Information Administration.
7 Dividend Stocks to Buy on the Dip
The chart shows the amount of crude oil in storage around the U.S., and how long that supply can last under current demand. Since late last year, storage has been below what it had been over the previous five years. The amount of crude in storage usually peaks as the “summer driving season” approaches, falling into the winter before rising again.
This year, it didn’t rise again. On June 10, storage represented 25.8 days of supply, according to the EIA. A year ago, it was at 27.26 days. While U.S. oil production is up — to nearly 12 million barrels per day from 11 million a year ago — producers can hold out for their best price.
The Refining Conundrum
The U.S. is a major oil refiner, but refining hasn’t been a great business for decades.
Gasoline, kerosene and heating oil have different densities. Refining means heating oil to separate its components. This is complicated and dirty.
Half of America’s refining capacity has disappeared in the last four decades. Profits fell to just $1-$2 per barrel during the pandemic. The last new U.S. refinery came online in 1977. It can take a decade to build a refinery, and with the death of the oilpatch now in sight no one wants to make the investment.
When refiners are shut, for maintenance, upgrading or to meet government pollution standards, capacity disappears. Remaining refiners squeeze the market for profits. That’s what they’re doing right now, with refining profits rising to $18 per barrel. Biden Administration calls to rein in “obscene profits” may get no better results than the Trump Administration’s support for the sector in the last decade did.
7 Stocks to Buy That Could Make You a Millionaire
No one wants to spend 30-year money on something that will go bust in 10.
Saudi Market Control
Between falling storage and refining shortages, the supply of finished product available to the U.S. market is falling behind demand. The amount of finished gasoline available to send to your local station has fallen by nearly 90% since 1990.
Control over the refining business is moving to the Middle East. Profits in what’s called the “downstream” business are soaring. This is why Saudi Aramco, which spun out from full state control in 2019, is now worth almost four times Apple (NASDAQ:AAPL).
The Saudis’ control of the industry may not last, but it’s real.
The Bottom Line
The tools to change the supply-and-demand equation for oil are in your hands. The trouble is they will take years to deploy.
Removing Russian oil from the market is giving Saudi Arabia and other oil states enormous power. They’re still investing in downstream businesses Americans are abandoning, based on long-term trends.
Renewable energy is now cheaper than oil. It’s becoming cheaper than natural gas or coal. But this wasn’t true until recently. The infrastructure needed to get this energy to market has yet to scale. While it scales, the best answer for consumers is conservation.
7 Safe Dividend Stocks to Buy for a Bear Market
Conservation is not a message the market wants to hear. But until the fuel of the sun and wind are fully exploited, gas prices will remain high, and burning oil for energy will remain highly profitable.
On the date of publication, Dana Blankenhorn held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Why Do Gas Prices Go Up? Why Do Gas Prices Go Down? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is why Saudi Aramco, which spun out from full state control in 2019, is now worth almost four times Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held a long position in AAPL. Storage Matters The keys to today’s gas prices can be found in this chart and this spreadsheet, from the Energy Information Administration.
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This is why Saudi Aramco, which spun out from full state control in 2019, is now worth almost four times Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held a long position in AAPL. While U.S. oil production is up — to nearly 12 million barrels per day from 11 million a year ago — producers can hold out for their best price.
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This is why Saudi Aramco, which spun out from full state control in 2019, is now worth almost four times Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re wondering what drives gas prices, and easy answer is that gas prices are driven by supply and demand.
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This is why Saudi Aramco, which spun out from full state control in 2019, is now worth almost four times Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re wondering what drives gas prices, and easy answer is that gas prices are driven by supply and demand.
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20011.0
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2022-07-28 00:00:00 UTC
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Google blocks Krafton's battle-royale game in India, citing government ban
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AAPL
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https://www.nasdaq.com/articles/google-blocks-kraftons-battle-royale-game-in-india-citing-government-ban
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nan
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nan
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Adds details on ban order, context
NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government.
In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store.
According to the game's website, it had more than 100 million users in India. The block comes after another Krafton title, PlayerUnknown's Battlegrounds (PUBG), was banned in India in 2020.
"On receipt of the order, following established process, we have notified the affected developer and have blocked access to the app," a Google spokesperson said.
BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India.
The reason for blocking the game was not immediately clear.
Krafton, local representatives of Apple and India's IT ministry did not immediately respond to requests for comment outside regular business hours.
A source with direct knowledge of the matter said Google had received the government take down order in the last 24 hours.
Indian authorities cited security risks when banning PUBG but the move was widely seen as fallout from deteriorating India-China business ties. At the time, China's Tencent held the publishing rights for PUBG in India.
The crackdown was part of a broader ban of more than 100 Chinese-origin mobile apps by New Delhi, following a months-long border standoff between the nuclear-armed rivals.
Since then, the ban has been expanded to more than 300 apps.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Additional reporting by Nupur Anand; Editing by David Evans, Kirsten Donovan)
((Nupur.Anand@thomsonreuters.com; +9122 68414388;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store. Indian authorities cited security risks when banning PUBG but the move was widely seen as fallout from deteriorating India-China business ties.
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BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store.
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BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store.
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BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store.
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20012.0
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2022-07-28 00:00:00 UTC
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Recession vs. Depression: What Is the Difference?
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AAPL
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https://www.nasdaq.com/articles/recession-vs.-depression%3A-what-is-the-difference-0
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since the start of the year, markets have been under pressure. Several factors have led to a global selloff in stocks, bonds and currencies. People are now debating about whether we are in for a recession or a slump. Recession vs. depression, therefore, is a key question on everyone’s minds these days. Generally, a recession is a downturn in economic conditions, but a depression is a deeper and/or more prolonged downswing.
People are often afraid of recessions. However, they should not be because recessions are a natural part of the economy. It is a time when businesses have to make changes in their spending and investments to become more efficient. It’s only when it becomes a depression that it should be more universally concerning.
Interest rates are increasing as a response to inflation. The Federal Reserve (Fed) is taking steps to combat inflation, but they are also worried about the risk of recession.
A recession is a period of negative economic growth. It is normal to worry about recessions, but it is important to prepare for them so you are not caught off guard.
Here at InvestorPlace, we’ve written different articles to help you navigate the inflationary environment to prepare for what might happen in the case of a recession.
However, this article will tell you about the difference between a recession and a slump. Although occasionally used interchangeably, these terms explain two different things. It’s important to understand this difference when deciding your investments.
Recession vs. Depression: What Is a Recession?
A recession is when the economy goes into a state of decline. It is characterized by declining production and rising unemployment.
7 Dividend Stocks to Buy on the Dip
When the recession hits, we get an economic bubble that eventually bursts, leading to severe economic depression. This recession can be measured in gross domestic product (GDP), unemployment rates, and other significant statistics.
A recession is a period when the economy experiences negative growth. A slump is when the economy experiences negative growth and there are no signs of recovery.
Many factors can cause slumps, such as:
Economic downturns.
Financial market crashes.
Changes in global trade policy.
What Is a Slump?
A slump is a period of economic decline. There are many causes, including a lack of demand for goods and services.
There are different types of slumps:
Business cycle: A downturn in the business cycle is when an economy’s output falls below its potential output for an extended period. This type of slump typically lasts longer than other types.
Economic contraction: An economic contraction is a decrease in production and demand that results from a recession or depression. A sharp decline in the prices of certain goods or assets, such as stocks, land, or houses, can also lead to an economic downturn.
Economic depression: An economic depression is generally defined as two consecutive years with negative GDP.
Difference Between a Recession and a Slump
A recession is a period when the economy is declining. A slump is a time when the economy is not doing well.
A recession can happen due to a drop in economic activity, such as an economic depression, or by an external shock, such as war or natural disaster. A recession may also result from increased unemployment due to excess supply and decreased demand for goods and services.
A slump can happen for various reasons. A change in government policy, such as increased taxes or subsidies or an increase in the cost of raw materials is also a vital reason for an economic slowdown. Decreased demand due to oversupply may also lead to a slump because goods and services become less attractive to consumers.
However, after the government takes the necessary steps, it can navigate out of these issues and begin a new era of economic growth.
What Is Needed to Promote Economic Growth?
The government can end a recession or slump by implementing policies that will stimulate the economy. Some of these policies include:
Increasing the money supply by printing more money to increase demand for goods and services.
Reducing taxes to encourage those who are unemployed to become employed.
Investing in public works projects, such as infrastructure improvements, will create jobs and stimulate the economy.
Recession vs. Depression: Do Not Panic
The economy is a complex system that is constantly changing. It’s not always easy to understand how the economy works, but we need to know.
The economy moves in cycles which include growth, recession, and slump. The cycle’s four phases are expansion, recession, recovery, and stagnation.
Expansion is when there is an increase in production and consumption. This phase usually lasts for a few years before entering into a recession. A recession happens when there is an economic decline because of reduced production or consumption. Recovery happens when the economy grows again after a recession or slump.
The Fed and the U.S. government are taking active steps to ensure we do not face a prolonged crisis. In the meantime, you can invest in bellwether stocks like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and Walmart (NYSE:WMT). These companies perform well regardless of the economic environment and are great defensive plays for any portfolio.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Recession vs. Depression: What Is the Difference? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the meantime, you can invest in bellwether stocks like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and Walmart (NYSE:WMT). Here at InvestorPlace, we’ve written different articles to help you navigate the inflationary environment to prepare for what might happen in the case of a recession. A sharp decline in the prices of certain goods or assets, such as stocks, land, or houses, can also lead to an economic downturn.
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In the meantime, you can invest in bellwether stocks like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and Walmart (NYSE:WMT). There are different types of slumps: Business cycle: A downturn in the business cycle is when an economy’s output falls below its potential output for an extended period. A recession may also result from increased unemployment due to excess supply and decreased demand for goods and services.
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In the meantime, you can invest in bellwether stocks like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and Walmart (NYSE:WMT). Recession vs. Depression: What Is a Recession? Economic contraction: An economic contraction is a decrease in production and demand that results from a recession or depression.
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In the meantime, you can invest in bellwether stocks like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and Walmart (NYSE:WMT). However, this article will tell you about the difference between a recession and a slump. Recession vs. Depression: What Is a Recession?
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20013.0
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2022-07-28 00:00:00 UTC
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The Countdown to Apple Earnings Is On, Here’s What to Expect
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AAPL
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https://www.nasdaq.com/articles/the-countdown-to-apple-earnings-is-on-heres-what-to-expect
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nan
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This earnings season comes against a backdrop of all kinds of economic worries and market watchers are keeping a close eye on how the tech giants perform. Leading market participants can shape the stock market’s narrative, hardly any more so than Apple (AAPL).
The world’s biggest company by market cap reports F3Q (June quarter) results today after the closing bell.
Despite macro uncertainties still impacting consumer spending, Deutsche Bank analyst Sidney Ho expects earnings to be “largely in line” with the firm and Street’s estimates, showing year-over-year growth in the low-single digits.
While Apple has warned that supply chain snags are anticipated to impact the quarter’s revenue haul by $4 billion to $8 billion, Ho thinks the company has managed its supply chain better than it thought it would. “Our checks of delivery times show most products are immediately available with a few exceptions (notably new MacBook Air), hence we see upside to the expected constraints,” the 5-star analyst noted.
Although consumer demand for smartphones and PCs has waned on account of the difficult macro environment, going by data from third party research firms, Ho is “positive” on AAPL's share gains in the segment. That said, the period has also been marked by FX issues, which have become a “bigger revenue headwind.”
Looking ahead, should Apple decide to provide any guidance, Ho thinks that as a reflection of the current operating climate, the company is likely to take a cautious approach and guide “below” present Deutsche Bank/Street expectations.
However, Ho thinks the market is already factoring in “slower growth” and notes that in order to deal with a potential economic downturn, the company intends to slow hiring and cut back on growth initiatives.
“On the positive side,” Ho sums up, “AAPL's strong cash balance should allow the company to remain aggressive in share repurchases.”
Overall, if you are looking for a “good hiding place in a volatile market,” Ho thinks Apple is the place to be. The analyst rates the tech giant a Buy, backed by a $175 price target. The figure makes room for upside of 12% from current levels. (To watch Ho’s track record, click here)
And what about the rest of the Street? It’s mostly Buys - 22, in total – while an additional 6 Holds are not enough to derail the Strong Buy consensus rating. The forecast calls for 12-month gains of 14%, considering the average price target stands at $179.53. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although consumer demand for smartphones and PCs has waned on account of the difficult macro environment, going by data from third party research firms, Ho is “positive” on AAPL's share gains in the segment. Leading market participants can shape the stock market’s narrative, hardly any more so than Apple (AAPL). “On the positive side,” Ho sums up, “AAPL's strong cash balance should allow the company to remain aggressive in share repurchases.” Overall, if you are looking for a “good hiding place in a volatile market,” Ho thinks Apple is the place to be.
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Leading market participants can shape the stock market’s narrative, hardly any more so than Apple (AAPL). Although consumer demand for smartphones and PCs has waned on account of the difficult macro environment, going by data from third party research firms, Ho is “positive” on AAPL's share gains in the segment. “On the positive side,” Ho sums up, “AAPL's strong cash balance should allow the company to remain aggressive in share repurchases.” Overall, if you are looking for a “good hiding place in a volatile market,” Ho thinks Apple is the place to be.
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“On the positive side,” Ho sums up, “AAPL's strong cash balance should allow the company to remain aggressive in share repurchases.” Overall, if you are looking for a “good hiding place in a volatile market,” Ho thinks Apple is the place to be. Leading market participants can shape the stock market’s narrative, hardly any more so than Apple (AAPL). Although consumer demand for smartphones and PCs has waned on account of the difficult macro environment, going by data from third party research firms, Ho is “positive” on AAPL's share gains in the segment.
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Leading market participants can shape the stock market’s narrative, hardly any more so than Apple (AAPL). Although consumer demand for smartphones and PCs has waned on account of the difficult macro environment, going by data from third party research firms, Ho is “positive” on AAPL's share gains in the segment. “On the positive side,” Ho sums up, “AAPL's strong cash balance should allow the company to remain aggressive in share repurchases.” Overall, if you are looking for a “good hiding place in a volatile market,” Ho thinks Apple is the place to be.
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20014.0
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2022-07-28 00:00:00 UTC
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TD Ameritrade: Todd Rosenbluth Talks Apple and Amazon ETFs Ahead of Earnings
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AAPL
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https://www.nasdaq.com/articles/td-ameritrade%3A-todd-rosenbluth-talks-apple-and-amazon-etfs-ahead-of-earnings
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nan
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nan
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There’s just no getting away from the biggest growth companies of the last decade; almost every portfolio, whether it’s a 401(k), an IRA, or any other, will have exposures to companies such as Apple (AAPL) and Amazon (AMZN). Todd Rosenbluth, head of research at VettaFi, was recently on TD Ameritrade to discuss how Apple and Amazon’s earnings would impact ETFs with host Nicole Petallides.
Apple is the largest company in the U.S. by market cap, and it is carried in more than 300 ETFs as one of the top 15 holdings of each fund. Amazon is currently carried in over 240 ETFs as one of the top 15 holdings of each fund.
Both companies can be found within large-cap growth-oriented ETFs such as the Invesco QQQ Trust (QQQ) and the Vanguard Growth ETF (VUG), but there are notable differences between the two giants.
“There are some ETFs that only own Apple and some ETFs that only own Amazon because of how they’re classified and because of some of their fundamental characteristics,” Rosenbluth explained.
Amazon often gets lumped into the broad basket of technology companies, but it is technically classified as part of the consumer discretionary sector according to the Global Industry Classification Standard (GICS), a standard that S&P and MSCI both utilize. As such, the Consumer Discretionary Select Sector SPDR Fund (XLY) carries Amazon but not Apple, while the Technology Select Sector SPDR Fund (XLK) does the opposite.
How will this afternoon’s $AAPL & $AMZN results impact the ETF space? 🤔
🎥 @ToddRosenbluth explains with @NPetallides: $XLY $XLK $QQQ $IVW 📊 https://t.co/2Z0UriGaNv
— TD Ameritrade Network (@TDANetwork) July 28, 2022
Apple can be found in many environmental, social, and governance (ESG) funds. It also pays dividends and therefore is carried in dividend strategy funds such as the WisdomTree US Quality Dividend Growth ETF (DGRW).
“Apple has continued to raise its dividends year after year; it’s continued to be able to offer returns to shareholders, and that adds to its appeal,” Rosenbluth said.
For investors who are interested in exposure to both companies but don’t want to approach investing through a growth-oriented lens, particularly in a time of rising interest rates, the Roundhill Ball Metaverse ETF (METV) offers a thematic approach. Within METV, Apple is carried at a larger weight than Meta (formerly Facebook).
“If you own a thematic-oriented ETF, you’re likely to have exposure to two of these heavyweight giants within the growth sector, one technology and one consumer discretionary,” explained Rosenbluth. “Again, it just shows the importance of looking inside an ETF, not just judging it by its name but judging it by its underlying holdings.”
For more news, information, and strategy, visit VettaFi.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There’s just no getting away from the biggest growth companies of the last decade; almost every portfolio, whether it’s a 401(k), an IRA, or any other, will have exposures to companies such as Apple (AAPL) and Amazon (AMZN). How will this afternoon’s $AAPL & $AMZN results impact the ETF space? Todd Rosenbluth, head of research at VettaFi, was recently on TD Ameritrade to discuss how Apple and Amazon’s earnings would impact ETFs with host Nicole Petallides.
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There’s just no getting away from the biggest growth companies of the last decade; almost every portfolio, whether it’s a 401(k), an IRA, or any other, will have exposures to companies such as Apple (AAPL) and Amazon (AMZN). How will this afternoon’s $AAPL & $AMZN results impact the ETF space? As such, the Consumer Discretionary Select Sector SPDR Fund (XLY) carries Amazon but not Apple, while the Technology Select Sector SPDR Fund (XLK) does the opposite.
|
There’s just no getting away from the biggest growth companies of the last decade; almost every portfolio, whether it’s a 401(k), an IRA, or any other, will have exposures to companies such as Apple (AAPL) and Amazon (AMZN). How will this afternoon’s $AAPL & $AMZN results impact the ETF space? Both companies can be found within large-cap growth-oriented ETFs such as the Invesco QQQ Trust (QQQ) and the Vanguard Growth ETF (VUG), but there are notable differences between the two giants.
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There’s just no getting away from the biggest growth companies of the last decade; almost every portfolio, whether it’s a 401(k), an IRA, or any other, will have exposures to companies such as Apple (AAPL) and Amazon (AMZN). How will this afternoon’s $AAPL & $AMZN results impact the ETF space? Amazon is currently carried in over 240 ETFs as one of the top 15 holdings of each fund.
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20015.0
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2022-07-28 00:00:00 UTC
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Wall St gains on hopes of smaller rate hikes as economy shrinks again
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AAPL
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https://www.nasdaq.com/articles/wall-st-gains-on-hopes-of-smaller-rate-hikes-as-economy-shrinks-again
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nan
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nan
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By Shreyashi Sanyal and Aniruddha Ghosh
July 28 (Reuters) - Wall Street's major indexes reversed course to gain in early afternoon trading on Thursday, as a contraction in the U.S. economy for the second straight quarter raised expectations of a less aggressive monetary policy by the Federal Reserve.
Gross domestic product fell at a 0.9% annualized rate in the last quarter, the Commerce Department said in its advance GDP estimate. A Reuters survey had showed that the growth likely rebounded at a 0.5% annualized rate.
"The Fed will likely interpret this decline in real growth as confirmation to slow down the pace of rate hikes at the upcoming meetings," Jeffrey Roach, chief economist for LPL Financial said.
"Front-loading rate hikes eventually mean smaller hikes in the near future."
Two consecutive quarters of declines in growth are traditionally considered a recession, but the private research group which is the official arbiter of U.S. recessions looks at a broad range of indicators including jobs and spending.
Market participants believe that even if the U.S. economy entered a recession, its effects would be mild.
"While it is certainly on the negative side of the estimates, a 1% decrease is relatively small and supports the idea that any recessionary environment will be mild," said Mike Loewengart, managing director at E*TRADE from Morgan Stanley.
Markets have been rattled by worries of runaway inflation and aggressive interest rate hikes hurting economic growth, but comments by Fed Chairman Jerome Powell on Wednesday that he doesn't believe the U.S. is in a recession on account of a stable labor market offered some relief.
Wall Street also carried gains from the previous session when the U.S. central bank raised interest rates as expected and Powell eased some worries about the pace of rate hikes.
At 12:40 p.m. ET, the Dow Jones Industrial Average .DJI was up 222.25 points, or 0.69%, at 32,419.84, the S&P 500 .SPX was up 28.38 points, or 0.71%, at 4,051.99 and the Nasdaq Composite .IXIC was up 56.89 points, or 0.47%, at 12,089.31.
Among individual stocks, Meta Platforms Inc META.O fell 5.8% after posting its first-ever quarterly drop in revenue.
Qualcomm Inc QCOM.O fell 4.6% after warning of difficult economic conditions and a slowdown in smartphone demand could hit its mainstay handset chips business.
Shares of Apple Inc AAPL.O were trading flat, while Amazon.com Inc AMZN.O gained 0.3% ahead of their quarterly reports after market close.
Rising interest rates have hammered shares of mega-cap companies whose valuations depend on future cash flow as it gets heavily discounted.
Defensive sectors, including S&P 500 utilities .SPLRCU and real estate .SPLRCR gained nearly 3% each, indicating a largely risk-off day of trading.
Ford Motor Co F.N gaining 5.5% after reporting a better-than-expected quarterly net income.
Advancing issues outnumbered decliners by a 2.50-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 31 new lows, while the Nasdaq recorded 49 new highs and 83 new lows.
(Reporting by Aniruddha Ghosh and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta 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.
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Shares of Apple Inc AAPL.O were trading flat, while Amazon.com Inc AMZN.O gained 0.3% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - Wall Street's major indexes reversed course to gain in early afternoon trading on Thursday, as a contraction in the U.S. economy for the second straight quarter raised expectations of a less aggressive monetary policy by the Federal Reserve. "The Fed will likely interpret this decline in real growth as confirmation to slow down the pace of rate hikes at the upcoming meetings," Jeffrey Roach, chief economist for LPL Financial said.
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Shares of Apple Inc AAPL.O were trading flat, while Amazon.com Inc AMZN.O gained 0.3% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - Wall Street's major indexes reversed course to gain in early afternoon trading on Thursday, as a contraction in the U.S. economy for the second straight quarter raised expectations of a less aggressive monetary policy by the Federal Reserve. Markets have been rattled by worries of runaway inflation and aggressive interest rate hikes hurting economic growth, but comments by Fed Chairman Jerome Powell on Wednesday that he doesn't believe the U.S. is in a recession on account of a stable labor market offered some relief.
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Shares of Apple Inc AAPL.O were trading flat, while Amazon.com Inc AMZN.O gained 0.3% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - Wall Street's major indexes reversed course to gain in early afternoon trading on Thursday, as a contraction in the U.S. economy for the second straight quarter raised expectations of a less aggressive monetary policy by the Federal Reserve. Markets have been rattled by worries of runaway inflation and aggressive interest rate hikes hurting economic growth, but comments by Fed Chairman Jerome Powell on Wednesday that he doesn't believe the U.S. is in a recession on account of a stable labor market offered some relief.
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Shares of Apple Inc AAPL.O were trading flat, while Amazon.com Inc AMZN.O gained 0.3% ahead of their quarterly reports after market close. "Front-loading rate hikes eventually mean smaller hikes in the near future." Two consecutive quarters of declines in growth are traditionally considered a recession, but the private research group which is the official arbiter of U.S. recessions looks at a broad range of indicators including jobs and spending.
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20016.0
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2022-07-28 00:00:00 UTC
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Stock Market Today: Dow Jones, S&P 500 Fall; U.S Economy Shrinks For Second-Straight Quarter
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https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-fall-u.s-economy-shrinks-for-second-straight-quarter
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Stock Market Today Mid-Morning Market Updates
On Thursday morning, the Dow Jones Industrial Average is down 171 points. This is likely due to the fact that the U.S. economy is now being labeled with a recession after new GDP data was released on Thursday morning. In the report, the U.S. economy pulled back 0.9% in the second quarter. Given that first-quarter real GDP growth dropped 1.6%, this marks two consecutive quarters of negative GDP growth. As a result, this is widely seen by investors that the U.S. is in a recession.
Furthermore, earnings on Thursday morning from companies like Pfizer, Inc. (NYSE: PFE) and Mastercard Inc. (NYSE: MA) are also in the headlines.
Pzifer
Shares of PFE stock are down over 2% on Thursday morning after the company’s quarterly report beat analyst expectations. PFE stock is currently trading at $50.13 per share. In the earnings report, Pfizer reported earnings per share of $2.04 on revenue of $27.7 billion. Wall Street’s consensus earnings estimate was earnings per share of $1.75 per share on revenue of $26 billion.
Mastercard
Meanwhile, MA stock is moving higher on Thursday after an earnings beat for the second quarter. Shares of MA stock are up modestly on Thursday morning at $345.63 per share. In the report, Mastercard (MA) reported earnings per share of $2.56 on revenue of $5.6 billion. In comparison to Wall Street’s consensus earnings estimate of $2.36 per share on revenue of $5.2 billion.
Dow Jones Today
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading lower by 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80 %. Meanwhile, shares of Disney (NYSE: DIS), and Nike (NYSE: NKE) shares are mixed during Thursday morning’s trading session. Among the Dow financial leaders, shares of Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading lower on Thursday morning.
Shares of EV leader Tesla (NASDAQ: TSLA) fell slightly on Thursday by 0.33%. Rival EV companies like Rivian (NASDAQ: RIVN) are flat on Thursday morning%. Lucid Group (NASDAQ: LCID) dropped another 3.26% on Wednesday. As a result, shares of LCID stock are down over 16% in the past five trading days. Chinese EV leaders like Nio (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are trading lower on Thursday.
Stock Market News Today: U.S. Treasury Yield Falls To 2.66%; U.S. Economy Contracts For Second Straight Quarter
Following the stock market opening on Thursday, the major indices opened in the red. The S&P 500 & Dow and Nasdaq are all trading down at 0.63%, 0.53%, and 1.14%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) fell by 1.15% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also trading lower on Thursday morning by 0.55%. The benchmark 10-year U.S. Treasury yield is at 2.66% during the Thursday morning trading session.
Moving along, the latest GDP data was reported on Thursday morning. The Bureau of Economic Analysis reported, that the U.S. economy’s growth contracted 0.9% in the second quarter. With that, the first quarter GDP growth also fell by 1.6%. Many people label a recession as having two straight negative quarters of GDP economic growth. The downward move in the market on Thursday comes after a rally on Wednesday. That rally was caused by the Fed raising interest rates by 0.75 basis points for the second straight time to help combat inflation.
Next, on Thursday the Labor Department reported jobless claims data. In the report, new jobless claims dropped 5,000 to 256,000 for the week through July 23rd. Though, last week’s numbers were revised higher by 10,000 to 261,000. This is the highest level of claims since November of last year.
Meta Platforms (META) Stock Drops After Missing On Earnings
On Wednesday after market close, Meta Platforms Inc. (NASDAQ: META) reported a miss on its second quarter fiscal earnings report. In the report, the company fell short of analysts’ expectations on earnings and revenue. Specifically, Meta reported earnings of $2.46 per share on revenue of $28.8 billion. Versus, the consensus earnings estimates of $2.50 per share on revenue of $28.9 billion. This was the first time that the company has reported a drop in revenue. As a result, shares of META slid on Thursday morning by over 7% at $156.84 per share.
Mark Zuckerberg, CEO and founder of Meta, stated, “It was good to see positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,” he continued with, “We’re putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services.”
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 3 Tech Stocks In Focus Amid Earnings
Apple & Amazon Earnings On Deck After The Closing Bell
Last but not least, we have more top tech giants reporting earnings after the market closes on Thursday. Most notably, Apple, and Amazon.com (NASDAQ: AMZN). Investors are anxiously waiting to see what type of earnings these top companies will report today.
Aside from that, we also will be getting earnings Thursday afternoon from top stocks to watch like Roku Inc. (NASDAQ: ROKU), Intel Corp. (NASDAQ: INTC), First Solar Inc. (NASDAQ: FSLR), and others. It goes without saying, there is plenty of headlines to keep investors busy on Thursday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dow Jones Today Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading lower by 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80 %. Pzifer Shares of PFE stock are down over 2% on Thursday morning after the company’s quarterly report beat analyst expectations. That rally was caused by the Fed raising interest rates by 0.75 basis points for the second straight time to help combat inflation.
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Dow Jones Today Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading lower by 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80 %. Stock Market News Today: U.S. Treasury Yield Falls To 2.66%; U.S. Economy Contracts For Second Straight Quarter Following the stock market opening on Thursday, the major indices opened in the red. Meta Platforms (META) Stock Drops After Missing On Earnings On Wednesday after market close, Meta Platforms Inc. (NASDAQ: META) reported a miss on its second quarter fiscal earnings report.
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Dow Jones Today Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading lower by 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80 %. Meta Platforms (META) Stock Drops After Missing On Earnings On Wednesday after market close, Meta Platforms Inc. (NASDAQ: META) reported a miss on its second quarter fiscal earnings report. 3 Tech Stocks In Focus Amid Earnings Apple & Amazon Earnings On Deck After The Closing Bell Last but not least, we have more top tech giants reporting earnings after the market closes on Thursday.
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Dow Jones Today Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading lower by 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80 %. In the report, Mastercard (MA) reported earnings per share of $2.56 on revenue of $5.6 billion. The S&P 500 & Dow and Nasdaq are all trading down at 0.63%, 0.53%, and 1.14%, respectively.
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20017.0
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2022-07-28 00:00:00 UTC
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Wary shoppers muddy outlook for tech, auto firms in Asia
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https://www.nasdaq.com/articles/wary-shoppers-muddy-outlook-for-tech-auto-firms-in-asia
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By Joyce Lee and Satoshi Sugiyama
July 28 (Reuters) - Asian tech firms from chipmaker Samsung to display panel maker LG Display warned of a sharp slowdown in demand for smartphones, TVs and gadgets as surging inflation and deepening concerns of a recession crimp consumer spending.
Comments from top company executives in Asia, often called the world's factory, echo warnings from U.S. and European firms who say shoppers with lower incomes are skipping discretionary items and sticking to cheaper basics when buying everyday necessities amid global uncertainty, the crisis in Ukraine and the impact of China's COVID lockdowns.
"As a downturn looms, consumption is expected to generally slow down except for essential goods," LG Display Co Ltd 034220.KS, a supplier of display panels to Apple AAPL.O and TV makers, said on Wednesday.
"Set makers and retailers in general are becoming more conservative in their business operations."
Samsung Electronics Co Ltd 005930.KS, the world's top maker of memory chips and smartphones, said on Thursday that "PC and mobile demand is likely to see continued weakness."
While demand from server or data centre customers is less affected by macroeconomic issues, server clients would also have to adjust their inventory if a recession occurs, the South Korean firm cautioned.
Data centre customers, backed by tech heavyweights including Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O that reported strong quarters, have been a bright spot so far for chipmakers.
But Samsung's smaller rival SK Hynix Inc 000660.KS on Wednesday warned of slowing spending from both smartphone customers and data centre customers.
"Recently, consumer sentiment has been rapidly shrinking due to deepening concerns over inflation and economic recession, and companies are now noticeably moving to cut costs," it said.
In recent weeks, U.S. chipmakers including Micron MU.O and AMD AMD.O have signaled waning demand as well after a two-year long semiconductor shortage that crimped production of consumer electronics and cars.
Taiwan's TSMC 2330.TW has also signalled that demand was cooling from consumer electronics customers as they use their own chip stockpiles.
Panasonic Holdings Corp 6752.T posted a 39% plunge in June quarter profit and said the risk of an economic slowdown caused by geopolitical risks and inflation globally remains high.
The Japanese conglomerate said profits at its energy unit that supplies EV batteries to Tesla Inc TSLA.O fell mainly due to higher costs for raw materials and logistics.
CHINA PRESSURES
U.S. chipmaker Qualcomm Inc QCOM.O, a foundry customer of Samsung's, said: "We expect the elevated uncertainty in the global economy and the impact of COVID measures in China will cause customers to act with caution in managing their purchases in the second half."
Smartphone sales in China, the biggest market in the world, fell 14.2% in April-June while volumes hit a decade low, Counterpoint Research said on Wednesday.
While analysts expect stronger demand for iPhones than for other smartphones, Apple AAPL.O announced discounts in China this week, a move it occasionally makes when sales are slow.
Tech and auto firms with factories in China have faced business disruptions in the world's second-largest economy due to COVID-19 lockdowns even as the war in Ukraine has pushed up energy and logistics costs.
The curbs have taken a huge toll on China's economy, with its gross domestic product in the April-June quarter growing at the slowest pace in some three decades barring a contraction in the first quarter of 2020.
Earlier this month, China's automobile industry association cut its sales forecast for the year as COVID measures weighed on demand, which authorities are now trying to revive with incentives such as lower purchase tax for some cars.
Toyota Motor Corp 7203.T, the world's largest automaker by sales, has seen its output hit in recent months by the chips shortage and supply constraints in China, producing 9.8% fewer cars over April-June than it initially planned.
General Motors Co GM.N, which reported a 40% slump in second-quarter profit, said its China operations lost $100 million in the period due to the curbs.
A bellwether for global automaking, GM said it was curbing spending ahead of a potential economic slowdown, as did its crosstown rival Ford Motor Co F.N.
Hyundai Motor Co 005380.KS, which like Uniqlo parent Fast Retailing 9983.T has seen the value of its profits lifted by a strong dollar, cautioned that rising inflation was posing some risks to demand in the second half.
For electric vehicles, however, some analysts say it would take another year for sales to slow, a view backed by Tesla Inc TSLA.O battery supplier LG Energy Solution Ltd 373220.KS.
LG Energy Solution said it expected solid demand in the second half of this year.
But Tesla boss Elon Musk has previously spoken of "a super bad feeling" about the economy.
(Reporting by Joyce Lee and Heekyong Yang in Seoul; Writing by Sayantani Ghosh; Editing by Himani Sarkar)
((sayantani.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.
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"As a downturn looms, consumption is expected to generally slow down except for essential goods," LG Display Co Ltd 034220.KS, a supplier of display panels to Apple AAPL.O and TV makers, said on Wednesday. While analysts expect stronger demand for iPhones than for other smartphones, Apple AAPL.O announced discounts in China this week, a move it occasionally makes when sales are slow. Comments from top company executives in Asia, often called the world's factory, echo warnings from U.S. and European firms who say shoppers with lower incomes are skipping discretionary items and sticking to cheaper basics when buying everyday necessities amid global uncertainty, the crisis in Ukraine and the impact of China's COVID lockdowns.
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"As a downturn looms, consumption is expected to generally slow down except for essential goods," LG Display Co Ltd 034220.KS, a supplier of display panels to Apple AAPL.O and TV makers, said on Wednesday. While analysts expect stronger demand for iPhones than for other smartphones, Apple AAPL.O announced discounts in China this week, a move it occasionally makes when sales are slow. By Joyce Lee and Satoshi Sugiyama July 28 (Reuters) - Asian tech firms from chipmaker Samsung to display panel maker LG Display warned of a sharp slowdown in demand for smartphones, TVs and gadgets as surging inflation and deepening concerns of a recession crimp consumer spending.
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"As a downturn looms, consumption is expected to generally slow down except for essential goods," LG Display Co Ltd 034220.KS, a supplier of display panels to Apple AAPL.O and TV makers, said on Wednesday. While analysts expect stronger demand for iPhones than for other smartphones, Apple AAPL.O announced discounts in China this week, a move it occasionally makes when sales are slow. By Joyce Lee and Satoshi Sugiyama July 28 (Reuters) - Asian tech firms from chipmaker Samsung to display panel maker LG Display warned of a sharp slowdown in demand for smartphones, TVs and gadgets as surging inflation and deepening concerns of a recession crimp consumer spending.
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"As a downturn looms, consumption is expected to generally slow down except for essential goods," LG Display Co Ltd 034220.KS, a supplier of display panels to Apple AAPL.O and TV makers, said on Wednesday. While analysts expect stronger demand for iPhones than for other smartphones, Apple AAPL.O announced discounts in China this week, a move it occasionally makes when sales are slow. But Samsung's smaller rival SK Hynix Inc 000660.KS on Wednesday warned of slowing spending from both smartphone customers and data centre customers.
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20018.0
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2022-07-28 00:00:00 UTC
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House Speaker Nancy Pelosi Has Traded in These 4 Mega-Cap Companies
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AAPL
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https://www.nasdaq.com/articles/house-speaker-nancy-pelosi-has-traded-in-these-4-mega-cap-companies
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nan
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A Democrat of California, Nancy Pelosi’s unparalleled expertise in the politics has made her a global figure. In addition to this, the U.S. politician is known for her investments in the U.S. stock market. Interestingly, the Speaker of the House of Representatives traded (bought and sold) the stocks of four mega-companies in the past year, which are as follows: NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: APPL), and Visa Inc. (NYSE: V).
It is worth mentioning here that shares of NVIDIA have declined 8.8% in the past year, while Visa is down 14.8%. Meanwhile, Tesla stock has advanced 27.4% and Apple is up 8.2%.
NVDA and AAPL are behemoths in the technology sector. While TSLA falls in the category of the consumer goods sector, Visa belongs to the services sector. In addition to the above-mentioned companies, the Congresswoman traded the stocks of six other companies (from the credit services, media, telecommunications, and asset management industries) in the past year.
A consolidated chart of the four mega-companies traded by Nancy Pelosi has been designed using TipRanks’ Stock Screener tool.
NVIDIA Corporation (NASDAQ: NVDA)
Nancy Pelosi is in full support of the CHIPS-plus bill, which aims at offering $52 billion worth of aid to chip manufacturing companies in the United States, and $24 billion of tax credits for investments in semiconductor manufacturing. Approved by the Senate on Wednesday, the bill now awaits a go-ahead from the House and the signature of President Joe Biden. Semiconductor manufacturing company NVIDIA would be one of the beneficiaries if the bill is passed.
Shares of the $413.3-billion company grew 7.6% on Wednesday. In June 2022, Pelosi purchased 20,000 shares of NVDA (valuing within the $1 million to $5 million range). She sold 25,000 NVDA shares for $1 million to $5 million before the Senate passed the bill on Wednesday. The Sell trade was primarily to avoid any debate over her exposure to NVDA stock, especially when she is backing the CHIPS-plus bill.
The company’s prospects are solid and it has a Strong Buy consensus rating based on 25 Buys and five Holds. NVDA’s average price target of $245.55 mirrors upside potential of 38.03%.
Tesla, Inc. (NASDAQ: TSLA)
The 82-years old politician purchased 2,500 shares of Tesla for $1 million to $5 million in March 2022. Shares of the electric vehicle manufacturing company have surged 27.4% in the past year, while advancing 6.2% on Wednesday. Recently, the company impressed investors with its upbeat Q2 earnings, ramped-up production levels, and efforts to improve its liquidity profile.
The U.S. government’s efforts to boost the manufacturing of electric vehicles (EV) domestically would be a boon for Tesla. Also, the CHIPS-plus bill, once cleared, could help this $804.8-billion company purchase U.S.-manufactured chips at affordable prices for its electric vehicles.
On TipRanks, the company has a Moderate Buy consensus rating based on 18 Buys, six Holds, and seven Sells. TSLA’s average price forecast of $872.28 suggests 5.8% upside potential.
Apple Inc. (NASDAQ: APPL)
In January this year, the Democrat increased her stake in Apple by purchasing 10,000 shares for $1 million. The fundamentals of this high-end smartphone marker are solid, and so is its presence in theglobal market However, the company is suffering from supply-chain issues and loss of business in Ukraine & Russia.
Interestingly, Apple would be able to reduce its dependence on international companies for the supply of semiconductor chips once the bill receives the green light. Shares of this $2.45-trillion company grew 3.4% on Wednesday.
Overall, the Street is cautiously optimistic about Apple and has a Moderate Buy consensus rating based on 22 Buys, six Holds, and one Sell. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level.
Visa Inc. (NYSE: V)
Nancy Pelosi decreased her holdings in Visa by 10,000 shares in June 2022. The Sell trade was valued within the $1 million to $5 million range. Recently, the credit services provider posted upbeat results for the third quarter of fiscal 2022 (ended June 2022). The year-over-year comparisons for the top line (driven by high volumes) and bottom line were impressive.
Uncertainties in the global economy and fears of a recession in the United States are troubling Visa. Shares of this $442.7-billion company were down 1% on Wednesday. Despite exposure to these headwinds, analysts have faith in the company, which commands a Strong Buy consensus rating based on 17 Buys and two Holds. V’s average price target of $255.89 reflects an upside potential of 21.58% from the current level.
Why Is It A Good Idea to Track Nancy Pelosi’s Trading Activities?
Nancy Pelosi’s portfolio, which includes investments by her family, has yielded a return of 1.11% in the last seven days. The type of companies in her portfolio (all long-term winners in their respective fields) and the timings of increasing and decreasing stakes in them tell us about her expertise in the field. Tracking the veteran politician’s stock market moves could be beneficial for investors.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NVDA and AAPL are behemoths in the technology sector. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level. Recently, the company impressed investors with its upbeat Q2 earnings, ramped-up production levels, and efforts to improve its liquidity profile.
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NVDA and AAPL are behemoths in the technology sector. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level. Interestingly, the Speaker of the House of Representatives traded (bought and sold) the stocks of four mega-companies in the past year, which are as follows: NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: APPL), and Visa Inc. (NYSE: V).
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NVDA and AAPL are behemoths in the technology sector. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level. Interestingly, the Speaker of the House of Representatives traded (bought and sold) the stocks of four mega-companies in the past year, which are as follows: NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: APPL), and Visa Inc. (NYSE: V).
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NVDA and AAPL are behemoths in the technology sector. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level. She sold 25,000 NVDA shares for $1 million to $5 million before the Senate passed the bill on Wednesday.
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20019.0
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2022-07-28 00:00:00 UTC
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Warren Buffett Has Been Buying Stocks in 2022. Should You?
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https://www.nasdaq.com/articles/warren-buffett-has-been-buying-stocks-in-2022.-should-you
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nan
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Warren Buffett is widely regarded as the greatest investor of our time, and for good reason. He's been investing for 80 years. He bought his first stock at age 11, and his holding company Berkshire Hathaway (NYSE: BRK.A) has generated an average annual return of over 20% for shareholders dating back to 1965.
BRK.A Total Return Level data by YCharts.
So, it's no surprise that investors look to Buffett's investing activity for insights into the state of the market. In recent years, Buffett has been fairly stingy, but that changed in 2022. According to the company's mid-May 13F filing, Berkshire Hathaway spent over $50 billion buying up stocks as prices came down significantly. And with $100 billion in cash and short-term Treasury bills on Berkshire's balance sheet, I'd be willing to bet we'll see a whole lot more buying when the company releases its second-quarter 13F filing in mid-August.
Image source: Getty Images.
I believe now is an excellent time to be buying stocks. Let's unpack Buffett's recent buying activity to understand why.
Stocks look very cheap
A part of Buffett's investing strategy focuses on buying stocks below their intrinsic value, and with the recent decline, there are plenty of cheap stocks out there right now.
Consider Berkshire Hathaway's recent $1 billion investment in Celanese Corporation (NYSE: CE). Celanese is a massive chemicals producer for industries ranging from pharmaceuticals to electric vehicles (and nearly everything in between). While it's impossible to know Berkshire Hathaway's exact reasoning for buying up over 7 million shares of this company, it likely had to do with the valuation.
At current prices, the stock trades for a price-to-earnings (P/E) ratio of 6, which is the lowest it's been since 2009.
For comparison, the company's largest competitor, DuPont de Nemours (NYSE: DD), trades at a PE ratio of 19.
Like Buffett, investors should take advantage of the recent decline in stocks to buy up quality assets at cheap prices.
There's both safety and upside in strong brands
Warren Buffett has long praised businesses with loyal customer bases. The strength of a company's brand is one of the most effective moats.
This is likely why Berkshire Hathaway added to its position of Apple (NASDAQ: AAPL) stock, which now represents over 40% of its total equities portfolio.
According to a recent survey by PCMag, 92% of iPhone users plan to stick with the brand when they upgrade their phones. By contrast, the two biggest competitors to the iPhone -- Samsung Galaxy and Google Pixel – polled future retention rates of just 74% and 65%, respectively.
Apple's brand loyalty is further observed by its net promoter score (NPS) of 73, which is among the highest in the consumer electronics industry.
A net promoter score is a metric that's produced by surveying customers to determine how likely they are to recommend a product to friends and family. Word-of-mouth marketing is one of the most effective methods of building brand loyalty, so this metric carries a lot of weight.
Image source: Getty Images.
Time arbitrage is your greatest advantage
Buffett understands that the market is painfully short-term focused. This is largely due to the compensations structure of institutional investors, but it's also a reflection of human emotions.
By simply extending your time horizon beyond that of the market's, you give yourself a tremendous advantage.
It's certainly possible that stocks could continue to fall from current prices, but it's very likely they will recover and move higher given enough time. In fact, the market has never failed to reclaim an all-time high, so history is on your side.
By focusing on buying stocks that trade below their intrinsic value as well as those with strong brand loyalty, you can emulate the Oracle of Omaha and emerge from this bear market as a winner.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 2, 2022
Mark Blank has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is likely why Berkshire Hathaway added to its position of Apple (NASDAQ: AAPL) stock, which now represents over 40% of its total equities portfolio. He bought his first stock at age 11, and his holding company Berkshire Hathaway (NYSE: BRK.A) has generated an average annual return of over 20% for shareholders dating back to 1965. And with $100 billion in cash and short-term Treasury bills on Berkshire's balance sheet, I'd be willing to bet we'll see a whole lot more buying when the company releases its second-quarter 13F filing in mid-August.
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This is likely why Berkshire Hathaway added to its position of Apple (NASDAQ: AAPL) stock, which now represents over 40% of its total equities portfolio. According to the company's mid-May 13F filing, Berkshire Hathaway spent over $50 billion buying up stocks as prices came down significantly. Consider Berkshire Hathaway's recent $1 billion investment in Celanese Corporation (NYSE: CE).
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This is likely why Berkshire Hathaway added to its position of Apple (NASDAQ: AAPL) stock, which now represents over 40% of its total equities portfolio. Stocks look very cheap A part of Buffett's investing strategy focuses on buying stocks below their intrinsic value, and with the recent decline, there are plenty of cheap stocks out there right now. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Mark Blank has no position in any of the stocks mentioned.
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This is likely why Berkshire Hathaway added to its position of Apple (NASDAQ: AAPL) stock, which now represents over 40% of its total equities portfolio. Consider Berkshire Hathaway's recent $1 billion investment in Celanese Corporation (NYSE: CE). That's right -- they think these 10 stocks are even better buys.
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20020.0
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2022-07-28 00:00:00 UTC
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US STOCKS-Futures fall on Meta, Qualcomm forecasts ahead of GDP data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-on-meta-qualcomm-forecasts-ahead-of-gdp-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures down: Dow 0.17%, S&P 0.28%, Nasdaq 0.63%
July 28 (Reuters) - U.S. stock index futures fell on Thursday led by Nasdaq as gloomy forecasts from Meta and Qualcomm soured the mood ahead of data which could likely show a slight rebound in U.S. economic growth in the second quarter.
Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets ahead of the Commerce Department's advance second-quarter GDP report, which will however, still show that the economy was losing momentum.
A Reuters survey of economists showed GDP growth likely rebounded at a 0.5% annualized rate last quarter, following a negative reading for the first three months of the year.
Two consecutive quarters of declines in growth are traditionally considered a recession, but the private research group that is the official arbiter of U.S. recessions looks at a broad range of indicators instead, including jobs and spending.
"We don't think we're in a recession, but there is a risk that you get that headline of two negative quarters, mainly because of exports and inventories," said Willem Sels, HSBC's global chief investment officer for private banking and wealth.
"I think the market is pricing in a small contraction, so I don't think investors will be spooked by it, but from a broader set of indicators that we're looking at, it's clear that we're still slowing."
Worries of a recession hit Meta Platforms Inc META.O shares, which fell 5.3% in premarket trading after it posted its first ever quarterly drop in revenue.
Qualcomm Inc QCOM.O fell 3.7% after it warned that difficult economic conditions and a slowdown in smartphone demand could hit its mainstay handset chips business.
Other technology and high-growth stocks led declines, with Apple Inc AAPL.O off 0.6% and Amazon.com Inc AMZN.O down 0.9% ahead of their quarterly reports after market close.
The Nasdaq index .IXIC clocked its biggest daily percentage gain since April 2020 on Wednesday after the U.S. Federal Reserve raised interest rates as expected and comments by Fed Chairman Jerome Powell eased some investor worries about the pace of rate hikes.
The U.S. central bank's tightening cycle has hammered mega cap stocks as future cash flows, on which valuations of these companies rest, are discounted heavily when rates rise.
At 6:46 a.m. ET, Dow e-minis 1YMcv1 were down 56 points, or 0.17%, S&P 500 e-minis EScv1 were down 11.25 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were down 79 points, or 0.63%.
Ford Motor Co F.N rose 5.6% after it reported a better-than-expected quarterly net income.
(Reporting by Aniruddha Ghosh & Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
((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.
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Other technology and high-growth stocks led declines, with Apple Inc AAPL.O off 0.6% and Amazon.com Inc AMZN.O down 0.9% ahead of their quarterly reports after market close. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets ahead of the Commerce Department's advance second-quarter GDP report, which will however, still show that the economy was losing momentum. "We don't think we're in a recession, but there is a risk that you get that headline of two negative quarters, mainly because of exports and inventories," said Willem Sels, HSBC's global chief investment officer for private banking and wealth.
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Other technology and high-growth stocks led declines, with Apple Inc AAPL.O off 0.6% and Amazon.com Inc AMZN.O down 0.9% ahead of their quarterly reports after market close. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures down: Dow 0.17%, S&P 0.28%, Nasdaq 0.63% July 28 (Reuters) - U.S. stock index futures fell on Thursday led by Nasdaq as gloomy forecasts from Meta and Qualcomm soured the mood ahead of data which could likely show a slight rebound in U.S. economic growth in the second quarter. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets ahead of the Commerce Department's advance second-quarter GDP report, which will however, still show that the economy was losing momentum.
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Other technology and high-growth stocks led declines, with Apple Inc AAPL.O off 0.6% and Amazon.com Inc AMZN.O down 0.9% ahead of their quarterly reports after market close. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures down: Dow 0.17%, S&P 0.28%, Nasdaq 0.63% July 28 (Reuters) - U.S. stock index futures fell on Thursday led by Nasdaq as gloomy forecasts from Meta and Qualcomm soured the mood ahead of data which could likely show a slight rebound in U.S. economic growth in the second quarter. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets ahead of the Commerce Department's advance second-quarter GDP report, which will however, still show that the economy was losing momentum.
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Other technology and high-growth stocks led declines, with Apple Inc AAPL.O off 0.6% and Amazon.com Inc AMZN.O down 0.9% ahead of their quarterly reports after market close. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures down: Dow 0.17%, S&P 0.28%, Nasdaq 0.63% July 28 (Reuters) - U.S. stock index futures fell on Thursday led by Nasdaq as gloomy forecasts from Meta and Qualcomm soured the mood ahead of data which could likely show a slight rebound in U.S. economic growth in the second quarter. A Reuters survey of economists showed GDP growth likely rebounded at a 0.5% annualized rate last quarter, following a negative reading for the first three months of the year.
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20021.0
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2022-07-28 00:00:00 UTC
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EXCLUSIVE-EU mulls new unit with antitrust veterans to enforce tech rules - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-eu-mulls-new-unit-with-antitrust-veterans-to-enforce-tech-rules-sources-0
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said.
Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA).
The landmark rules, agreed in March, will go into force next year. They will bar the companies from setting their own products as preferences, forcing app developers to use their payment systems, and leveraging users' data to push competing services.
The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said.
Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
Both officials are already liasing with those at the Commission's Directorate-General for Communications Networks, Content and Technology which will jointly enforce the DMA, a third person said.
Bacchiega and Kramler could not be reached for comment as they are away on their summer holiday.
The EU executive said it was organising itself internally so that it can enforce the DMA effectively.
"The enforcement of the DMA is estimated to require approximately 80 staff who would be redeployed internally, as appropriate," a spokeswoman said.
"The internal organisation will be based on the relevant expertise of all DGs (directorate-generals) and services involved, and ensure appropriate staffing of the relevant DGs and services," she said.
(Reporting by Foo Yun Chee; Editing by Hugh Lawson)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said. Both officials are already liasing with those at the Commission's Directorate-General for Communications Networks, Content and Technology which will jointly enforce the DMA, a third person said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
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20022.0
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2022-07-28 00:00:00 UTC
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US STOCKS-Wall Street drops as shrinking economy brings recession closer
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-as-shrinking-economy-brings-recession-closer
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nan
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nan
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By Shreyashi Sanyal and Aniruddha Ghosh
July 28 (Reuters) - U.S. stock indexes fell on Thursday weighed down by gloomy forecasts from Meta and Qualcomm, while an early reading showed the U.S. economy contracted again in the second quarter adding to fears the economy was already in recession.
Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets, after gross domestic product fell at a 0.9% annualized rate last quarter, the Commerce Department said in its advance GDP estimate.
A Reuters survey of economists showed GDP growth likely rebounded at a 0.5% annualized rate last quarter.
"Today's reading only adds fuel to the fire that we are in or entering a recession," said Mike Loewengart, managing director at E*Trade from Morgan Stanley.
"While it is certainly on the negative side of estimates, keep in mind that a 1% decrease is relatively small and supports the idea that any recessionary environment will be mild."
Two consecutive quarters of declines in growth are traditionally considered a recession, but the private research group that is the official arbiter of U.S. recessions looks at a broad range of indicators instead, including jobs and spending.
Worries of a recession hit Meta Platforms Inc META.O shares, which fell 7.6% after posting its first-ever quarterly drop in revenue.
Qualcomm Inc QCOM.O fell 5.3% after it warned that difficult economic conditions and a slowdown in smartphone demand could hit its mainstay handset chips business.
Shares of Apple Inc AAPL.O fell 0.7%, while Amazon.com Inc AMZN.O shed 1.4% ahead of their quarterly reports after market close.
The Nasdaq .IXIC clocked its biggest daily percentage gain since April 2020 on Wednesday after the U.S. Federal Reserve raised interest rates as expected and comments by Fed Chairman Jerome Powell eased some investor worries about the pace of rate hikes.
The U.S. central bank's tightening cycle has hammered mega-cap stocks as future cash flows, on which valuations of these companies rest, are discounted heavily when rates rise.
At 10:00 a.m. ET the Dow Jones Industrial Average .DJI was down 121.60 points, or 0.38%, at 32,075.99, the S&P 500 .SPX was down 15.35 points, or 0.38%, at 4,008.26, and the Nasdaq Composite .IXIC was down 84.78 points, or 0.70%, at 11,947.64.
Defensive sectors, including S&P 500 utilities .SPLRCU and real estate .SPLRCR gained over 1% each in early trading, pointing to a largely risk-off day.
Ford Motor Co F.N gained 3.5% after reporting a better-than-expected quarterly net income.
Advancing issues outnumbered decliners for a 1.30-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.33-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 30 new lows, while the Nasdaq recorded 38 new highs and 41 new lows.
(Reporting by Aniruddha Ghosh and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
((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.
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Shares of Apple Inc AAPL.O fell 0.7%, while Amazon.com Inc AMZN.O shed 1.4% ahead of their quarterly reports after market close. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets, after gross domestic product fell at a 0.9% annualized rate last quarter, the Commerce Department said in its advance GDP estimate. "Today's reading only adds fuel to the fire that we are in or entering a recession," said Mike Loewengart, managing director at E*Trade from Morgan Stanley.
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Shares of Apple Inc AAPL.O fell 0.7%, while Amazon.com Inc AMZN.O shed 1.4% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - U.S. stock indexes fell on Thursday weighed down by gloomy forecasts from Meta and Qualcomm, while an early reading showed the U.S. economy contracted again in the second quarter adding to fears the economy was already in recession. Advancing issues outnumbered decliners for a 1.30-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.33-to-1 ratio on the Nasdaq.
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Shares of Apple Inc AAPL.O fell 0.7%, while Amazon.com Inc AMZN.O shed 1.4% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - U.S. stock indexes fell on Thursday weighed down by gloomy forecasts from Meta and Qualcomm, while an early reading showed the U.S. economy contracted again in the second quarter adding to fears the economy was already in recession. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets, after gross domestic product fell at a 0.9% annualized rate last quarter, the Commerce Department said in its advance GDP estimate.
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Shares of Apple Inc AAPL.O fell 0.7%, while Amazon.com Inc AMZN.O shed 1.4% ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 28 (Reuters) - U.S. stock indexes fell on Thursday weighed down by gloomy forecasts from Meta and Qualcomm, while an early reading showed the U.S. economy contracted again in the second quarter adding to fears the economy was already in recession. A Reuters survey of economists showed GDP growth likely rebounded at a 0.5% annualized rate last quarter.
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20023.0
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2022-07-28 00:00:00 UTC
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The Warren Buffett Quote to Remember in a Bear Market
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AAPL
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https://www.nasdaq.com/articles/the-warren-buffett-quote-to-remember-in-a-bear-market
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nan
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nan
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Warren Buffett is widely regarded as one of the greatest investors alive, and with good reason. He has delivered excellent returns in the past several decades as the CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). That's why it pays to listen to his investing takes, especially when the market is experiencing a downturn.
What can Buffett's wisdom teach us about investing in an environment as tricky as the one we are currently in? Let's consider one famous quote from the Oracle of Omaha and how investors can apply it today.
Image source: Getty Images.
A warning against following the crowd
Choosing a favorite from one of the many famous sayings attributed to Buffett is no easy task. But there is one that stands out for me. In a letter to Berkshire Hathaway's shareholders he penned in 1986, Buffett said his and his team's goal was to "be fearful when others are greedy and to be greedy only when others are fearful."
It is precisely when the stock market crashes that most investors are fearful, as evidenced by the fact that even quality companies often don't escape the sell-off. That also means it is the best time to be greedy if we follow Buffett's advice. Investors can do so by scooping up shares of excellent companies trading at a discount due to panic-selling. There are plenty of fantastic options, including one of Buffett's favorite stocks: tech giant Apple (NASDAQ: AAPL). Here's why the iPhone maker remains a buy.
Apple isn't done beating the market
Apple hasn't escaped the broader market sell-off this year, although it is performing better than the S&P 500, at least as of this writing. The company's business was harmed due to economic problems, including supply chain issues that affected its ability to meet the demand for some of its products. It's difficult to predict what will transpire next. The economy and the stock market could tank even more, affecting companies like Apple. But these are short-term issues investors should look beyond, especially considering there is still a strong case for Apple's long-term prospects.
One reason Apple's future still looks promising is its growing services segment. Once people are plugged into the tech giant's network of devices and offerings -- including Apple Pay, Apple TV, Apple Music, and iCloud -- it becomes hard to leave. Apple's customers rely on these services to collect pictures, contacts, music, and data; watch shows, and pay for products and services in thousands of stores. While it is possible to transfer much of this data, sticking with Apple is much easier and more convenient. In other words, the company's services segment benefits from high switching costs.
This business unit generally records much juicier profits than Apple's products segment. What does that mean for the company's future? As the services unit grows in importance for Apple, so will the company's margins. Naturally, it isn't like Apple's products business is dead in the water. The company has proven its ability to innovate and stay on par with -- if not ahead of -- the competition.
Apple still generates billions from iPhone sales. Furthermore, it still benefits from a powerful brand name -- it was named the world's most valuable brand of 2021 by a U.K.-based brand valuation consulting company called Brand Finance. Economic issues may continue to harm the tech giant's business, and shares could fall even more. But whether or not they do, Apple looks like a solid pick.
The market rewards patience
Following Buffett's advice by being greedy when others are fearful pays off. History shows that the stock market always recovers following a downturn, and those with the presence of mind to invest shrewdly when equities are down tend to make a lot of money. Right now, Apple is a great candidate, considering the company's solid moat and its services segment, which is gaining importance. Those who get in on this tech stock today will be thanking themselves in five years.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There are plenty of fantastic options, including one of Buffett's favorite stocks: tech giant Apple (NASDAQ: AAPL). It is precisely when the stock market crashes that most investors are fearful, as evidenced by the fact that even quality companies often don't escape the sell-off. The company's business was harmed due to economic problems, including supply chain issues that affected its ability to meet the demand for some of its products.
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There are plenty of fantastic options, including one of Buffett's favorite stocks: tech giant Apple (NASDAQ: AAPL). Once people are plugged into the tech giant's network of devices and offerings -- including Apple Pay, Apple TV, Apple Music, and iCloud -- it becomes hard to leave. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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There are plenty of fantastic options, including one of Buffett's favorite stocks: tech giant Apple (NASDAQ: AAPL). Apple isn't done beating the market Apple hasn't escaped the broader market sell-off this year, although it is performing better than the S&P 500, at least as of this writing. Once people are plugged into the tech giant's network of devices and offerings -- including Apple Pay, Apple TV, Apple Music, and iCloud -- it becomes hard to leave.
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There are plenty of fantastic options, including one of Buffett's favorite stocks: tech giant Apple (NASDAQ: AAPL). That's why it pays to listen to his investing takes, especially when the market is experiencing a downturn. The company's business was harmed due to economic problems, including supply chain issues that affected its ability to meet the demand for some of its products.
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20024.0
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2022-07-28 00:00:00 UTC
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EXCLUSIVE-EU mulls new unit with antitrust veterans to enforce tech rules - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-eu-mulls-new-unit-with-antitrust-veterans-to-enforce-tech-rules-sources
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said.
Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA).
The landmark rules, agreed in March, will go into force next year. They will bar the companies from setting their own products as preferences, forcing app developers to use their payment systems, and leveraging users' data to push competing services.
The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said.
Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
Both officials are already liasing with those at the Commission's Directorate-General for Communications Networks, Content and Technology which will jointly enforce the DMA, a third person said.
The EU executive said it was organising itself internally so that it can enforce the DMA effectively.
"The enforcement of the DMA is estimated to require approximately 80 staff who would be redeployed internally, as appropriate," a spokeswoman said.
"The internal organisation will be based on the relevant expertise of all DGs (directorate-generals) and services involved, and ensure appropriate staffing of the relevant DGs and services," she said.
(Reporting by Foo Yun Chee; Editing by Hugh Lawson)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said. Both officials are already liasing with those at the Commission's Directorate-General for Communications Networks, Content and Technology which will jointly enforce the DMA, a third person said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. The new directorate at the Commission's powerful antitrust arm may be headed by Alberto Bacchiega, director of information, communication and media, in charge of antitrust and merger cases involving the tech, media and consumer electronics industries, one of the people said.
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Such a move could ease concerns that the EU competition watchdog may struggle to get technology giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Meta FB.O and Microsoft MSFT.O to comply with the Digital Markets Act (DMA). By Foo Yun Chee BRUSSELS, July 28 (Reuters) - The European Commission is considering creating a new directorate that may be headed by two top antitrust officials to enforce tough new rules aimed at reining in the powers of Big Tech, two people familiar with the matter said. Bacchiega could also be assisted by Thomas Kramler, head of the unit dealing with antitrust cases in e-commerce and data economy, and currently spearheading investigations into Apple and Amazon, the person said.
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20025.0
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2022-07-28 00:00:00 UTC
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Apple (AAPL) Q3 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-q3-earnings%3A-what-to-expect
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nan
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nan
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C
an Apple (AAPL) ever return to its glory days of high growth? Estimates for the next five years has Apple growing in only single digits. Apple's iPhone revenues increased only 5.5% in Q2 due to supply chain disruptions and lockdown in China, its second-largest market.
Operating headwinds have also been compounded by uncertainty related to global growth slowdown, rising inflation and interest rates. Meanwhile, Apple stock has has fallen 13% year to date, though they have risen 12.5% in thirty days. Overall, Apple stock has held relatively well during the market selloff. Can that outperformance continue? That answer will be more clear when the company reports third quarter fiscal 2022 earnings results after the closing bell Thursday.
The tech giant should meet its Q3 estimates, according to Wedbush Securities analyst Dan Ives, who has an Outperform rating on Apple stock. “Demand for the iPhone is holding up slightly better than expected," Ives noted, though he cautioned that weakness is still expected ahead of the fall launch of the iPhone 14. "Apple is continuing to focus on a robust product pipeline and services ramp into 2023 including what we believe will be the highly anticipated AR/VR headset release," Ives wrote in a note to clients.
However, Morgan Stanley analyst Katy Huberty said that potential weakness in the company's Mac and services segments could more than offset "solid iPhone results.” Huberty lowered her price target on Apple stock to $180 from $185, citing weak iPad and Mac sales which she expects to be down by 7% and 26%, respectively, from the first quarter. While Apple stock has rebounded strongly over the past month, rising almost 15%, the shares are still down almost 13% year to date. Investors are hoping for more clarity and conviction on the bullish thesis on Thursday.
In the three months that ended June, Wall Street expect the Cupertino, Calif.-based tech giant to earn $1.16 per share on revenue of $82.83 billion. This compares to the year-ago quarter when earnings came to $1.30 per share on revenue of $81.43 billion. For the full year, ending September, earnings are expected to rise 10% year over year to $6.13 per share, while full-year revenue of $393.53 billion will rise 7.6% year over year.
The revenue slowdown is one major overhang for Apple, particularly in the hardware segment (iPhones, Mac, iPad and Wearables) which in Q2 rose at a rate of 6.6% year over year, marking a meaningful growth deceleration from the 61% surge in the year-earlier quarter. It also doesn’t help that interest rates continue to rise, while inflation is also running hot, which have pressured iPhone sales. For the long term, however, Apple’s revenue growth capability is not in question. Apple has navigated through these headwinds before.
Apple’s Services business, which now accounts for some 30% of total revenue, and produces higher profit margins, is expected to offset weakness in hardware. In the second quarter, Services revenue came in at $19.8 billion, reaching an all-time high, thanks to 25% surge in subscribers which reached 825 million, up from 785 million in Q1 and from 660 million in the prior year. The results help the company earn an adjusted EPS of $1.52 for the Q2, while revenue came in at $97.28 billion, beating the $1.43 per share on $94 billion in revenue analysts were looking for.
Despite supply chain shortages, Apple produced iPhone revenue of $50.57 billion, rising from $47.9 billion in the year-ago quarter, driven by strong demand for the iPhone 13 lineup. Investors on Thursday will focus on the company’s guidance for clues suggesting improvements in supply chains as well as Apple’s new devices.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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an Apple (AAPL) ever return to its glory days of high growth? The tech giant should meet its Q3 estimates, according to Wedbush Securities analyst Dan Ives, who has an Outperform rating on Apple stock. "Apple is continuing to focus on a robust product pipeline and services ramp into 2023 including what we believe will be the highly anticipated AR/VR headset release," Ives wrote in a note to clients.
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an Apple (AAPL) ever return to its glory days of high growth? Operating headwinds have also been compounded by uncertainty related to global growth slowdown, rising inflation and interest rates. For the full year, ending September, earnings are expected to rise 10% year over year to $6.13 per share, while full-year revenue of $393.53 billion will rise 7.6% year over year.
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an Apple (AAPL) ever return to its glory days of high growth? For the full year, ending September, earnings are expected to rise 10% year over year to $6.13 per share, while full-year revenue of $393.53 billion will rise 7.6% year over year. The revenue slowdown is one major overhang for Apple, particularly in the hardware segment (iPhones, Mac, iPad and Wearables) which in Q2 rose at a rate of 6.6% year over year, marking a meaningful growth deceleration from the 61% surge in the year-earlier quarter.
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an Apple (AAPL) ever return to its glory days of high growth? For the full year, ending September, earnings are expected to rise 10% year over year to $6.13 per share, while full-year revenue of $393.53 billion will rise 7.6% year over year. Despite supply chain shortages, Apple produced iPhone revenue of $50.57 billion, rising from $47.9 billion in the year-ago quarter, driven by strong demand for the iPhone 13 lineup.
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20026.0
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2022-07-28 00:00:00 UTC
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Here's Why Disney's Latest Price Hike Could Backfire
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AAPL
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https://www.nasdaq.com/articles/heres-why-disneys-latest-price-hike-could-backfire
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nan
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nan
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Live sports are steadily growing in importance within the streaming industry, with multiple platforms engaging in bidding wars for broadcasting rights. Disney (NYSE: DIS) has dominated the market since its sports streaming service ESPN+ launched in 2018, but a recent price hike could backfire on the company. Here's why Disney might lose subscribers after raising the price of ESPN+.
Increased competition
Disney announced a price hike coming to ESPN+ in mid-July, with the increase set to take place on Aug. 23. The new price is a rise of 43%, jumping from $6.99 a month to $9.99. The company reasoned that the rise in cost will "add significantly to both live sports and original programs and series." Although the platform has recently added content such as 75 regular-season National Hockey League games in 2021, and golf program PGA Tour Live in January, ESPN+ has significant holes in its programming that competing services are offering.
Football is the biggest sport in the U.S., with an average audience of 114.3 million domestic views from 2021 to 2022 -- 6.7 times more watched than basketball, the third biggest U.S. sport. Yet neither the National Football League (NFL) nor the National Basketball League (NBA) can be streamed on ESPN+. The NFL recently launched its own streaming service with NFL+, which costs $4.99/month. Amazon (NASDAQ: AMZN) has also entered the market by adding Thursday Night Football to Prime Video. The company paid $1 billion for exclusive rights to stream 15 NFL games for 11 years starting in 2022.
One of the top ten most popular sports in the U.S. from 2021 to 2022 was soccer, and ESPN+ does well to offer subscribers access to one of the most popular leagues in the U.S., La Liga, which received an average of 301,000 viewers per match in 2021. However, the service does not cater to soccer fans of the most popular league in the U.S., the Premier League, which averaged 507,000 views in 2021. For streaming access to that U.K. league, consumers must subscribe to Comcast's (NASDAQ: CMCSA) Peacock.
If many sports fans subscribe to services to keep up with one specific sport rather than a variety, increased competition in the sports streaming industry could drive subscribers away from ESPN+, with the price increase being the push they need to find their favorite programming elsewhere.
Poor value
ESPN+ offers a wide selection of sports, with its most attractive offering being Major League Baseball (MLB). Baseball pulled in 68.48 million U.S. views in 2021, making it the second-most-watched sport in the country. The MLB is a major asset to ESPN+; however, it is the only sport ESPN+ offers among the top five most popular sports in the U.S. in 2021. Considerably smaller national viewing numbers for many of its other offerings, such as UFC matches, tennis, cricket, and others, suggest the service doesn't offer enough major leagues for its new price tag of $9.99.
For the same price, soccer fans could subscribe to Peacock for $4.99/month, gaining access to the Premier League, and Apple's (NASDAQ: AAPL) Apple TV+ for $4.99/month to watch every Major League Soccer game starting in August. Subscribing to these two platforms would provide soccer fans access to two of the most watched leagues in the U.S. and an extensive library of films and TV shows from both services.
The rise of major leagues launching streaming services will also lessen the value of ESPN+. NFL+ is incredibly competitive at $4.99/month, especially for fans with an exclusive interest in football. Another sport rising in popularity in the U.S. and not available on ESPN+ is Formula 1. The sport can be watched with a subscription to F1 TV for as little as $2.99 a month or $26.99 a year.
For ESPN+, what's next?
The saving grace for ESPN+ will be the Disney bundle, which costs $13.99/month for the sports streamer, Disney+, and Hulu. The bundle is not affected by the price rise and could help retain some subscribers to ESPN+. However, consumers interested in specific sports or major leagues besides MLB are still likely to seek competing services.
As Disney, with ESPN+, continues to compete in the growing market for live-streaming sports, the company should push its bundle as much as possible. The monthly cost of $13.99 is still cheaper than paying for Disney+ and Hulu separately, allowing consumers to see ESPN+ as a free bonus while Disney boosts its subscribers to the sports service.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Walt Disney. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the same price, soccer fans could subscribe to Peacock for $4.99/month, gaining access to the Premier League, and Apple's (NASDAQ: AAPL) Apple TV+ for $4.99/month to watch every Major League Soccer game starting in August. Live sports are steadily growing in importance within the streaming industry, with multiple platforms engaging in bidding wars for broadcasting rights. Disney (NYSE: DIS) has dominated the market since its sports streaming service ESPN+ launched in 2018, but a recent price hike could backfire on the company.
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For the same price, soccer fans could subscribe to Peacock for $4.99/month, gaining access to the Premier League, and Apple's (NASDAQ: AAPL) Apple TV+ for $4.99/month to watch every Major League Soccer game starting in August. The Motley Fool has positions in and recommends Amazon, Apple, and Walt Disney. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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For the same price, soccer fans could subscribe to Peacock for $4.99/month, gaining access to the Premier League, and Apple's (NASDAQ: AAPL) Apple TV+ for $4.99/month to watch every Major League Soccer game starting in August. If many sports fans subscribe to services to keep up with one specific sport rather than a variety, increased competition in the sports streaming industry could drive subscribers away from ESPN+, with the price increase being the push they need to find their favorite programming elsewhere. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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For the same price, soccer fans could subscribe to Peacock for $4.99/month, gaining access to the Premier League, and Apple's (NASDAQ: AAPL) Apple TV+ for $4.99/month to watch every Major League Soccer game starting in August. If many sports fans subscribe to services to keep up with one specific sport rather than a variety, increased competition in the sports streaming industry could drive subscribers away from ESPN+, with the price increase being the push they need to find their favorite programming elsewhere. The rise of major leagues launching streaming services will also lessen the value of ESPN+.
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20027.0
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2022-07-28 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-2
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Russell 1000 ETF (IWB) is a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $27.76 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 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.36%.
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 27.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.91% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 24.68% of total assets under management.
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has lost about -16.40% so far this year and is down about -9.43% in the last one year (as of 07/28/2022). In the past 52-week period, it has traded between $201.03 and $266.11.
The ETF has a beta of 1.02 and standard deviation of 24.40% for the trailing three-year period, making it a medium risk choice in the space. With about 1027 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWB is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $297.42 billion in assets, SPDR S&P 500 ETF has $365.17 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell 1000 ETF (IWB): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.91% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Russell 1000 ETF (IWB) is a passively managed exchange traded fund launched on 05/15/2000.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.91% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Russell 1000 ETF (IWB) is a passively managed exchange traded fund launched on 05/15/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.91% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.91% 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 $27.76 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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20028.0
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2022-07-28 00:00:00 UTC
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Warren Buffett Bought More Apple Stock. Should Investors Follow Suit?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-bought-more-apple-stock.-should-investors-follow-suit
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nan
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nan
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In today's market, it's not easy to find a technology company performing at a high level, but Apple (NASDAQ: AAPL) continues to be one of the few to do so. The iPhone maker, which represents 40% of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) investment portfolio, has outperformed financially of late despite shedding 16.7% of its value since the start of the year.
This has created a unique buying opportunity for shrewd investors -- at least that's what Berkshire Hathaway CEO Warren Buffett seems to think. The "Oracle of Omaha's" company bought $600 million worth of Apple stock during the first quarter of 2022, and I wouldn't be surprised to see the star stock picker scoop up additional shares if it continues to move lower in the coming trading sessions.
Should investors follow Buffett and purchase Apple stock right now?
Image source: Getty Images.
Apple's business is on the up and up
Apple delivered a strong outing in its second quarter of 2022, increasing both its top and bottom lines by 8.6% year over year, up to $97.3 billion and $1.52 per share, respectively. Profitability held up nicely as well, despite a range of macroeconomic headwinds -- its gross margin expanded 124 basis points to finish at 43.7%, and its operating margin increased 12 basis points to end at 30.8%.
But the real reason to consider investing in Apple right now -- and I think Buffett would agree -- is its superior balance sheet and cash-flow generation. As of its most recent quarter, the company boasts a cash and cash equivalents position of $28.1 billion. And the iPhone maker continues to generate cash at a red-hot pace, producing $105.8 billion in free cash flow (FCF) over the past year. For a business, having a lot of cash provides financial flexibility, which allows companies to invest in growth all while staying protected during economic downturns.
Apple is set to report its fiscal third-quarter earnings on Thursday, July 28. Wall Street analysts are expecting the tech behemoth to grow its top line by only 1.4% year over year, up to $82.6 billion, and its earnings per share to retreat 10.8% to $1.16. For the full year, however, the Street forecasts the company's top and bottom lines to expand by 7.6% and 9.3%, respectively. Not only are those solid growth rates for a business of Apple's magnitude, but the company's valuation is also starting to appear quite enticing. Today, its price-to-earnings multiple of 24.6 is inching closer to its five-year mean of 23.1. Whenever a top-notch stock nears its historical valuation, it's usually a wise idea for investors to take a look.
Should investors follow Buffett's lead?
Apple is a surefire play in today's market environment, in my opinion. Its steady financial performance, combined with its elite balance sheet and tumbling valuation, make it much safer than most technology stocks at the moment. The company has built an empire that has resulted in a wide moat and a remarkably durable business model, which is surely a key reason why Warren Buffett is invested so fiercely in the stock. Although it's important to do your own research, it wouldn't be unwise to follow Buffett's lead and purchase shares of the technology giant today.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Luke Meindl has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's market, it's not easy to find a technology company performing at a high level, but Apple (NASDAQ: AAPL) continues to be one of the few to do so. Its steady financial performance, combined with its elite balance sheet and tumbling valuation, make it much safer than most technology stocks at the moment. The company has built an empire that has resulted in a wide moat and a remarkably durable business model, which is surely a key reason why Warren Buffett is invested so fiercely in the stock.
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In today's market, it's not easy to find a technology company performing at a high level, but Apple (NASDAQ: AAPL) continues to be one of the few to do so. The iPhone maker, which represents 40% of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) investment portfolio, has outperformed financially of late despite shedding 16.7% of its value since the start of the year. Should investors follow Buffett and purchase Apple stock right now?
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In today's market, it's not easy to find a technology company performing at a high level, but Apple (NASDAQ: AAPL) continues to be one of the few to do so. The "Oracle of Omaha's" company bought $600 million worth of Apple stock during the first quarter of 2022, and I wouldn't be surprised to see the star stock picker scoop up additional shares if it continues to move lower in the coming trading sessions. Should investors follow Buffett and purchase Apple stock right now?
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In today's market, it's not easy to find a technology company performing at a high level, but Apple (NASDAQ: AAPL) continues to be one of the few to do so. Should investors follow Buffett and purchase Apple stock right now? For a business, having a lot of cash provides financial flexibility, which allows companies to invest in growth all while staying protected during economic downturns.
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20029.0
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2022-07-28 00:00:00 UTC
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Is WisdomTree U.S. LargeCap Dividend ETF (DLN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-dividend-etf-dln-a-strong-etf-right-now-4
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nan
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nan
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The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Wisdomtree, DLN has amassed assets over $3.46 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
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 0.28%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.35%.
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 in the Healthcare sector - about 17.80% of the portfolio. Consumer Staples and Information Technology round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL).
The top 10 holdings account for about 29.54% of total assets under management.
Performance and Risk
The ETF has lost about -6.60% so far this year and is up about 1.77% in the last one year (as of 07/28/2022). In the past 52-week period, it has traded between $57.22 and $66.91.
DLN has a beta of 0.90 and standard deviation of 23.01% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend 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 $52.62 billion in assets, Vanguard Value ETF has $96.65 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
WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. LargeCap Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report 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.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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20030.0
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2022-07-28 00:00:00 UTC
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Apple Q3 22 Earnings Conference Call At 5:00 PM ET
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AAPL
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https://www.nasdaq.com/articles/apple-q3-22-earnings-conference-call-at-5%3A00-pm-et
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on July 28, 2022, to discuss Q3 22 earnings results.
To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on July 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on July 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on July 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on July 28, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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20031.0
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2022-07-28 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Quanex, Taiwan Semiconductor, Kronos, Apple, Nvidia and Advanced Micro Devices
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-quanex-taiwan-semiconductor-kronos-apple-nvidia
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For Immediate Release
Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, Kronos Worldwide KRO, Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD.
3 Highly-Ranked Stocks With Stellar Projected Growth
It’s undoubtedly been a rough year to be an investor so far. A challenging macroeconomic backdrop has caused widespread margin compression, leaving stocks to tumble.
However, the general market’s performance over the last month is a major positive, signaling that bears could be tiring out.
The chart below illustrates the S&P 500’s performance over the last month.
Now that we’re finally seeing some buyers return, it’s beneficial for investors to carry strong stocks with robust growth projections.
Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products, Taiwan Semiconductor Manufacturing, and Kronos Worldwide.
The chart below illustrates the share performance of all three companies over the last year while blending in the S&P 500 as a benchmark.
Let’s get into why these companies would be solid bets moving forward.
Quanex Building Products
Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
Analysts have been raising their earnings outlook across nearly all timeframes, helping push the company into the highly-coveted Zacks Rank #1 (Strong Buy).
The company’s projected top and bottom-line growth rates are stellar.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $2.35, penciling in a sizable double-digit 35% expansion in the bottom-line year-over-year.
Projected top-line growth is also rock-solid; Quanex Building Products is projected to generate $1.2 billion in sales in FY22, good enough for an 11% uptick in annual revenue from FY21.
The chart below illustrates the company’s revenue on a quarterly basis.
In addition, NX sports enticing valuation metrics, bolstered by its Style Score of an A for Value. Its 10.3X forward earnings multiple is well below its five-year median of 18.6X and represents an attractive 42% discount relative to the S&P 500.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple, Nvidia, and Advanced Micro Devices.
Analysts have been bullish across all timeframes over the last 60 days, landing the company into a Zacks Rank #1 (Strong Buy).
Top and bottom-line forecasts allude to serious growth.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $6.30, notching a stellar 53% expansion of the bottom-line year-over-year.
The growth doesn’t stop there – TSM is forecasted to generate a mighty $77.8 billion in revenue in FY22, good enough for a 37% double-digit uptick from FY21 sales of $56.8 billion.
Additionally, TSM sports an enticing 13.4X forward earnings multiple, nowhere near its five-year median of 19.9X and representing a substantial 24% discount relative to the general market.
Kronos Worldwide
Kronos Worldwide is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness, and opacity. The company is a Zacks Rank #2 (Buy).
Kronos has been on a nice earnings streak, exceeding the Zacks Consensus EPS Estimate by an average of 24% over the last four quarters and recording an impressive 78% bottom-line beat in its latest earnings release.
In addition, KRO is forecasted to grow at a breakneck pace.
For the current fiscal year, the Zacks Consensus EPS Estimate resides at $2.06, displaying a jaw-dropping triple-digit growth in earnings year-over-year of more than 110%.
Top-line growth is also remarkable; Kronos is projected to generate $2.3 billion in revenue for the current fiscal year (FY22), penciling in a rock-solid 16% increase in annual sales year-over-year.
KRO’s Style Score of an A for Value indicates that shares could be undervalued.
The company’s forward earnings multiple sits enticingly at 8.4X, a fraction of its five-year median value of 14.2X. In addition, shares trade at a steep 52% discount relative to the general market.
Bottom Line
The rebound is long overdue, with buyers returning and pushing bears back into hibernation. As we continue to navigate the rough economic waters we’ve found ourselves in, market participants are hopeful this recent strength can continue.
Of course, you want to have strong stocks in your portfolio.
All three stocks above have stellar projected growth rates, strong Zacks Ranks, and enticing valuation levels, making them attractive to any investor.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Quanex Building Products Corporation (NX): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, Kronos Worldwide KRO, Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products, Taiwan Semiconductor Manufacturing, and Kronos Worldwide.
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For Immediate Release Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, Kronos Worldwide KRO, Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products, Taiwan Semiconductor Manufacturing, and Kronos Worldwide.
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For Immediate Release Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, Kronos Worldwide KRO, Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report All three stocks above have stellar projected growth rates, strong Zacks Ranks, and enticing valuation levels, making them attractive to any investor.
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For Immediate Release Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, Kronos Worldwide KRO, Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report The chart below illustrates the S&P 500’s performance over the last month.
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20032.0
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2022-07-28 00:00:00 UTC
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Why Apple Stock May Outperform in a Recession
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-may-outperform-in-a-recession
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nan
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nan
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Shares of Apple (AAPL) have been leading the markets higher over the past few weeks, now up around 21% from their bottom of around $129 per share. With quarterly earnings up ahead, it will be "make or break" for its latest relief rally. Fortunately, management already cautioned of supply-chain constraints as a result of China's COVID-19 restrictions and the impact of lost sales from a Russian pullout.
Undoubtedly, Apple is a dominant force in the premium smartphone market. While the smartphone market's growth isn't as hot as it used to be, Apple has found a way to take meaningful share away from its rivals to keep its iPhone growth alive.
Over time, I expect Apple to continue taking share en route to becoming an even more dominant force in smartphones. Meanwhile, the company is hard at work on its next big device (likely an augmented-reality headset) that could gradually replace the smartphone as we know it.
Though the lower-cost, higher-value options have found a spot with cost-conscious consumers, it's the higher-end where Apple is really starting to shine. Reportedly, Apple's first-quarter share of the premium smartphone market (devices whose cost exceeds $400) has grown to 62%, up from 57% over the same period last year.
Apple is giving its competitors a squeeze, thanks to the rapid pace of innovation in hardware and the growing lineup of ultra-popular services.
Indeed, Apple is firing on all cylinders, and the pace of innovation could pick up with the rumored unveiling of its mixed-reality headset less than a year away.
Apple's Services Push is Far From Over
Apple has done a marvelous job of bringing out the most of its services business. With the Apple One bundle, which includes fitness, music, video, cloud storage, news, video games, and other perks, the company offers those within its walled garden (or ecosystem), providing unmatched value.
In prior pieces, I noted that the services bundle was a thorn in the side of its competitors. Though Apple has come a long way with its services, it's not about to slow down anytime soon. The company is on the cusp of squeezing various fintech firms with Apple Pay innovations. Apple Pay Later, other digital bank-like features, and a hardware-as-a-service subscription could take services to the next level.
Such "sticky" high-margin services could easily warrant even more multiple expansion on the stock. Today, AAPL stock trades at just shy of 25.5 times trailing earnings. Sure, its price-to-earnings multiple is near a historical high point. However, given how much its Services segment can grow, such a multiple may not be large enough.
Apple's Pace of Hardware Innovation is Remarkable
Beyond services, Apple is making significant strides with its hardware iterations. Undoubtedly, the iPhone has not changed a heck of a lot over the past three years. The design is virtually the same, with the notch seemingly shrinking with new iterations.
Though the design of the latest and greatest iPhone hasn't really had a big jump since the iPhone X was unveiled several years ago, there have been phenomenal innovations underneath the hood.
In terms of hardware, the iPhone continues to put many rivals to shame, with all-day battery life and A-series chips that raise the bar every single year. As Apple Silicon continues to widen the gap, the iPhone could leave competitors in the dust as it goes after the now mature smartphone market.
Apple's profoundly powerful hardware doesn't stop at the iPhone. Its M-series chips have made the Mac computer compelling again, even as the design took a blast from the past. The newest line of Macs did away with the problematic butterfly keyboard and swapped it for the traditional one.
Physical function keys also replaced the touch bar. The latest Macs certainly resemble the ones from many years ago, but underneath the hood, the Mac could not be more different. It's easily one of the most powerful computers out there. As Apple continues raising the bar on per-watt performance, I'd look for the Mac to give PCs a bigger run for their money.
Finally, cutting-edge hardware will help Apple smoothen the transition into the metaverse. Its coming headset is rumored to be powered by the M2 chip currently in the latest Macs.
As Apple continues to deliver jaw-dropping performance with every iteration, it seems likely that the AR/VR headset market is for Apple to take. Watch out, Meta Platforms (META).
Wall Street's Take on AAPL Stock
Turning to Wall Street, AAPL stock comes in as a Moderate Buy. Out of 29 analyst ratings, there are 22 Buys, six Holds, and one Sell.
The average Apple price target is $179.53, implying upside potential of 14.5%. Analyst price targets range from a low of $130.00 per share to a high of $210.00 per share.
Conclusion: High-Margin Growth Could Lead to a Valuation Expansion
Apple strives to offer the very best hardware, software, and services. On the hardware front, Apple's iterations could lead to meaningful share-taking across all product categories. Further, an aggressive services push could lead to high-margin growth that calls for even more multiple expansion in the stock.
Finally, it's not just existing hardware where Apple will be dominant. With the very best hardware, Apple could become a force to be reckoned with as it looks ahead to next-generation hardware - think mixed-reality headsets and electric vehicles (EV).
Apple is doing everything right. As the firm looks to pull the curtain on a headset in a potential recession year (2023), look for Apple to beat the S&P 500 (SPX) by leaps and bounds. Apple stock is the market leader again — and it deserves to be.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple (AAPL) have been leading the markets higher over the past few weeks, now up around 21% from their bottom of around $129 per share. Today, AAPL stock trades at just shy of 25.5 times trailing earnings. Wall Street's Take on AAPL Stock Turning to Wall Street, AAPL stock comes in as a Moderate Buy.
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Wall Street's Take on AAPL Stock Turning to Wall Street, AAPL stock comes in as a Moderate Buy. Shares of Apple (AAPL) have been leading the markets higher over the past few weeks, now up around 21% from their bottom of around $129 per share. Today, AAPL stock trades at just shy of 25.5 times trailing earnings.
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Shares of Apple (AAPL) have been leading the markets higher over the past few weeks, now up around 21% from their bottom of around $129 per share. Today, AAPL stock trades at just shy of 25.5 times trailing earnings. Wall Street's Take on AAPL Stock Turning to Wall Street, AAPL stock comes in as a Moderate Buy.
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Shares of Apple (AAPL) have been leading the markets higher over the past few weeks, now up around 21% from their bottom of around $129 per share. Today, AAPL stock trades at just shy of 25.5 times trailing earnings. Wall Street's Take on AAPL Stock Turning to Wall Street, AAPL stock comes in as a Moderate Buy.
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20033.0
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2022-07-28 00:00:00 UTC
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Why Warren Buffett Loves Apple
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AAPL
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https://www.nasdaq.com/articles/why-warren-buffett-loves-apple
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nan
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nan
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Few would dispute that Warren Buffett is one of the greatest investors of all time. Since 1965, his conglomerate, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has generated a 20.1% compound annual rate of return versus a 10.3% return for the S&P 500. Barron's recently noted that Berkshire Hathaway could lose 99% of its current value and still have outperformed the broad market index over that span.
Buffett has said you don't have to understand arcane investment formulas and modern portfolio theory to be successful in buying stocks. In fact, he says you're probably better off not knowing about any of that.
Image source: The Motley Fool.
"Your goal as an investor," Buffett wrote in one of his annual shareholder letters many years ago, "should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10, and 20 years from now."
Simply put, buy good companies at reasonable prices and hold onto them for decades. That philosophy helps explain why Buffett loves Apple (NASDAQ: AAPL) so much.
Bigger than you think
Apple is now Berkshire Hathaway's largest stock holding. The conglomerate began accumulating its shares in 2016. The position -- now worth about $138 billion -- accounts for around 41% of the value of Berkshire's stock portfolio.
Moreover, many investors aren't aware that Buffett has a hidden portfolio where Apple represents an even larger percentage of the total. As my colleague, Sean Williams, recently detailed, Berkshire Hathaway owns a specialized investment services firm through the General Re insurance company. This New England Asset Management business has over $6.3 billion in assets under management.
Of that total, Apple represents some 56.5% of the portfolio, and though the subsidiary has its own asset management team, Berkshire Hathaway is still the ultimate owner.
A leader in every respect
There are several things that Buffett likely finds attractive about the tech giant and that feed his belief it will be able to deliver for years and years to come.
First is Apple's iconic brand. Tens of millions of people willingly pay a premium for its products, and so they can be connected to the Apple ecosystem, where all the products and services work with one another.
Second, Apple has been an innovation leader, first with computers, then with digital music players, and then with the iPhone -- arguably its greatest product of all. First introduced in 2007, it has become the most popular mobile phone on the market. Among premium smartphones costing more than $400, the iPhone has a whopping 62% market share globally.
As the next generation of 5G iPhones rolls out, look for its dominance to grow as fast speeds and greater connectivity improve telecommunications. Apple has also released its latest MacBook Pro laptop and is refreshing the entry-level iPad with a USB-C port.
The next phase of Apple's growth, though, could be driven by its services business. That segment's revenue hit a record $19.8 billion in its fiscal 2022 Q2 and now accounts for over 20% of total sales. Margins for the services business also continued to expand, growing to 72.6% compared to 70.1% in the prior-year period.
Earnings growth for years to come
Wall Street analysts' consensus forecast is for Apple's revenues to grow from $393 billion in 2022 to $506 billion four years from now, with earnings per share widening to $8.63 from $6.14, or 10% growth annually. For a company with a $2.5 trillion valuation, that's no small feat.
While Apple stock is not cheap by traditional measures, trading for 25 times trailing earnings, 23 times next year's estimates, and 27 times free cash flow, it's not expensive either, and its premier market position warrants paying up a little for the stock.
Apple also pays a modest dividend that at the current share price yields 0.6% annually. Still, given the company's massive hoard of $51 billion in cash, equivalents, and short-term investments, it has the wherewithal to support and raise the payout over time if management chooses to do so.
It's easy to see why Buffett loves Apple -- and you just might want to cozy up to the tech stock, too.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That philosophy helps explain why Buffett loves Apple (NASDAQ: AAPL) so much. As my colleague, Sean Williams, recently detailed, Berkshire Hathaway owns a specialized investment services firm through the General Re insurance company. Of that total, Apple represents some 56.5% of the portfolio, and though the subsidiary has its own asset management team, Berkshire Hathaway is still the ultimate owner.
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That philosophy helps explain why Buffett loves Apple (NASDAQ: AAPL) so much. Since 1965, his conglomerate, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has generated a 20.1% compound annual rate of return versus a 10.3% return for the S&P 500. Of that total, Apple represents some 56.5% of the portfolio, and though the subsidiary has its own asset management team, Berkshire Hathaway is still the ultimate owner.
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That philosophy helps explain why Buffett loves Apple (NASDAQ: AAPL) so much. Earnings growth for years to come Wall Street analysts' consensus forecast is for Apple's revenues to grow from $393 billion in 2022 to $506 billion four years from now, with earnings per share widening to $8.63 from $6.14, or 10% growth annually. While Apple stock is not cheap by traditional measures, trading for 25 times trailing earnings, 23 times next year's estimates, and 27 times free cash flow, it's not expensive either, and its premier market position warrants paying up a little for the stock.
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That philosophy helps explain why Buffett loves Apple (NASDAQ: AAPL) so much. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 2, 2022 Rich Duprey has no position in any of the stocks mentioned.
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20034.0
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2022-07-27 00:00:00 UTC
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SPYG, FEDX: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spyg-fedx%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 13,250,000 units, or a 5.9% increase week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 2%, and Microsoft is higher by about 4.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the FEDX ETF, which added 50,000 units, for a 40.0% increase in outstanding units.
VIDEO: SPYG, FEDX: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPYG, in morning trading today Apple is up about 2%, and Microsoft is higher by about 4.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the FEDX ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: SPYG, FEDX: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 13,250,000 units, or a 5.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FEDX ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: SPYG, FEDX: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 13,250,000 units, or a 5.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FEDX ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: SPYG, FEDX: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 Growth ETF, which added 13,250,000 units, or a 5.9% increase week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 2%, and Microsoft is higher by about 4.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the FEDX ETF, which added 50,000 units, for a 40.0% increase in outstanding units.
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20035.0
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2022-07-27 00:00:00 UTC
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Pelosi's husband dumps Nvidia stock as House eyes chip bill
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AAPL
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https://www.nasdaq.com/articles/pelosis-husband-dumps-nvidia-stock-as-house-eyes-chip-bill
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nan
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nan
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By Noel Randewich
July 27 (Reuters) - U.S. House Speaker Nancy Pelosi's husband sold his shares of chipmaker Nvidia NVDA.O on Tuesday, days before the House is expected to consider legislation providing subsidies and tax credits worth over $70 billion to boost the U.S. semiconductor industry.
In a periodic transaction report, the senior Democrat disclosed that her husband, financier Paul Pelosi, sold 25,000 shares of Nvidia for about $4.1 million, ending up with a loss of $341,365.
Paul Pelosi frequently trades shares of companies popular with many investors, including Apple AAPL.O, Microsoft MSFT.O and other tech companies.
Transaction reports filed by Pelosi, a multi-millionaire, show her husband bought 5,000 Nvidia shares in July 2021, and that he exercised options to buy another 20,000 Nvidia shares last June.
The Senate is expected to vote on final passage in coming days of legislation providing about $52 billion in government subsidies for U.S. semiconductor production, as well as an investment tax credit for chip plants estimated to be worth $24 billion.
The legislation, which aims to make the domestic chip industry more competitive with China's, would then be taken up in the U.S. House under Pelosi's direction.
Last year, Pelosi defended the rights of federal lawmakers to trade stocks, but she later responded to calls for a ban on trading by lawmakers by signaling willingness to potentially advance such legislation.
A 2012 law makes it illegal for lawmakers to use information from their work in Congress for their personal gain. The law requires them to disclose stock transactions by themselves or family members within 45 days.
An analysis by Unusual Whales, a service selling financial data, concluded that congressional lawmakers last year traded $290 million in stocks, options, cryptocurrency and other assets, and that they outperformed the market, on average.
Santa Clara, California-based Nvidia is most valuable U.S chipmaker.
(Reporting by Noel Randewich; Editing by Aurora Ellis)
((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.
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Paul Pelosi frequently trades shares of companies popular with many investors, including Apple AAPL.O, Microsoft MSFT.O and other tech companies. In a periodic transaction report, the senior Democrat disclosed that her husband, financier Paul Pelosi, sold 25,000 shares of Nvidia for about $4.1 million, ending up with a loss of $341,365. The legislation, which aims to make the domestic chip industry more competitive with China's, would then be taken up in the U.S. House under Pelosi's direction.
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Paul Pelosi frequently trades shares of companies popular with many investors, including Apple AAPL.O, Microsoft MSFT.O and other tech companies. By Noel Randewich July 27 (Reuters) - U.S. House Speaker Nancy Pelosi's husband sold his shares of chipmaker Nvidia NVDA.O on Tuesday, days before the House is expected to consider legislation providing subsidies and tax credits worth over $70 billion to boost the U.S. semiconductor industry. In a periodic transaction report, the senior Democrat disclosed that her husband, financier Paul Pelosi, sold 25,000 shares of Nvidia for about $4.1 million, ending up with a loss of $341,365.
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Paul Pelosi frequently trades shares of companies popular with many investors, including Apple AAPL.O, Microsoft MSFT.O and other tech companies. By Noel Randewich July 27 (Reuters) - U.S. House Speaker Nancy Pelosi's husband sold his shares of chipmaker Nvidia NVDA.O on Tuesday, days before the House is expected to consider legislation providing subsidies and tax credits worth over $70 billion to boost the U.S. semiconductor industry. Transaction reports filed by Pelosi, a multi-millionaire, show her husband bought 5,000 Nvidia shares in July 2021, and that he exercised options to buy another 20,000 Nvidia shares last June.
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Paul Pelosi frequently trades shares of companies popular with many investors, including Apple AAPL.O, Microsoft MSFT.O and other tech companies. By Noel Randewich July 27 (Reuters) - U.S. House Speaker Nancy Pelosi's husband sold his shares of chipmaker Nvidia NVDA.O on Tuesday, days before the House is expected to consider legislation providing subsidies and tax credits worth over $70 billion to boost the U.S. semiconductor industry. In a periodic transaction report, the senior Democrat disclosed that her husband, financier Paul Pelosi, sold 25,000 shares of Nvidia for about $4.1 million, ending up with a loss of $341,365.
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20036.0
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2022-07-27 00:00:00 UTC
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EXCLUSIVE-EU found evidence employee phones compromised with spyware -letter
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AAPL
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https://www.nasdaq.com/articles/exclusive-eu-found-evidence-employee-phones-compromised-with-spyware-letter
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nan
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nan
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By Raphael Satter
July 27 (Reuters) - The European Union found evidence that smartphones used by some of its staff were compromised by an Israeli company's spy software, the bloc's top justice official said in a letter seen by Reuters.
In a July 25 letter sent to European lawmaker Sophie in ‘t Veld, EU Justice Commissioner Didier Reynders said iPhone maker Apple had told him in 2021 that his iPhone had possibly been hacked using Pegasus, a tool developed and sold to government clients by Israeli surveillance firm NSO Group.
The warning from Apple triggered the inspection of Reynders’ personal and professional devices as well as other phones used by European Commission employees, the letter said.
Though the investigation did not find conclusive proof that Reynders' or EU staff phones were hacked, investigators discovered "indicators of compromise" – a term used by security researchers to describe that evidence exists showing a hack occurred.
Reynders’ letter did not provide further detail and he said "it is impossible to attribute these indicators to a specific perpetrator with full certainty." It added that the investigation was still active.
Messages left with Reynders, the European Commission, and Reynders' spokesman David Marechal were not immediately returned.
An NSO spokeswoman said the firm would willingly cooperate with an EU investigation.
"Our assistance is even more crucial, as there is no concrete proof so far that a breach occurred," the spokeswoman said in a statement to Reuters. "Any illegal use by a customer targeting activists, journalists, etc., is considered a serious misuse."
NSO Group is being sued by Apple Inc (AAPL.O) for violating its user terms and services agreement.
LAWMAKERS' QUESTIONS
Reuters first reported in April that the European Union was investigating whether phones used by Reynders and other senior European officials had been hacked using software designed in Israel. Reynders and the European Commission declined to comment on the report at the time.
Reynders' acknowledgement in the letter of hacking activity was made in response to inquiries from European lawmakers, who earlier this year formed a committee to investigate the use of surveillance software in Europe.
Last week the committee announced that its investigation found 14 EU member states had purchased NSO technology in the past.
Reynders' letter – which was shared with Reuters by in 't Veld, the committee’s rapporteur – said officials in Hungary, Poland and Spain had been or were in the process of being questioned about their use of Pegasus.
In 't Veld said it was imperative to find out who targeted the EU Commission, suggesting it would be especially scandalous if it were found that an EU member state was responsible.
The European Commission also raised the issue with Israeli authorities, asking them to take steps to "prevent the misuse of their products in the EU," the letter said.
A spokesperson for the Israeli Ministry of Defense did not immediately respond to a request for comment.
Apple's alerts, sent late last year, told targeted users that a hacking tool, dubbed ForcedEntry, may have been used against their devices to download spyware. Apple said in a lawsuit that ForcedEntry had been the work of NSO Group. Reuters also previously reported that another, smaller Israeli firm named QuaDream had developed a nearly identical tool.
In November, the administration of U.S. President Joe Biden gave NSO Group a designation that makes it harder for U.S. companies to do business with them, after determining that its phone-hacking technology had been used by foreign governments to "maliciously target" political dissidents around the world.
NSO, which has kept its client list confidential, has said that it sells its products only to "vetted and legitimate" government clients.
(Reporting by Raphael Satter and Christopher Bing in Washington; editing by Grant McCool)
((Christopher.Bing@thomsonreuters.com; +1 202-510-0174;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NSO Group is being sued by Apple Inc (AAPL.O) for violating its user terms and services agreement. Reynders' acknowledgement in the letter of hacking activity was made in response to inquiries from European lawmakers, who earlier this year formed a committee to investigate the use of surveillance software in Europe. Reynders' letter – which was shared with Reuters by in 't Veld, the committee’s rapporteur – said officials in Hungary, Poland and Spain had been or were in the process of being questioned about their use of Pegasus.
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NSO Group is being sued by Apple Inc (AAPL.O) for violating its user terms and services agreement. By Raphael Satter July 27 (Reuters) - The European Union found evidence that smartphones used by some of its staff were compromised by an Israeli company's spy software, the bloc's top justice official said in a letter seen by Reuters. In a July 25 letter sent to European lawmaker Sophie in ‘t Veld, EU Justice Commissioner Didier Reynders said iPhone maker Apple had told him in 2021 that his iPhone had possibly been hacked using Pegasus, a tool developed and sold to government clients by Israeli surveillance firm NSO Group.
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NSO Group is being sued by Apple Inc (AAPL.O) for violating its user terms and services agreement. In a July 25 letter sent to European lawmaker Sophie in ‘t Veld, EU Justice Commissioner Didier Reynders said iPhone maker Apple had told him in 2021 that his iPhone had possibly been hacked using Pegasus, a tool developed and sold to government clients by Israeli surveillance firm NSO Group. Though the investigation did not find conclusive proof that Reynders' or EU staff phones were hacked, investigators discovered "indicators of compromise" – a term used by security researchers to describe that evidence exists showing a hack occurred.
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NSO Group is being sued by Apple Inc (AAPL.O) for violating its user terms and services agreement. In a July 25 letter sent to European lawmaker Sophie in ‘t Veld, EU Justice Commissioner Didier Reynders said iPhone maker Apple had told him in 2021 that his iPhone had possibly been hacked using Pegasus, a tool developed and sold to government clients by Israeli surveillance firm NSO Group. Reuters first reported in April that the European Union was investigating whether phones used by Reynders and other senior European officials had been hacked using software designed in Israel.
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20037.0
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2022-07-27 00:00:00 UTC
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Qualcomm revenue forecast disappoints on cooling smartphone demand
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AAPL
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https://www.nasdaq.com/articles/qualcomm-revenue-forecast-disappoints-on-cooling-smartphone-demand-0
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nan
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nan
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adds shares, comment on smartphone market
July 27 (Reuters) - Qualcomm Inc QCOM.O forecast fourth-quarter revenue below estimates on Wednesday, bracing for difficult economic conditions and a slowdown in smartphone demand that could hit its mainstay handset chips business.
Shares of the San Diego-based company fell 2.9% in extended trading, adding to the stock's decline of about 18% this year amid a broader selloff in growth stocks.
The chip designer still surpassed expectations for adjusted revenue in the third quarter, driven by growth of 59% at its handset chips business.
"The weakness we see in consumer has been offset by the diversification strategy of the company and the focus on premium and high-tier handsets," said Qualcomm Chief Executive Christiano Amon.
Qualcomm is looking to diversify to sectors such as automotives, but its handset chip business still makes up more than half of total sales.
The company now expects smartphone sales to fall 5% this year, compared with its prior outlook for flat growth, Chief Financial Officer Akash Palkhiwala said.
Leading chipmakers including Micron Technology MU.O and Texas Instruments TXN.O have also warned of cooling consumer electronics demand.
Smartphone sales have come under pressure as runaway inflation, growing recession risks and repeated COVID-19 lockdowns in China force consumers to rein in spending. Global smartphone shipments will fall 3.5% this year, according to data from IDC.
The Ukraine crisis and China lockdowns have also worsened supply-chain snags and hurt demand, forcing many phone makers to cut orders for chips.
Qualcomm forecast current-quarter revenue between $11 billion and $11.8 billion, compared with analysts' estimates of $11.87 billion, according to Refinitiv data.
It expects adjusted earnings per share of between $3 and $3.30, compared with estimates of $3.23.
Qualcomm said the mid-point of its fourth-quarter forecast included an estimated impact of an about 20 cents reduction to earnings per share due to macroeconomic headwinds and a lower global handset forecast.
Adjusted revenue for the quarter ended June 26, when analysts expected strong demand from Apple AAPL.O, was $10.93 billion, compared with estimates of $10.88 billion.
Separately, Qualcomm said it has extended its patent license agreement with Samsung Electronics 005930.KS through the end of 2030. It also agreed to expand the use of Snapdragon platforms for future premium Samsung Galaxy products, including Samsung Galaxy phones.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in Oakland, California; Editing by Devika Syamnath)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adjusted revenue for the quarter ended June 26, when analysts expected strong demand from Apple AAPL.O, was $10.93 billion, compared with estimates of $10.88 billion. "The weakness we see in consumer has been offset by the diversification strategy of the company and the focus on premium and high-tier handsets," said Qualcomm Chief Executive Christiano Amon. The company now expects smartphone sales to fall 5% this year, compared with its prior outlook for flat growth, Chief Financial Officer Akash Palkhiwala said.
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Adjusted revenue for the quarter ended June 26, when analysts expected strong demand from Apple AAPL.O, was $10.93 billion, compared with estimates of $10.88 billion. Qualcomm forecast current-quarter revenue between $11 billion and $11.8 billion, compared with analysts' estimates of $11.87 billion, according to Refinitiv data. It also agreed to expand the use of Snapdragon platforms for future premium Samsung Galaxy products, including Samsung Galaxy phones.
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Adjusted revenue for the quarter ended June 26, when analysts expected strong demand from Apple AAPL.O, was $10.93 billion, compared with estimates of $10.88 billion. adds shares, comment on smartphone market July 27 (Reuters) - Qualcomm Inc QCOM.O forecast fourth-quarter revenue below estimates on Wednesday, bracing for difficult economic conditions and a slowdown in smartphone demand that could hit its mainstay handset chips business. Qualcomm forecast current-quarter revenue between $11 billion and $11.8 billion, compared with analysts' estimates of $11.87 billion, according to Refinitiv data.
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Adjusted revenue for the quarter ended June 26, when analysts expected strong demand from Apple AAPL.O, was $10.93 billion, compared with estimates of $10.88 billion. The chip designer still surpassed expectations for adjusted revenue in the third quarter, driven by growth of 59% at its handset chips business. The company now expects smartphone sales to fall 5% this year, compared with its prior outlook for flat growth, Chief Financial Officer Akash Palkhiwala said.
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20038.0
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2022-07-27 00:00:00 UTC
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3 Highly-Ranked Stocks With Stellar Projected Growth
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AAPL
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https://www.nasdaq.com/articles/3-highly-ranked-stocks-with-stellar-projected-growth
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nan
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nan
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It’s undoubtedly been a rough year to be an investor so far. A challenging macroeconomic backdrop has caused widespread margin compression, leaving stocks to tumble.
However, the general market’s performance over the last month is a major positive, signaling that bears could be tiring out.
The chart below illustrates the S&P 500’s performance over the last month.
Image Source: Zacks Investment Research
Now that we’re finally seeing some buyers return, it’s beneficial for investors to carry strong stocks with robust growth projections.
Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, and Kronos Worldwide KRO.
The chart below illustrates the share performance of all three companies over the last year while blending in the S&P 500 as a benchmark.
Image Source: Zacks Investment Research
Let’s get into why these companies would be solid bets moving forward.
Quanex Building Products
Quanex Building Products Corporation NX is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
Analysts have been raising their earnings outlook across nearly all timeframes, helping push the company into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s projected top and bottom-line growth rates are stellar.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $2.35, penciling in a sizable double-digit 35% expansion in the bottom-line year-over-year.
Projected top-line growth is also rock-solid; Quanex Building Products is projected to generate $1.2 billion in sales in FY22, good enough for an 11% uptick in annual revenue from FY21.
The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, NX sports enticing valuation metrics, bolstered by its Style Score of an A for Value. Its 10.3X forward earnings multiple is well below its five-year median of 18.6X and represents an attractive 42% discount relative to the S&P 500.
Image Source: Zacks Investment Research
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing TSM is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD.
Analysts have been bullish across all timeframes over the last 60 days, landing the company into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Top and bottom-line forecasts allude to serious growth.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $6.30, notching a stellar 53% expansion of the bottom-line year-over-year.
The growth doesn’t stop there – TSM is forecasted to generate a mighty $77.8 billion in revenue in FY22, good enough for a 37% double-digit uptick from FY21 sales of $56.8 billion.
Image Source: Zacks Investment Research
Additionally, TSM sports an enticing 13.4X forward earnings multiple, nowhere near its five-year median of 19.9X and representing a substantial 24% discount relative to the general market.
Image Source: Zacks Investment Research
Kronos Worldwide
Kronos Worldwide KRO is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness, and opacity. The company is a Zacks Rank #2 (Buy).
Kronos has been on a nice earnings streak, exceeding the Zacks Consensus EPS Estimate by an average of 24% over the last four quarters and recording an impressive 78% bottom-line beat in its latest earnings release.
In addition, KRO is forecasted to grow at a breakneck pace.
For the current fiscal year, the Zacks Consensus EPS Estimate resides at $2.06, displaying a jaw-dropping triple-digit growth in earnings year-over-year of more than 110%.
Top-line growth is also remarkable; Kronos is projected to generate $2.3 billion in revenue for the current fiscal year (FY22), penciling in a rock-solid 16% increase in annual sales year-over-year.
Image Source: Zacks Investment Research
KRO’s Style Score of an A for Value indicates that shares could be undervalued.
The company’s forward earnings multiple sits enticingly at 8.4X, a fraction of its five-year median value of 14.2X. In addition, shares trade at a steep 52% discount relative to the general market.
Image Source: Zacks Investment Research
Bottom Line
The rebound is long overdue, with buyers returning and pushing bears back into hibernation. As we continue to navigate the rough economic waters we’ve found ourselves in, market participants are hopeful this recent strength can continue.
Of course, you want to have strong stocks in your portfolio.
All three stocks above have stellar projected growth rates, strong Zacks Ranks, and enticing valuation levels, making them attractive to any investor.
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
Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Quanex Building Products Corporation (NX): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing TSM is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, and Kronos Worldwide KRO.
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Image Source: Zacks Investment Research Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing TSM is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products NX, Taiwan Semiconductor Manufacturing TSM, and Kronos Worldwide KRO.
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Image Source: Zacks Investment Research Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing TSM is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Now that we’re finally seeing some buyers return, it’s beneficial for investors to carry strong stocks with robust growth projections.
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Image Source: Zacks Investment Research Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing TSM is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research The company’s projected top and bottom-line growth rates are stellar.
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20039.0
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2022-07-27 00:00:00 UTC
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Can Continued Services Growth Aid Apple's (AAPL) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/can-continued-services-growth-aid-apples-aapl-q3-earnings
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nan
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Apple’s AAPL third-quarter fiscal 2022 results, to be reported on Jul 28, are expected to have benefited from continued momentum in the Services business.
The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 20.4% of sales in second-quarter fiscal 2022.
Apple currently has more than 825 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers from around the world, helping the company to offer appealing new apps that drive App Store traffic, thereby expanding the subscriber base.
Apple expects Services revenue growth to be in strong double digits. However, the growth rate is expected to be lower than the March quarter. Services revenues grew 17.3% from the year-ago quarter to $19.82 billion in fiscal second quarter.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
Click here to know how Apple’s overall third-quarter results are likely to be.
Apple’s Non-iPhone Portfolio to Boost Revenues
Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have aided its top-line growth in the fiscal second quarter.
This Zacks Rank #3 (Hold) company’s Mac sales are expected to have remained strong. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Markedly, per Gartner’s latest report, 72 million PCs were shipped during the second quarter of 2022, down 12.6% from the year-ago period. Lenovo LNVGY, HP HPQ and Dell Technologies DELL witnessed 12.5%, 27.5% and 5.2% declines, respectively.
Overall, Lenovo remained the top vendor with a market share of 24.8%. HP holds the second spot with a market share of 18.8% in worldwide PC shipments. Dell’s market share was 18.5% in second-quarter 2022.
Apple’s market share, on the other hand, grew from 7.1% to 8.8%.
During the to-be-reported quarter, Apple introduced a new M2 chip and macOS Ventura, which features Stage Manager. Apple launched the M2-supported MacBook Air and 13-inch MacBook Pro.
The Zacks Consensus Estimate for Mac revenues for the fiscal third quarter stands at $8.70 billion, implying 5.6% growth from the figure reported in the year-ago quarter.
Apple is also riding on its strong market share in the wearables space. The company’s endeavor to add healthcare features to its smartwatch has been a game changer for the device, which faces significant competition from the likes of Google, Xiaomi, Samsung Electronics and Huawei Technologies.
However, iPad sales are expected to decline in the to-be-reported quarter. The Zacks Consensus Estimate for the same stands at $7.05 billion, suggesting a 4.4% decline from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Apple Inc. (AAPL): Free Stock Analysis Report
HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s AAPL third-quarter fiscal 2022 results, to be reported on Jul 28, are expected to have benefited from continued momentum in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report The company’s endeavor to add healthcare features to its smartwatch has been a game changer for the device, which faces significant competition from the likes of Google, Xiaomi, Samsung Electronics and Huawei Technologies.
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Apple’s AAPL third-quarter fiscal 2022 results, to be reported on Jul 28, are expected to have benefited from continued momentum in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s Non-iPhone Portfolio to Boost Revenues Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have aided its top-line growth in the fiscal second quarter.
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Apple’s AAPL third-quarter fiscal 2022 results, to be reported on Jul 28, are expected to have benefited from continued momentum in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 20.4% of sales in second-quarter fiscal 2022.
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Apple’s AAPL third-quarter fiscal 2022 results, to be reported on Jul 28, are expected to have benefited from continued momentum in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 20.4% of sales in second-quarter fiscal 2022.
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20040.0
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2022-07-27 00:00:00 UTC
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ANALYSIS-Why Spotify's 'Car Thing' was destined for the hardware graveyard
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AAPL
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https://www.nasdaq.com/articles/analysis-why-spotifys-car-thing-was-destined-for-the-hardware-graveyard
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nan
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nan
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By Dawn Chmielewski and Supantha Mukherjee
LOS ANGELES/STOCKHOLM, July 27 (Reuters) - Spotify Technology SA's SPOT.N Car Thing player is now a thing of the past.
The world's leading audio streaming service on Wednesday announced it would discontinue the device just five months after it became available to all users in the United States. In doing so, Spotify became the latest software technology company to stumble in an attempt to build hardware.
Spotify wrote down a $31 million investment in the device, which was aimed at increasing the number of users who listen to music or podcasts while in the car. However, the company said it was unable to sell enough devices at a sufficiently high price to justify the investment.
"We just can't get it to an attractive economical profile," Spotify CEO Daniel Ek told Reuters. "So we decided to terminate this program in light of that."
Car Thing was a next-generation stereo designed to stream Spotify's music and podcasts from the user's phone through the car audio system. After unveiling trials in May 2019, Spotify tested the device with a small group of people in April 2021, and then brought it to wider release in February this year.
Spotify was not the first software company to seek to extend its relationship with users into the physical world through devices.
Alphabet Inc's GOOGL.O Google was one of the early software companies to venture into hardware experiments with some major failures, including Google Glass - a wearable Android device resembling eyeglasses, which displayed information in the user's field of vision.
Snap Inc SNAP.N shelved its original Spectacles, $130 sunglasses that transmitted video directly to the SnapChat app, back in 2017. It announced a new type of Spectacles last year, featuring augmented reality.
Meta Platforms Inc's META.O Facebook plans to stop producing a consumer version of a videoconferencing device dubbed Portal, instead focusing on the business market. It also disappointed people with its phone that came out in 2013 in partnership with HTC. It launched to mixed reviews, with critics raising privacy concerns.
IDC research vice president Frank Gillett said he could not recall any content company making a successful transition to hardware.
By contrast, a hardware maker like Apple Inc AAPL.O was able to launch music and video services by building on its operating system and existing device relationship with consumers.
"When they created the iPod, they had people in the ecosystem," said Gillett, adding that launching a device without such an infrastructure "is extremely challenging."
While Spotify rules the music streaming niche, building a device for the car put it in a competitive arena with the likes of Apple CarPlay and Android Auto - both of which have the support of their own ecosystems of billions of devices.
Spotify said its device was not designed to challenge these entertainment systems, but rather to provide an easier way for its users - especially those with older model cars - to listen to music or podcasts.
However, Car Thing lacked the features of the other infotainment devices, from navigation to making calls, making it harder to justify the need for a device just for music. It also required free listeners to upgrade to premium subscription.
Spotify CFO Paul Vogel told investors on Wednesday in addition to pricing challenges, inflation drove up component costs and a chip shortage made it harder to obtain parts.
Veteran consumer electronics analyst Tim Bajarin of Creative Strategies said consumers are reluctant to add devices to their cars when 98% of new cars in the United States come with Apple's CarPlay already installed.
"I remember thinking: 'This is dead in the water,'" said Bajarin.
BREAKINGVIEWS-Spotify hums along
Spotify results beat expectations, shuts down Car Thing
(Reporting by Dawn Chmielewski in Los Angeles and Supantha Mukherjee in Stockholm Editing by Matthew Lewis)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By contrast, a hardware maker like Apple Inc AAPL.O was able to launch music and video services by building on its operating system and existing device relationship with consumers. Meta Platforms Inc's META.O Facebook plans to stop producing a consumer version of a videoconferencing device dubbed Portal, instead focusing on the business market. Spotify CFO Paul Vogel told investors on Wednesday in addition to pricing challenges, inflation drove up component costs and a chip shortage made it harder to obtain parts.
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By contrast, a hardware maker like Apple Inc AAPL.O was able to launch music and video services by building on its operating system and existing device relationship with consumers. By Dawn Chmielewski and Supantha Mukherjee LOS ANGELES/STOCKHOLM, July 27 (Reuters) - Spotify Technology SA's SPOT.N Car Thing player is now a thing of the past. Car Thing was a next-generation stereo designed to stream Spotify's music and podcasts from the user's phone through the car audio system.
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By contrast, a hardware maker like Apple Inc AAPL.O was able to launch music and video services by building on its operating system and existing device relationship with consumers. While Spotify rules the music streaming niche, building a device for the car put it in a competitive arena with the likes of Apple CarPlay and Android Auto - both of which have the support of their own ecosystems of billions of devices. Spotify said its device was not designed to challenge these entertainment systems, but rather to provide an easier way for its users - especially those with older model cars - to listen to music or podcasts.
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By contrast, a hardware maker like Apple Inc AAPL.O was able to launch music and video services by building on its operating system and existing device relationship with consumers. In doing so, Spotify became the latest software technology company to stumble in an attempt to build hardware. Car Thing was a next-generation stereo designed to stream Spotify's music and podcasts from the user's phone through the car audio system.
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20041.0
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2022-07-27 00:00:00 UTC
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Wall St rises on Microsoft, Alphabet earnings as Fed decision looms
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AAPL
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https://www.nasdaq.com/articles/wall-st-rises-on-microsoft-alphabet-earnings-as-fed-decision-looms
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By Shreyashi Sanyal and Aniruddha Ghosh
July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
Money market traders were even betting on a one-in-four chance that the Fed would surprise markets with a larger 1-percentage-point increase, as per CME Group's Fedwatch tool.
The decision is due at 2:00 pm ET (1800 GMT) followed by a news conference by the Federal Reserve Chair Jerome Powell half an hour later, where he is likely to elaborate on how the central bank views the recent economic environment.
"There's a balancing act that has to take place, if they do too much or too little, it's going to hurt, so they're in a tough position," Andre Bakhos, managing director at New Vines Capital said.
"The key is how it is said and how they give color about what's out there in the world, from the Fed's eyes."
Microsoft Corp MSFT.O climbed 5% after it forecast double-digit growth in revenue this fiscal year on demand for cloud computing services.
Alphabet Inc GOOGL.O added 7.3% as better-than-expected sales of Google search ads eased worries about a slowing ad market.
The S&P 500 communication services index .SPLRCL added 4.3%, rising for the first time in five days and led sectoral gains. Tech stocks .SPLRCT rose 3%.
The results sparked a rally in high-growth stocks.
Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday.
Megacap growth stocks have been hammered this year as the Federal Reserve raised interest rates aggressively to tame decades-high inflation. Future cash flows on which valuation of these companies rests are discounted heavily when rates rise.
At 12:37 p.m. ET, the Dow Jones Industrial Average .DJI was up 123.91 points, or 0.39%, at 31,885.45, the S&P 500 .SPX was up 57.50 points, or 1.47%, at 3,978.55, and the Nasdaq Composite .IXIC was up 314.00 points, or 2.72%, at 11,876.57.
PayPal Holdings Inc PYPL.O jumped 11.4% after a report said activist investor Elliott Investment Management was building a stake in the fintech giant.
T-Mobile US Inc TMUS.O added 4.1% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit expectations.
Advancing issues outnumbered decliners by a 2.77-to-1 ratio on the NYSE and by a 2.11-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 39 new highs and 78 new lows.
(Reporting by Shreyashi Sanyal, Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
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Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
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Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. (Reporting by Shreyashi Sanyal, Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers. T-Mobile US Inc TMUS.O added 4.1% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit expectations.
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20042.0
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2022-07-27 00:00:00 UTC
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7 Blue-Chip Stocks to Buy on the Dip
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AAPL
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https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-on-the-dip
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s first define the dip. The S&P 500 is currently down 17.83% year-to-date. And it was down nearly 24% just over a month ago. That represents a significant dip and constitutes a bear market by some definitions. And while that overall dip has sheared massive amounts of money from the market capitalizations of companies across the board, there is still opportunity. In this case, we’ll focus on the inherent opportunity in so-called blue-chip stocks.
So, what defines blue-chip stocks? Let’s start by establishing that there is no technical definition of blue-chip stocks. The definition is part subjective measures and part objective measures. Typically though, blue-chip stocks are valuable, stable, well-established businesses with household names. They tend to have large market capitalizations, a track record of growth and usually pay dividends. So, let’s look at what makes these companies so special.
7 Nasdaq Stocks to Buy on the Dip
Here are seven blue-chip stocks to buy on the dip:
Ticker Company Price
HD The Home Depot $293.94
AAPL Apple Inc. $153.65
CMCSA Comcast Corporation $42.94
MCD McDonald’s Corporation $256.14
NKE Nike, Inc. $106.71
KR The Kroger Co. $45.65
ABBV AbbVie Inc. $150.23
Blue-Chip Stocks: Home Depot (HD)
Source: Cassiohabib / Shutterstock.com
Simply looking at Home Depot (NYSE:HD) stock’s price chart tells a good story. It began 2022 trading above $400. The housing market looked incredibly strong with high prices, low-interest rates, and a strong overall outlook for HD shares.
But it soon became apparent that something would have to give as inflation had already begun to spiral months prior. An official rate increase wouldn’t come until Mar. 16, but the markets were already pricing them in. That triggered a selloff in HD stock as higher interest meant rising mortgage rates, and with them, less demand for Home Depot’s products.
But that sell-off was likely overdone. HD shares went from $400 to $270. The consensus target price sits near $350. Home Depot’s 10-year average price-to-earnings (P/E) ratio of 22.3 is a good target. Right now HD shares carry a 18.98 P/E ratio, indicating overselling. That’s a good reason to buy.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
The narrative currently swirling around Apple (NASDAQ:AAPL) stock centers on trimmed target prices and a potential earnings miss. That will keep prices volatile throughout 2022. But, unless you’re a trader, there’s little reason to try and pin those down with any accuracy.
Instead, buy Apple for its long-term potential, its position as one of the most important global businesses and its dividend.
7 Seriously Undervalued Tech Stocks to Buy Now
From the perspective of long-term potential, simply understand that Apple is highly likely to cross the $400 billion annual sales threshold in 2023. It remains arguably the most important global business, as well. There’s a reason that it constitutes more than 40% of Warren Buffett’s portfolio. Also consider that Apple is strategically growing its dividend. While it remains relatively small, it has a five-year growth rate of 9.5%.
Blue-Chip Stocks: Comcast (CMCSA)
Source: Ken Wolter / Shutterstock.com
Comcast (NASDAQ:CMCSA) stock has a beta of 0.99. That means it moves in near lockstep with the broader market. So, it is no surprise that it is down in line with the S&P 500 this year.
But there’s a reasonable argument to be made that Comcast is oversold based on the fact that it has provided earnings beats in each of the past four quarters. The stock’s P/E ratio is well below its 10-year average, which suggests it will rebound with the broader market. Further, its P/E ratio is more attractive than an average telecommunications stock.
And like most blue-chip stocks, Comcast pays a dividend. The dividend happens to be yielding close to 10-year highs because share prices have dropped. Taken altogether, CMCSA stock looks like a good bargain right now.
McDonald’s (MCD)
Source: ATIKAN PORNCHAIPRASIT / Shutterstock.com
McDonald’s (NYSE:MCD) stock simply makes a lot of sense. The blue-chip fast-food giant ticks many of the boxes investors are seeking in the current economy. MCD stock has a five-year beta of 0.55. It has performed much better than the broader stock market. In fact, it’s barely down at all this year, having moved from $268 to $253.
So, the idea that McDonald’s performs well in any economy has held true in 2022. And if we look back over the past decade, we see that returns have been strong. MCD stock has averaged a 13.89% return over the past 10 years. That means an investment would have more than tripled over the same period. That’s a great example of why many investors ardently support blue-chip stocks.
5 Electric Vehicle Stocks to Buy on the Dip
Additionally, McDonald’s includes a dividend that only increases those returns if reinvested.
Blue-Chip Stocks: Nike (NKE)
Source: Square Box Photos / Shutterstock.com
Jefferies (NYSE:JEF) analyst Randal Konik likes Nike (NYSE:NKE) over other athletic leisure plays, or athleisure, as he calls it. He cites rising demand for fitness apparel catalyzed by the fact that 40% of people gained weight during the pandemic. He also believes Nike is in a prime position to benefit due to the rise in casual workplace attire. While he lowered both ratings and prices on its competitors Lululemon (NASDAQ:LULU) and Under Armour (NYSE:UA), he maintained both for Nike.
Despite Nike’s massive scale and presence, the company doesn’t look to be slowing. In fact, top-line growth is expected to rise more than 10% next year. Its dividend yields a bit over 1%, so it all adds up to a really solid investment without a particularly long time horizon.
Kroger (KR)
Source: James R. Martin / Shutterstock.com
Kroger (NYSE:KR) is the biggest grocery store chain in the U.S. Given that groceries remain in demand in every economy, KR stock looks like a reasonable pick. To give readers an idea of its scale, the chain reported $137.9 billion of sales in 2021. It also operates more than 2,700 stores across its brands including Kroger, Harris Teeter, and Smith’s.
The reason I like Kroger other than its scale and business is primarily because of its dividend. The company recently raised its dividend from 84 cents to $1.04 in June. That’s part of a larger trend to continually grow its dividend while seeking 8% to 11% shareholder returns.
7 Best Reddit Stocks to Buy Now
Combine all those factors and it’s easy to see why Kroger is a well-respected blue-chip stock worth investing in.
Blue-Chip Stocks: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Pharmaceutical stocks, including AbbVie (NYSE:ABBV), are noted for their ability to weather economic downturns. Thus far, ABBV shares have proven that notion to be correct in 2022. In fact, ABBV stock is actually up on the year.
That said, ABBV still has roughly $15 higher to climb in order to reach its target price. In addition, AbbVie gives its equity investors a dividend yielding 3.74% at current prices.
Investors have to judge how they feel about the notion that AbbVie expects revenues to decrease overall in 2023. While that is the expectation, earnings per share figures are expected to continue to rise. If AbbVie can adjust its portfolio of drugs in a way that compliments its declining cash cows, it’ll jump massively. As it stands now, it still looks strong if that doesn’t happen.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Blue-Chip Stocks to Buy on the Dip appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Nasdaq Stocks to Buy on the Dip Here are seven blue-chip stocks to buy on the dip: Ticker Company Price HD The Home Depot $293.94 AAPL Apple Inc. $153.65 CMCSA Comcast Corporation $42.94 MCD McDonald’s Corporation $256.14 NKE Nike, Inc. $106.71 KR The Kroger Co. $45.65 ABBV AbbVie Inc. $150.23 Blue-Chip Stocks: Home Depot (HD) Source: Cassiohabib / Shutterstock.com Simply looking at Home Depot (NYSE:HD) stock’s price chart tells a good story. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The narrative currently swirling around Apple (NASDAQ:AAPL) stock centers on trimmed target prices and a potential earnings miss. That triggered a selloff in HD stock as higher interest meant rising mortgage rates, and with them, less demand for Home Depot’s products.
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7 Nasdaq Stocks to Buy on the Dip Here are seven blue-chip stocks to buy on the dip: Ticker Company Price HD The Home Depot $293.94 AAPL Apple Inc. $153.65 CMCSA Comcast Corporation $42.94 MCD McDonald’s Corporation $256.14 NKE Nike, Inc. $106.71 KR The Kroger Co. $45.65 ABBV AbbVie Inc. $150.23 Blue-Chip Stocks: Home Depot (HD) Source: Cassiohabib / Shutterstock.com Simply looking at Home Depot (NYSE:HD) stock’s price chart tells a good story. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The narrative currently swirling around Apple (NASDAQ:AAPL) stock centers on trimmed target prices and a potential earnings miss. Blue-Chip Stocks: Comcast (CMCSA) Source: Ken Wolter / Shutterstock.com Comcast (NASDAQ:CMCSA) stock has a beta of 0.99.
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7 Nasdaq Stocks to Buy on the Dip Here are seven blue-chip stocks to buy on the dip: Ticker Company Price HD The Home Depot $293.94 AAPL Apple Inc. $153.65 CMCSA Comcast Corporation $42.94 MCD McDonald’s Corporation $256.14 NKE Nike, Inc. $106.71 KR The Kroger Co. $45.65 ABBV AbbVie Inc. $150.23 Blue-Chip Stocks: Home Depot (HD) Source: Cassiohabib / Shutterstock.com Simply looking at Home Depot (NYSE:HD) stock’s price chart tells a good story. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The narrative currently swirling around Apple (NASDAQ:AAPL) stock centers on trimmed target prices and a potential earnings miss. Blue-Chip Stocks: Comcast (CMCSA) Source: Ken Wolter / Shutterstock.com Comcast (NASDAQ:CMCSA) stock has a beta of 0.99.
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7 Nasdaq Stocks to Buy on the Dip Here are seven blue-chip stocks to buy on the dip: Ticker Company Price HD The Home Depot $293.94 AAPL Apple Inc. $153.65 CMCSA Comcast Corporation $42.94 MCD McDonald’s Corporation $256.14 NKE Nike, Inc. $106.71 KR The Kroger Co. $45.65 ABBV AbbVie Inc. $150.23 Blue-Chip Stocks: Home Depot (HD) Source: Cassiohabib / Shutterstock.com Simply looking at Home Depot (NYSE:HD) stock’s price chart tells a good story. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The narrative currently swirling around Apple (NASDAQ:AAPL) stock centers on trimmed target prices and a potential earnings miss. 16, but the markets were already pricing them in.
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20043.0
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2022-07-27 00:00:00 UTC
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US STOCKS-Microsoft, Alphabet earnings lift futures ahead of Fed decision
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https://www.nasdaq.com/articles/us-stocks-microsoft-alphabet-earnings-lift-futures-ahead-of-fed-decision
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.43%, S&P 0.89%, Nasdaq 1.45%
July 27 (Reuters) - U.S. stock index futures rose on Wednesday as better-than-feared quarterly reports from technology giants Microsoft and Alphabet calmed investors ahead of a key U.S. interest rate decision later in the day.
The results lifted sentiment after markets closed sharply lower on Tuesday on a profit warning from top U.S. retailer Walmart WMT.N and weak consumer confidence data.
Microsoft Corp MSFT.O rose 3.8% in premarket trading on Wednesday after it forecast revenue would grow by double digits this fiscal year, driven by demand for cloud computing services.
Alphabet Inc GOOGL.O added 3.5% as better-than-expected sales at Google search ads brought relief after social media firm Snap Inc's SNAP.N warning last week raised fears of a sharp ad market slowdown.
"A positive reaction from the latest quarterly numbers has been incredibly hard-won given the negative market sentiment surrounding broader tech," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
Shares of other high-growth stocks including Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O also got a boost ahead of their earnings this week.
Megacap growth stocks have been hammered this year as the Federal Reserve raised interest rates aggressively to tame decades-high inflation. Future cash flows on which valuation of these companies rests are discounted heavily when rates rise.
Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
Money market traders were even placing about a one-in-four chance the Fed would surprise markets with a larger 1-percentage-point increase, as per CME Group's Fedwatch tool.
The decision is due at 2:00 pm ET (1800 GMT) and Fed Chair Jerome Powell's news conference half an hour later should elaborate on how the central bank views the recent economic data and at least hint at its next steps.
"Earnings may play second fiddle to the FOMC meeting tonight if the Fed surprises with more hawkishness than the market is pricing," Peter Garnry, head of equity strategy at Saxo Bank said in a note.
At 06:40 a.m. ET, Dow e-minis 1YMcv1 were up 136 points, or 0.43%, S&P 500 e-minis EScv1 were up 34.75 points, or 0.89%, and Nasdaq 100 e-minis NQcv1 were up 175.25 points, or 1.45%.
PayPal Holdings Inc PYPL.O jumped 5.7% after a report said activist investor Elliott Investment Management is building a stake in the fintech giant to push it to ramp up its cost-reduction efforts.
(Reporting by Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of other high-growth stocks including Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O also got a boost ahead of their earnings this week. "A positive reaction from the latest quarterly numbers has been incredibly hard-won given the negative market sentiment surrounding broader tech," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
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Shares of other high-growth stocks including Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O also got a boost ahead of their earnings this week. Futures up: Dow 0.43%, S&P 0.89%, Nasdaq 1.45% July 27 (Reuters) - U.S. stock index futures rose on Wednesday as better-than-feared quarterly reports from technology giants Microsoft and Alphabet calmed investors ahead of a key U.S. interest rate decision later in the day. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
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Shares of other high-growth stocks including Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O also got a boost ahead of their earnings this week. Futures up: Dow 0.43%, S&P 0.89%, Nasdaq 1.45% July 27 (Reuters) - U.S. stock index futures rose on Wednesday as better-than-feared quarterly reports from technology giants Microsoft and Alphabet calmed investors ahead of a key U.S. interest rate decision later in the day. Alphabet Inc GOOGL.O added 3.5% as better-than-expected sales at Google search ads brought relief after social media firm Snap Inc's SNAP.N warning last week raised fears of a sharp ad market slowdown.
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Shares of other high-growth stocks including Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O also got a boost ahead of their earnings this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.43%, S&P 0.89%, Nasdaq 1.45% July 27 (Reuters) - U.S. stock index futures rose on Wednesday as better-than-feared quarterly reports from technology giants Microsoft and Alphabet calmed investors ahead of a key U.S. interest rate decision later in the day.
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20044.0
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2022-07-27 00:00:00 UTC
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Microsoft, Alphabet results raise hopes about Big Tech weathering slowdown
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https://www.nasdaq.com/articles/microsoft-alphabet-results-raise-hopes-about-big-tech-weathering-slowdown
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By Medha Singh
July 27 (Reuters) - Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession.
High-growth and megacap companies have powered the U.S. stock market for the past decade, but rising interest rates to combat decades-high inflation as well as a recent sharp rally in the dollar have taken a toll on the stocks.
The rate-sensitive growth stocks .RLG fell 25% this year as the Federal Reserve began its monetary policy tightening, compared with a near 18% fall in the S&P 500 index.
An eagerly-anticipated interest rate decision by the Fed later on Wednesday will be pivotal for the rate-sensitive group. The central bank is expected to raise rates by 75 basis points.
Alphabet shares rose 4.5% after the company reported better-than-expected Google ad sales, while Microsoft rose 3.1% after it said it targets double-digit growth in fiscal revenue.
"The guidance was pretty good and that helped the market know that the landscape is definitely slowing but at the end of the day, good companies are going to navigate it well," said Burt White, chief strategy officer at Carson Group.
"The market has rebounded and is now looking for leadership from some of the big tech names."
Focus will now be on ad revenue at Facebook owner Meta Platforms META.O after disappointing results from Snapchat's owner Snap Inc SNAP.N last week sparked a selloff in social media and ad tech firms.
Meta shares rose 2.7%, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O, which are slated to post reports on Thursday, firmed 2.5% and 0.5%, respectively.
That would conclude results from the largest U.S. firms - Apple, Microsoft, Alphabet and Amazon - which together account for nearly a quarter of the weight in the benchmark S&P 500 index .SPX.
Growth stocks and interest rateshttps://tmsnrt.rs/3ouVo6O
UPDATE 4-Google search ads beat targets despite global 'uncertainty'
UPDATE 6-Microsoft soothes market fears with forecast for strong revenue growth
(Reporting by Medha Singh, Pushkala Aripaka and Bansari Mayur Kamdar in Bengaluru; Editing by Shinjini Ganguli)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta shares rose 2.7%, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O, which are slated to post reports on Thursday, firmed 2.5% and 0.5%, respectively. By Medha Singh July 27 (Reuters) - Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession. The rate-sensitive growth stocks .RLG fell 25% this year as the Federal Reserve began its monetary policy tightening, compared with a near 18% fall in the S&P 500 index.
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Meta shares rose 2.7%, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O, which are slated to post reports on Thursday, firmed 2.5% and 0.5%, respectively. By Medha Singh July 27 (Reuters) - Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession. Alphabet shares rose 4.5% after the company reported better-than-expected Google ad sales, while Microsoft rose 3.1% after it said it targets double-digit growth in fiscal revenue.
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Meta shares rose 2.7%, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O, which are slated to post reports on Thursday, firmed 2.5% and 0.5%, respectively. By Medha Singh July 27 (Reuters) - Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession. Alphabet shares rose 4.5% after the company reported better-than-expected Google ad sales, while Microsoft rose 3.1% after it said it targets double-digit growth in fiscal revenue.
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Meta shares rose 2.7%, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O, which are slated to post reports on Thursday, firmed 2.5% and 0.5%, respectively. By Medha Singh July 27 (Reuters) - Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession. Alphabet shares rose 4.5% after the company reported better-than-expected Google ad sales, while Microsoft rose 3.1% after it said it targets double-digit growth in fiscal revenue.
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20045.0
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2022-07-27 00:00:00 UTC
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YouTube's quarter shows problems Meta may face: TikTok, weakening economy
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https://www.nasdaq.com/articles/youtubes-quarter-shows-problems-meta-may-face%3A-tiktok-weakening-economy
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By Paresh Dave and Nivedita Balu
July 27 (Reuters) - Mostly reassuring financial results from Alphabet Inc GOOGL.O included one concerning sign for social media companies: Its YouTube service posted its second difficult quarter in a row.
Quarterly ad sales at the world's biggest video sharing service grew at the slowest pace since Alphabet began disclosing that data three years ago. This indicates that last week's disastrous earnings report by Snap Inc SNAP.N reflected problems not unique to Snap - and it could also spell trouble for Meta Platforms Inc META.O, whose results are due later on Wednesday.
Competition from TikTok, a strong performance a year ago and a shaky economy all played a role in YouTube's latest woes, which earlier in the year were fueled by effects from the war in Ukraine and software changes by Apple Inc AAPL.O to mobile devices due to privacy concerns.
Which factor is contributing most and how long the deceleration extends could significantly affect Alphabet shares, even though investors have been enamored with YouTube's potential to bring in hundreds of billions of dollars annually.
YouTube's advertising revenue grew by 4.8% in the second quarter, a percentage point lower than its growth during the dismal first few months of the pandemic. This suggests that YouTube ad sales are more vulnerable to bad economic conditions than are the ad sales of Alphabet's biggest business, Google search.
YouTube ad sales rose to $7.3 billion, below estimates of $7.5 billion, according to FactSet data. Alphabet's core business is search ad sales, which grew 13.5% to $40.7 billion in the second quarter. YouTube competes more closely for ad dollars with media and social media companies such as Snap, Comcast Corp CMCSA.O, Twitter Inc TWTR.N and Meta's Facebook and Instagram.
COMPETITION
Google Chief Business Officer Philipp Schindler acknowledged on Tuesday that "pullbacks in spend by some advertisers" due to macroeconomic uncertainty are hurting YouTube. He also said last year's strong performance was difficult to beat, since advertisers that had pared spending due to the pandemic roared back with big budgets.
"Alphabet's results appear to confirm our checks that search trends were relatively stable during [the second quarter], while YouTube is more exposed to wobbles in the ad spending cycle," analysts at Robert W. Baird & Co Inc wrote.
Ad industry analysts pointed to yet another unfavorable situation for YouTube: Competition from TikTok, whose feed of short videos has stolen the attention of some users and advertisers away from YouTube and is also a threat to Meta.
"TikTok is hurting YouTube by stealing top creators and cannibalizing consumer viewing times," Needham analyst Laura Martin wrote in a note, adding that the results show broader ad weakness and could also be bad for Meta.
Schindler told analysts he remained encouraged by "the early stages of testing monetization with ads" on Shorts, YouTube's feature to combat TikTok.
YouTube itself still sees opportunity drawing cash advertisers currently spend to market on TV, he said.
MoffettNathanson analysts raised their estimate for YouTube sales growth in 2022 to 4.7% from a 1.5% decline as the second- quarter results were not as bad as they had feared. YouTube, whose sales have been broken out in Alphabet results since the end of 2018, typically generates more ad revenue in the second half of the year.
GRAPHIC-YouTube ad sales are slowing downhttps://tmsnrt.rs/3b6Y0ET
PREVIEW-As Zuckerberg bets on TikTok-style videos, Meta heads for first-ever revenue drop
Google search ads beat targets despite global 'uncertainty'
(Reporting by Paresh Dave in Oakland, Calif. and Nivedita Balu in Bengaluru Editing by Peter Henderson and Matthew Lewis)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Competition from TikTok, a strong performance a year ago and a shaky economy all played a role in YouTube's latest woes, which earlier in the year were fueled by effects from the war in Ukraine and software changes by Apple Inc AAPL.O to mobile devices due to privacy concerns. By Paresh Dave and Nivedita Balu July 27 (Reuters) - Mostly reassuring financial results from Alphabet Inc GOOGL.O included one concerning sign for social media companies: Its YouTube service posted its second difficult quarter in a row. Which factor is contributing most and how long the deceleration extends could significantly affect Alphabet shares, even though investors have been enamored with YouTube's potential to bring in hundreds of billions of dollars annually.
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Competition from TikTok, a strong performance a year ago and a shaky economy all played a role in YouTube's latest woes, which earlier in the year were fueled by effects from the war in Ukraine and software changes by Apple Inc AAPL.O to mobile devices due to privacy concerns. Quarterly ad sales at the world's biggest video sharing service grew at the slowest pace since Alphabet began disclosing that data three years ago. This suggests that YouTube ad sales are more vulnerable to bad economic conditions than are the ad sales of Alphabet's biggest business, Google search.
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Competition from TikTok, a strong performance a year ago and a shaky economy all played a role in YouTube's latest woes, which earlier in the year were fueled by effects from the war in Ukraine and software changes by Apple Inc AAPL.O to mobile devices due to privacy concerns. This suggests that YouTube ad sales are more vulnerable to bad economic conditions than are the ad sales of Alphabet's biggest business, Google search. Ad industry analysts pointed to yet another unfavorable situation for YouTube: Competition from TikTok, whose feed of short videos has stolen the attention of some users and advertisers away from YouTube and is also a threat to Meta.
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Competition from TikTok, a strong performance a year ago and a shaky economy all played a role in YouTube's latest woes, which earlier in the year were fueled by effects from the war in Ukraine and software changes by Apple Inc AAPL.O to mobile devices due to privacy concerns. This suggests that YouTube ad sales are more vulnerable to bad economic conditions than are the ad sales of Alphabet's biggest business, Google search. YouTube ad sales rose to $7.3 billion, below estimates of $7.5 billion, according to FactSet data.
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20046.0
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2022-07-27 00:00:00 UTC
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Is a Surprise Coming for Apple (AAPL) This Earnings Season?
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AAPL
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https://www.nasdaq.com/articles/is-a-surprise-coming-for-apple-aapl-this-earnings-season-0
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Apple is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.15 per share for AAPL, compared to a broader Zacks Consensus Estimate of $1.14 per share. This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +1.32% heading into earnings season.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Apple, and that a beat might be in the cards for the upcoming report.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. In fact, the Most Accurate Estimate for the current quarter is currently at $1.15 per share for AAPL, compared to a broader Zacks Consensus Estimate of $1.14 per share.
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This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +1.32% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
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This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +1.32% heading into earnings season. Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company.
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Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report. In fact, the Most Accurate Estimate for the current quarter is currently at $1.15 per share for AAPL, compared to a broader Zacks Consensus Estimate of $1.14 per share.
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20047.0
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2022-07-27 00:00:00 UTC
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ANALYSIS-Investors gauge U.S. stocks rebound: 'suckers' rally' or market bottom?
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AAPL
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https://www.nasdaq.com/articles/analysis-investors-gauge-u.s.-stocks-rebound%3A-suckers-rally-or-market-bottom
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nan
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nan
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By David Randall
NEW YORK, July 27 (Reuters) - As investors await another jumbo-sized rate increase from the Federal Reserve, they are taking the temperature of a weeks-long U.S. stock market rally that followed a vicious first-half selloff.
Even after Tuesday's sharp fall, the S&P 500 remained up 7% from its June 16 low, buoyed in part by expectations that the Fed will pause its aggressive rate hikes early next year and a recent decline in commodity prices that investors hope will help ease inflation.
So far, the bounce has its share of doubters. Three rallies of comparable magnitude have already wilted this year, with stocks sliding to new lows each time. Blackrock, the world’s largest asset manager, on Monday warned investors that more volatility lay ahead and said it was underweight developed market equities on expectations that inflation will stay tenacious.
"We think this is a bear market suckers' rally," said Steve Chiavarone, senior portfolio manager at Federated Hermes, who believes the Fed will remain hawkish longer than expected and has reduced his equity exposure as the S&P pushed higher over the last few weeks.
Expectations that the Fed will end its market-bruising rate hikes sooner than forecast have helped power stocks higher. Nearly two-thirds of investors now believe the Fed funds rate will stand at 3.5% or lower by March 2023, up from just a third a month ago with that view, according to CME.
Investors expect the Fed to deliver another 75 basis points of tightening Wednesday, after already raising rates by 150 basis points so far this year. FEDWATCH Hopes for moderation after that could be dashed if consumer prices remain stubbornly high in coming weeks - repeating a scenario that dragged stocks lower this year, Blackrock’s strategists wrote.
"Inflation data could surprise to the upside – and cause markets to rapidly price a higher rate path once again. Result: another equities sell-off," BlackRock strategists wrote.
Data from the Wells Fargo Investment Institute showed the severity of the current bear market - which saw the S&P 500 fall as much as 23.6% below its January high - may depend on whether the economy is in a recession.
Bear markets accompanied by a recession have lasted an average of 18 months, during which stocks fell an average of 35.8%. Without a recession, bear markets lasted an average of 5.9 months with an average decline of 27.9%, the bank’s data showed.
On Sunday, U.S. Treasury Secretary Janet Yellen acknowledged the risk of a recession but said it was not inevitable. Still, parts of the market have continued to reflect investor unease, even as broader averages have bounced.
More stocks have posted new lows than new highs on the Nasdaq Composite Index for 76 straight days, the longest such stretch in 20 years, said Willie Delwiche, investment strategist at All Star Charts. The index is up nearly 9% from its June low.
"Until that relationship changes, it's premature to say that a bottom is in place," Delwiche said.
More optimistic investors point to an array of signals indicating bearish sentiment may have reached a crescendo in recent weeks, potentially exhausting sellers and making it easier for stocks to rebound.
A fund manager survey from BoFA Global Research last week showed expectations for global growth and profits at all-time lows and cash levels at their highest in two decades, two contrarian indicators the banks' strategists said could indicate greater stock gains ahead.
Short interest in the S&P 500, meanwhile, recently stood at its highest level since the depths of the coronavirus selloff in 2020, a signal that has occurred during past market bottoms, the bank's strategists wrote.
"We think it’s possible that the S&P 500 has already bottomed, and if it hasn’t, will find a bottom during the third quarter,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, in a note to investors.
Calvasina recently added stock exposure, betting that a possible recession has already been baked into prices.
Christopher Murphy, co-head of derivatives strategy at Susquehanna International Group, believes this week’s earnings reports - which include results from heavyweights such as Apple Inc and Meta Platforms– could play a key part in determining whether stocks can continue rallying.
For the time being, "the risks to the market are very well known right now" and already reflected in prices, he said.
(Reporting by David Randall; Editing by David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even after Tuesday's sharp fall, the S&P 500 remained up 7% from its June 16 low, buoyed in part by expectations that the Fed will pause its aggressive rate hikes early next year and a recent decline in commodity prices that investors hope will help ease inflation. "We think this is a bear market suckers' rally," said Steve Chiavarone, senior portfolio manager at Federated Hermes, who believes the Fed will remain hawkish longer than expected and has reduced his equity exposure as the S&P pushed higher over the last few weeks. Christopher Murphy, co-head of derivatives strategy at Susquehanna International Group, believes this week’s earnings reports - which include results from heavyweights such as Apple Inc and Meta Platforms– could play a key part in determining whether stocks can continue rallying.
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FEDWATCH Hopes for moderation after that could be dashed if consumer prices remain stubbornly high in coming weeks - repeating a scenario that dragged stocks lower this year, Blackrock’s strategists wrote. Without a recession, bear markets lasted an average of 5.9 months with an average decline of 27.9%, the bank’s data showed. A fund manager survey from BoFA Global Research last week showed expectations for global growth and profits at all-time lows and cash levels at their highest in two decades, two contrarian indicators the banks' strategists said could indicate greater stock gains ahead.
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By David Randall NEW YORK, July 27 (Reuters) - As investors await another jumbo-sized rate increase from the Federal Reserve, they are taking the temperature of a weeks-long U.S. stock market rally that followed a vicious first-half selloff. Even after Tuesday's sharp fall, the S&P 500 remained up 7% from its June 16 low, buoyed in part by expectations that the Fed will pause its aggressive rate hikes early next year and a recent decline in commodity prices that investors hope will help ease inflation. "We think this is a bear market suckers' rally," said Steve Chiavarone, senior portfolio manager at Federated Hermes, who believes the Fed will remain hawkish longer than expected and has reduced his equity exposure as the S&P pushed higher over the last few weeks.
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Even after Tuesday's sharp fall, the S&P 500 remained up 7% from its June 16 low, buoyed in part by expectations that the Fed will pause its aggressive rate hikes early next year and a recent decline in commodity prices that investors hope will help ease inflation. Still, parts of the market have continued to reflect investor unease, even as broader averages have bounced. For the time being, "the risks to the market are very well known right now" and already reflected in prices, he said.
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20048.0
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2022-07-27 00:00:00 UTC
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Wall Street to open higher on Microsoft, Alphabet earnings ahead of Fed
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AAPL
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https://www.nasdaq.com/articles/wall-street-to-open-higher-on-microsoft-alphabet-earnings-ahead-of-fed
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Microsoft, Alphabet results spark rally in megacap stocks
T-Mobile up after raising subscriber growth forecast
Fed policy decision expected at 2 p.m. ET
Boeing rises on keeping cash flow goal
Futures up: Dow 0.49%, S&P 0.88%, Nasdaq 1.42%
Adds comments, updates prices throughout
By Shreyashi Sanyal and Aniruddha Ghosh
July 27 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
Investors were on edge after a profit warning from top U.S. retailer Walmart WMT.N fueled fears of a wider slowdown in spending as high inflation increased costs for consumers. The three indexes had closed sharply lower in the previous session.
Microsoft Corp MSFT.O rose 3.6% in premarket trading after it forecast revenue would grow by double digits this fiscal year on demand for cloud computing services.
Alphabet Inc GOOGL.O added 4.1% as better-than-expected sales at Google search ads brought relief after social media firm Snap Inc's SNAP.N warning last week raised fears of a sharp ad market slowdown.
"A positive reaction from the latest quarterly numbers has been incredibly hard-won given the negative market sentiment surrounding broader tech," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
The results sparked a rally in high-growth stocks. Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O rose ahead of their earnings this week.
Megacap growth stocks have been hammered this year as the Federal Reserve raised interest rates aggressively to tame decades-high inflation. Future cash flows on which valuation of these companies rests are discounted heavily when rates rise.
Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
Money market traders were even placing about a one-in-four chance the Fed would surprise markets with a larger 1-percentage-point increase, as per CME Group's Fedwatch tool.
The decision is due at 2:00 pm ET (1800 GMT) and Fed Chair Jerome Powell's news conference half an hour later should elaborate on how the central bank views the recent economic data and at least hint at its next steps.
"If he (Powell) gets some kind of indication that inflation has come under control, then that's a sign to the market that their (Fed) moves are working and 50 basis points is in the cards for the next meeting," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.
At 8:25 a.m. ET, Dow e-minis 1YMcv1 were up 154 points, or 0.49%, S&P 500 e-minis EScv1 were up 34.5 points, or 0.88%, and Nasdaq 100 e-minis NQcv1 were up 172.5 points, or 1.42%.
Shares of Boeing Co BA.N rose 2.9% after the planemaker stuck to its goal of generating free cash flow this year.
PayPal Holdings Inc PYPL.O jumped 6.9% after a report said activist investor Elliott Investment Management is building a stake in the fintech giant to push it to ramp up its cost-reduction efforts.
T-Mobile US Inc TMUS.O added 3.8% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit expectations.
(Reporting by Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O rose ahead of their earnings this week. ET Boeing rises on keeping cash flow goal Futures up: Dow 0.49%, S&P 0.88%, Nasdaq 1.42% Adds comments, updates prices throughout By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. "A positive reaction from the latest quarterly numbers has been incredibly hard-won given the negative market sentiment surrounding broader tech," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
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Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O rose ahead of their earnings this week. Microsoft, Alphabet results spark rally in megacap stocks T-Mobile up after raising subscriber growth forecast Fed policy decision expected at 2 p.m. ET Boeing rises on keeping cash flow goal Futures up: Dow 0.49%, S&P 0.88%, Nasdaq 1.42% Adds comments, updates prices throughout By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
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Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O rose ahead of their earnings this week. Microsoft, Alphabet results spark rally in megacap stocks T-Mobile up after raising subscriber growth forecast Fed policy decision expected at 2 p.m. ET Boeing rises on keeping cash flow goal Futures up: Dow 0.49%, S&P 0.88%, Nasdaq 1.42% Adds comments, updates prices throughout By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
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Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Apple Inc AAPL.O rose ahead of their earnings this week. Microsoft, Alphabet results spark rally in megacap stocks T-Mobile up after raising subscriber growth forecast Fed policy decision expected at 2 p.m. ET Boeing rises on keeping cash flow goal Futures up: Dow 0.49%, S&P 0.88%, Nasdaq 1.42% Adds comments, updates prices throughout By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
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20049.0
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2022-07-27 00:00:00 UTC
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Snap Cratering Creates an Opportunity to Buy Another Bargain Tech Stock
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AAPL
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https://www.nasdaq.com/articles/snap-cratering-creates-an-opportunity-to-buy-another-bargain-tech-stock
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nan
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nan
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Snap (NYSE: SNAP) reported its second-quarter earnings on July 21, and the results were not good. Q2 revenue grew just 13% year over year, which was underwhelming even compared to the company's revised guidance of sub-20% revenue expansion. Snap cited decreasing demand for advertising space on its platform due to macroeconomic challenges and platform policy changes from Apple.
Investors took this disappointing result and assumed that the rest of the advertising industry would report facing similar difficulties.Many advertising technology (adtech) companies were sold off as a result. PubMatic (NASDAQ: PUBM) was such adtech company, falling almost 10% after Snap reported earnings. But investors might be throwing the baby out with the bathwater. Not all adtech companies are facing the same issues as Snap, which means that some players could thrive, even in an unfriendly environment. Here's why PubMatic could be one of those that soars higher.
PubMatic is diversified
Snap's first problem was Apple's Identifier for Advertisers (IDFA) changes, which made it harder for companies to gather data on their consumers, and consequently decreased ad effectiveness. PubMatic helps publishers find ad buyers to fill their inventory, so theoretically, it could also be hurt by this change. However, PubMatic serves publishers across a wide array of ad channels -- not just mobile apps. This gives the company more revenue diversification, minimizing the impact of Apple's changes for PubMatic. In the fourth quarter of 2021, PubMatic's CFO Steve Pantelick reiterated this, saying that the company remained relatively unscathed by Apple's update "as advertisers shifted ad dollars to other high ROI formats and channels on our platform."
In other words, if a mobile-advertising strategy becomes less effective, advertisers can use PubMatic to find ad inventory on another channel, like connected TV. Snap, on the other hand, is a mobile-first app, making it reliant on mobile-advertising demand.
How ad spending could change during a downturn
Like many companies, Snap has also been hard-hit by the recent array of macroeconomic challenges. If a recession hits and businesses need to pull back spending, cutting ad budgets is an easy way to do so. This anticipatory pullback already seems to have impacted Snap, but it's possible that PubMatic won't be as severely affected.
PubMatic helped over 1,400 publishers fill their ad inventory as of December 31, 2021, including large enterprises like Electronic Arts (NASDAQ: EA) and Yahoo. Macroeconomic conditions could force businesses to pull back ad spending, but they don't have to do so evenly. Instead, companies can cut ad budgets on platforms that serve niche audiences (like Snap) and keep buying ad inventory on more resilient and established platforms like Yahoo. Therefore, PubMatic could prove to be more resilient during an economic downturn.
So far, this has proved to be the case. While Snap has seen slowing growth and suspended its Q3 guidance, PubMatic still expects a 25% top-line increase this year versus 2021.
Even if a recession damaged PubMatic, the company has the cash flow to withstand a temporary decline in activity. In Q1, the company reported a net income margin of 9% and a free cash flow margin of 27%. Comparatively, Snap had a net loss margin of 38% and a free cash flow margin of negative 13% in Q2.
PubMatic's stronger financials allow the company to continue investing in its platform and growth during this economic downturn, potentially setting it up to come out of this stronger than before.
Why now is the time to buy PubMatic
Snap's underwhelming figures and the widespread fears of an ad-spending decline have brought PubMatic's valuation down to just 16 times earnings. This is much lower than its primary rival, Magnite (NASDAQ: MGNI), which trades at 897 times earnings.
Snap shouldn't have become the barometer of the adtech industry, but this situation is creating bargains, and PubMatic is one of them. With the company's diversified revenue and large customer pool, this business could be more resilient than some investors believe over the short term.
Over the long term, the company looks even more appealing. PubMatic is attacking a market where global digital ad spending is expected to reach $627 billion by 2024. With sustainable advantages that could allow this business to thrive, PubMatic looks too cheap to ignore at these prices.
10 stocks we like better than PubMatic, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and PubMatic, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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Jamie Louko has positions in Apple and PubMatic, Inc. The Motley Fool has positions in and recommends Apple, Magnite, Inc, and PubMatic, Inc. The Motley Fool recommends Electronic Arts and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PubMatic is diversified Snap's first problem was Apple's Identifier for Advertisers (IDFA) changes, which made it harder for companies to gather data on their consumers, and consequently decreased ad effectiveness. In the fourth quarter of 2021, PubMatic's CFO Steve Pantelick reiterated this, saying that the company remained relatively unscathed by Apple's update "as advertisers shifted ad dollars to other high ROI formats and channels on our platform." PubMatic helped over 1,400 publishers fill their ad inventory as of December 31, 2021, including large enterprises like Electronic Arts (NASDAQ: EA) and Yahoo.
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Snap cited decreasing demand for advertising space on its platform due to macroeconomic challenges and platform policy changes from Apple. Instead, companies can cut ad budgets on platforms that serve niche audiences (like Snap) and keep buying ad inventory on more resilient and established platforms like Yahoo. The Motley Fool recommends Electronic Arts and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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PubMatic is diversified Snap's first problem was Apple's Identifier for Advertisers (IDFA) changes, which made it harder for companies to gather data on their consumers, and consequently decreased ad effectiveness. Instead, companies can cut ad budgets on platforms that serve niche audiences (like Snap) and keep buying ad inventory on more resilient and established platforms like Yahoo. Why now is the time to buy PubMatic Snap's underwhelming figures and the widespread fears of an ad-spending decline have brought PubMatic's valuation down to just 16 times earnings.
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PubMatic (NASDAQ: PUBM) was such adtech company, falling almost 10% after Snap reported earnings. Instead, companies can cut ad budgets on platforms that serve niche audiences (like Snap) and keep buying ad inventory on more resilient and established platforms like Yahoo. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PubMatic, Inc. wasn't one of them!
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20050.0
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2022-07-27 00:00:00 UTC
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Is Snapchat Stock a Buy Now Under $10?
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AAPL
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https://www.nasdaq.com/articles/is-snapchat-stock-a-buy-now-under-%2410
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nan
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nan
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Snapchat (NYSE: SNAP) stock is down a staggering 80% year to date, trading below $10 and less than the 2017 IPO price of $17. That's right, if you would have purchased SNAP stock in 2017 when the IPO started trading to the public, you would be down approximately 50%, possibly more, from holding the stock for half a decade. Is Snapchat stock a buy now? In the below video, I provide stats, facts, analyst opinions, valuation metrics, and my predictions for the stock.
*Stock prices used in the below video were during the trading day of July 26, 2022. The video was published on July 26, 2022.
10 stocks we like better than Snap 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.*
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*Stock Advisor returns as of June 2, 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. Eric Cuka has positions in Apple 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. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snapchat (NYSE: SNAP) stock is down a staggering 80% year to date, trading below $10 and less than the 2017 IPO price of $17. In the below video, I provide stats, facts, analyst opinions, valuation metrics, and my predictions for the stock. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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That's right, if you would have purchased SNAP stock in 2017 when the IPO started trading to the public, you would be down approximately 50%, possibly more, from holding the stock for half a decade. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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In the below video, I provide stats, facts, analyst opinions, valuation metrics, and my predictions for the stock. Eric Cuka has positions in Apple and Snap Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc.
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20051.0
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2022-07-27 00:00:00 UTC
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Apple Could Outperform Peers In Q3, Says Top Analyst
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AAPL
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https://www.nasdaq.com/articles/apple-could-outperform-peers-in-q3-says-top-analyst
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Shares of Apple (NASDAQ: AAPL) have tanked 16.7% this year as investors have been concerned about the impact of rising interest rates and soaring inflation on the premium technology retailer. Apple is expected to announce its fiscal Q3 results on July 28, and investors will be watching closely how these macroeconomic challenges affect the company's topline performance.
However, top-rated Rosenblatt Securities analyst Barton Crockett is of the opinion that Apple is likely to out-perform its peers in fiscal Q3 and will likely exceed consensus estimates. Let us look at the reasons behind the analyst’s confidence in the stock.
Apple’s Fiscal Q3 Outlook
Wall Street analysts expect Apple to generate revenues of $82.97 billion, while analyst Crockett has projected Apple to generate revenues of $83.5 billion. Apple had refrained from giving any kind of Q3 revenue guidance, citing supply challenges and disruptions due to COVID that were impacting customer demand in China.
Consensus estimates peg the fiscal Q3 earnings at $1.16 per share, while analyst Crockett’s estimate stands at $1.17 per share.
Sales of Apple’s iPhone & Macs Could Trend Higher in Q3
Crockett has projected iPhone sales of $39.2 billion in fiscal Q3, a decline of 1% year-over-year. However, the analyst cited Canalys data to point out that while globally, smartphone shipments dropped 9% year-over-year in the June quarter, Apple’s iPhone shipments were up 7%.
The Mac could generate sales of $8.6 billion, reflecting a growth of 5% year-over-year, according to the analyst.
Apple’s Sales in China Could Be on the Rebound
Apple CFO, Luca Maestri, had warned on its fiscal Q2earnings callthat the impact of supply chain logjams and chip shortages could result in a revenue hit of between $4 billion and $8 billion, “which is substantially larger than what we experienced during the March quarter.”
But Crockett has stated that unit shipment data on a monthly basis from the China Academy of Information and Communications Technology indicates that international mobile phone shipments (mainly Apple) rebounded in the June quarter, up 24% year-over-year versus a 24% fall in shipments for local brands.
The analyst added that although there “hasn't always been a great correlation historically between Apple's China revenues and this shipment data. But it's still a supportive backdrop.”
China is an important market for Apple and comprised 18.8% of its total sales in the March quarter.
Crockett’s Take on APPL
Analyst Crockett is positive about Apple’s 10-year deal to carry all of Major League Soccer (MLS) on its Apple TV platform. This deal, which was announced back in June, is worth $2.5 billion and will be in effect from next year.
However, the analyst still worries about the future. The analyst pointed out that even if the company performed remarkably well in the June quarter, concerns remained. Crockett cited a trade press report from Digitimes, which stated that Apple plans to initially produce 90 million of its new iPhone 14s. This ties in with the analyst’s estimate of unit growth in the low single digits for iPhone 14.
However, Crockett questioned whether, given the high rate of inflation, consumers would “hold off or trade down in devices?”
As a result, the analyst remained sidelined on the stock with a Hold rating and a price target of $168 on the stock, implying an upside potential of 10.8% at current levels.
The rest of the analysts on the Street, however, are cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 22 Buys, six Holds, and one Sell. The average Apple price target of $179.53 implies an upside potential of 18.4% at current levels.
Bottom Line
While Apple could sail through the June quarter, it still remains to be seen how the macro volatility could impact this tech retailer over the medium to long term.
Apple scores a nine out of 10 on the TipRanks Smart Score system, indicating that the stock is highly likely to outperform the market.
The TipRanks Smart Score system is a data-driven, quantitative scoring system that analyses stocks on eight major parameters and comes up with a Smart Score ranging from 1 to 10. The higher the score, the more likely the stock will outperform the market.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple (NASDAQ: AAPL) have tanked 16.7% this year as investors have been concerned about the impact of rising interest rates and soaring inflation on the premium technology retailer. Apple had refrained from giving any kind of Q3 revenue guidance, citing supply challenges and disruptions due to COVID that were impacting customer demand in China. Bottom Line While Apple could sail through the June quarter, it still remains to be seen how the macro volatility could impact this tech retailer over the medium to long term.
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Shares of Apple (NASDAQ: AAPL) have tanked 16.7% this year as investors have been concerned about the impact of rising interest rates and soaring inflation on the premium technology retailer. Apple’s Fiscal Q3 Outlook Wall Street analysts expect Apple to generate revenues of $82.97 billion, while analyst Crockett has projected Apple to generate revenues of $83.5 billion. Sales of Apple’s iPhone & Macs Could Trend Higher in Q3 Crockett has projected iPhone sales of $39.2 billion in fiscal Q3, a decline of 1% year-over-year.
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Shares of Apple (NASDAQ: AAPL) have tanked 16.7% this year as investors have been concerned about the impact of rising interest rates and soaring inflation on the premium technology retailer. Apple’s Fiscal Q3 Outlook Wall Street analysts expect Apple to generate revenues of $82.97 billion, while analyst Crockett has projected Apple to generate revenues of $83.5 billion. Apple’s Sales in China Could Be on the Rebound Apple CFO, Luca Maestri, had warned on its fiscal Q2earnings callthat the impact of supply chain logjams and chip shortages could result in a revenue hit of between $4 billion and $8 billion, “which is substantially larger than what we experienced during the March quarter.” But Crockett has stated that unit shipment data on a monthly basis from the China Academy of Information and Communications Technology indicates that international mobile phone shipments (mainly Apple) rebounded in the June quarter, up 24% year-over-year versus a 24% fall in shipments for local brands.
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Shares of Apple (NASDAQ: AAPL) have tanked 16.7% this year as investors have been concerned about the impact of rising interest rates and soaring inflation on the premium technology retailer. Sales of Apple’s iPhone & Macs Could Trend Higher in Q3 Crockett has projected iPhone sales of $39.2 billion in fiscal Q3, a decline of 1% year-over-year. Apple’s Sales in China Could Be on the Rebound Apple CFO, Luca Maestri, had warned on its fiscal Q2earnings callthat the impact of supply chain logjams and chip shortages could result in a revenue hit of between $4 billion and $8 billion, “which is substantially larger than what we experienced during the March quarter.” But Crockett has stated that unit shipment data on a monthly basis from the China Academy of Information and Communications Technology indicates that international mobile phone shipments (mainly Apple) rebounded in the June quarter, up 24% year-over-year versus a 24% fall in shipments for local brands.
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20052.0
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2022-07-27 00:00:00 UTC
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Factors to Note Ahead of Check Point's (CHKP) Q2 Earnings
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AAPL
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https://www.nasdaq.com/articles/factors-to-note-ahead-of-check-points-chkp-q2-earnings
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nan
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Check Point Software Technologies CHKP is set to report second-quarter 2022 results on Aug 1.
For the second quarter, Check Point projects revenues between $545 million and $575 million ($560 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $560 million, suggesting a 6.4% increase from the year-ago quarter’s reported figure.
Additionally, CHKP forecasts adjusted earnings per share in the range of $1.55-$1.65 ($1.60 at the midpoint). The consensus mark for earnings stands at $1.62 per share, a penny higher than the year-ago quarter’s earnings of $1.61.
Let’s see how things have shaped up before this announcement.
Check Point Software Technologies Ltd. Price and EPS Surprise
Check Point Software Technologies Ltd. price-eps-surprise | Check Point Software Technologies Ltd. Quote
Things to Note Before Q2 Earnings
The hybrid work environment has urged the greater need for network security. This trend is anticipated to have fueled the demand for Check Point’s products during the quarter under review.
Moreover, the increased demand for network security gateways to support higher capacities amid the hybrid work environment is expected to have spurred the demand for CHKP’s remote access VPN (virtual private network) solutions.
Additionally, Check Point’s quarterly performance is likely to have benefited from increased security subscriptions due to the solid demand for its CloudGuard, Harmony, Sandblast Zero-day threat prevention and Infinity solutions.
However, continued industry-wide component supply constraints might have impacted the company’s ability to meet the demand for its products and solutions, thereby hurting Check Point’s overall sales during the second quarter. Moreover, the firm’s elevated investments in sales and marketing efforts might have clipped margins during the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Check Point this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Check Point currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases.
Valero sports a Zacks Rank #1 and has an Earnings ESP of +10.22%. The company is scheduled to report second-quarter 2022 results on Jul 28. Valero’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLO’s second-quarter earnings is pegged at $8.78 per share, indicating a sharp improvement from the year-ago quarter’s earnings of 48 cents per share. The consensus mark for revenues stands at $39.7 billion, suggesting a year-over-year increase of 42.9%.
PBF Energy currently sports a Zacks Rank #1 and has an Earnings ESP of +20.67%. The company is slated to report its second-quarter 2022 results on Jul 28. PBF Energy’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 61.5%.
The Zacks Consensus Estimate for PBF Energy’s second-quarter earnings stands at $6.57 per share, implying a strong improvement from the year-ago quarter’s loss of $1.26. PBF is estimated to report revenues of $9.8 billion, which suggests growth of 42.3% from the year-ago quarter.
Apple is slated to report third-quarter fiscal 2022 results on Jul 28. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.32% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 11.9%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.14 per share, suggesting a year-over-year decline of 12.3%. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Apple Inc. (AAPL): Free Stock Analysis Report
Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report
Valero Energy Corporation (VLO): 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.
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Stocks With the Favorable Combination Per our model, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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20053.0
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2022-07-27 00:00:00 UTC
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If You'd Invested $3,000 in Apple in 2007, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-youd-invested-%243000-in-apple-in-2007-this-is-how-much-you-would-have-today
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Apple (NASDAQ: AAPL) went public in 1980 at $22 per share. If you had invested $3,000 in that scrappy computer maker's IPO, your 136 shares would have grown to 30,464 shares through five stock splits, and your initial investment would be worth about $4.69 million today.
However, you could have jumped on the Apple bandwagon much later and still reaped massive multibagger gains. Let's turn the clock forward to 2007, 10 years after Steve Jobs returned to the company as its CEO.
That was the year Apple launched its first iPhone. If you had invested $3,000 in Apple on Jan. 9, 2007 -- the day Jobs announced the iPhone -- your investment would be worth over $139,000 today. Let's see why that one device turned Apple into one of the market's hottest growth stocks.
Image source: Apple.
How Apple disrupted the smartphone market
Apple didn't create the first smartphone. Instead, it disrupted that enterprise-facing niche -- which was dominated by BlackBerry and Nokia at the time -- with simple touchscreen-based devices.
That streamlined approach, which eliminated the need for cramped physical keyboards, opened up the floodgates for a new generation of touchscreen-based mobile apps. In 2008, it centralized the distribution of both first-party and third-party apps by launching its App Store.
At the time, many critics believed the iPhone would fail. Microsoft's then-CEO Steve Ballmer claimed there was "no chance" the iPhone would dent the smartphone market, Intel refused to develop the iPhone's mobile chips because it didn't believe Apple would ever sell enough phones to justify its own expenses, and TechCrunch's Seth Porges predicted the iPhone would "bomb."
In fiscal 2007, which ended in September of that year, Apple only shipped 1.4 million iPhones. But that figure soared to 11.6 million in fiscal 2008, and it continued climbing to a peak of 231.2 million shipments in fiscal 2016 with the best-selling iPhone 6 and 6s.
The market's demand for new iPhones has cooled off since then, but Apple still shipped an estimated 228.4 million iPhones in 2021, according to Strategy Analytics. It also controlled 17% of the global smartphone market in the second quarter of 2022, according to Canalys, putting it in second place behind Samsung's 21% share. In terms of premium devices over $400, Apple controlled 62% of the market in the first quarter of 2022, according to Counterpoint Research.
How did the iPhone light a fire under Apple's stock?
Apple had already experienced a rebirth under Steve Jobs with the launches of the iMac in 1998 and the iPod in 2001. However, the iPhone went on to eclipse all of Apple's other business segments to become its primary source of revenue. In fiscal 2021, Apple generated 52% of its revenue from the iPhone, compared to 50% of its revenue in fiscal 2020.
Apple subsequently launched the iPad in 2010, which expanded the niche market of tablet computers into a mainstream one, before Jobs passed away in 2011. Many investors questioned Apple's ability to continue growing after Jobs' passing, but his successor Tim Cook continued to expand its hardware business with the Apple Watch, AirPods, and HomePod smart speakers. Cook also strengthened Apple's Services division with new subscription-based services like Apple Music, Apple TV+, and Apple Arcade. As of its latest quarter, Apple had locked in 825 million paid subscriptions across all of its services.
It was also sitting on $193 billion in cash and marketable securities, which gives it plenty of room for fresh investments in newer markets like augmented reality, virtual reality, and connected vehicles.
Between fiscal 2007 and fiscal 2021, Apple's revenue skyrocketed from $24 billion to $365.8 billion, representing a compound annual growth rate (CAGR) of 21.5%. Its net income surged from $3.5 billion to $94.7 billion, representing a CAGR of 26.6%. Over the past decade, the company also reduced its number of outstanding shares by 38% with generous and well-timed buybacks.
Will Apple remain a rock-solid investment?
Apple is now worth $2.5 trillion, so it seems doubtful it will replicate its historic gains from the past 14 years. However, I firmly believe its stable growth rates, the strength of its evergreen brand, its fortress balance sheet, and its ability to disrupt other markets all make it a solid long-term investment.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Intel, and Microsoft. The Motley Fool recommends BlackBerry and recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) went public in 1980 at $22 per share. That streamlined approach, which eliminated the need for cramped physical keyboards, opened up the floodgates for a new generation of touchscreen-based mobile apps. Apple subsequently launched the iPad in 2010, which expanded the niche market of tablet computers into a mainstream one, before Jobs passed away in 2011.
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Apple (NASDAQ: AAPL) went public in 1980 at $22 per share. Between fiscal 2007 and fiscal 2021, Apple's revenue skyrocketed from $24 billion to $365.8 billion, representing a compound annual growth rate (CAGR) of 21.5%. The Motley Fool has positions in and recommends Apple, Intel, and Microsoft.
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Apple (NASDAQ: AAPL) went public in 1980 at $22 per share. How Apple disrupted the smartphone market Apple didn't create the first smartphone. Cook also strengthened Apple's Services division with new subscription-based services like Apple Music, Apple TV+, and Apple Arcade.
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Apple (NASDAQ: AAPL) went public in 1980 at $22 per share. That was the year Apple launched its first iPhone. Let's see why that one device turned Apple into one of the market's hottest growth stocks.
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20054.0
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2022-07-27 00:00:00 UTC
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Google Maps launches Street View in India after 11-year wait
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AAPL
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https://www.nasdaq.com/articles/google-maps-launches-street-view-in-india-after-11-year-wait
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By Munsif Vengattil
NEW DELHI, July 27 (Reuters) - Alphabet Inc's GOOGL.O Google Maps on Wednesday launched its panoramic Street View service in 10 Indian cities in partnership with Tech Mahindra and Genesys, 11 years after a first attempt ran into regulatory troubles.
The feature, which offers 360-degree views of streets around the world using photos taken by cruising vehicles, has faced privacy complaints and regulatory scrutiny in many countries.
The Indian launch comes after Google was denied permission at least twice in the last decade by the government over security concerns.
Company executives said on Wednesday it was able to meet the regulatory requirements thanks to a new geospatial policy from India last year, which allows foreign map operators to provide panoramic imagery by licensing the data from local partners.
Data collection was entirely done by Tech Mahindra and Genesys, Google said, adding the service would be available in over 50 Indian cities by the end of this year.
Street View imagery will blur out faces of individuals and license plates to address privacy concerns, said Miriam Daniel, Vice President of Google Maps Experiences.
Wednesday's announcement coincided with a similar feature launch from MapmyIndia CEIF.NS, which powers Apple Inc's AAPL.O maps in the country. Its Mappls RealView is live across thousands of cities, the company said.
Google also announced a partnership with India's Central Pollution Control Board to provide air quality information over maps.
(Reporting by Munsif Vengattil in New Delhi Editing by Sherry Jacob-Phillips and Mark Potter)
((chris.thomas@thomsonreuters.com; +91-80-6749-8695;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wednesday's announcement coincided with a similar feature launch from MapmyIndia CEIF.NS, which powers Apple Inc's AAPL.O maps in the country. By Munsif Vengattil NEW DELHI, July 27 (Reuters) - Alphabet Inc's GOOGL.O Google Maps on Wednesday launched its panoramic Street View service in 10 Indian cities in partnership with Tech Mahindra and Genesys, 11 years after a first attempt ran into regulatory troubles. Company executives said on Wednesday it was able to meet the regulatory requirements thanks to a new geospatial policy from India last year, which allows foreign map operators to provide panoramic imagery by licensing the data from local partners.
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Wednesday's announcement coincided with a similar feature launch from MapmyIndia CEIF.NS, which powers Apple Inc's AAPL.O maps in the country. By Munsif Vengattil NEW DELHI, July 27 (Reuters) - Alphabet Inc's GOOGL.O Google Maps on Wednesday launched its panoramic Street View service in 10 Indian cities in partnership with Tech Mahindra and Genesys, 11 years after a first attempt ran into regulatory troubles. Company executives said on Wednesday it was able to meet the regulatory requirements thanks to a new geospatial policy from India last year, which allows foreign map operators to provide panoramic imagery by licensing the data from local partners.
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Wednesday's announcement coincided with a similar feature launch from MapmyIndia CEIF.NS, which powers Apple Inc's AAPL.O maps in the country. By Munsif Vengattil NEW DELHI, July 27 (Reuters) - Alphabet Inc's GOOGL.O Google Maps on Wednesday launched its panoramic Street View service in 10 Indian cities in partnership with Tech Mahindra and Genesys, 11 years after a first attempt ran into regulatory troubles. Company executives said on Wednesday it was able to meet the regulatory requirements thanks to a new geospatial policy from India last year, which allows foreign map operators to provide panoramic imagery by licensing the data from local partners.
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Wednesday's announcement coincided with a similar feature launch from MapmyIndia CEIF.NS, which powers Apple Inc's AAPL.O maps in the country. By Munsif Vengattil NEW DELHI, July 27 (Reuters) - Alphabet Inc's GOOGL.O Google Maps on Wednesday launched its panoramic Street View service in 10 Indian cities in partnership with Tech Mahindra and Genesys, 11 years after a first attempt ran into regulatory troubles. The feature, which offers 360-degree views of streets around the world using photos taken by cruising vehicles, has faced privacy complaints and regulatory scrutiny in many countries.
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20055.0
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2022-07-27 00:00:00 UTC
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LG Display reverses into loss as inflation ends COVID-fuelled demand surge
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AAPL
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https://www.nasdaq.com/articles/lg-display-reverses-into-loss-as-inflation-ends-covid-fuelled-demand-surge
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Adds revenue, price data
SEOUL, July 27 (Reuters) - South Korean display panel maker LG Display Co 034220.KS said on Wednesday it swung to a second-quarter loss from a profit a year earlier, as inflation and interest rate hikes undercut demand for panels used in TVs and gadgets.
The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. Business had been boosted for several quarters by strong home entertainment demand during the COVID-19 pandemic.
The quarterly operating loss, the first since the second quarter of 2020, was steeper than an average forecast of a 343 billion won loss from 12 analysts polled by Refinitiv SmartEstimate.
Revenue fell 20% on the year to 5.6 trillion won, LG Display said in a regulatory filing.
LG Display saw a decrease in panel shipments in the second quarter as China's prolonged COVID lockdowns disrupted supply chains, while the industry in general saw demand affected by increasing macroeconomic volatility and uncertainties.
Prices of 55-inch liquid crystal display (LCD) panels for TV sets fell about 12% in the April-June quarter compared with January-March, according to data from TrendForce's WitsView.
LG Display said it will accelerate its plan to reduce its LCD TV panel business and concentrate more on high-end IT products.
($1 = 1,313.6400 won)
(Reporting by Joyce Lee, Heekyong Yang and Byungwook Kim; Editing by Muralikumar Anantharaman 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.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. Adds revenue, price data SEOUL, July 27 (Reuters) - South Korean display panel maker LG Display Co 034220.KS said on Wednesday it swung to a second-quarter loss from a profit a year earlier, as inflation and interest rate hikes undercut demand for panels used in TVs and gadgets. LG Display saw a decrease in panel shipments in the second quarter as China's prolonged COVID lockdowns disrupted supply chains, while the industry in general saw demand affected by increasing macroeconomic volatility and uncertainties.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. Prices of 55-inch liquid crystal display (LCD) panels for TV sets fell about 12% in the April-June quarter compared with January-March, according to data from TrendForce's WitsView. LG Display said it will accelerate its plan to reduce its LCD TV panel business and concentrate more on high-end IT products.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. Adds revenue, price data SEOUL, July 27 (Reuters) - South Korean display panel maker LG Display Co 034220.KS said on Wednesday it swung to a second-quarter loss from a profit a year earlier, as inflation and interest rate hikes undercut demand for panels used in TVs and gadgets. The quarterly operating loss, the first since the second quarter of 2020, was steeper than an average forecast of a 343 billion won loss from 12 analysts polled by Refinitiv SmartEstimate.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. Adds revenue, price data SEOUL, July 27 (Reuters) - South Korean display panel maker LG Display Co 034220.KS said on Wednesday it swung to a second-quarter loss from a profit a year earlier, as inflation and interest rate hikes undercut demand for panels used in TVs and gadgets. Prices of 55-inch liquid crystal display (LCD) panels for TV sets fell about 12% in the April-June quarter compared with January-March, according to data from TrendForce's WitsView.
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20056.0
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2022-07-27 00:00:00 UTC
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LG Display swings to a loss as inflation puts brakes on pandemic-led demand
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AAPL
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https://www.nasdaq.com/articles/lg-display-swings-to-a-loss-as-inflation-puts-brakes-on-pandemic-led-demand
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nan
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SEOUL, July 27 (Reuters) - South Korea's LG Display Co Ltd 034220.KS swung on Wednesday to a loss in the second quarter from a profit a year earlier, as inflation and rate hikes hurt demand for panels used in TVs and IT gadgets after several quarters of pandemic-fuelled sales.
The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371.49 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year.
This is the first time LG Display logged a quarterly operating loss since the second quarter of 2020. The loss was against an average forecast of a 343 billion won loss from 12 analysts polled by Refinitiv SmartEstimate.
($1 = 1,313.6400 won)
(Reporting by Joyce Lee, Heekyong Yang and Byungwook Kim; Editing by Muralikumar Anantharaman)
((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.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371.49 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. SEOUL, July 27 (Reuters) - South Korea's LG Display Co Ltd 034220.KS swung on Wednesday to a loss in the second quarter from a profit a year earlier, as inflation and rate hikes hurt demand for panels used in TVs and IT gadgets after several quarters of pandemic-fuelled sales. ($1 = 1,313.6400 won) (Reporting by Joyce Lee, Heekyong Yang and Byungwook Kim; Editing by Muralikumar Anantharaman) ((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.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371.49 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. SEOUL, July 27 (Reuters) - South Korea's LG Display Co Ltd 034220.KS swung on Wednesday to a loss in the second quarter from a profit a year earlier, as inflation and rate hikes hurt demand for panels used in TVs and IT gadgets after several quarters of pandemic-fuelled sales. This is the first time LG Display logged a quarterly operating loss since the second quarter of 2020.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371.49 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. SEOUL, July 27 (Reuters) - South Korea's LG Display Co Ltd 034220.KS swung on Wednesday to a loss in the second quarter from a profit a year earlier, as inflation and rate hikes hurt demand for panels used in TVs and IT gadgets after several quarters of pandemic-fuelled sales. ($1 = 1,313.6400 won) (Reporting by Joyce Lee, Heekyong Yang and Byungwook Kim; Editing by Muralikumar Anantharaman) ((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.
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The operating loss at the Apple Inc AAPL.O supplier was 488 billion won ($371.49 million) for the April-June quarter, compared with a profit of 701 billion won in the same period last year. SEOUL, July 27 (Reuters) - South Korea's LG Display Co Ltd 034220.KS swung on Wednesday to a loss in the second quarter from a profit a year earlier, as inflation and rate hikes hurt demand for panels used in TVs and IT gadgets after several quarters of pandemic-fuelled sales. This is the first time LG Display logged a quarterly operating loss since the second quarter of 2020.
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20057.0
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2022-07-26 00:00:00 UTC
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Prepare for Apple Stock to Hit $200 or More
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AAPL
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https://www.nasdaq.com/articles/prepare-for-apple-stock-to-hit-%24200-or-more
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. This is true to a certain extent, but there’s more to the story. For example, there are features of Apple’s upcoming products that could actually make you healthier. Also, investors shouldn’t ignore Apple’s strength in its services business. All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock.
Do you remember when Apple became part of the “$1 trillion club”? It was a milestone moment when the company achieved a market capitalization of $1 trillion. Then, the next thing you know, Apple was worth $2 trillion.
One big-bank analyst is predicting that Apple could actually grow bigger than that, while another is eyeing an ambitious price target for the company’s shares. For both its products and its services, Apple is still a top-tier tech firm that belongs on just about any investor’s watch list.
Ticker Company Recent Price
AAPL Apple $152.37
What’s Happening with AAPL Stock?
The first thing to be aware of is Apple’s earnings release date, which is scheduled for July 28. This event could have a major impact on the Apple share price, so you’ll definitely want to mark that date on your calendar.
If you can catch AAPL stock in the $150s, you might want to pat yourself on the back for getting a real bargain. Apple’s trailing 12-month price-to-earnings (P/E) ratio of 25.26 is quite reasonable for a technology giant in the 2020s. Plus, Apple pays the loyal shareholders a forward annual dividend yield of 0.60%, so feel free to take a bite of that apple.
What could push AAPL stock to the next level? The most obvious answer would be Apple’s popular products, such as the iPhone. Fair enough, but there’s an angle you might have missed. Did you know that Apple is adding health and fitness features to iOS 16 and watchOS 9 this fall?
The new Apple Watch and iPhone will offer features that focus on 17 areas of health and fitness, according to the company. And right now, users can store more than 150 “different types of health data from Apple Watch, iPhone, and connected third-party apps and devices.”
Viewing Apple from Different Angles
As you can see, Apple is a multi-faceted business. You might never have thought of Apple as a fitness-tech company until today.
There are other ways to look at Apple, as well. For instance, Morgan Stanley analyst Erik Woodring is apparently focused on Apple’s subscription revenue. Woodring states, “a more pronounced shift to a subscription-like model” could add around $1 trillion to Apple’s current market cap.
Woodring maintained an “overweight” rating on AAPL stock along with a $180 price target. Even more ambitious is Wedbush analyst Daniel Ives, who published an “outperform” rating on Apple shares and a price target of $200.
Just Apple’s services segment alone, according to Ives, is worth over $1 trillion. Combine that with Apple’s hardware business, and there’s a “very compelling” risk/reward case at current levels, Ives contends.
What You Can Do Now
From products to services and subscriptions, and even health/fitness features, Apple is a true giant in the tech industry. The company has a great deal to offer its customers, and its shareholders as well.
Could Apple add another $1 trillion to its market cap? It can happen sooner than you might think. It’s wise not to underestimate Apple, and at the current share price, a buy-and-hold investment could provide exceptional long-term returns.
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 Prepare for Apple Stock to Hit $200 or More appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock. Ticker Company Recent Price AAPL Apple $152.37 What’s Happening with AAPL Stock?
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Ticker Company Recent Price AAPL Apple $152.37 What’s Happening with AAPL Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. Ticker Company Recent Price AAPL Apple $152.37 What’s Happening with AAPL Stock? All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock. Ticker Company Recent Price AAPL Apple $152.37 What’s Happening with AAPL Stock?
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20058.0
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2022-07-26 00:00:00 UTC
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US STOCKS-Wall Street falls as Walmart warning rattles retail stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-walmart-warning-rattles-retail-stocks
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nan
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nan
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By Shreyashi Sanyal and Aniruddha Ghosh
July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation.
Walmart Inc's WMT.N shares slumped 8.7%, while Target TGT.N and Amazon.com AMZN.O fell about 3.0% each, with the online retail giant weighing the most on the Nasdaq index .IXIC.
"This is what normally happens when inflation is so high or when consumers are having trouble paying their bills," said Eugenio J. Aleman, chief economist at Raymond James.
"People start to become very discriminating in consumption, so basically they reduce the purchases of discretionary items in favor of necessities."
In a sign of rising pressure to shore up profit amid higher costs, Amazon said in the run-up to its quarterly financial results that it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year.
The S&P 500 consumer discretionary index .SPLRCD slid 1.9%, leading sectoral declines. The S&P 500 retailing index .SPXRT dropped 2.7%.
Along with high inflation, a stronger dollar is also expected to weigh on profits of companies with sprawling global operations.
Wall Street's main indexes have rallied off mid-June lows as softening commodity prices and downbeat economic data prompt investors to scale back expectations of aggressive rate hikes by the Federal Reserve, but fears of a recession have sapped momentum recently.
The Fed is widely expected to deliver a 75 basis-point interest-rate hike at the end of its two-day policy meeting on Wednesday, which would be followed by comments from Chairman Jerome Powell.
U.S. consumer confidence fell for a third straight month in July amid persistent worries about higher inflation and rising interest rates, data showed, pointing to slower economic growth at the start of the third quarter.
Advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
The International Monetary Fund, meanwhile, cut global growth forecasts again, warning of risks from high inflation and the Ukraine war.
At 10:11 a.m. ET, the Dow Jones Industrial Average .DJI was down 69.70 points, or 0.22%, at 31,920.34, the S&P 500 .SPX was down 21.35 points, or 0.54%, at 3,945.49 and the Nasdaq Composite .IXIC was down 117.20 points, or 0.99%, at 11,665.47.
Among the Dow components, Coca-Cola Co KO.N gained 2.2% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N rose 1.8% after beating quarterly comparable sales and profit expectations.
3M Co MMM.N rose 5.2% after the industrial giant said it plans to spin off its healthcare business.
General Electric Co GE.N gained 6.3% after the U.S. industrial conglomerate beat revenue and profit estimates, led by strong growth in its aviation business.
General Motors Co GM.N fell 3.3% after reporting a 40% drop in quarterly net income and saying it was curbing spending and hiring ahead of a potential economic slowdown.
High-growth companies, such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped more than 1% each ahead of their quarterly reports after market close.
Earnings from S&P 500 companies are expected to have risen 6.2% for the second quarter from the year-ago period, according to Refinitiv data.
Declining issues outnumbered advancers for a 1.47-to-1 ratio on the NYSE and 2.01-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 21 new highs and 65 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High-growth companies, such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped more than 1% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Wall Street's main indexes have rallied off mid-June lows as softening commodity prices and downbeat economic data prompt investors to scale back expectations of aggressive rate hikes by the Federal Reserve, but fears of a recession have sapped momentum recently.
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High-growth companies, such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped more than 1% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. U.S. consumer confidence fell for a third straight month in July amid persistent worries about higher inflation and rising interest rates, data showed, pointing to slower economic growth at the start of the third quarter.
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High-growth companies, such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped more than 1% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Wall Street's main indexes have rallied off mid-June lows as softening commodity prices and downbeat economic data prompt investors to scale back expectations of aggressive rate hikes by the Federal Reserve, but fears of a recession have sapped momentum recently.
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High-growth companies, such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped more than 1% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. The S&P 500 retailing index .SPXRT dropped 2.7%.
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20059.0
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2022-07-26 00:00:00 UTC
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7 Dow Stocks Trading at a Huge Discount Right Now
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AAPL
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https://www.nasdaq.com/articles/7-dow-stocks-trading-at-a-huge-discount-right-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average has not been able to sidestep the pain in the broader market, although it’s held up better than the other indices. The S&P 500, Nasdaq and Dow have suffered peak-to-trough declines of 24.5%, 34.8% and 19.75%, respectively. That has us looking for Dow stocks trading at a huge discount.
The Dow Jones is not like the other indices. The S&P 500 has — as you may guess — 500 stocks in its index. The Nasdaq has thousands. But for the Dow Jones, it has just 30 stocks in its index.
Just because a company is in the Dow does not mean it’s invincible. It doesn’t cement its legacy in business proficiency or put it in some sort of stock market “Hall of Fame” — even if that’s what the stock-pickers for the index would like!
5 Electric Vehicle Stocks to Buy on the Dip
However, these stocks do tend to be industry leaders and of higher quality than many other holdings in the market. With the bear market in equities, let’s look for Dow stocks trading at a discount.
AAPL Apple $151.60
MSFT Microsoft $251.90
DIS Disney $99.78
NKE Nike $105.20
HD Home Depot $298.18
PG Procter & Gamble $144.27
CRM Salesforce $170.46
Apple (AAPL)
Source: pio3 / Shutterstock.com
Starting the list with Apple (NASDAQ:AAPL) — and following it with Microsoft (NASDAQ:MSFT) — might elicit an eye-roll or two from some readers. However, the stocks’ performance is undeniable at this time.
Apple stock has suffered a peak-to-trough 2022 decline of 29.5%. That outperforms Microsoft, as well as the rest of the FAANG components. It also outperforms the Nasdaq. While it doesn’t outperform the Dow as a whole, Apple’s relative strength against most comparable securities is worth taking note of.
As for its credentials, it has some of the strongest financials in the markets. Its balance sheet is enormous and today’s cash flow was unimaginable 10 or 20 years ago — for virtually any company.
Not to mention, Apple has one of the best businesses in the world. Balance sheet power and brand awareness aside, its Products and Services units form a powerful one-two punch. Products are obvious — that’s the iPhone, iPad, Mac and more. However, many investors many not realize that the company’s Services unit (which makes up roughly 20% of sales) is growing three times faster than Products and is twice as profitable.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Apple may have a peak-to-trough decline of 29.5%, but Microsoft is close with a loss of 30.9%. Like Apple, this outperforms the Nasdaq.
Even better, Microsoft has the best net margins in FAANG as well — better than Apple. The company churns out the best operating margins in the group as well, at 42.6%. The next best contender from the group is Meta (NASDAQ:META) with 36.7%, followed by Apple and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) under 31%.
Better yet, growth at Microsoft is not slowing down. Analysts expect sales to grow 17.4% this year and another 13.5% next year. On the earnings front, analysts expect roughly 15% growth both this year and next year.
7 Best Reddit Stocks to Buy Now
To pay just 24 times this year’s earnings feels like a discount for a company with a robust balance sheet, strong margins and very solid growth.
Disney (DIS)
Source: nikkimeel / Shutterstock.com
Disney (NYSE:DIS) is certainly one of the Dow stocks trading at a discount right now. Shares are down 85% from the high and hit new 52-week lows in mid-July. That actually underperforms the major indices.
I would argue, however, that Disney stock has been dragged down with the rest of the streaming world. Stocks like Netflix (NASDAQ:NFLX) have been obliterated and that has dragged down Disney.
But the company showing very solid growth for its streaming products, like Disney+, ESPN+ and Hulu. In total, the company now boasts total streaming subscribers of 205 million. For Disney+ specifically, Disney has 137.7 million last quarter, up 8 million subs and well ahead of estimates.
Even though Disney’s streaming business is growing quite well, the company is more than just that. At a time where travel trends are exploding higher (and despite fears of a coming recession), Disney has its Parks and Entertainment unit, as well as its Studio business.
Those recession worries are not helping Disney at the moment, but at 19 times forward earnings and with earnings estimates calling for 90% growth this year and 38% growth in 2023, investors need to take a closer look at Disney.
Nike (NKE)
Source: mimohe / Shutterstock.com
One of the most recognized brands in the world, Nike (NYSE:NKE), has come under incredible selling pressure over the past few months. After suffering a peak-to-trough decline of 44.5%, shares are still more than 36% off the high.
That’s even as the company continues to perform pretty well amid a global quagmire of supply chain woes. Last quarter, Nike’s revenue dropped 1%, although diluted EPS dipped about 3%. That’s as currency fluctuations and supply chain issues wreak havoc on its bottom line.
At what point does the dip in the share price account for these issues, though?
Nike has a formidable direct-to-consumer business, which continues to gain momentum even in a tough environment. Additionally, analysts expect both revenue and earnings growth to accelerate next year, up to 10.8% and 23.8%, respectively.
7 Cheap Stocks That Are Trading at a Discount
Nike may struggle in the short term and if the global economy falls into a recession, it will surely feel the pain. But from a long-term perspective, it’s hard not to like Nike.
Home Depot (HD)
Source: Northfoto / Shutterstock.com
Most retailers celebrate calendar Q4 as their best shopping stretch, but not Home Depot (NYSE:HD). While Home Depot does just fine in the fourth quarter, the company is finishing up what is seasonally its strongest shopping season right now. That’s as customers flood the home improvement retailer during nicer weather, looking to fix up their homes — inside and in particular, outside.
That said, the market doesn’t seem to care. At its recent low in June, Home Depot stock was down 37% from the high. Although it’s enjoyed a modest rally from the lows, it’s still down considerably from the highs.
As the company has now put a focus on its dividend, Home Depot stock yields 2.5% at the moment. The company has grown its dividend in nine straight years — solid but not exactly a dividend stud … yet — and its payout averages 17.6% growth over the past five years. That’s very good.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
Procter & Gamble (NYSE:PG) is enjoying a nice rebound lately, up about 10% from the low. However, even after the rally, shares are still down by about 14% from its high earlier this year. If investors are able to scoop up shares of P&G near this year’s low, it may be worth doing so.
Not only would the stock be down 21% from its high, but this company continues to navigate the storm quite well.
In the company’s most recent earnings report, management raised its full-year guidance. That’s as it has been able to pass along price increases to the consumer, helping to offset the impact of inflation.
7 Best AI Stocks to Buy Now
P&G’s earnings seem dependable, and so is its dividend. In April, P&G delivered a dividend boost of 5%. According to Procter & Gamble: “This dividend increase will mark the 66th consecutive year that P&G has increased its dividend and the 132nd consecutive year that P&G has paid a dividend since its incorporation in 1890.”
Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.com
Last but not least, we have Salesforce (NYSE:CRM). In prior years, many investors considered Salesforce a growth stock and many of its doubters constantly doubted its valuation. However, thanks to the selloff, Salesforce is now looking more like a value stock with a reasonable valuation.
Analysts expect 20% sales growth this year, then 17% to 19% growth in the next three years. Not many companies can make that claim, at least not in this environment.
On the earnings front, this year is less inspiring with estimates calling for roughly flat growth. However, expectations call for 20%-plus growth in the next two years (FY 2024 and 2025, respectively).
It leaves Salesforce trading at about 36 times this year’s earnings and at about 30 times next year’s estimates. For a company with this much growth, that seems reasonable — even cheap.
Lastly, it’s one of the few companies that aren’t feeling the effects of inflation, as noted by management’s recent commentary.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Dow Stocks Trading at a Huge Discount Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $151.60 MSFT Microsoft $251.90 DIS Disney $99.78 NKE Nike $105.20 HD Home Depot $298.18 PG Procter & Gamble $144.27 CRM Salesforce $170.46 Apple (AAPL) Source: pio3 / Shutterstock.com Starting the list with Apple (NASDAQ:AAPL) — and following it with Microsoft (NASDAQ:MSFT) — might elicit an eye-roll or two from some readers. 7 Best Reddit Stocks to Buy Now To pay just 24 times this year’s earnings feels like a discount for a company with a robust balance sheet, strong margins and very solid growth. At a time where travel trends are exploding higher (and despite fears of a coming recession), Disney has its Parks and Entertainment unit, as well as its Studio business.
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AAPL Apple $151.60 MSFT Microsoft $251.90 DIS Disney $99.78 NKE Nike $105.20 HD Home Depot $298.18 PG Procter & Gamble $144.27 CRM Salesforce $170.46 Apple (AAPL) Source: pio3 / Shutterstock.com Starting the list with Apple (NASDAQ:AAPL) — and following it with Microsoft (NASDAQ:MSFT) — might elicit an eye-roll or two from some readers. Those recession worries are not helping Disney at the moment, but at 19 times forward earnings and with earnings estimates calling for 90% growth this year and 38% growth in 2023, investors need to take a closer look at Disney. Procter & Gamble (PG) Source: Jonathan Weiss / Shutterstock.com Procter & Gamble (NYSE:PG) is enjoying a nice rebound lately, up about 10% from the low.
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AAPL Apple $151.60 MSFT Microsoft $251.90 DIS Disney $99.78 NKE Nike $105.20 HD Home Depot $298.18 PG Procter & Gamble $144.27 CRM Salesforce $170.46 Apple (AAPL) Source: pio3 / Shutterstock.com Starting the list with Apple (NASDAQ:AAPL) — and following it with Microsoft (NASDAQ:MSFT) — might elicit an eye-roll or two from some readers. 7 Best Reddit Stocks to Buy Now To pay just 24 times this year’s earnings feels like a discount for a company with a robust balance sheet, strong margins and very solid growth. Those recession worries are not helping Disney at the moment, but at 19 times forward earnings and with earnings estimates calling for 90% growth this year and 38% growth in 2023, investors need to take a closer look at Disney.
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AAPL Apple $151.60 MSFT Microsoft $251.90 DIS Disney $99.78 NKE Nike $105.20 HD Home Depot $298.18 PG Procter & Gamble $144.27 CRM Salesforce $170.46 Apple (AAPL) Source: pio3 / Shutterstock.com Starting the list with Apple (NASDAQ:AAPL) — and following it with Microsoft (NASDAQ:MSFT) — might elicit an eye-roll or two from some readers. 7 Best Reddit Stocks to Buy Now To pay just 24 times this year’s earnings feels like a discount for a company with a robust balance sheet, strong margins and very solid growth. Those recession worries are not helping Disney at the moment, but at 19 times forward earnings and with earnings estimates calling for 90% growth this year and 38% growth in 2023, investors need to take a closer look at Disney.
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20060.0
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2022-07-26 00:00:00 UTC
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Analyzing Stocks Amid Market-Moving Reports
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AAPL
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https://www.nasdaq.com/articles/analyzing-stocks-amid-market-moving-reports
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’re getting a slew of earnings reports from tech and consumer staples stocks this week, so that’s what we’ve been focusing on over at our YouTube channel, Learning Markets.
Today’s reports and especially tomorrow, when the Fed releases its report, potentially could move the market significantly. Whether that’s up or down remains to be seen in this volatile environment, but there are some stocks, like Tesla Inc. (TSLA) and Apple Inc. (AAPL), that could serve as bellwethers of what’s to come. TSLA had a favorable report, which contributed to a market rally late last week, but there were other contributing factors. With disappointing tech stocks like SNAP’s report, we also need to look at AAPL as a significant market mover as it reports this week.
This week at Learning Markets, we discuss both of those particular stocks and cover a few more in our shorts. We answered some specific viewer questions as well and would be happy to address yours in a future broadcast. Just drop a line in the comments section or email us at feedback@investorplace.com. Here are just a few we addressed:
Can you look into the MTUM ETF? Just realized that it reallocated its holdings a lot away from Tech and Financials to Energy and Healthcare. I don’t really like it – seems to me the reallocation comes with too much delay. What do you think? – Uli W.
How would you value commodity companies? In my opinion, the cyclical component tends to distort the calculations of the discounted cash flows. – Lautaro P.
What is the time frame for the calls that you usually sell to maximize the profits from the premium? And do you specifically sell regular calls, covered calls, or both? – Steven M.
And check out our shorts for quick updates on the stories moving the market. Here’s what we’ve covered this week so far:
Why SNAP Dropped So Fast
Walmart Shocks with Pre-Earnings Report
If you have any questions yourself about options trading, specific stocks or bonds, or market trends in general, we’re happy to answer them. Just email feedback@investorplace.com or drop us a line in the video comments.
Sincerely,
John Jagerson and Wade Hansen
Editors, Trading Opportunities
The post Analyzing Stocks Amid Market-Moving Reports appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Whether that’s up or down remains to be seen in this volatile environment, but there are some stocks, like Tesla Inc. (TSLA) and Apple Inc. (AAPL), that could serve as bellwethers of what’s to come. With disappointing tech stocks like SNAP’s report, we also need to look at AAPL as a significant market mover as it reports this week. Here’s what we’ve covered this week so far: Why SNAP Dropped So Fast Walmart Shocks with Pre-Earnings Report If you have any questions yourself about options trading, specific stocks or bonds, or market trends in general, we’re happy to answer them.
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Whether that’s up or down remains to be seen in this volatile environment, but there are some stocks, like Tesla Inc. (TSLA) and Apple Inc. (AAPL), that could serve as bellwethers of what’s to come. With disappointing tech stocks like SNAP’s report, we also need to look at AAPL as a significant market mover as it reports this week. InvestorPlace - Stock Market News, Stock Advice & Trading Tips We’re getting a slew of earnings reports from tech and consumer staples stocks this week, so that’s what we’ve been focusing on over at our YouTube channel, Learning Markets.
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With disappointing tech stocks like SNAP’s report, we also need to look at AAPL as a significant market mover as it reports this week. Whether that’s up or down remains to be seen in this volatile environment, but there are some stocks, like Tesla Inc. (TSLA) and Apple Inc. (AAPL), that could serve as bellwethers of what’s to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips We’re getting a slew of earnings reports from tech and consumer staples stocks this week, so that’s what we’ve been focusing on over at our YouTube channel, Learning Markets.
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With disappointing tech stocks like SNAP’s report, we also need to look at AAPL as a significant market mover as it reports this week. Whether that’s up or down remains to be seen in this volatile environment, but there are some stocks, like Tesla Inc. (TSLA) and Apple Inc. (AAPL), that could serve as bellwethers of what’s to come. This week at Learning Markets, we discuss both of those particular stocks and cover a few more in our shorts.
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20061.0
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2022-07-26 00:00:00 UTC
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PREVIEW-As Zuckerberg bets on TikTok-style videos, Meta heads for first-ever revenue drop
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AAPL
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https://www.nasdaq.com/articles/preview-as-zuckerberg-bets-on-tiktok-style-videos-meta-heads-for-first-ever-revenue-drop
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By Katie Paul
July 26 (Reuters) - Meta's META.O future may lie in the metaverse, but when the company reports results on Wednesday, investors will be focused on two more immediate bets: pumping up short-video offering Reels to compete with TikTok and rebuilding its ads system after Apple AAPL.Othrottled access to user data.
Chief Executive Mark Zuckerberg believes that will take time, and that the company needs to speed up the process, he told staffers on a call late last month. The discussion hit on key issues that will be watched in Meta's quarterly results release on Wednesday.
Meta is expected to record its first-ever revenue drop in its history as a public company, down 0.4% to about $29 billion, according to IBES data from Refinitiv.
Investors are also bracing for flat user growth and a third consecutive quarter of profit declines and are watching for signs of hardware project cuts and slower hiring to manage costs.
The social media giant this year has unveiled sweeping redesigns of Facebook and Instagram, imitating rival TikTok's look and algorithmically driven recommendations of viral short videos.
Meta is also investing heavily to rebuild its ads system around its own user data, after privacy changes introduced last year by Apple degraded Meta's ad targeting capabilities.
Zuckerberg told employees on the call, which took place on June 30, that Reels represented a "huge opportunity" for Meta, but also noted that the format was "still only around 15% of the size of TikTok."
"I think realistically we're looking at a year and a half, maybe even longer, before we'll really have a line of sight to having a strong leadership position," he said.
The timeline for rebuilding the ads system was similar, he said. He repeatedly urged staff to increase their "intensity" to get through the period.
While Meta has the strongest first-party user data in the industry, it also "has a lot of credibility to restore before investors can get comfortable with maintaining its leadership position in digital advertising's secular growth," analysts from RBC Capital Markets wrote.
Zuckerberg told employees that the economy had worsened since executives first planned the Reels and ad changes, and outlined plans to expedite the transitions so profits from the core business could fund Meta's long-term metaverse bets.
"Our job is basically to bring in as much of the business that might be three years out into two years out, or one and a half years out, while also pushing on things like expenses and cost growth," he said.
If needed, he added, his inclination was to "take more pain in terms of a little bit less profitability" in the short term, rather than cutting back on "funding for future stuff."
The changes have created some backlash, though.
Instagram, which has been testing TikTok-like features, last week postponed plans to replace the app's scrolling feed with a more immersive "panavision"-style layout that fills the entire screen, from October to early next year.
A Meta spokesperson said the company recognizes "that changes to the app can be an adjustment, and we want to take the time to make sure we get this right."
On Monday, two of Instagram's biggest users, Kim Kardashian and Kylie Jenner, both shared a meme imploring the company to "Make Instagram Instagram again."
"Stop trying to be TikTok I just want to see cute photos of my friends," the post said. It signed off: "Sincerely, everyone."
Instagram head Adam Mosseri acknowledged the criticism in a video on Tuesday, saying the layout was "not yet good" and the company would have to "get it to a good place if we're going to ship it" to all Instagram users.
The company would continue doing tests and shifting toward video however, he added.
EXCLUSIVE-Facebook-owner Meta tells hardware staffers to prepare for cutbacks
EXCLUSIVE-Meta slashes hiring plans, girds for 'fierce' headwinds
(Reporting by Katie Paul in Palo Alto, Calif.; Editing by Peter Henderson and Lisa Shumaker)
((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.
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By Katie Paul July 26 (Reuters) - Meta's META.O future may lie in the metaverse, but when the company reports results on Wednesday, investors will be focused on two more immediate bets: pumping up short-video offering Reels to compete with TikTok and rebuilding its ads system after Apple AAPL.Othrottled access to user data. While Meta has the strongest first-party user data in the industry, it also "has a lot of credibility to restore before investors can get comfortable with maintaining its leadership position in digital advertising's secular growth," analysts from RBC Capital Markets wrote. Instagram, which has been testing TikTok-like features, last week postponed plans to replace the app's scrolling feed with a more immersive "panavision"-style layout that fills the entire screen, from October to early next year.
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By Katie Paul July 26 (Reuters) - Meta's META.O future may lie in the metaverse, but when the company reports results on Wednesday, investors will be focused on two more immediate bets: pumping up short-video offering Reels to compete with TikTok and rebuilding its ads system after Apple AAPL.Othrottled access to user data. Investors are also bracing for flat user growth and a third consecutive quarter of profit declines and are watching for signs of hardware project cuts and slower hiring to manage costs. Zuckerberg told employees that the economy had worsened since executives first planned the Reels and ad changes, and outlined plans to expedite the transitions so profits from the core business could fund Meta's long-term metaverse bets.
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By Katie Paul July 26 (Reuters) - Meta's META.O future may lie in the metaverse, but when the company reports results on Wednesday, investors will be focused on two more immediate bets: pumping up short-video offering Reels to compete with TikTok and rebuilding its ads system after Apple AAPL.Othrottled access to user data. Meta is also investing heavily to rebuild its ads system around its own user data, after privacy changes introduced last year by Apple degraded Meta's ad targeting capabilities. Zuckerberg told employees that the economy had worsened since executives first planned the Reels and ad changes, and outlined plans to expedite the transitions so profits from the core business could fund Meta's long-term metaverse bets.
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By Katie Paul July 26 (Reuters) - Meta's META.O future may lie in the metaverse, but when the company reports results on Wednesday, investors will be focused on two more immediate bets: pumping up short-video offering Reels to compete with TikTok and rebuilding its ads system after Apple AAPL.Othrottled access to user data. "I think realistically we're looking at a year and a half, maybe even longer, before we'll really have a line of sight to having a strong leadership position," he said. Zuckerberg told employees that the economy had worsened since executives first planned the Reels and ad changes, and outlined plans to expedite the transitions so profits from the core business could fund Meta's long-term metaverse bets.
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20062.0
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2022-07-26 00:00:00 UTC
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Shopify's (SHOP) Q2 Earnings to Gain from Strong Merchant Base
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AAPL
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https://www.nasdaq.com/articles/shopifys-shop-q2-earnings-to-gain-from-strong-merchant-base
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Shopify SHOP is expected to have benefited from its expanding merchant base in second-quarter 2022, set to be reported on Jul 27.
Accelerated adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line in the to-be-reported quarter.
However, top-line growth is expected to have suffered from the absence of government stimulus and slower growth in e-commerce compared with COVID-triggered acceleration in the year-ago quarter.
Shopify Inc. Revenue (TTM)
Shopify Inc. revenue-ttm | Shopify Inc. Quote
Click here to know how Shopify’s overall second-quarter results are likely to be.
Strategic Integrations Boosts Prospect
Increased focus on expanding its merchant base to benefit from the e-commerce boom is anticipated to have aided Shopify’s second-quarter 2022 performance.
In the first quarter of 2022, Gross Merchandise Volume (GMV) rose 16% year over year, reaching $43.2 billion. The trend is likely to have continued in the to-be-reported quarter.
Shopify’s rich partner ecosystem might have also acted as a growth driver in the to-be-reported quarter.
This Zacks Rank #3 (Hold) company has made strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Twitter sales channel allows merchants to connect with consumers directly from their Twitter profiles. Shopify noted that it is the first time a commerce platform has partnered with a social media company.
The integration with Apple enables shoppers to use Apple smartphones against the terminal to pay for goods. While this may not be a new feature in retail but Apple’s recent Pay Later installments added a whole new dimension to retail marketing.
Shopify’s Google feature syncs local inventory data with the Shopify platform to let customers know when a particular product is in stock.
In the last reported quarter, gross payment volume (GPV) reached $22 million, constituting 51% of GMV.
The Zacks Consensus Estimate for GPV stands at $25.2 million, indicating 24.5% growth from the figure reported in the year-ago quarter.
The GPV in the to-be-reported quarter is expected to have been driven by a strong performance by merchants on Shopify Payments, new merchant adoption, Shop Pay penetration gains, and significant expanded payment penetration by merchants.
The Zacks Consensus Estimate for Merchant Solutions revenues stands at $980 million, indicating 24.8% growth from the year-ago quarter.
Subscription Solutions market growth in the to-be-reported quarter is expected to have been driven by more global merchants joining Shopify, aggressive investments in sales and marketing, and the introduction of new commercial initiatives.
The consensus mark for Subscription Solutions revenues is pegged at $365 million, suggesting 9.3% growth from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This Zacks Rank #3 (Hold) company has made strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Strategic Integrations Boosts Prospect Increased focus on expanding its merchant base to benefit from the e-commerce boom is anticipated to have aided Shopify’s second-quarter 2022 performance.
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This Zacks Rank #3 (Hold) company has made strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report The GPV in the to-be-reported quarter is expected to have been driven by a strong performance by merchants on Shopify Payments, new merchant adoption, Shop Pay penetration gains, and significant expanded payment penetration by merchants.
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This Zacks Rank #3 (Hold) company has made strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Accelerated adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line in the to-be-reported quarter.
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This Zacks Rank #3 (Hold) company has made strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Accelerated adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line in the to-be-reported quarter.
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20063.0
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2022-07-26 00:00:00 UTC
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GLOBAL MARKETS-Wall Street hit by Walmart wipeout, Gas woes knock Europe
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https://www.nasdaq.com/articles/global-markets-wall-street-hit-by-walmart-wipeout-gas-woes-knock-europe
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Updates after U.S. open, IMF growth forecast cut
European stocks subdued as gas crisis worries mount
Walmart sees heavy loss after profit warning.
Heavy slate of tech earnings due on Wall Street later
Bond yields ease ahead of expected Fed rate hike
Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, July 26 (Reuters) - World shares skidded and bond markets rallied on Tuesday as some disappointing earnings, the prospect of another super-sized U.S. interest rate hike this week, and Europe's looming gas crisis all kept investors on edge.
Asia had been buoyed overnight by a new Chinese plan to tackle its property crisis and as tech giant Alibaba sought a primary listing in Hong Kong .SS, but Europe and Wall Street could not keep up.
A Walmart profit warning and another cut in the International Monetary Fund's global growth forecast shoved Wall Street's main markets lower as they opened .N. Europe's STOXX 600 .STOXX started to buckle too after an earlier boost from a profit upgrade from consumer goods giant Unilever ULVR.L and higher commodity stocks O/R.
But they were offset by broader recession fears as European Union leaders agreed to cut their countries' gas usage and as a 9% UBSG.S dive in UBS shares hit the banking sector. .EU
"The key question we have as these earnings come out is how much pricing power do these (consumer facing) firms have," said Diamond Hill international equities portfolio manager Krishna Mohanraj, referring to the pressures of higher inflation.
"The other issue is will the Fed be able to control inflation without killing the economy."
A turbulent Wall Street restart left Walmart's shares down around 9% after it had slashed its forecasts on Monday due to those exact issues. .N.
General Electric GE.N rose 6% though after growth in its aviation business helped it beat estimates. Coca-Cola KO.N gained 1% after it raised forecasts while Unilever rose 2.5% after an earnings beat, with chief executive Alan Jope saying "strong pricing" had enabled it to mitigate cost inflation.
European Union countries approved a weakened emergency plan to curb their gas usage earlier too after striking compromise deals to limit the hit for some countries as they brace for further Russian supply cuts.
The Kremlin warned again that state monopoly Gazprom GAZP.MM would reduce its supply further this week due to another maintenance issue on the Nord Stream 1 pipeline, halving already reduced current flows.
That sent European gas prices TRNLTTFMc1 up almost 10% and they are now more than 450% higher than a year ago, though still below record highs hit shortly after Russia began its invasion of Ukraine in February.
"It is game of cat and mouse," said Christopher Granville Managing Director of EMEA & Global Political Research at TS Lombard.
"The Russia position will always be that it will continue to supply the gas within the constraints caused by the West's sanctions. But they will then find lots of problems that suddenly pop up."
FED UP, IMF DOWN
Investors are also waiting for a likely 75 basis point Federal Reserve interest rate increase on Wednesday - with markets pricing about a 10% risk of a larger hike. They will also want to see whether economic warning signs prompt a shift in rhetoric.
The IMF cut global growth forecasts again on Tuesday, warning that high inflation and the impact of the Ukraine war will push the world economy to the brink of recession if left unchecked.
It now sees global real GDP growth of 3.2% in 2022, down from 3.6% predicted in April, adding that the world economy had actually contracted in the second quarter due to downturns in China and Russia.
For the United States though, the IMF confirmed its July 12 forecasts of 2.3% growth in 2022 and an anaemic 1.0% for 2023, which it had cut twice since April.
"The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one," IMF Chief Economist Pierre-Olivier Gourinchas said.
NOT SO HIGH TECH
Global tech giants Microsoft and Google are both reporting after the Wall Street session later, followed by Facebook owner Meta FB.O tomorrow and AppleAAPL.O and Amazon AMZN.O on Thursday.
It adds up to more than $7.5 trillion of market cap, Deutsche Bank's Jim Reid said, while pointing out that those five stocks were still valued at close to $10 trillion at the start of the year.
In Asia, MSCI's broadest regional index outside Japan .MIAPJ0000PUS had bounced 0.5%.
Chinese stocks had jumped after reports the country would set up a fund of up to $44 billion to help property developers. .SS
Hong Kong's Hang Seng Index .HSI ended 1.7% higher on the Alibaba news .CSI300 although Japan's Nikkei .N225 fell 0.16%. .T
In currencies, the dollar was pushing for recent milestone highs as uncertainty continued to swirl around the interest rate and economic outlook. /FRX
The euro EUR=EBS tumbled back to $1.0139 from $1.0250 hemmed in by concers over Europe's energy security.
The yen JPY=EBS steadied at 136.44 per dollar. The U.S. dollar index =USD, which touched a 20-year high this month, was up 0.6% on the day at 107.132. FRX/
Oil prices rose further on expectations Russia's gas supply cuts could encourage a switch to crude, with Brent futures LCOc1 last up 1.5% at $106.68 a barrel and U.S. crude CLc1 up 1.6% at $98.21 a barrel.
Benchmark 10-year Treasury yields US10YT=RR tumbled to 2.73% from 2.87% at the end of last week. Germany's benchmark 10-year bond yield has slumped back under the psychological 1% threshold too as Europe's recession worries have intensified. US/GVD/EUR
Tuesday also marked the 10-year anniversary since then ECB President Mario Draghi pledged to do "whatever it takes" to prevent a break up of the euro zone.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
PMIshttps://tmsnrt.rs/3PwcrRD
Europe's gas price surgehttps://tmsnrt.rs/3zuSVQ2
(Additional reporting Kane Wu in Hong Kong; Editing by Edmund Klamann, Angus MacSwan and Tomasz Janowski)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Global tech giants Microsoft and Google are both reporting after the Wall Street session later, followed by Facebook owner Meta FB.O tomorrow and AppleAAPL.O and Amazon AMZN.O on Thursday. Updates after U.S. open, IMF growth forecast cut European stocks subdued as gas crisis worries mount Walmart sees heavy loss after profit warning. .EU "The key question we have as these earnings come out is how much pricing power do these (consumer facing) firms have," said Diamond Hill international equities portfolio manager Krishna Mohanraj, referring to the pressures of higher inflation.
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Global tech giants Microsoft and Google are both reporting after the Wall Street session later, followed by Facebook owner Meta FB.O tomorrow and AppleAAPL.O and Amazon AMZN.O on Thursday. Updates after U.S. open, IMF growth forecast cut European stocks subdued as gas crisis worries mount Walmart sees heavy loss after profit warning. Heavy slate of tech earnings due on Wall Street later Bond yields ease ahead of expected Fed rate hike Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, July 26 (Reuters) - World shares skidded and bond markets rallied on Tuesday as some disappointing earnings, the prospect of another super-sized U.S. interest rate hike this week, and Europe's looming gas crisis all kept investors on edge.
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Global tech giants Microsoft and Google are both reporting after the Wall Street session later, followed by Facebook owner Meta FB.O tomorrow and AppleAAPL.O and Amazon AMZN.O on Thursday. Heavy slate of tech earnings due on Wall Street later Bond yields ease ahead of expected Fed rate hike Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, July 26 (Reuters) - World shares skidded and bond markets rallied on Tuesday as some disappointing earnings, the prospect of another super-sized U.S. interest rate hike this week, and Europe's looming gas crisis all kept investors on edge. The IMF cut global growth forecasts again on Tuesday, warning that high inflation and the impact of the Ukraine war will push the world economy to the brink of recession if left unchecked.
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Global tech giants Microsoft and Google are both reporting after the Wall Street session later, followed by Facebook owner Meta FB.O tomorrow and AppleAAPL.O and Amazon AMZN.O on Thursday. Heavy slate of tech earnings due on Wall Street later Bond yields ease ahead of expected Fed rate hike Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, July 26 (Reuters) - World shares skidded and bond markets rallied on Tuesday as some disappointing earnings, the prospect of another super-sized U.S. interest rate hike this week, and Europe's looming gas crisis all kept investors on edge. The IMF cut global growth forecasts again on Tuesday, warning that high inflation and the impact of the Ukraine war will push the world economy to the brink of recession if left unchecked.
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20064.0
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2022-07-26 00:00:00 UTC
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US STOCKS-Wall Street falls as Walmart warning rattles retail sector
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-walmart-warning-rattles-retail-sector
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By Shreyashi Sanyal and Aniruddha Ghosh
July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation.
Shares of Walmart Inc WMT.N slumped 7.7%, while those of Target Corp TGT.N and Amazon.com Inc AMZN.O fell over 4% each, with the online retail giant weighing the most on the Nasdaq index .IXIC.
In a sign of rising pressure to shore up profit amid higher costs, Amazon said it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year.
The S&P 500 consumer discretionary index .SPLRCD slid 3.2%, leading sectoral declines. The S&P 500 retailing index .SPXRT dropped 3.9%.
"There's a general expectation that Walmart's issues are symptomatic of the entire retail space," said Chuck Lieberman, chief investment officer at Advisor Capital Management.
"No doubt inflation is higher than people are comfortable with, and that's probably going to remain the case for a while."
Along with high inflation, a stronger dollar is also expected to weigh on profits of companies with sprawling global operations.
Wall Street's main indexes have rallied from mid-June lows as softening commodity prices and downbeat economic data prompt investors to scale back expectations of aggressive rate hikes by the Federal Reserve, but fears of a recession have sapped momentum recently.
The Fed is widely expected to deliver a 75 basis-point interest-rate hike at the end of its two-day policy meeting on Wednesday, which would be followed by comments from Chairman Jerome Powell.
U.S. consumer confidence dropped to nearly a 1-1/2-year low in July, data showed, pointing to slower economic growth at the start of the third quarter.
Advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
The International Monetary Fund, meanwhile, cut global growth forecasts again, warning of risks from high inflation and the Ukraine war.
At 12:19 p.m. ET the Dow Jones Industrial Average .DJI was down 178.18 points, or 0.56%, at 31,811.86, the S&P 500 .SPX was down 46.24 points, or 1.17%, at 3,920.60 and the Nasdaq Composite .IXIC was down 215.17 points, or 1.83%, at 11,567.50.
Among the Dow components, Coca-Cola Co KO.N gained 1.6% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N rose 2.6% after beating quarterly expectations.
3M Co MMM.N rose 6.4% after the industrial giant said it planned to spin off its healthcare business.
General Electric Co GE.N gained 6.6% after the U.S. industrial conglomerate beat revenue and profit estimates, while General Motors Co GM.N fell 3.3% after reporting a 40% drop in quarterly net income.
Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O fell about 1.5% each, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O were down about 2.5% and 3.2%, respectively, ahead of their quarterly reports after market close.
Earnings from S&P 500 companies are expected to have risen 6.2% for the second quarter from the year-ago period, according to Refinitiv data.
Declining issues outnumbered advancers for a 1.94-to-1 ratio on the NYSE and for a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 28 new highs and 103 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O fell about 1.5% each, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O were down about 2.5% and 3.2%, respectively, ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. In a sign of rising pressure to shore up profit amid higher costs, Amazon said it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year.
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Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O fell about 1.5% each, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O were down about 2.5% and 3.2%, respectively, ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Among the Dow components, Coca-Cola Co KO.N gained 1.6% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N rose 2.6% after beating quarterly expectations.
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Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O fell about 1.5% each, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O were down about 2.5% and 3.2%, respectively, ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Wall Street's main indexes have rallied from mid-June lows as softening commodity prices and downbeat economic data prompt investors to scale back expectations of aggressive rate hikes by the Federal Reserve, but fears of a recession have sapped momentum recently.
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Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O fell about 1.5% each, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O were down about 2.5% and 3.2%, respectively, ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - U.S. stock indexes fell on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. U.S. consumer confidence dropped to nearly a 1-1/2-year low in July, data showed, pointing to slower economic growth at the start of the third quarter.
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20065.0
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2022-07-26 00:00:00 UTC
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Stock Market News for Jul 26, 2022
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https://www.nasdaq.com/articles/stock-market-news-for-jul-26-2022
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Wall Street had a mixed Monday as investors remained apprehensive about the Fed’s July meeting slated to start on Tuesday, in which a 75 basis point interest hike is expected. Market participants remained skeptical that continued rate hikes coupled with lowering of projections by companies ahead of their earnings reports can be signals of an impending recession. Two of the three major indexes ended in green, while one ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.3% or 90.75 points to close at 31,990.04. Notably, 17 components of the 30-stock index ended in green, two remained unchanged, while 11 ended in red.
The tech-focused Nasdaq Composite finished at 11,782.67, sliding 0.4% or 51.45 points due to the weak performance by large-cap technology stocks.
The S&P 500 rose 0.1% or 5.21 points to end at 3,966.84. Eight out of the 11 broad sectors of the benchmark index closed in the positive zone, while three ended in red.
The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Financials Select Sector SPDR (XLF) advanced 3.7%, 1.3% and 0.6%, respectively, while the Consumer Discretionary Selected Sector SPDR (XLY) retracted 0.9%.
The fear-gauge CBOE Volatility Index (VIX) was up 1.4% to 23.36. A total of 9.34 billion shares were traded on Monday, lower than the last 20-session average of 11 billion. Advancers outnumbered decliners on the NYSE by a 1.55-to-1 ratio. On the Nasdaq, a 1.05-to-1 ratio favored declining issues.
Investors Keep a Cautious Watch On Fed’s July Meet
Fed officials might be ending the pandemic-era support to the U.S. economy and are beginning to test whether growth can be sustained without their hand-holding. They are expected to raise interest rates by 75 basis points to a target range of 2.25% to 2.50% at the end of a two-day policy meeting on Wednesday. This would make the rates match pre-pandemic highs and raise them to a level that the officials see as roughly neutral, no longer supporting the economy over the long run. If they do end up raising rates on expected lines, it will mark one of the fastest back-to-bases from a low point to neutral, as rates were last in the 2.25%-2.50% range in late 2018 after a string of rate hikes. However, back then, signs of a slowing economy meant that the Fed refrained from any further tightening and would bring the rates down in roughly eight months.
Investors will be keeping a close watch on the proceedings and minutes of the meeting as well as on the outlook of the officials, as the 75 basis point hike is almost a given. But whether they intend to raise interests going further forward, or whether they see this as a tipping point in rate hikes would give the concerned investors a clearer picture about the health of the economy.
Big Earnings Week Ahead for Tech Stocks
Tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL and Microsoft Corporation MSFT are lined up to release their quarterly earnings this week. Tech stocks have recently taken a hit after the Snap Inc. SNAP earnings and outlook debacle signaled that the ad-spend in the digital space was on a decline. Thus, investors will be eagerly waiting to see what the other behemoths are projecting to get a better idea about what to expect.
Rising Oil Prices Bolster Energy Sector
Oil prices rose over 1% on Monday on supply fears and a slight dip in the U.S. dollar. Brent crude futures for September settled 1.9% higher at $105.15/barrel, while WTI crude futures ended the day at $96.70, reflecting a gain of 2.1%. Russia’s Gazprom said that flows through Nord Stream 1, Russia’s single biggest gas link to Germany, would fall to 20% of capacity from Wednesday. This could lead to additional switching to crude from gas and push up oil prices.
Consequently, shares of Marathon Oil Corporation MRO and Occidental Petroleum Corporation OXY rose 6.6% and 5.5%, respectively. Both Marathan Oil and Occidental carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
No economic data was released on Monday.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big Earnings Week Ahead for Tech Stocks Tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL and Microsoft Corporation MSFT are lined up to release their quarterly earnings this week. Apple Inc. (AAPL): Free Stock Analysis Report Wall Street had a mixed Monday as investors remained apprehensive about the Fed’s July meeting slated to start on Tuesday, in which a 75 basis point interest hike is expected.
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Big Earnings Week Ahead for Tech Stocks Tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL and Microsoft Corporation MSFT are lined up to release their quarterly earnings this week. Apple Inc. (AAPL): Free Stock Analysis Report Consequently, shares of Marathon Oil Corporation MRO and Occidental Petroleum Corporation OXY rose 6.6% and 5.5%, respectively.
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Big Earnings Week Ahead for Tech Stocks Tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL and Microsoft Corporation MSFT are lined up to release their quarterly earnings this week. Apple Inc. (AAPL): Free Stock Analysis Report If they do end up raising rates on expected lines, it will mark one of the fastest back-to-bases from a low point to neutral, as rates were last in the 2.25%-2.50% range in late 2018 after a string of rate hikes.
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Big Earnings Week Ahead for Tech Stocks Tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL and Microsoft Corporation MSFT are lined up to release their quarterly earnings this week. Apple Inc. (AAPL): Free Stock Analysis Report Investors will be keeping a close watch on the proceedings and minutes of the meeting as well as on the outlook of the officials, as the 75 basis point hike is almost a given.
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20066.0
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2022-07-26 00:00:00 UTC
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Wall Street set to open lower as Walmart warning rattles retail stocks
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AAPL
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https://www.nasdaq.com/articles/wall-street-set-to-open-lower-as-walmart-warning-rattles-retail-stocks
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By Shreyashi Sanyal and Aniruddha Ghosh
July 26 (Reuters) - Wall Street's major indexes were set to fall at the open on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation.
Walmart Inc's WMT.N shares slumped 9.5% in premarket trading, while Target TGT.N and Amazon.com AMZN.O fell 3.3% each, souring the mood in what is set to be the busiest week of the earnings season.
"It's not a surprise, this is what normally happens when inflation is so high or when consumers are having trouble paying their bills," said Eugenio J. Alemán, chief economist at Raymond James.
"People start to become very discriminating in consumption, so basically they reduce the purchases of discretionary items in favor of necessities."
In a sign of rising pressure to shore up profit amid higher costs, ecommerce giant Amazon said in the run-up to its quarterly financial results it will raise fees for delivery and streaming service Prime in Europe by up to 43% a year.
Other retailers including Kohls Corp KSS.N, Macy's Inc M.N and Nordstrom Inc JWN.N fell about 5% each.
Along with high inflation, a stronger dollar is also expected to weigh on profits of companies with sprawling global operations.
The Conference Board data, due later in the day, is expected to show its consumer confidence index likely dropped 97.2 in July from 98.7 in the prior month.
Investors are also bracing for a widely expected 75 basis-point interest-rate hike by the Federal Reserve at the end of its two-day policy meeting, which gets under way later on Tuesday, followed by comments from Chairman Jerome Powell.
At 8:33 a.m. ET, Dow e-minis 1YMcv1 were down 117 points, or 0.37%, S&P 500 e-minis EScv1 were down 13.25 points, or 0.33%, and Nasdaq 100 e-minis NQcv1 were down 52.75 points, or 0.43%.
Among the Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.5%.
3M Co MMM.N rose 4% after the industrial giant said it plans to spin off its healthcare business.
General Electric Co GE.N gained 4.8% after the U.S. industrial conglomerate beat its revenue and profit estimates led by strong growth in its aviation business.
General Motors Co GM.N fell 1.6% after reporting a 40% drop in its quarterly net income and said it was curbing spending and hiring ahead of a potential economic slowdown.
High-growth companies such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped about 0.2% each ahead of their quarterly reports after market close.
Earnings from S&P 500 companies are expected to have risen 6.1% for the second quarter from the year-ago period, according to Refinitiv data.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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High-growth companies such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped about 0.2% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - Wall Street's major indexes were set to fall at the open on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. In a sign of rising pressure to shore up profit amid higher costs, ecommerce giant Amazon said in the run-up to its quarterly financial results it will raise fees for delivery and streaming service Prime in Europe by up to 43% a year.
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High-growth companies such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped about 0.2% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - Wall Street's major indexes were set to fall at the open on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Among the Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.5%.
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High-growth companies such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped about 0.2% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - Wall Street's major indexes were set to fall at the open on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. Among the Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.5%.
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High-growth companies such as Apple Inc AAPL.O, Netflix Inc NFLX.O, Tesla Inc TSLA.O, fell between 0.2% and 1%, while Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O dropped about 0.2% each ahead of their quarterly reports after market close. By Shreyashi Sanyal and Aniruddha Ghosh July 26 (Reuters) - Wall Street's major indexes were set to fall at the open on Tuesday after Walmart's profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. General Electric Co GE.N gained 4.8% after the U.S. industrial conglomerate beat its revenue and profit estimates led by strong growth in its aviation business.
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20067.0
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2022-07-26 00:00:00 UTC
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Russia fines Google $34 mln for breaching competition rules
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AAPL
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https://www.nasdaq.com/articles/russia-fines-google-%2434-mln-for-breaching-competition-rules-0
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nan
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Adds details throughout, Google response
LONDON, July 26 (Reuters) - Russia's competition watchdog fined Alphabet's Google GOOGL.O 2 billion roubles ($34.2 million) on Tuesday for abusing its dominant position in the video hosting market, the regulator said in a statement.
The decision is the latest multi-million dollar fine as part of Moscow's increasingly assertive campaign against foreign tech companies.
The Federal Antimonopoly Service (FAS) said the company had "abused its dominant position in the YouTube video hosting services market", without providing additional details.
"We will study the text of the official decision to define our next steps," Google said in a statement to Reuters.
Google must pay the fine within two months of it entering into force, the FAS said.
Russia has slapped Google's Russian subsidiary with numerous fines in recent months. Last week a court ordered it to pay 21.1 billion roubles ($358.7 million) over what prosecutors said were repeated refusals to remove content Russia deems illegal, such as "fake news" about Russia's invasion of Ukraine.
Since Moscow launched what it calls its "special military operation" in Ukraine, it has also accelerated attacks on Western tech companies at home in a push to exert more control over the online space, including through supporting domestic players to oust their Western rivals.
Gazprom Media - a media conglomerate linked to state-controlled gas giant Gazprom GAZP.MM - has been heavily promoting RuTube, its Russian alternative to YouTube, which has seen a sharp uptick in traffic since February.
YouTube, which has blocked Russian state-funded media globally, is under heavy pressure from Russia's communications regulator and politicians.
Google stopped selling online advertising in Russia in early March but has kept some free services available. Its Russian subsidiary officially filed for bankruptcy after authorities seized its bank account, making it impossible to pay staff and vendors.
(Reporting by Reuters, Editing by Louise Heavens)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The decision is the latest multi-million dollar fine as part of Moscow's increasingly assertive campaign against foreign tech companies. YouTube, which has blocked Russian state-funded media globally, is under heavy pressure from Russia's communications regulator and politicians. Its Russian subsidiary officially filed for bankruptcy after authorities seized its bank account, making it impossible to pay staff and vendors.
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Adds details throughout, Google response LONDON, July 26 (Reuters) - Russia's competition watchdog fined Alphabet's Google GOOGL.O 2 billion roubles ($34.2 million) on Tuesday for abusing its dominant position in the video hosting market, the regulator said in a statement. The Federal Antimonopoly Service (FAS) said the company had "abused its dominant position in the YouTube video hosting services market", without providing additional details. Last week a court ordered it to pay 21.1 billion roubles ($358.7 million) over what prosecutors said were repeated refusals to remove content Russia deems illegal, such as "fake news" about Russia's invasion of Ukraine.
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Adds details throughout, Google response LONDON, July 26 (Reuters) - Russia's competition watchdog fined Alphabet's Google GOOGL.O 2 billion roubles ($34.2 million) on Tuesday for abusing its dominant position in the video hosting market, the regulator said in a statement. Russia has slapped Google's Russian subsidiary with numerous fines in recent months. Last week a court ordered it to pay 21.1 billion roubles ($358.7 million) over what prosecutors said were repeated refusals to remove content Russia deems illegal, such as "fake news" about Russia's invasion of Ukraine.
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Adds details throughout, Google response LONDON, July 26 (Reuters) - Russia's competition watchdog fined Alphabet's Google GOOGL.O 2 billion roubles ($34.2 million) on Tuesday for abusing its dominant position in the video hosting market, the regulator said in a statement. The Federal Antimonopoly Service (FAS) said the company had "abused its dominant position in the YouTube video hosting services market", without providing additional details. Russia has slapped Google's Russian subsidiary with numerous fines in recent months.
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20068.0
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2022-07-26 00:00:00 UTC
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US STOCKS-Futures fall after Walmart warning spooks retail stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-after-walmart-warning-spooks-retail-stocks
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.49%, S&P 0.40%, Nasdaq 0.49%
July 26 (Reuters) - U.S. stock index futures fell on Tuesday after Walmart's profit warning rippled through the retail sector and heightened fears that consumers were cutting back on discretionary spending in the face of decades-high inflation.
Walmart Inc's WMT.N shares slumped 9.1% in premarket trading, while Target TGT.N and Amazon.com AMZN.O fell 5%, souring the mood as some of America's biggest companies report in what is set to be the busiest week of the earnings season.
Along with high inflation, a stronger dollar is also expected to pressure earnings of companies with sprawling global operations.
Investors are also bracing for a widely expected 75 basis-point rate hike by the Federal Reserve at the end of its two-day policy meeting, which gets under way later on Tuesday.
In other data, the Conference Board is expected to show its consumer confidence index likely dropped 97.2 in July from 98.7 in the prior month.
At 6:50 a.m. ET, Dow e-minis 1YMcv1 were down 157 points, or 0.49%, S&P 500 e-minis EScv1 were down 16 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were down 61 points, or 0.49%.
Among other Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.2%.
3M Co MMM.N rose 0.7% after the industrial giant said it plans to spin off its healthcare business. The company also reported a fall in second quarter profit.
General Electric Co GE.N rose 6% after the U.S. industrial conglomerate beat its revenue and profit estimates led by strong growth in its aviation business.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Walmart Inc's WMT.N shares slumped 9.1% in premarket trading, while Target TGT.N and Amazon.com AMZN.O fell 5%, souring the mood as some of America's biggest companies report in what is set to be the busiest week of the earnings season. Investors are also bracing for a widely expected 75 basis-point rate hike by the Federal Reserve at the end of its two-day policy meeting, which gets under way later on Tuesday. Among other Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.2%.
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Futures down: Dow 0.49%, S&P 0.40%, Nasdaq 0.49% July 26 (Reuters) - U.S. stock index futures fell on Tuesday after Walmart's profit warning rippled through the retail sector and heightened fears that consumers were cutting back on discretionary spending in the face of decades-high inflation. ET, Dow e-minis 1YMcv1 were down 157 points, or 0.49%, S&P 500 e-minis EScv1 were down 16 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were down 61 points, or 0.49%. General Electric Co GE.N rose 6% after the U.S. industrial conglomerate beat its revenue and profit estimates led by strong growth in its aviation business.
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Futures down: Dow 0.49%, S&P 0.40%, Nasdaq 0.49% July 26 (Reuters) - U.S. stock index futures fell on Tuesday after Walmart's profit warning rippled through the retail sector and heightened fears that consumers were cutting back on discretionary spending in the face of decades-high inflation. ET, Dow e-minis 1YMcv1 were down 157 points, or 0.49%, S&P 500 e-minis EScv1 were down 16 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were down 61 points, or 0.49%. Among other Dow components, Coca-Cola Co KO.N gained 1% after the company raised its full-year revenue forecast, while McDonald's Corp MCD.N beat quarterly comparable sales expectations, sending its shares up 0.2%.
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.49%, S&P 0.40%, Nasdaq 0.49% July 26 (Reuters) - U.S. stock index futures fell on Tuesday after Walmart's profit warning rippled through the retail sector and heightened fears that consumers were cutting back on discretionary spending in the face of decades-high inflation. The company also reported a fall in second quarter profit.
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20069.0
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2022-07-26 00:00:00 UTC
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3 Winning Evergreen Stocks to Buy and Hold for the Next 25 Years
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AAPL
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https://www.nasdaq.com/articles/3-winning-evergreen-stocks-to-buy-and-hold-for-the-next-25-years
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High-flying growth stocks might be fun to buy and watch closely while they're hot. But when you're angling for strong 25-year returns to support your retirement savings, you'll need to invest in companies that are stable enough for you to sleep well at night. And that often means investing in large corporations that aren't exactly about to disrupt their industries.
Still, stability doesn't need to imply slow growth, nor does it need to mean being in a boring line of business. Let's put three of these stably growing giants under the microscope to find out why they're worth your consideration for purchase.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is an evergreen stock because it has proven that it's an expert at consistently extracting wild growth from a tiny niche. Of the 83,000 estimated patients living with the rare hereditary disease cystic fibrosis (CF) in the Western World, Vertex treats more than half of them with its portfolio of drugs, and it's doing a significant amount of research and development work to treat everyone that's left. As if its stellar market penetration isn't enough, from selling CF medicines alone, its trailing-12-month net income has grown by more than 1,150% in the last five years, reaching more than $2.4 billion.
What's more, Vertex is starting to diversify into developing therapies for other illnesses, ranging from type 1 diabetes to pain and Duchenne muscular dystrophy. That way, it'll gain access to new therapy markets if it eventually runs out of room to grow within the market for CF drugs. Over the next 25 years, it's likely that the company will have cornered multiple other niche markets, developing and recombining its commercialized medicines into new packages as it has done with CF to stay firmly ahead of the exclusivity protections expiring and denting revenue. And that'll make shareholders richer, just like the company's CF strategy did.
2. STAAR Surgical
Based on current trends, by the year 2050, nearly half of all people will be near-sighted (formally referenced as myopia). And in a world that's slated to produce more and more people with myopia over time, investing in a vision correction business like STAAR Surgical (NASDAQ: STAA) is a no-brainer. STAAR makes implantable lenses that replace other corrective technology like contact lenses or glasses, and that means it's competing in a market that is currently worth $70 billion per year. Unlike contacts or glasses, STAAR's implantable lenses don't have the hassle of getting torn, smudged, cracked, or otherwise mutilated, though they do require an outpatient surgical procedure to set up.
Most people with myopia probably won't want to get implantable lenses. But, so far, grabbing a small slice of the massiveglobal marketfor vision correction has been quite lucrative for the company, with its trailing-12-month revenue rising by 281.4% in the last 10 years to surpass $242.9 million. And, over the last three years, its trailing-12-month net income jumped by an eye-popping 232.1%. Right now, STAAR is working its way into the Chinese market, where it already owns a share of more than 20% despite only starting to compete there in 2015. Better yet, it won't need to change much of anything about its business model or its product to keep growing at a moderate pace for the long run -- and that's why it's a favorable purchase today.
3. Apple
Apple (NASDAQ: AAPL) is an obvious stock to buy and hold for decades because it's one of the strongest and most valuable brands in the world. It's also a favorite of legendary investors like Berkshire Hathaway CEO Warren Buffett, who holds so many shares that the company constitutes more than 42.7% of Berkshire's entire portfolio. And, through sales of its computers, software, and subscription services, Apple's quarterly free cash flow (FCF) rose by 115.9% over the last five years, meaning that it is constantly generating excess capital for reinvesting into new avenues for growth.
It also returns a huge amount of capital to its investors in the form of its dividend and share buybacks. While its forward dividend yield of around 0.6% isn't about to make anyone rich on its own, it's rising quite consistently over time, including most recently in the second quarter, when management opted to hike it by 5%. At the same time, the company authorized an additional $90 billion for its share repurchase program. Over the next 25 years, by continually hiking the dividend and buying back its shares, Apple will make today's investors much better off, and that's a compelling reason to buy the stock.
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Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Vertex Pharmaceuticals. The Motley Fool recommends STAAR Surgical and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is an obvious stock to buy and hold for decades because it's one of the strongest and most valuable brands in the world. Over the next 25 years, it's likely that the company will have cornered multiple other niche markets, developing and recombining its commercialized medicines into new packages as it has done with CF to stay firmly ahead of the exclusivity protections expiring and denting revenue. Unlike contacts or glasses, STAAR's implantable lenses don't have the hassle of getting torn, smudged, cracked, or otherwise mutilated, though they do require an outpatient surgical procedure to set up.
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Apple Apple (NASDAQ: AAPL) is an obvious stock to buy and hold for decades because it's one of the strongest and most valuable brands in the world. And in a world that's slated to produce more and more people with myopia over time, investing in a vision correction business like STAAR Surgical (NASDAQ: STAA) is a no-brainer. STAAR makes implantable lenses that replace other corrective technology like contact lenses or glasses, and that means it's competing in a market that is currently worth $70 billion per year.
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Apple Apple (NASDAQ: AAPL) is an obvious stock to buy and hold for decades because it's one of the strongest and most valuable brands in the world. STAAR makes implantable lenses that replace other corrective technology like contact lenses or glasses, and that means it's competing in a market that is currently worth $70 billion per year. Over the next 25 years, by continually hiking the dividend and buying back its shares, Apple will make today's investors much better off, and that's a compelling reason to buy the stock.
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Apple Apple (NASDAQ: AAPL) is an obvious stock to buy and hold for decades because it's one of the strongest and most valuable brands in the world. As if its stellar market penetration isn't enough, from selling CF medicines alone, its trailing-12-month net income has grown by more than 1,150% in the last five years, reaching more than $2.4 billion. Over the next 25 years, by continually hiking the dividend and buying back its shares, Apple will make today's investors much better off, and that's a compelling reason to buy the stock.
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20070.0
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2022-07-26 00:00:00 UTC
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GLOBAL MARKETS-Asia shares bounce on China property fund as Fed hike looms
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-bounce-on-china-property-fund-as-fed-hike-looms
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nan
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By Kane Wu
HONG KONG, July 26 (Reuters) - Asian shares pared losses on Tuesday as investor sentiment improved on China's reported plans to tackle a debt crisis in real estate development.
MSCI's broadest gauge of Asia stocks outside Japan .MIAPJ0000PUS bounced back to a gain of 0.36% in afternoon sessions. Chinese stocks jumped after reports the country would set up a fund of up to $44 billion to help property developers.
Hong Kong's Hang Seng Index .HSI was 1.48% higher and China's benchmark CSI300 Index .CSI300 also widened gains to a rise of 0.91% at the morning close. Japan's Nikkei .N225 fell 0.08%, erasing some morning losses.
FTSE futures FFIc1 edged up 0.15%. U.S. markets are likely to open lower, with E-mini futures for the S&P 500 index ESc1 down 0.32%.
U.S. retailer Walmart Inc WMT.N cut its profit forecast on Monday and said customers were paring back discretionary purchases as inflation bit into household budgets. Shares fell 10% after hours.
Investors are also awaiting a likely 75 basis point Federal Reserve interest rate increase later this week - with markets pricing about a 10% risk of a larger hike, as well as waiting to see whether economic warning signs prompt a shift in rhetoric.
"We are leaning to the view that 75 bps is most likely but won't be the end unless they see some demand destruction and some tempering of inflation," said John Milroy, an investment adviser at Ord Minnett.
"We are fearful they have to materially slow the U.S. economy further."
Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week.
"The market has stabilized" from rate hike expectations, said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong. "The focus is now on earnings."
In China, "maintaining stability is the key theme," said Wong on likely outcomes from politburo meetings expected to begin this week.
In currencies, the dollar was marginally softer but not drifting too far below recent milestone highs as uncertainty continued to swirl around the interest rate and economic outlook.
The euro EUR=EBS rose 0.21% to $1.0240 but was hemmed in by uncertainty over Europe's energy security, which is not helped by a looming cut in the westbound flow of Russian gas.
The yen JPY=EBS steadied at 136.54 per dollar. The U.S. dollar index =USD, which touched a 20-year high this month, was down slightly at 106.380. FRX/
Oil prices rose further on expectations Russia's reduction in natural gas supply to Europe could encourage a switch to crude, with Brent futures LCOc1 last up 1.27% at $106.45 a barrel and U.S. crude CLc1 up 1.26% at $97.92 a barrel.
Benchmark 10-year Treasury yields US10YT=RR fell to 2.875% as growth worries gave support to bonds. US/
Gold XAU= hovered at $1,721.8 an ounce and bitcoin BTC=BTSP nursed overnight losses at $21,111.31.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
PMIshttps://tmsnrt.rs/3PwcrRD
(Reporting by Kane Wu in Hong Kong; Editing by Sam Holmes)
((kane.wu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares pared losses on Tuesday as investor sentiment improved on China's reported plans to tackle a debt crisis in real estate development. Investors are also awaiting a likely 75 basis point Federal Reserve interest rate increase later this week - with markets pricing about a 10% risk of a larger hike, as well as waiting to see whether economic warning signs prompt a shift in rhetoric.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares pared losses on Tuesday as investor sentiment improved on China's reported plans to tackle a debt crisis in real estate development. "The market has stabilized" from rate hike expectations, said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares pared losses on Tuesday as investor sentiment improved on China's reported plans to tackle a debt crisis in real estate development. "The market has stabilized" from rate hike expectations, said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. U.S. markets are likely to open lower, with E-mini futures for the S&P 500 index ESc1 down 0.32%. Shares fell 10% after hours.
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20071.0
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2022-07-26 00:00:00 UTC
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ETFs in Focus Ahead of Big Tech Q2 Earnings
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AAPL
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https://www.nasdaq.com/articles/etfs-in-focus-ahead-of-big-tech-q2-earnings
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nan
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nan
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We are in the peak of the second-quarter earnings season and tech giants are in the spotlight this week. The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report.
These five companies currently account for about 23% of the total market capitalization of the S&P 500 Index. Total Q2 earnings from the group of five companies are expected to be down 19.1% on revenue growth of 6.2%. This reflects a deceleration from the Q1 earnings decline of 8.4% and revenue growth of 11.4%. Being the undisputed leaders in the digital ad space, Alphabet and Meta will likely see a decline in advertising spending as the aggressive Fed tightening cycle takes effect.
The technology sector, which had been the hardest hit by soaring yields and a hawkish Fed, has shown some strength lately (read: Could a Sustained Tech ETF Rally Be in the Cards?).
Both Microsoft and Alphabet are scheduled to release their earnings on Jul 26, while Meta Platforms and Apple will report on Jul 27 and Jul 28, respectively. Amazon is also slated to report on Jul 28.
Microsoft
Microsoft has a Zacks Rank #3 (Hold) and an Earnings ESP of +0.47%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate indicates substantial earnings growth of 5.1% and revenue growth of 13.4% from the year-ago quarter. Microsoft’s earnings track is impressive, with the last four-quarter earnings surprise being 8.63%, on average. However, the stock witnessed negative earnings estimate revision of a penny for the to-be-reported quarter over the past seven days. Analysts decreasing estimates right before earnings — with the most up-to-date information possible — is not a good indicator for the stock. Microsoft belongs to a bottom-ranked Zacks industry (bottom 49%) and has lost about 8.6% over the past three months (see: all the Technology ETFs here).
Alphabet
Alphabet has a Zacks Rank #3 and an Earnings ESP of -0.03%. It saw a negative earnings estimate revision of a couple of cents over the past seven days for the to-be-reported quarter. The company’s earnings surprise track over the past four quarters is good, with the beat being 17.21%, on average. Earnings are expected to decline 5.9%, while revenues are expected to grow 13.2% from the year-ago quarter. Alphabet falls under a bottom-ranked Zacks industry (bottom 39%). The Internet behemoth has shed about 6% in the past three months.
Meta Platforms
Meta Platforms has a Zacks Rank #4 and an Earnings ESP of -4.26%. The social media giant saw a negative earnings estimate revision of 6 cents for the to-be-reported quarter over the past 30 days. The current Zacks Consensus Estimate for the yet-to-be reported quarter indicates a substantial year-over-year earnings decline of 30.5%. Revenues are expected to decrease a modest 0.9%. Meta Platforms delivered an earnings surprise of 5.99%, on average, in the last four quarters. The stock belongs to a bottom-ranked Zacks industry (bottom 46%). Shares of META have lost about 5% in the past three months.
Apple
Apple has a Zacks Rank #3 and an Earnings ESP of +0.88%. The stock saw no earnings estimate revision over the past 30 days for third-quarter fiscal 2022, and its earnings surprise history is strong. It delivered an earnings surprise of 11.85%, on average, over the past four quarters. Though Apple is expected to report a substantial earnings decline of 13.1% from the year-ago quarter, revenues are expected to increase 0.53% year over year. It belongs to a top-ranked Zacks industry (top 38%). The stock is down 2.3% in the past three-month timeframe.
Amazon
Amazon has a Zacks Rank #3 and an Earnings ESP of +34.09%. The stock saw a positive earnings estimate revision of a penny over the past 30 days for the second quarter. The Zacks Consensus Estimate represents a substantial year-over-year earnings decline of 80.3% and revenue growth of 5.9%. Amazon’s earnings surprise history is impressive, with an average beat of 138.98% for the last four quarters. The stock falls under a top-ranked Zacks industry (top 38%). The online e-commerce behemoth has witnessed a share price decrease of 12.4% in the past three months.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted six ETFs having the largest exposure to these tech giants.
MicroSectors FANG+ ETN FNGS: This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3 (read: Tesla Mixed Q2 Earnings Put These ETFs in Focus).
Blue Chip Growth ETF TCHP: This fund focuses on companies with leading market positions, seasoned management and strong financial fundamentals. It accounts for a combined 46.7% in the five firms.
Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #2. The five firms account for a combined 43.2% share in the basket.
iShares Evolved U.S. Technology ETF IETC: This fund employs data science techniques to identify companies with exposure to the technology sector. The five firms account for a combined 41.9% share in the basket.
Invesco QQQ QQQ: This ETF focuses on 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. This fund makes up for 36.5% share in the in-focus firms and has a Zacks ETF Rank #3 with a Medium risk outlook.
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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
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
iShares Evolved U.S. Technology ETF (IETC): ETF Research Reports
MicroSectors FANG ETN (FNGS): ETF Research Reports
T. Rowe Price Blue Chip Growth ETF (TCHP): ETF Research Reports
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Being the undisputed leaders in the digital ad space, Alphabet and Meta will likely see a decline in advertising spending as the aggressive Fed tightening cycle takes effect.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #2.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report The stock saw no earnings estimate revision over the past 30 days for third-quarter fiscal 2022, and its earnings surprise history is strong.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft belongs to a bottom-ranked Zacks industry (bottom 49%) and has lost about 8.6% over the past three months (see: all the Technology ETFs here).
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20072.0
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2022-07-26 00:00:00 UTC
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4 Stocks I'm Watching Closely This Week
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AAPL
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https://www.nasdaq.com/articles/4-stocks-im-watching-closely-this-week
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nan
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nan
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In this video, I will be talking about the four stocks I'm watching closely this week as most big tech companies are reporting their quarterly earnings. Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) report on Tuesday, and on Thursday, it's Apple's (NASDAQ: AAPL) and Amazon's (NASDAQ: AMZN) turn.
In related earnings news:
Monday after the market closed, Walmart reported earnings that sent a warning to the market.
The company now expects earnings per share for the full year to be down 12% year over year. It previously expected it to be down only 1%.
The reason for this is increasing levels of food and fuel inflation, which affects how customers spend.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of July 25, 2022. The video was published on July 26, 2022.
10 stocks we like better than Alphabet (A shares)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 2, 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. Neil Rozenbaum has positions in Amazon. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Walmart Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) report on Tuesday, and on Thursday, it's Apple's (NASDAQ: AAPL) and Amazon's (NASDAQ: AMZN) turn. In this video, I will be talking about the four stocks I'm watching closely this week as most big tech companies are reporting their quarterly earnings. For the full insights, do watch the video, consider subscribing, and click the special offer link below.
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Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) report on Tuesday, and on Thursday, it's Apple's (NASDAQ: AAPL) and Amazon's (NASDAQ: AMZN) turn. In related earnings news: Monday after the market closed, Walmart reported earnings that sent a warning to the market. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) report on Tuesday, and on Thursday, it's Apple's (NASDAQ: AAPL) and Amazon's (NASDAQ: AMZN) turn. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Walmart Inc.
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Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) report on Tuesday, and on Thursday, it's Apple's (NASDAQ: AAPL) and Amazon's (NASDAQ: AMZN) turn. In this video, I will be talking about the four stocks I'm watching closely this week as most big tech companies are reporting their quarterly earnings. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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20073.0
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2022-07-25 00:00:00 UTC
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2 Warren Buffett Stocks That Everyone Should Own
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-everyone-should-own
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has a gift for growing money. Since 1965, he has guided Berkshire stock to a compound annual return of 20%. That average rate of return would have turned $1,000 into $36 million over 57 years.
Buffett's record of growing money is why many investors watch his every move, but it should be noted that not all the stocks Berkshire holds are picked by Buffett. The company has two other investment managers who oversee a small portion of Berkshire's assets. Since Ted Weschler and Todd Combs were selected to eventually oversee Berkshire's entire portfolio when Buffett isn't around someday, these managers also possess outstanding investing skills and are worth following.
Let's look at two Berkshire holdings, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), that any investor should feel comfortable owning for many years.
1. Apple
If you're going to follow Buffett, you might as well start with Berkshire's largest holding. Apple is one of the biggest investments Buffett has ever made in a company, whether public or private. That speaks volumes about what Buffett thinks of Apple's business. The stock has risen over 400% since Berkshire initially purchased shares in late 2016.
Apple is the most valuable brand in the world, according to Brand Finance's global 500 list for 2022. The tech giant has sold millions of iPhones, iPads, and Macs, bringing its total base of active devices to 1.8 billion at the start of the year.
The power of Apple's brand is on display through the growth of the services business. This includes sales of apps, subscriptions, iCloud storage plans, AppleCare protection plans, and more. Spending in these areas reflects a customer base that is heavily invested in the Apple ecosystem. On a trailing 12-month basis, revenue from services totaled $75 billion through the quarter ended in March, making up nearly 20% of Apple's total revenue.
The services business is emerging as an important value driver for Apple since it generates double the gross margin as hardware. More sales of iPhones and Macs will create more demand for services. On that score, revenue grew 9% year over year in the fiscal second quarter ended March 26, driven by a record March quarter for iPhone, Mac, home products, and wearables.
Apple has a powerful brand, a growing services business, and a $73 billion mountain of cash to invest in new products. That's why it can anchor anyone's portfolio.
2. Amazon
Amazon is a smaller position in Berkshire's equity portfolio, which also means it was purchased by one of Berkshire's investing lieutenants. Still, Amazon has the hallmarks of what Buffett looks for in a long-term investment.
Amazon is the second-most-valuable brand in the world, according to Brand Finance. The company has created a tight connection with customers through its enormous selection of goods and services. Products like Echo smart-home devices and grocery delivery through Whole Foods Market keep customers locked into the Amazon ecosystem.
While Amazon is involved in a lot of businesses, including cloud services and increasingly healthcare, Prime members continue to be an important driver of the company's growth. With over 200 million Prime members, Prime Day has become an annual shopping holiday. During the most recent event held in July, customers in the U.S. bought over 60,000 items per minute.
It's difficult to say which is more impressive: the volume of orders or Amazon's ability to fulfill those orders. Both speak to Amazon's unassailable competitive advantage in retail.
Amazon has generated a tremendous amount of free cash flow in recent years. It is using those resources to reinvest in expanding its fulfillment capacity to meet demand. It spent $61 billion over the last year through the first quarter, with 70% of that going toward infrastructure to support cloud services and the retail business.
These investments are widening Amazon's competitive lead and all but guarantee that the company will continue to deliver returns for shareholders.
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
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's look at two Berkshire holdings, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), that any investor should feel comfortable owning for many years. Since Ted Weschler and Todd Combs were selected to eventually oversee Berkshire's entire portfolio when Buffett isn't around someday, these managers also possess outstanding investing skills and are worth following. The tech giant has sold millions of iPhones, iPads, and Macs, bringing its total base of active devices to 1.8 billion at the start of the year.
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Let's look at two Berkshire holdings, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), that any investor should feel comfortable owning for many years. On that score, revenue grew 9% year over year in the fiscal second quarter ended March 26, driven by a record March quarter for iPhone, Mac, home products, and wearables. While Amazon is involved in a lot of businesses, including cloud services and increasingly healthcare, Prime members continue to be an important driver of the company's growth.
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Let's look at two Berkshire holdings, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), that any investor should feel comfortable owning for many years. Amazon Amazon is a smaller position in Berkshire's equity portfolio, which also means it was purchased by one of Berkshire's investing lieutenants. 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.
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Let's look at two Berkshire holdings, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), that any investor should feel comfortable owning for many years. More sales of iPhones and Macs will create more demand for services. Amazon Amazon is a smaller position in Berkshire's equity portfolio, which also means it was purchased by one of Berkshire's investing lieutenants.
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20074.0
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2022-07-25 00:00:00 UTC
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TD Ameritrade: Lara Crigger on Investing Around Earnings Week
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AAPL
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https://www.nasdaq.com/articles/td-ameritrade%3A-lara-crigger-on-investing-around-earnings-week
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nan
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nan
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Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss earnings to look for this week with FAANG companies reporting as well as the looming Fed meeting with host Nicole Petallides.
The major FAANG companies report this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both report earnings on Thursday. The Federal Reserve meeting with expectations of another 0.75% interest rate increase is also upcoming.
“I think a lot of investors are going to be watching the earnings week for clues on where companies are going from here, including the big FAANG stocks,” Crigger explained. “This all matters from an ETF perspective because FAANGs are almost ubiquitous building blocks in ETF portfolios.”
These stocks are included across a range of ETFs, not just within tech but also in ESG, thematic, and growth ETFs and as they are likely to be in most portfolios, it’s an earnings week for advisors and investors to pay attention to.
The Technology Select Sector SPDR Fund (XLK) is an ETF to keep an eye on as Apple and Microsoft make up nearly half of the fund and it is heavily impacted by FAANG earnings. The fund is down nearly 20% year-to-date but has rebounded about 9% in the last month. Crigger sees an opportunity and an attractive entry point for any investor that might be looking to capture any gain potential within the space.
The Vanguard Communication Services ETF (VOX) is another potential area of opportunity and while it carries a 12% weight to Alphabet, it offers broader diversification than XLK across market caps. The fund is down 26% year-to-date but has rebounded nearly 7% in the last month.
“This is another fund where the valuations have hit a more reasonable level and that could look more attractive for investors in the moment,” Crigger said.
🔎 Finding opportunities and avoiding risks ⚠️
As this big week of earnings begins, @Vetta_Fi Editor-in-Chief @LaraCrigger chats with @NPetallides about a few ETFs that provide investors with exposure to FAANG, tech, crypto, and more: https://t.co/FoGzlOBNHU
— TD Ameritrade Network (@TDANetwork) July 25, 2022
Discussion pivoted to the recent launch of the leverage and inverse single stock ETFs, particularly the AXS TSLA Bear Daily ETF (TSLQ) which has seen a healthy amount of flows ($100 million) in its first week since launch. These types of derivative products have been an interest point for advisors on the VettaFi platforms, Crigger explained.
“These funds, these single stock leveraged ETFs like TSLQ, they have the potential to be a trader’s dream. They’re perfect for moments like this, expressing earnings seasons expectations or taking advantage of big market shocks,” said Crigger.
For more news, information, and strategy, visit VettaFi.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The major FAANG companies report this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both report earnings on Thursday. Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss earnings to look for this week with FAANG companies reporting as well as the looming Fed meeting with host Nicole Petallides. “I think a lot of investors are going to be watching the earnings week for clues on where companies are going from here, including the big FAANG stocks,” Crigger explained.
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The major FAANG companies report this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both report earnings on Thursday. Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss earnings to look for this week with FAANG companies reporting as well as the looming Fed meeting with host Nicole Petallides. “I think a lot of investors are going to be watching the earnings week for clues on where companies are going from here, including the big FAANG stocks,” Crigger explained.
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The major FAANG companies report this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both report earnings on Thursday. Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss earnings to look for this week with FAANG companies reporting as well as the looming Fed meeting with host Nicole Petallides. “This all matters from an ETF perspective because FAANGs are almost ubiquitous building blocks in ETF portfolios.” These stocks are included across a range of ETFs, not just within tech but also in ESG, thematic, and growth ETFs and as they are likely to be in most portfolios, it’s an earnings week for advisors and investors to pay attention to.
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The major FAANG companies report this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both report earnings on Thursday. Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss earnings to look for this week with FAANG companies reporting as well as the looming Fed meeting with host Nicole Petallides. “I think a lot of investors are going to be watching the earnings week for clues on where companies are going from here, including the big FAANG stocks,” Crigger explained.
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20075.0
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2022-07-25 00:00:00 UTC
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POLL-Taiwan Q2 GDP to gain from chip exports, but face COVID headwinds
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-q2-gdp-to-gain-from-chip-exports-but-face-covid-headwinds
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nan
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nan
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI
* Preliminary Q2 GDP seen at +3.1% y/y (prior qtr +3.14%)
* Data due Friday, July 29, at 4 p.m. (0800 GMT)
TAIPEI, July 26 (Reuters) - Taiwan's trade-reliant economy is expected to have expanded on the back of strong global demand for computer chips, though COVID-19 lockdowns in top export market China and a surge in domestic infections could drag on demand, a Reuters poll showed.
Gross domestic product (GDP) likely grew 3.1% in April-June versus a year earlier, the poll of 24 economists shows, after it expanded 3.14% year-on-year in the first quarter.
Policymakers have said they expect full-year 2022 growth of less than 4%, downgrading it from previous forecasts of more than 4% and slower than the 6.45% logged for 2021. That was the fastest rate in over a decade since it expanded 10.25% in 2010.
Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 1.4% to as high as 4.4%.
"Investment should be the key growth driver in 2Q, thanks to the still strong capital spending among the leading semiconductor firms," said analysts at DBS bank.
Demand for Taiwanese goods has been hit by COVID-19 lockdowns in China, while domestic consumption has taken a hit from a surge in local cases, though infections are now waning and Taiwan has never fully locked down.
As a key hub in the global technology supply chain for giants such as Apple Inc , Taiwan's economy has outperformed many of its regional peers.
A global shortage of semiconductors has swelled order books for Taiwanese chipmakers such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) .
TSMC reported forecast-beating second quarter earnings this month, saying it was "highly confident" about its long-term prospects.
The economy in China, Taiwan's largest trading partner, grew a tepid 0.4% in the second quarter, highlighting the colossal toll on activity from widespread COVID-19 lockdowns.
Taiwan's preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts. (Poll compiled by Arsh Mogre, Anant Chandak, Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard and Yimou Lee; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/GDP (POLL)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Gross domestic product (GDP) likely grew 3.1% in April-June versus a year earlier, the poll of 24 economists shows, after it expanded 3.14% year-on-year in the first quarter. As a key hub in the global technology supply chain for giants such as Apple Inc , Taiwan's economy has outperformed many of its regional peers. The economy in China, Taiwan's largest trading partner, grew a tepid 0.4% in the second quarter, highlighting the colossal toll on activity from widespread COVID-19 lockdowns.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI * Preliminary Q2 GDP seen at +3.1% y/y (prior qtr +3.14%) * Data due Friday, July 29, at 4 p.m. (0800 GMT) TAIPEI, July 26 (Reuters) - Taiwan's trade-reliant economy is expected to have expanded on the back of strong global demand for computer chips, though COVID-19 lockdowns in top export market China and a surge in domestic infections could drag on demand, a Reuters poll showed. Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 1.4% to as high as 4.4%. Demand for Taiwanese goods has been hit by COVID-19 lockdowns in China, while domestic consumption has taken a hit from a surge in local cases, though infections are now waning and Taiwan has never fully locked down.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI * Preliminary Q2 GDP seen at +3.1% y/y (prior qtr +3.14%) * Data due Friday, July 29, at 4 p.m. (0800 GMT) TAIPEI, July 26 (Reuters) - Taiwan's trade-reliant economy is expected to have expanded on the back of strong global demand for computer chips, though COVID-19 lockdowns in top export market China and a surge in domestic infections could drag on demand, a Reuters poll showed. Demand for Taiwanese goods has been hit by COVID-19 lockdowns in China, while domestic consumption has taken a hit from a surge in local cases, though infections are now waning and Taiwan has never fully locked down. (Poll compiled by Arsh Mogre, Anant Chandak, Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard and Yimou Lee; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/GDP (POLL) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI * Preliminary Q2 GDP seen at +3.1% y/y (prior qtr +3.14%) * Data due Friday, July 29, at 4 p.m. (0800 GMT) TAIPEI, July 26 (Reuters) - Taiwan's trade-reliant economy is expected to have expanded on the back of strong global demand for computer chips, though COVID-19 lockdowns in top export market China and a surge in domestic infections could drag on demand, a Reuters poll showed. That was the fastest rate in over a decade since it expanded 10.25% in 2010. Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 1.4% to as high as 4.4%.
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20076.0
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2022-07-25 00:00:00 UTC
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GLOBAL MARKETS-Stocks wobble on Walmart warning, looming Fed hike
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-wobble-on-walmart-warning-looming-fed-hike
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nan
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By Kane Wu
HONG KONG, July 26 (Reuters) - Asian shares wobbled on Tuesday and bonds were firm as a profit warning from Walmart put consumption and company earnings under a cloud ahead of what is likely to be another sharp U.S. interest rate hike.
MSCI's broadest gauge of Asia stocks outside Japan .MIAPJ0000PUS meandered just above flat. Japan's Nikkei .N225 fell 0.2% and S&P 500 futures ESc1 were down 0.4%.
U.S. retailer Walmart Inc WMT.N cut its profit forecast on Monday and said customers were paring back discretionary purchases as inflation bites household budgets. Shares fell 10% after hours and rivals Target TGT.N and Amazon AMZN.O also slid.
Investors are also awaiting a likely 75 basis point Federal Reserve interest rate increase later this week - with markets pricing about a 10% risk of a larger hike, as well as waiting to see whether economic warning signs prompt a shift in rhetoric.
"We are leaning to the view that 75 bps is most likely but won't be the end unless they see some demand destruction and some tempering of inflation," said John Milroy, an investment adviser at Ord Minnett.
"We are fearful they have to materially slow the U.S. economy further."
Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week.
"The market has stabilized (from rate hike expectations)," said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong. "The focus is now on earnings."
Chinese stocks managed small gains, with Hong Kong's Hang Seng Index .HSI up 0.4% and China's benchmark CSI300 Index .CSI300 up 0.3% in early trade.
In currencies, the dollar was marginally softer but not drifting too far below recent milestone highs as uncertainty continues to swirl around the rates and economic outlook.
The euro EUR=EBS bought $1.0237 and the yen JPY=EBS steadied at 136.34 per dollar. The U.S. dollar index =USD, which touched a 20-year high this month, was down slightly to 106.300. FRX/
Oil prices rose on expectations Russia's reduction in natural gas supply to Europe could encourage a switch to crude, with Brent futures LCOc1 last up 1% at $106.17 a barrel and U.S. crude CLc1 up 0.7% to $97.37 a barrel.
Benchmark 10-year Treasury yields US10YT=RR fell 3.5 bps to 3.7850% as growth worries gave support to bonds. US/
Gold XAU= hovered at $1,725 an ounce and bitcoin BTC=BTSP nursed overnight losses at $21,100.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
PMIshttps://tmsnrt.rs/3PwcrRD
(Reporting by Kane Wu in Hong Kong; Editing by Sam Holmes)
((kane.wu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares wobbled on Tuesday and bonds were firm as a profit warning from Walmart put consumption and company earnings under a cloud ahead of what is likely to be another sharp U.S. interest rate hike. Investors are also awaiting a likely 75 basis point Federal Reserve interest rate increase later this week - with markets pricing about a 10% risk of a larger hike, as well as waiting to see whether economic warning signs prompt a shift in rhetoric.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares wobbled on Tuesday and bonds were firm as a profit warning from Walmart put consumption and company earnings under a cloud ahead of what is likely to be another sharp U.S. interest rate hike. Chinese stocks managed small gains, with Hong Kong's Hang Seng Index .HSI up 0.4% and China's benchmark CSI300 Index .CSI300 up 0.3% in early trade.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. By Kane Wu HONG KONG, July 26 (Reuters) - Asian shares wobbled on Tuesday and bonds were firm as a profit warning from Walmart put consumption and company earnings under a cloud ahead of what is likely to be another sharp U.S. interest rate hike. "The market has stabilized (from rate hike expectations)," said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong.
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Big technology companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com are due to report earnings this week. Japan's Nikkei .N225 fell 0.2% and S&P 500 futures ESc1 were down 0.4%. Investors are also awaiting a likely 75 basis point Federal Reserve interest rate increase later this week - with markets pricing about a 10% risk of a larger hike, as well as waiting to see whether economic warning signs prompt a shift in rhetoric.
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20077.0
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2022-07-25 00:00:00 UTC
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Apple Q3 Preview: Can The Earnings Streak Continue?
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AAPL
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https://www.nasdaq.com/articles/apple-q3-preview%3A-can-the-earnings-streak-continue
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nan
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nan
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Now that we’re in the heart of earnings season, investors are more than eager for their favorite companies to pull the curtain back and unveil their quarterly results. Market participants will finally get a clearer idea of how companies have sailed the rough economic waters we’ve found ourselves in.
One of the most beloved stocks out there is Apple AAPL. Up more than 750%, shares of the tech titan have undoubtedly been one of the best places for investors to park their cash over the last decade. The share performance doesn’t even compare with the S&P 500.
Image Source: Zacks Investment Research
Apple's slated to release quarterly results on July 28th after the trading session.
The quarterly report will be watched like a hawk and will have widespread market effects. So, how does the tech titan shape up heading into the quarterly release? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Apple shares have displayed a much higher level of valuable defense than the general market, declining just 13.5% vs. the S&P 500’s 16.5% decline.
Image Source: Zacks Investment Research
In fact, Apple shares have been much stronger than the general market for some time now, increasing nearly 4% over the last year, while the S&P 500 has lost almost 10% in value.
Image Source: Zacks Investment Research
The relatively strong share performance is undoubtedly a major positive – buyers have defended Apple shares at a high level.
Apple’s forward earnings multiple resides on the higher side at 25.3X but is nowhere near highs of 41.5X in 2020. In addition, shares trade at a 42% premium relative to the S&P 500.
Apple has a Style Score of a C for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have had mixed estimate revisions for the quarter to be reported over the last 60 days, with two upwards revisions and two downwards revisions. The Zacks Consensus EPS Estimate for the quarter resides at $1.13, reflecting a disheartening 13% decrease in quarterly earnings year-over-year.
Image Source: Zacks Investment Research
However, the top-line looks to expand marginally – the $81.9 billion quarterly revenue estimate pencils in a slight 0.5% uptick year-over-year. The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Quarterly Performance & Market Reactions
Apple is known for consistently reporting strong quarterly results, which is precisely what it’s done. Over the company’s previous 20 quarters, the tech titan has exceeded the Zacks Consensus EPS Estimate a jaw-dropping 19 times. Just in its latest quarter, Apple posted a robust 6.3% bottom-line beat.
Top-line results have been just as stellar; Apple has recorded nine top-line beats over its last ten quarters.
In addition, the market has reacted well to the company’s quarterly releases as of late – over its last three quarterly reports, shares have moved upwards each time.
Bottom Line
Apple shares have held up relatively well year-to-date, undoubtedly a development that any investor can celebrate. The company’s quarterly report will be a significant point of interest, and for easily understandable reasons – Apple has been of the most stellar investments over the last decade.
The tech titan has consistently reported top and bottom-line results above expectations, and the market has reacted well to the company’s quarterly releases as of late. However, earnings are forecasted to drop notably, but revenue is expected to see a marginal increase.
Heading into the quarterly report, Apple is a Zacks Rank #3 (Hold) with an Earnings ESP Score of 0.9%.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Apple Inc. (AAPL): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the most beloved stocks out there is Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research In fact, Apple shares have been much stronger than the general market for some time now, increasing nearly 4% over the last year, while the S&P 500 has lost almost 10% in value.
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One of the most beloved stocks out there is Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Apple's slated to release quarterly results on July 28th after the trading session.
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One of the most beloved stocks out there is Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Quarterly Estimates Analysts have had mixed estimate revisions for the quarter to be reported over the last 60 days, with two upwards revisions and two downwards revisions.
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Apple Inc. (AAPL): Free Stock Analysis Report One of the most beloved stocks out there is Apple AAPL. Image Source: Zacks Investment Research The relatively strong share performance is undoubtedly a major positive – buyers have defended Apple shares at a high level.
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20078.0
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2022-07-25 00:00:00 UTC
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GLOBAL MARKETS-Nasdaq falls with dollar, oil rises; earnings, Fed in focus
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AAPL
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https://www.nasdaq.com/articles/global-markets-nasdaq-falls-with-dollar-oil-rises-earnings-fed-in-focus
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nan
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nan
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By Sinéad Carew
NEW YORK, July 25 (Reuters) - Nasdaq .IXIC closed lower on Monday after a choppy session for U.S. equities ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike.
In currencies, the dollar index, which touched a 20-year high this month, was down slightly and gold also slipped.
On Sunday, U.S. Treasury Secretary Janet Yellen said that while U.S. economic growth was slowing, a recession was not inevitable.
Treasury yields edged higher as investors braced for the Fed to raise rates by an expected 75 basis points this week. Some are worried about the potential for recession.
Investors were also positioning ahead of earnings in big companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O, as well as second-quarter GDP data.
"Right now we're just in a holding pattern waiting for all those developments to play out," said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
"People are probably just taking some risk off ahead of the earnings. We've seen interest rates rise a little too so that's helping some of the value names like banks."
The Dow Jones Industrial Average .DJI rose 90.75 points, or 0.28%, to 31,990.04, the S&P 500 .SPX gained 5.21 points, or 0.13%, to 3,966.84 and the Nasdaq Composite .IXIC dropped 51.45 points, or 0.43%, to 11,782.67. .N
Earlier, a widely watched survey showed German business morale falling more than expected in July as high energy prices and looming gas shortages push Europe's largest economy towards a recession.
But the pan-European STOXX 600 index .STOXX finished up 0.13%, MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.01%.
The German data had weighed on investor moods in Europe along with a slew of downbeat earnings and a survey over the weekend that showed some industrial companies in Germany cutting production in reaction to soaring energy prices.
The gap between yields on two- and 10-year Treasury notes US2US10=RR, a possible signal of a looming recession when the short-end yield is higher than the long end, has been inverted for more than two weeks and was last at -21.5 basis points.
"This is the first meaningful yield curve inversion we've had since 2006 for any period of time," said David Petrosinelli, senior trader at InspereX, adding that this fed into a generally accepted narrative of a slowdown at the very least.
Benchmark 10-year notes US10YT=RR last fell 8/32 in price to yield 2.8105%, from 2.781% late on Friday while the 2-year note price US2YT=RR last fell 2/32 to yield 3.0266%, down from 2.991% in the previous session.
The dollar index =USD fell 0.253%, with the euro EUR= up 0.13% to $1.0223.
The Japanese yen weakened 0.45% versus the greenback at 136.66 per dollar, while Sterling GBP= was last trading at $1.2053, up 0.42% on the day.
"Pre-Fed caution is keeping the dollar off its highs. The market is going to be eager to see if the run of softer data has in any way changed the Fed’s hawkish rate path," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, DC.
"The economy continues to show pretty solid underlying momentum but at the same time, high inflation, rising interest rates, they are certainly having an impact on the economy."
Oil prices rose on Monday, bolstered by a slightly weaker U.S. dollar while investors seesawed between supply fears and bets rising U.S. interest rates could weaken demand. O/R
U.S. crude CLc1 settled up 2.11% at $96.70 per barrel and Brent LCOc1 finished at $105.15, up 1.9% on the day.
Spot gold XAU= dropped 0.5% to $1,718.69 an ounce as investors positioned themselves ahead of the Fed meeting.
Bitcoin BTC=BTSP last fell 2.16% to $22,108.16.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
PMIshttps://tmsnrt.rs/3PwcrRD
(Additional reporting by Herbert Lash and Chuck Mikolajczak in New York, Tommy Wilkes in London, Kevin Buckland in Tokyo, Lucy Raitano in London, editing by Mark Heinrich, Marguerita Choy and David Gregorio)
((Sinead.carew@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were also positioning ahead of earnings in big companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O, as well as second-quarter GDP data. By Sinéad Carew NEW YORK, July 25 (Reuters) - Nasdaq .IXIC closed lower on Monday after a choppy session for U.S. equities ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike. .N Earlier, a widely watched survey showed German business morale falling more than expected in July as high energy prices and looming gas shortages push Europe's largest economy towards a recession.
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Investors were also positioning ahead of earnings in big companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O, as well as second-quarter GDP data. By Sinéad Carew NEW YORK, July 25 (Reuters) - Nasdaq .IXIC closed lower on Monday after a choppy session for U.S. equities ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike. Treasury yields edged higher as investors braced for the Fed to raise rates by an expected 75 basis points this week.
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Investors were also positioning ahead of earnings in big companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O, as well as second-quarter GDP data. By Sinéad Carew NEW YORK, July 25 (Reuters) - Nasdaq .IXIC closed lower on Monday after a choppy session for U.S. equities ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike. Benchmark 10-year notes US10YT=RR last fell 8/32 in price to yield 2.8105%, from 2.781% late on Friday while the 2-year note price US2YT=RR last fell 2/32 to yield 3.0266%, down from 2.991% in the previous session.
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Investors were also positioning ahead of earnings in big companies such as Apple AAPL.O, Microsoft MSFT.O and Amazon.com AMZN.O, as well as second-quarter GDP data. The dollar index =USD fell 0.253%, with the euro EUR= up 0.13% to $1.0223. Oil prices rose on Monday, bolstered by a slightly weaker U.S. dollar while investors seesawed between supply fears and bets rising U.S. interest rates could weaken demand.
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20079.0
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2022-07-25 00:00:00 UTC
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CANADA STOCKS-TSX ends higher on energy rally as investors await earnings, Fed rate hike
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AAPL
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https://www.nasdaq.com/articles/canada-stocks-tsx-ends-higher-on-energy-rally-as-investors-await-earnings-fed-rate-hike
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nan
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nan
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By Nichola Saminather
July 25 (Reuters) - A rally in oil stocks lifted Canada's main stock index to a higher close on Monday, while investors braced for a slew of earnings reports as well as another big interest rate hike from the U.S. Federal Reserve this week.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 121.56 points, or 0.64%, at 19,104.48.
The energy sector .SPTTEN was the biggest gainer on the Canadian index, climbing 3.55% as crude CLc1 prices rose 2.2%, with investors trying to balance supply fears with expectations that a rise in U.S. interest rates would weaken fuel demand. O/R
Energy firms Secure Energy Services SES.TO, Spartan Delta Corp SDE.TO and Nuvista Energy NVA.TO were the best performers in Canada.
"The price of crude is up and that's helping," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Materials stocks were among the biggest decliners, which Cieszynski attributed to a lower gold price as well as disappointing earnings from the world's largest gold miner, Newmont Corp NEM.N.
Spot gold XAU= fell 0.5%, reflecting market expectations of another 75 basis-point interest rate hike from the Federal Reserve on Wednesday. While gold is considered a hedge against inflation, rising rates reduce the appeal of the non-yielding asset.
In resources-heavy Canada, investors are looking for results from miners including Teck Resources TECKa.TO and First Quantum Minerals FM.TO and energy companies including Enbridge ENB.TO and Imperial Oil IMO.TO, this week.
Mega-cap U.S. firms such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O are also scheduled to post earnings this week, and could shed light into global growth.
Investors have been worried that rising prices and central banks' attempt to control it could squeeze growth as economies reel from the fallout of the Russia-Ukraine war. Canada's main index has lost almost 10% so far this year.
(Reporting by Nichola Saminather in Toronto; Additional reporting by Susan Mathew in Bengaluru Editing by Matthew Lewis)
((Nichola.Saminather@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mega-cap U.S. firms such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O are also scheduled to post earnings this week, and could shed light into global growth. The energy sector .SPTTEN was the biggest gainer on the Canadian index, climbing 3.55% as crude CLc1 prices rose 2.2%, with investors trying to balance supply fears with expectations that a rise in U.S. interest rates would weaken fuel demand. Investors have been worried that rising prices and central banks' attempt to control it could squeeze growth as economies reel from the fallout of the Russia-Ukraine war.
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Mega-cap U.S. firms such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O are also scheduled to post earnings this week, and could shed light into global growth. By Nichola Saminather July 25 (Reuters) - A rally in oil stocks lifted Canada's main stock index to a higher close on Monday, while investors braced for a slew of earnings reports as well as another big interest rate hike from the U.S. Federal Reserve this week. Spot gold XAU= fell 0.5%, reflecting market expectations of another 75 basis-point interest rate hike from the Federal Reserve on Wednesday.
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Mega-cap U.S. firms such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O are also scheduled to post earnings this week, and could shed light into global growth. By Nichola Saminather July 25 (Reuters) - A rally in oil stocks lifted Canada's main stock index to a higher close on Monday, while investors braced for a slew of earnings reports as well as another big interest rate hike from the U.S. Federal Reserve this week. The energy sector .SPTTEN was the biggest gainer on the Canadian index, climbing 3.55% as crude CLc1 prices rose 2.2%, with investors trying to balance supply fears with expectations that a rise in U.S. interest rates would weaken fuel demand.
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Mega-cap U.S. firms such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O are also scheduled to post earnings this week, and could shed light into global growth. By Nichola Saminather July 25 (Reuters) - A rally in oil stocks lifted Canada's main stock index to a higher close on Monday, while investors braced for a slew of earnings reports as well as another big interest rate hike from the U.S. Federal Reserve this week. O/R Energy firms Secure Energy Services SES.TO, Spartan Delta Corp SDE.TO and Nuvista Energy NVA.TO were the best performers in Canada.
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20080.0
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2022-07-25 00:00:00 UTC
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Wall Street ends choppy session nearly flat; investors eye Fed, earnings
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AAPL
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https://www.nasdaq.com/articles/wall-street-ends-choppy-session-nearly-flat-investors-eye-fed-earnings
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, July 25 (Reuters) - U.S. stocks see-sawed on Monday and ended close to unchanged as investors girded for an expected rate hike at a Federal Reserve meeting this week and earnings from several large-cap growth companies.
The S&P 500 technology .SPLRCT and consumer discretionary .SPLRCD led declines among major S&P sectors.
"Right now we're just in a holding pattern waiting for all those developments to play out," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
"Obviously, we're seeing some more weakness in the tech names. People are probably just taking some risk off ahead of the earnings."
The Fed is expected to announce a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
Comments by Fed Chairman Jerome Powell following the announcement will be key. Investors have been worried that an aggressive pace of rate hikes could tip the economy into recession.
This week is expected to be the busiest in the second-quarter reporting period, with results from about 170 S&P 500 companies due. Microsoft Corp MSFT.O and Google-parent Alphabet GOOGL.O are due to report Tuesday, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O are set for Thursday.
According to preliminary data, the S&P 500 .SPX gained 4.95 points, or 0.13%, to end at 3,966.58 points, while the Nasdaq Composite .IXIC lost 50.70 points, or 0.43%, to 11,783.41. The Dow Jones Industrial Average .DJI rose 85.05 points, or 0.27%, to 31,984.34.
S&P 500 earnings are expected to have climbed 6.1% for the second quarter from the year-ago period, according to IBES data from Refinitiv. Investors have been concerned about the impact of inflation, currency headwinds and lingering supply chain issues for companies.
Also this week, advance second-quarter gross domestic product data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
Newmont Corp NEM.N fell after the miner raised its annual cost forecast and missed its second-quarter profit, hurt by lower gold prices and inflationary pressures.
(Reporting by Caroline Valetkevitch; additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru and Sinead Carew in New York; Editing by Sriraj Kalluvila, Anil D'Silva and David Gregorio)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft Corp MSFT.O and Google-parent Alphabet GOOGL.O are due to report Tuesday, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O are set for Thursday. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks see-sawed on Monday and ended close to unchanged as investors girded for an expected rate hike at a Federal Reserve meeting this week and earnings from several large-cap growth companies. Also this week, advance second-quarter gross domestic product data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
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Microsoft Corp MSFT.O and Google-parent Alphabet GOOGL.O are due to report Tuesday, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O are set for Thursday. The Fed is expected to announce a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy. This week is expected to be the busiest in the second-quarter reporting period, with results from about 170 S&P 500 companies due.
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Microsoft Corp MSFT.O and Google-parent Alphabet GOOGL.O are due to report Tuesday, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O are set for Thursday. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks see-sawed on Monday and ended close to unchanged as investors girded for an expected rate hike at a Federal Reserve meeting this week and earnings from several large-cap growth companies. The Fed is expected to announce a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
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Microsoft Corp MSFT.O and Google-parent Alphabet GOOGL.O are due to report Tuesday, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O are set for Thursday. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks see-sawed on Monday and ended close to unchanged as investors girded for an expected rate hike at a Federal Reserve meeting this week and earnings from several large-cap growth companies. The Fed is expected to announce a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
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20081.0
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2022-07-25 00:00:00 UTC
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Tech investors may be overvaluing moats
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https://www.nasdaq.com/articles/tech-investors-may-be-overvaluing-moats
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Reuters
Reuters
NEW YORK (Reuters Breakingviews) - Technology investing is mostly about carving out a business that can’t be copied and reaping monopoly-style margins. Investors seem to think Microsoft and Apple have done this, but they may be overvaluing the moats.
Over the past year, Meta Platforms and Netflix valuations have been pounded as competition in advertising and video streaming has caused investors to reassess growth prospects. Meta’s stock, for example, has lost half its value since the start of 2022 as tech giants Amazon.com and Apple are expanding fast in advertising. The rise of TikTok makes the walls surrounding ad-dependent social networks in particular look flimsy. Similarly, the growth of streaming services from Apple, Walt Disney and others have slowed subscriber growth at Netflix to a crawl and pressured margins.
Investors have fewer worries when it comes to Microsoft and Apple. With Apple’s first quarter market share of North American mobile phone shipments exceeding 50%, according to Canalys, it is increasingly inconceivable to think that users will ditch their iPhones. And it’s credible to think the $2.5 trillion company’s Chief Executive Tim Cook will have success selling more advertising and financial services to its customers. It’s even harder to imagine companies abandoning their workplace software, run by Microsoft, which, for example, holds 85% of the market share in U.S. public sector productivity software, according to Omdia.
And yet valuation multiples reflect these relative expectations, and then some. The stock price of Meta has corrected so much, its enterprise value is now worth less than 4 times estimated revenue for the next 12 months. Five years ago, that metric was 9 times, according to Datastream. Netflix has an enterprise value is of 3 times estimated revenue for the next 12 months, half its valuation five years ago. Meantime, Apple, at 6 times, is twice its valuation from five years ago. Likewise, Microsoft’s multiple has risen 60% to over 8 times.
The buffers for the latter two companies are assailable. Rivals still want to steal customers, antitrust regulators can’t be dismissed entirely, and the biggest threat – these firms miss out on a market shift as tech advances – remains. While moats protect against rivals, they may do little against a recessionary wave that smashes earnings in the sector overall. Technology investors may be right on their assessment, but wrong on the way they are valuing it.
Follow @rob_cyran https://twitter.com/rob_cyran on Twitter
CONTEXT NEWS
Microsoft is scheduled to report quarterly earnings after the close of the market on July 26. Analysts expect the firm earned $2.30 per share, compared to $2.17 a year ago, according to Refinitiv.
Apple is scheduled to release quarterly results on the afternoon of July 28. The company is expected to have earned $1.16 per share, compared to $1.30 a year ago.
(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.
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Over the past year, Meta Platforms and Netflix valuations have been pounded as competition in advertising and video streaming has caused investors to reassess growth prospects. With Apple’s first quarter market share of North American mobile phone shipments exceeding 50%, according to Canalys, it is increasingly inconceivable to think that users will ditch their iPhones. Rivals still want to steal customers, antitrust regulators can’t be dismissed entirely, and the biggest threat – these firms miss out on a market shift as tech advances – remains.
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Netflix has an enterprise value is of 3 times estimated revenue for the next 12 months, half its valuation five years ago. Analysts expect the firm earned $2.30 per share, compared to $2.17 a year ago, according to Refinitiv. The company is expected to have earned $1.16 per share, compared to $1.30 a year ago.
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Netflix has an enterprise value is of 3 times estimated revenue for the next 12 months, half its valuation five years ago. Meantime, Apple, at 6 times, is twice its valuation from five years ago. The company is expected to have earned $1.16 per share, compared to $1.30 a year ago.
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Investors seem to think Microsoft and Apple have done this, but they may be overvaluing the moats. Netflix has an enterprise value is of 3 times estimated revenue for the next 12 months, half its valuation five years ago. The company is expected to have earned $1.16 per share, compared to $1.30 a year ago.
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20082.0
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2022-07-25 00:00:00 UTC
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FOREX-Dollar falls for third straight session with Fed eyed
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https://www.nasdaq.com/articles/forex-dollar-falls-for-third-straight-session-with-fed-eyed
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By Chuck Mikolajczak
NEW YORK, July 25 (Reuters) - The dollar was lower against a basket of major currencies on Monday, as investors weighed the implications of a rate hike by the U.S. Federal Reserve in an economy that may be on the verge of a recession.
The central bank is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. A hike of that magnitude would effectively close out pandemic-era support for the economy.
Expectations for a hike of 75 basis points from the Fed stand at about 75%, according to CME's Fedwatch Tool, with a 25% chance of a 100 basis point hike.
Recent data has shown signs of an economic slowdown while inflation remains stubbornly high, with claims for jobless benefits rising to its highest in eight months last week and regional manufacturing gauges slumping.
Later in the week, investors will also eye the advance reading for second-quarter gross domestic product, which could show negative growth and meet a traditional definition of recession. On Friday, personal consumption expenditures, the Fed's preferred inflation measure, will be released.
"Everybody is expecting a 75 percent increase, a recession essentially the day after with a negative GDP so I don’t think you are going to get anything changing right now," said Joseph Trevisani, senior analyst at FXStreet.com.
"But right now, equities are going nowhere, the dollar has remained strong but has given back, the traders who went long the dollar took some profits which is perfectly normal."
The dollar index =USD fell 0.244% at 106.420, with the euro EUR= up 0.14% to $1.0224.
Last week, the greenback saw its biggest weekly percentage decline in two months, as a rally in equities helped dent the appeal of the safe-haven dollar and a 50 basis point rate hike by the European Central Bank helped buoy the euro to a two-week high.
On Monday, Latvian central bank Governor Martins Kazaks said in an interview with Bloomberg News that the ECB may not be done with big rate hikes.
U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple AAPL.O, Microsoft <>MSFT.O> and Amazon <>AMZN.O>. Investors are eyeing the earnings season for signs of a slowdown in the economy as well as the impact of a strong dollar on profits.
Of the 107 companies in the S&P 500 .SPX that have reported earnings through Monday morning, 74.8% have topped analyst expectations, below the 81% beat rate over the past four quarters, but above the 66% rate since 1994, per Refinitiv data. Earnings growth is currently estimated to be 6.1%, up from 5.6% at the start of July.
The Ifo business sentiment survey showed on Monday that business morale in Germany fell more than expected in July to its lowest in more than two years.
The Japanese yen JPY= weakened 0.44% versus the greenback at 136.65 per dollar, while Sterling GBP= was last trading at $1.2047, up 0.37% on the day.
British industrial output grew at the slowest pace in over a year in the three months to July, but there are tentative signs that some challenges around inflation and investment are easing, a Confederation of British Industry survey showed on Monday.
In cryptocurrencies, bitcoin BTC= last fell 4.05% to $21,687.61.
World FX rateshttps://tmsnrt.rs/2RBWI5E
(Reporting by Chuck Mikolajczak, editing by Ed Osmond and Marguerita Choy)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple AAPL.O, Microsoft <>MSFT.O> and Amazon <>AMZN.O>. By Chuck Mikolajczak NEW YORK, July 25 (Reuters) - The dollar was lower against a basket of major currencies on Monday, as investors weighed the implications of a rate hike by the U.S. Federal Reserve in an economy that may be on the verge of a recession. Recent data has shown signs of an economic slowdown while inflation remains stubbornly high, with claims for jobless benefits rising to its highest in eight months last week and regional manufacturing gauges slumping.
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U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple AAPL.O, Microsoft <>MSFT.O> and Amazon <>AMZN.O>. Last week, the greenback saw its biggest weekly percentage decline in two months, as a rally in equities helped dent the appeal of the safe-haven dollar and a 50 basis point rate hike by the European Central Bank helped buoy the euro to a two-week high. The Ifo business sentiment survey showed on Monday that business morale in Germany fell more than expected in July to its lowest in more than two years.
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U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple AAPL.O, Microsoft <>MSFT.O> and Amazon <>AMZN.O>. By Chuck Mikolajczak NEW YORK, July 25 (Reuters) - The dollar was lower against a basket of major currencies on Monday, as investors weighed the implications of a rate hike by the U.S. Federal Reserve in an economy that may be on the verge of a recession. Expectations for a hike of 75 basis points from the Fed stand at about 75%, according to CME's Fedwatch Tool, with a 25% chance of a 100 basis point hike.
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U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple AAPL.O, Microsoft <>MSFT.O> and Amazon <>AMZN.O>. The central bank is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. Last week, the greenback saw its biggest weekly percentage decline in two months, as a rally in equities helped dent the appeal of the safe-haven dollar and a 50 basis point rate hike by the European Central Bank helped buoy the euro to a two-week high.
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20083.0
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2022-07-25 00:00:00 UTC
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US STOCKS-Indexes ease as investors brace for key earnings, Fed
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https://www.nasdaq.com/articles/us-stocks-indexes-ease-as-investors-brace-for-key-earnings-fed
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By Caroline Valetkevitch
NEW YORK, July 25 (Reuters) - U.S. stocks were lower in afternoon trading on Monday, with investors cautious ahead of a Federal Reserve meeting this week and earnings from several large-cap growth companies.
The S&P 500 technology .SPLRCT and consumer discretionary .SPLRCD led declines among major S&P sectors.
The Fed is expected to deliver a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
Comments by Fed Chairman Jerome Powell following the announcement will be key. Investors have been worried that an aggressive pace of rate hikes could tip the economy into recession.
"Right now we're just in a holding pattern waiting for all those developments to play out," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
"Obviously, we're seeing some more weakness in the tech names. People are probably just taking some risk off ahead of the earnings."
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, are among companies due to report quarterly results this week.
The Dow Jones Industrial Average .DJI fell 20.32 points, or 0.06%, to 31,878.97, the S&P 500 .SPX lost 8.05 points, or 0.20%, to 3,953.58 and the Nasdaq Composite .IXIC dropped 84.09 points, or 0.71%, to 11,750.03.
In addition, advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
Newmont Corp NEM.N shed about 13% after the miner raised its annual cost forecast and missed its second-quarter profit, hurt by lower gold prices and inflationary pressures.
Advancing issues outnumbered declining ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 33 new highs and 87 new lows.
(Reporting by Caroline Valetkevitch; additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru and Sinead Carew in New York; Editing by Sriraj Kalluvila, Anil D'Silva and David Gregorio)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, are among companies due to report quarterly results this week. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks were lower in afternoon trading on Monday, with investors cautious ahead of a Federal Reserve meeting this week and earnings from several large-cap growth companies. "Right now we're just in a holding pattern waiting for all those developments to play out," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, are among companies due to report quarterly results this week. In addition, advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year. The S&P 500 posted 1 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 33 new highs and 87 new lows.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, are among companies due to report quarterly results this week. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks were lower in afternoon trading on Monday, with investors cautious ahead of a Federal Reserve meeting this week and earnings from several large-cap growth companies. The Fed is expected to deliver a 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, are among companies due to report quarterly results this week. By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - U.S. stocks were lower in afternoon trading on Monday, with investors cautious ahead of a Federal Reserve meeting this week and earnings from several large-cap growth companies. The S&P 500 technology .SPLRCT and consumer discretionary .SPLRCD led declines among major S&P sectors.
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20084.0
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2022-07-25 00:00:00 UTC
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Stock Market Today: Dow Jones, S&P 500 Gain; Ahead Of Big Tech Earnings & Fed Meeting
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https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-gain-ahead-of-big-tech-earnings-fed-meeting
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Stock Market Today Mid-Day Market Updates
During Monday’s lunch hour, the Dow Jones Industrial Average is up over 77 points on light volume across all indices. This comes as investors await anxiously big tech earnings reports and the Federal Reserve’s decision on Wednesday. In fact, this will be the busiest week of corporate earnings we’ve received and arguably the most important all year. With investors waiting to hear what the Fed will do with interest rates, GDP data, and earnings from roughly a third of the entire S&P 500, no doubt this will be a busy week of stock market news headlines.
Earnings this morning from companies like RPM International (NYSE: RPM), and Dorman Products (NASDAQ: DORM). Shares of RPM stock fell a modest 0.93% during Monday’s early afternoon trading session. Shares are currently trading at $85.31 a share. In the report, In it, RPM notched in earnings of $1.42 per share on revenue of $2.0 billion. Wall Street consensus earnings estimate was $1.44 per share on revenue of $2.0 billion. While DORM stock is also taking a hit on Monday. Shares of DORM stock are down over 7% at $108.44 a share. This comes after the company reported its second-quarter 2022 fiscal results. In the report, Dorman Products (DORM) reported earnings per share of $1.29 on revenue of $417.4 million. That said, Wall Street’s consensus earnings estimate was $1.29 per share on revenue of $401.4 million.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.40% today while Microsoft (NASDAQ: MSFT) is down by 0.65%. Meanwhile, shares of Home Depot (NYSE: HD), and Nike (NYSE: NKE) shares are trading lower on Monday. Among the Dow financial leaders, shares of Mastercard (NYSE: MA) and Goldman Sachs (NYSE: GS) are also trading lower going into Monday’s afternoon trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) are down Monday by 0.75% at $810.54 per share. Last week, the EV maker reported its second-quarter earnings. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 0.15%. Lucid Group (NASDAQ: LCID) fell 3.79% on Monday. Chinese EV leaders like Nio (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are both trading higher Monday.
Dow Jones Today: U.S. Treasury Yield Falls To 2.82%
Following the stock market opening on Monday, the major indices opened mixed. The S&P 500 & Dow are up 0.14%, and 0.01%, while the Nasdaq is trading down by 0.49%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has declined by 0.66% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is down by 0.046%. The benchmark 10-year U.S. Treasury yield is at 2.82% during Monday’s lunchtime session.
[Read More] Good Stocks To Buy Right Now? 3 Consumer Discretionary Stocks In Focus
Big Tech Earnings On Deck; Fed Meeting In Focus
Nearly 175 companies in the S&P 500 are set to report earnings in the stock market this week. As of result, this makes up nearly half of the index’s entire market cap. In fact, this is the busiest week of the second-quarter earnings season with big tech earnings set to come out. Alphabet (NASDAQ: GOOG) reports on Tuesday after market close. Microsoft, and Meta Platforms (NASDAQ: META) will report after Wednesday’s closing bell. While Amazon.com (NASDAQ: AMZN)and Apple report on Thursday.
To round this out, the Federal Reserve will have a two-day meeting this week that starts on Tuesday. The consensus on Wall Street is the Fed will hike interest rates by 75 basis points. That announcement will take place on Wednesday. It’s crucial to remember, that the next Fed meeting isn’t until September. Meaning Fed Chair Jerome Powell’s news conference on Wednesday will be center stage for the stock market this week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.40% today while Microsoft (NASDAQ: MSFT) is down by 0.65%. With investors waiting to hear what the Fed will do with interest rates, GDP data, and earnings from roughly a third of the entire S&P 500, no doubt this will be a busy week of stock market news headlines. Meaning Fed Chair Jerome Powell’s news conference on Wednesday will be center stage for the stock market this week.
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Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.40% today while Microsoft (NASDAQ: MSFT) is down by 0.65%. In the report, Dorman Products (DORM) reported earnings per share of $1.29 on revenue of $417.4 million. Chinese EV leaders like Nio (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are both trading higher Monday.
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Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.40% today while Microsoft (NASDAQ: MSFT) is down by 0.65%. In the report, Dorman Products (DORM) reported earnings per share of $1.29 on revenue of $417.4 million. Shares of EV leader Tesla (NASDAQ: TSLA) are down Monday by 0.75% at $810.54 per share.
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Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.40% today while Microsoft (NASDAQ: MSFT) is down by 0.65%. Shares of RPM stock fell a modest 0.93% during Monday’s early afternoon trading session. Shares of DORM stock are down over 7% at $108.44 a share.
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20085.0
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2022-07-25 00:00:00 UTC
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US STOCKS-Dow rises at start of big earnings week, Big Tech pulls Nasdaq lower
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https://www.nasdaq.com/articles/us-stocks-dow-rises-at-start-of-big-earnings-week-big-tech-pulls-nasdaq-lower
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Wells Fargo cuts Microsoft PT
Big Tech to report earnings later in the week
FOMC to kick off two-day policy meeting from Tuesday
Miner Newmont falls after raising annual cost forecast
Dow rises 0.32%, S&P up 0.26%, Nasdaq down 0.22%
Adds comments, updates prices to early afternoon
By Shreyashi Sanyal and Aniruddha Ghosh
July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped as technology firms fell.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, whose combined market capitalization of $8.9 trillion account for a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week.
Shares of big technology companies fell, with Microsoft slipping 0.4% after Wells Fargo cut its price target, citing risks from inflation, rising rates and a stronger dollar on earnings.
Apple shares shed 0.1%, while chipmaker Nvidia Corp NVDA.O dropped 2.5%.
The dollar .DXY, which hit near 20-year highs following an aggressive tightening cycle by the Fed, is seen as a headwind for U.S. companies, especially those with vast global operations.
"There are a lot of problems and a lot of headwinds including the dollar, but the good news is that expectations have been set much lower than they would have been a year ago," said Chris Grisanti, chief equity strategist & senior portfolio manager at MAI Capital Management.
"So in tech, I don't think inflation will hit that hard. What I'm more concerned about is a slowing of revenue in advertising related business models."
The Fed is widely expected to deliver another super-sized 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
Focus will also be on the press conference by Chair Jerome Powell for clues on policymakers' thinking on future rate hikes amid concerns over an aggressive tightening tipping the economy into a recession.
"We expect Powell to remind that 75bps hikes are unusually large and that the funds rate is close to the FOMC's estimate of its longer-run level," said Paolo Zanghieri, senior economist at Generali Investments.
"This, and the signs of a material slowdown of the economy should tilt the balance for a 50 bps hike (in September), followed by another one in November and December."
Futures contracts tied to the U.S. Federal Reserve's policy rate 0#FF: suggested on Monday that benchmark interest rates will peak in January 2023, a month earlier than its previous projection last week.
Meanwhile, advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
A traditional measure of a recession is two consecutive quarters of GDP contraction, though the group that is the official arbiter of U.S. recessions looks at a broad range of indicators instead, including jobs and spending.
At 12:05 p.m. ET the Dow Jones Industrial Average .DJI was up 103.16 points, or 0.32%, at 32,002.45, the S&P 500 .SPX was up 10.24 points, or 0.26%, at 3,971.87 and the Nasdaq Composite .IXIC was down 26.30 points, or 0.22%, at 11,807.82.
Newmont Corp NEM.N shed 11.5% after the miner raised its annual cost forecast and missed its second-quarter profit, hurt by lower gold prices and inflationary pressures.
Advancing issues outnumbered decliners by a 1.80-to-1 ratio on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 29 new highs and 75 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, whose combined market capitalization of $8.9 trillion account for a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow rises 0.32%, S&P up 0.26%, Nasdaq down 0.22% Adds comments, updates prices to early afternoon By Shreyashi Sanyal and Aniruddha Ghosh July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped as technology firms fell. Shares of big technology companies fell, with Microsoft slipping 0.4% after Wells Fargo cut its price target, citing risks from inflation, rising rates and a stronger dollar on earnings.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, whose combined market capitalization of $8.9 trillion account for a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow rises 0.32%, S&P up 0.26%, Nasdaq down 0.22% Adds comments, updates prices to early afternoon By Shreyashi Sanyal and Aniruddha Ghosh July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped as technology firms fell. Shares of big technology companies fell, with Microsoft slipping 0.4% after Wells Fargo cut its price target, citing risks from inflation, rising rates and a stronger dollar on earnings.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, whose combined market capitalization of $8.9 trillion account for a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow rises 0.32%, S&P up 0.26%, Nasdaq down 0.22% Adds comments, updates prices to early afternoon By Shreyashi Sanyal and Aniruddha Ghosh July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped as technology firms fell. Shares of big technology companies fell, with Microsoft slipping 0.4% after Wells Fargo cut its price target, citing risks from inflation, rising rates and a stronger dollar on earnings.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, whose combined market capitalization of $8.9 trillion account for a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow rises 0.32%, S&P up 0.26%, Nasdaq down 0.22% Adds comments, updates prices to early afternoon By Shreyashi Sanyal and Aniruddha Ghosh July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped as technology firms fell. Apple shares shed 0.1%, while chipmaker Nvidia Corp NVDA.O dropped 2.5%.
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20086.0
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2022-07-25 00:00:00 UTC
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Monday's ETF with Unusual Volume: DIVB
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AAPL
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-divb
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nan
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nan
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The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Monday, with over 276,000 shares traded versus three month average volume of about 70,000. Shares of DIVB were up about 0.2% on the day.
Components of that ETF with the highest volume on Monday were Advanced Micro Devices, trading down about 2.1% with over 32.9 million shares changing hands so far this session, and Apple, down about 0.4% on volume of over 24.5 million shares. Diamondback Energy is the component faring the best Monday, higher by about 6.4% on the day, while Newmont is lagging other components of the iShares U.S. Dividend and Buyback ETF, trading lower by about 11%.
VIDEO: Monday'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.
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The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Monday, with over 276,000 shares traded versus three month average volume of about 70,000. Components of that ETF with the highest volume on Monday were Advanced Micro Devices, trading down about 2.1% with over 32.9 million shares changing hands so far this session, and Apple, down about 0.4% on volume of over 24.5 million shares. Diamondback Energy is the component faring the best Monday, higher by about 6.4% on the day, while Newmont is lagging other components of the iShares U.S. Dividend and Buyback ETF, trading lower by about 11%.
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The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Monday, with over 276,000 shares traded versus three month average volume of about 70,000. Diamondback Energy is the component faring the best Monday, higher by about 6.4% on the day, while Newmont is lagging other components of the iShares U.S. Dividend and Buyback ETF, trading lower by about 11%. VIDEO: Monday'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.
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The iShares U.S. Dividend and Buyback ETF is seeing unusually high volume in afternoon trading Monday, with over 276,000 shares traded versus three month average volume of about 70,000. Components of that ETF with the highest volume on Monday were Advanced Micro Devices, trading down about 2.1% with over 32.9 million shares changing hands so far this session, and Apple, down about 0.4% on volume of over 24.5 million shares. Diamondback Energy is the component faring the best Monday, higher by about 6.4% on the day, while Newmont is lagging other components of the iShares U.S. Dividend and Buyback ETF, trading lower by about 11%.
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Components of that ETF with the highest volume on Monday were Advanced Micro Devices, trading down about 2.1% with over 32.9 million shares changing hands so far this session, and Apple, down about 0.4% on volume of over 24.5 million shares. Diamondback Energy is the component faring the best Monday, higher by about 6.4% on the day, while Newmont is lagging other components of the iShares U.S. Dividend and Buyback ETF, trading lower by about 11%. VIDEO: Monday'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.
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20087.0
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2022-07-25 00:00:00 UTC
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GLOBAL MARKETS-Nasdaq falls with U.S. dollar, oil rises ahead of Fed meeting
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AAPL
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https://www.nasdaq.com/articles/global-markets-nasdaq-falls-with-u.s.-dollar-oil-rises-ahead-of-fed-meeting
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nan
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nan
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By Sinéad Carew
NEW YORK, July 25 (Reuters) - U.S. equities were choppy on Monday with Nasdaq .IXIC in decline ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike later this week.
In currencies, the dollar index was down but holding above a 2-1/2 week low reached on Friday while gold prices inched higher.
Janet Yellen, the U.S. Treasury Secretary, said on Sunday that while U.S. economic growth was slowing a recession was not inevitable.
Treasury yields edged slightly higher as investors awaited the Federal Reserve's likely 75-basis-point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession.
The gap between yields on two- and 10-year Treasury notes US2US10=RR, seen as an indication of a looming recession when the short-end yield is higher than the long end, has been inverted for more than two weeks and was at -18.9 basis points.
"This is the first meaningful yield curve inversion we've had since 2006 for any period of time," said David Petrosinelli, senior trader at InspereX, adding that this fed into a generally accepted narrative of a slowdown at the very least.
While the Dow was virtually unchanged, Nasdaq was falling as investors awaited earnings from some of the biggest U.S. companies, including Apple AAPL.O and Microsoft MSFT.O, and the Fed decision. .N
The Dow Jones Industrial Average .DJI rose 57.85 points, or 0.18%, to 31,957.14, the S&P 500 .SPX gained 0.14 points, or 0.00%, to 3,961.77 and the Nasdaq Composite .IXIC dropped 73.65 points, or 0.62%, to 11,760.46.
The pan-European STOXX 600 index .STOXX rose 0.03% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.13%.
Earlier, a widely watched survey showed German business morale falling more than expected in July as high energy prices and looming gas shortages push Europe's largest economy towards a recession.
The German data had weighed on investor moods in Europe along with a slew of downbeat earnings and a survey over the weekend that showed some industrial companies in Germany cutting production in reaction to soaring energy prices.
Benchmark 10-year notes US10YT=RR last fell 7/32 in price to yield 2.805%, from 2.781% late on Friday. The 2-year note US2YT=RR last fell 1/32 in price to yield 3.0118%, from 2.991%.
"Pre-Fed caution is keeping the dollar off its highs. The market is going to be eager to see if the run of softer data has in any way changed the Fed’s hawkish rate path," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, DC.
"The economy continues to show pretty solid underlying momentum but at the same time, high inflation, rising interest rates, they are certainly having an impact on the economy."
Oil prices rose on Monday, bolstered by a slightly weaker U.S. dollar while investors seesawed between supply fears and expectations that rising U.S. interest rates would weaken demand. O/R
U.S. crude CLc1 recently rose 1.17% to $95.81 per barrel and Brent LCOc1 was at $104.26, up 1.03% on the day.
Spot gold XAU= dropped 0.7% to $1,715.29 an ounce. U.S. gold futures GCc1 gained 0.08% to $1,728.50 an ounce.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
PMIshttps://tmsnrt.rs/3PwcrRD
(Additional reporting by Herbert Lash and Chuck Mikolajczak in New York, Tommy Wilkes in London, Kevin Buckland in Tokyo, Lucy Raitano in London, editing by Ed Osmond and Mark Heinrich)
((Sinead.carew@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the Dow was virtually unchanged, Nasdaq was falling as investors awaited earnings from some of the biggest U.S. companies, including Apple AAPL.O and Microsoft MSFT.O, and the Fed decision. Treasury yields edged slightly higher as investors awaited the Federal Reserve's likely 75-basis-point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession. Earlier, a widely watched survey showed German business morale falling more than expected in July as high energy prices and looming gas shortages push Europe's largest economy towards a recession.
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While the Dow was virtually unchanged, Nasdaq was falling as investors awaited earnings from some of the biggest U.S. companies, including Apple AAPL.O and Microsoft MSFT.O, and the Fed decision. By Sinéad Carew NEW YORK, July 25 (Reuters) - U.S. equities were choppy on Monday with Nasdaq .IXIC in decline ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike later this week. Treasury yields edged slightly higher as investors awaited the Federal Reserve's likely 75-basis-point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession.
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While the Dow was virtually unchanged, Nasdaq was falling as investors awaited earnings from some of the biggest U.S. companies, including Apple AAPL.O and Microsoft MSFT.O, and the Fed decision. By Sinéad Carew NEW YORK, July 25 (Reuters) - U.S. equities were choppy on Monday with Nasdaq .IXIC in decline ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike later this week. Treasury yields edged slightly higher as investors awaited the Federal Reserve's likely 75-basis-point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession.
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While the Dow was virtually unchanged, Nasdaq was falling as investors awaited earnings from some of the biggest U.S. companies, including Apple AAPL.O and Microsoft MSFT.O, and the Fed decision. Treasury yields edged slightly higher as investors awaited the Federal Reserve's likely 75-basis-point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession. The gap between yields on two- and 10-year Treasury notes US2US10=RR, seen as an indication of a looming recession when the short-end yield is higher than the long end, has been inverted for more than two weeks and was at -18.9 basis points.
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20088.0
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2022-07-25 00:00:00 UTC
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Apple (AAPL) to Report Q3 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-report-q3-earnings%3A-whats-in-the-offing
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nan
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nan
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Apple AAPL is set to report third-quarter fiscal 2022 results on Jul 28.
Apple expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line by $4-$8 billion, much higher than what it witnessed in second-quarter fiscal 2022. Unfavorable forex is also expected to hurt revenues by 300 basis points (bps). The absence of Russian revenues will hurt the top line by 150 bps.
The Zacks Consensus Estimate for revenues is currently pegged at $81.86 billion, indicating growth of 0.53% from the year-ago quarter’s reported figure.
The consensus mark for earnings is currently pegged at $1.13 per share, unchanged over the past 30 days and indicating 13.08% decline from the figure reported in the year-ago quarter.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and were in line with the remaining one, the earnings surprise being 11.85%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Strong iPhone 13 Demand to Drive Y/Y Sales Growth
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 52% of net sales in the last reported quarter, wherein sales increased 5.5% year over year to $50.57 billion.
Apple is expected to have benefited from steady demand for the 5G-enabled iPhone 13, despite lockdown disruptions in China and silicon shortages.
Per the latest Canalys report on worldwide smartphone shipments, Apple grabbed the #2 spot with 17% of market share in second-quarter 2022.
The Zacks Consensus Estimate for iPhone sales currently stands at $48.68 billion, indicating 1.2% growth from the year-ago quarter’s reported figure.
Services Momentum to Aid Q3 Top-Line Growth
The Services segment is riding on the increasing popularity of the App Store. Apple currently has more than 825 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ is gaining recognition, with CODA winning three Academy Awards and the continued popularity of Ted Lasso.
Apple TV+ is benefiting from quality content with its strong portfolio of shows. The company has been expanding its genre base to attract viewers and win market share against Netflix NFLX, which enjoys the leading position in the streaming industry, as well as established players like Disney DIS and Amazon AMZN.
Netflix continues to dominate the streaming market. In second-quarter 2022, the streaming giant lost 0.97 million paid subscribers globally, lower than its estimate of losing two million users. Netflix had added 1.54 million paid subscribers in the year-ago quarter.
Apple TV+ has been signing deals with the likes of Maya Rudolph's production company, Animal Pictures, Scott Free Productions, Appian Way, Sikelia Productions and Green Door Pictures, to name a few, to build its content portfolio.
During the to-be-reported quarter, Apple TV+ also won exclusive rights to broadcast Major League Soccer worldwide for 10 years, starting from 2023.
Apple TV+ has also reportedly submitted its bid for National Football League’s new Sunday Ticket partner. Disney and Amazon are the other contenders.
Apple expects Services’ growth rate to decline compared with the third-quarter fiscal 2022. Markedly, in the previous quarter, Services revenues grew 17.3% from the year-ago quarter to $19.82 billion and accounted for 20.4% of sales.
Wearables’ Growth to Remain Strong
This Zacks Rank #3 (Hold) company is dominating the wearables market, thanks to the strong adoption of the Apple Watch. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s Fitness+ subscription service, built on Apple Watch, is a game changer. Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
The addition of healthcare features has been a game-changer for Apple Watch. The Series 7 model offers a Blood Oxygen app, ECG app, high and low heart rate notifications, irregular heart rhythm notifications and fall detection.
Apple Watch’s adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased it during the second-quarter fiscal 2022 were first-time customers.
The consensus mark for Wearables, Home and Accessories revenues is pegged at $8.28 billion for third-quarter fiscal 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report third-quarter fiscal 2022 results on Jul 28. Apple Inc. (AAPL): Free Stock Analysis Report Apple expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line by $4-$8 billion, much higher than what it witnessed in second-quarter fiscal 2022.
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Apple AAPL is set to report third-quarter fiscal 2022 results on Jul 28. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for revenues is currently pegged at $81.86 billion, indicating growth of 0.53% from the year-ago quarter’s reported figure.
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Apple AAPL is set to report third-quarter fiscal 2022 results on Jul 28. Apple Inc. (AAPL): Free Stock Analysis Report Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. Quote Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and were in line with the remaining one, the earnings surprise being 11.85%, on average.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL is set to report third-quarter fiscal 2022 results on Jul 28. Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
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20089.0
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2022-07-25 00:00:00 UTC
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Technology Sector Update for 07/25/2022: META,AAPL,SSYS,NNDM,GILT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-25-2022%3A-metaaaplssysnndmgilt
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nan
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nan
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Technology stocks extended their Monday declines, with the SPDR Technology Select Sector ETF (XLK) falling 1.1% while the Philadelphia Semiconductor Index was sliding 1.2% this afternoon.
In company news, Meta Platforms (META) fell 2.3%. The social media company Monday announced the launch of its Music Revenue Sharing feature allowing creators to get a 20% share of revenue on their Facebook videos containing licensed music from popular artists.
Apple (AAPL) declined 1% after Monday saying it will offer up to 600 renminbi ($89) in discounts to Chinese customers on selected iPhones and other products beginning Friday and extending through Aug. 1. The promotion also includes certain AirPod and Apple Watch models, and eligible buyers can choose from several payment methods.
To the upside, Stratasys (SSYS) added 0.3% after saying it has adopted a limited duration shareholder rights plan in response to Nano Dimension (NNDM) recently reporting a 12.12% equity stake in the 3-D printer company. The poison-pill program allows existing Stratasys shareholders to buy an additional share for $0.01 apiece for each share they currently own and can be triggered by some person or entity acquiring 15% or more of its stock. Nano Dimension shares were 1.8% lower in recent trading.
Gilat Satellite Networks (GILT) gained 1.3% after Monday saying it was expanding its partnership with privately held Intelsat by providing two more of its in-flight SkyEdge II-c connectivity hubs. Financial details were not disclosed.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) declined 1% after Monday saying it will offer up to 600 renminbi ($89) in discounts to Chinese customers on selected iPhones and other products beginning Friday and extending through Aug. 1. To the upside, Stratasys (SSYS) added 0.3% after saying it has adopted a limited duration shareholder rights plan in response to Nano Dimension (NNDM) recently reporting a 12.12% equity stake in the 3-D printer company. Gilat Satellite Networks (GILT) gained 1.3% after Monday saying it was expanding its partnership with privately held Intelsat by providing two more of its in-flight SkyEdge II-c connectivity hubs.
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Apple (AAPL) declined 1% after Monday saying it will offer up to 600 renminbi ($89) in discounts to Chinese customers on selected iPhones and other products beginning Friday and extending through Aug. 1. Technology stocks extended their Monday declines, with the SPDR Technology Select Sector ETF (XLK) falling 1.1% while the Philadelphia Semiconductor Index was sliding 1.2% this afternoon. The social media company Monday announced the launch of its Music Revenue Sharing feature allowing creators to get a 20% share of revenue on their Facebook videos containing licensed music from popular artists.
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Apple (AAPL) declined 1% after Monday saying it will offer up to 600 renminbi ($89) in discounts to Chinese customers on selected iPhones and other products beginning Friday and extending through Aug. 1. Technology stocks extended their Monday declines, with the SPDR Technology Select Sector ETF (XLK) falling 1.1% while the Philadelphia Semiconductor Index was sliding 1.2% this afternoon. The social media company Monday announced the launch of its Music Revenue Sharing feature allowing creators to get a 20% share of revenue on their Facebook videos containing licensed music from popular artists.
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Apple (AAPL) declined 1% after Monday saying it will offer up to 600 renminbi ($89) in discounts to Chinese customers on selected iPhones and other products beginning Friday and extending through Aug. 1. Technology stocks extended their Monday declines, with the SPDR Technology Select Sector ETF (XLK) falling 1.1% while the Philadelphia Semiconductor Index was sliding 1.2% this afternoon. In company news, Meta Platforms (META) fell 2.3%.
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20090.0
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2022-07-25 00:00:00 UTC
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Notable ETF Inflow Detected - VOO, AAPL, MSFT, BRK.B
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-voo-aapl-msft-brk.b
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $7.0 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 686,754,323 to 706,006,438). Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is down about 0.8%, Microsoft Corporation (Symbol: MSFT) is down about 1%, and Berkshire Hathaway Inc New (Symbol: BRK.B) is higher by about 0.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average:
Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $362.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is down about 0.8%, Microsoft Corporation (Symbol: MSFT) is down about 1%, and Berkshire Hathaway Inc New (Symbol: BRK.B) is higher by about 0.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $362.52. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is down about 0.8%, Microsoft Corporation (Symbol: MSFT) is down about 1%, and Berkshire Hathaway Inc New (Symbol: BRK.B) is higher by about 0.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $362.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is down about 0.8%, Microsoft Corporation (Symbol: MSFT) is down about 1%, and Berkshire Hathaway Inc New (Symbol: BRK.B) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $7.0 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 686,754,323 to 706,006,438). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $362.52.
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Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is down about 0.8%, Microsoft Corporation (Symbol: MSFT) is down about 1%, and Berkshire Hathaway Inc New (Symbol: BRK.B) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $7.0 billion dollar inflow -- that's a 2.8% increase week over week in outstanding units (from 686,754,323 to 706,006,438). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $334.24 per share, with $441.26 as the 52 week high point — that compares with a last trade of $362.52.
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20091.0
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2022-07-25 00:00:00 UTC
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Meta, Amazon, Google, Apple Report this Week, and Stocks Face Test of Recent Strength as Rate Hike, GDP Data on Tap
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AAPL
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https://www.nasdaq.com/articles/meta-amazon-google-apple-report-this-week-and-stocks-face-test-of-recent-strength-as-rate
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nan
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nan
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U.S. stocks start Monday coming off last week's solid performance, only to face a series of key earnings reports, several significant economic releases and a U.S. Federal Reserve decision on a key interest rate.
The S&P 500's earnings reports to date, according to FactSet, are weaker than average. The research firm notes that index constituents posting positive surprises and their magnitude are below the five year average in 2022.
"However," the research noted, "the index has a higher earnings growth rate for the second quarter today relative to the end of the quarter mainly due to continued upward revisions to EPS estimates for companies in the Energy sector. On a year-over-year basis, the S&P 500 is reporting its lowest earnings growth since Q4 2020. The lower earnings growth rate for Q2 2022 relative to recent quarters can be attributed to a difficult comparison to unusually high earnings growth in Q2 2021 and continuing macroeconomic headwinds."
Just over 100 firms in the S&P have reported so far. Among those, 68% reported positive surprises, below the 77% five-year average.
The Federal Reserve Open Market Committee's meeting begins Tuesday, with a rate decision released at 2 p.m. on Wednesday. They'll set a key interest rate, and The Wall Street Journal said at the end of last week that the Fed's leaning toward another 75-basis-point hike at Tuesday's two-day meeting rather than the 100-basis-point increase some Fed watchers had predicted.
The federal government also reports second-quarter GDP this week, and many analysts expect to see a second consecutive quarterly slowdown. The economy contracted by 1.6% in the first quarter, and two quarters in a row of slowing growth is one indicator of a recession, but not the only one.
The Atlanta Fed's live market sentiment gauge calls for another 1.6% contraction.
The market's top tech stocks will report this week, with investors as interested in the future guidance as the past results.
Meta (US:META), whose shares are off about 45% year to date, with a $154.25 to $384.33 trading range, reports results. The company reports on Wednesday.
Amazon.com (US:AMZN) reports earnings on Thursday. Its shares are off 25% this year and more than 30% from a year ago.
Google parent Alphabet (US:GOOG) will disclose its second quarter performance on Tuesday. It traded between $102.21 to $152.10 a share this year.
Microsoft (US:MSFT) hasn't escaped the tech carnage as its shares slid more than 20 since the new year. The stock's traded in a $241.51 to $349.67 52 week range. Look for Microsoft earnings on Tuesday.
Saving the biggest for last, Apple (US:AAPL) shares are down a more modest 13% in 2022, are up a modest six percent compared to a year ago. Apple will report fiscal third quarter earnings on Thursday.
Other major S&P 500 companies reporting this week include Pfizer (US:PFE), Mastercard (US:MA), Procter & Gamble (US:PG), Exxon Mobil (US:XOM) and Visa (US:VISA)
Also noteworthy this week, NXP Semiconductors posts results on Monday, marking the first prominent chipmaker to open its books for investors. Investors remain wary of the high-profile supply chain issues and related shortages and expect lackluster results.
Deutsche Banc analyst Ross Seymote recently wrote, "The ongoing 'purgatory' stage of the semiconductor cycle continues to be in full effect as we head into the second quarter earnings season.
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.
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Saving the biggest for last, Apple (US:AAPL) shares are down a more modest 13% in 2022, are up a modest six percent compared to a year ago. The Federal Reserve Open Market Committee's meeting begins Tuesday, with a rate decision released at 2 p.m. on Wednesday. Other major S&P 500 companies reporting this week include Pfizer (US:PFE), Mastercard (US:MA), Procter & Gamble (US:PG), Exxon Mobil (US:XOM) and Visa (US:VISA) Also noteworthy this week, NXP Semiconductors posts results on Monday, marking the first prominent chipmaker to open its books for investors.
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Saving the biggest for last, Apple (US:AAPL) shares are down a more modest 13% in 2022, are up a modest six percent compared to a year ago. U.S. stocks start Monday coming off last week's solid performance, only to face a series of key earnings reports, several significant economic releases and a U.S. Federal Reserve decision on a key interest rate. The research firm notes that index constituents posting positive surprises and their magnitude are below the five year average in 2022.
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Saving the biggest for last, Apple (US:AAPL) shares are down a more modest 13% in 2022, are up a modest six percent compared to a year ago. U.S. stocks start Monday coming off last week's solid performance, only to face a series of key earnings reports, several significant economic releases and a U.S. Federal Reserve decision on a key interest rate. "However," the research noted, "the index has a higher earnings growth rate for the second quarter today relative to the end of the quarter mainly due to continued upward revisions to EPS estimates for companies in the Energy sector.
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Saving the biggest for last, Apple (US:AAPL) shares are down a more modest 13% in 2022, are up a modest six percent compared to a year ago. The research firm notes that index constituents posting positive surprises and their magnitude are below the five year average in 2022. The lower earnings growth rate for Q2 2022 relative to recent quarters can be attributed to a difficult comparison to unusually high earnings growth in Q2 2021 and continuing macroeconomic headwinds."
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20092.0
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2022-07-25 00:00:00 UTC
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ROKU Gears Up to Report Q2 Earnings: What's in the Cards?
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https://www.nasdaq.com/articles/roku-gears-up-to-report-q2-earnings%3A-whats-in-the-cards
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Roku ROKU is set to report second-quarter 2022 results on Jul 28.
For second-quarter 2022, Roku expects total net revenues of $805 million. The consensus mark for revenues is pegged at $805.2 million, indicating 24.8% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss has widened by 1 cent to 77 cents per share in the past 30 days. The figure suggests a 248.08% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 426.19%.
Let’s see how things have shaped up for this announcement.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Factors to Consider
Roku’s second-quarter performance is expected to have benefited from steady active accounts growth at its free, ad-supported platform, The Roku Channel. The ability to access free and premium content on the same platform has been a huge attraction for subscribers.
On Jun 28, Roku announced that it is partnering with NBCUniversal Local to bring several NBC local news channels to The Roku Channel. The partnership with NBCUniversal Local marks the first time that local news programming will be available for users on The Roku Channel.
The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s AMZN Prime Video, Apple’s AAPL AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022.
The Zacks Consensus Estimate for Platform revenues is pegged at $701 million, indicating growth of 31.8% from the figure reported in the year-ago quarter.
In first-quarter 2022, Roku’s active accounts rose 14% year over year to 61.3 million, driven by the popularity of Roku streaming players and Roku TV models.
The average revenue per user (“ARPU”) rose 34% from the prior-year quarter’s levels to $42.91 (on a trailing 12-month basis).
The Zacks Consensus Estimate for second-quarter active accounts and ARPU is pegged at $62 million and $44.82, respectively, indicating an increase of 12.7% and 22.9% from the year-ago quarter’s reported figures.
In first-quarter 2022, Roku users streamed 20.9 billion hours, up 14% year over year. In the to-be-reported quarter as well, streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.63 billion, suggesting an increase of 18.6% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. On May 3, Roku announced new advertising solutions across The Roku Channel, Roku Brand Studio, and OneView, to create a better TV advertising experience for marketers in the streaming space.
This Zacks Rank #3 (Hold) company’s expanding international presence in more than 20 countries like the United Kingdom, Mexico, Brazil, the United States and Canada is expected to have been a key catalyst. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advertisers, however, continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on ad revenue growth in the to-be reported quarter.
Key Developments in Q2
Roku and Warner Bros. Discovery announced the launch of discovery+ as a premium subscription on The Roku Channel in second-quarter 2022. Users can subscribe to both, the ad-free ($6.99) and the ad-supported ($4.99) versions of discovery+, directly through The Roku Channel.
Moreover, Roku announced that a multi-year extension with Amazon for their distribution agreement. Per the agreement, customers will continue to have access to Prime Video and IMDb TV on their Roku devices. However, the terms of the agreement have not been disclosed.
In the to-be-reported quarter, Roku announced that Apple’s premium music subscription service, Apple Music, is now available on the Roku Platform, globally. Apple Music subscribers are now able to stream music on any Roku device, including Roku TV models, Roku streaming players and other Roku premium products.
On Jun 16, Roku entered into an agreement with Walmart WMT to make TV streaming the next e-commerce shopping destination. According to this first-of-a-kind partnership, TV viewers can use their remote to purchase from a shoppable TV ad, directly from Roku via Roku Pay. According to the deal, Walmart will be the exclusive retailer, allowing streamers to purchase their product of choice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Roku, Inc. (ROKU): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s AMZN Prime Video, Apple’s AAPL AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for Platform revenues is pegged at $701 million, indicating growth of 31.8% from the figure reported in the year-ago quarter.
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The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s AMZN Prime Video, Apple’s AAPL AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for Platform revenues is pegged at $701 million, indicating growth of 31.8% from the figure reported in the year-ago quarter.
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The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s AMZN Prime Video, Apple’s AAPL AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022. Apple Inc. (AAPL): Free Stock Analysis Report Roku, Inc. Price and EPS Surprise Roku, Inc. price-eps-surprise | Roku, Inc. Quote Factors to Consider Roku’s second-quarter performance is expected to have benefited from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
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The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s AMZN Prime Video, Apple’s AAPL AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for second-quarter active accounts and ARPU is pegged at $62 million and $44.82, respectively, indicating an increase of 12.7% and 22.9% from the year-ago quarter’s reported figures.
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20093.0
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2022-07-25 00:00:00 UTC
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Alphabet, Microsoft, Meta, Apple and Amazon are part of Zacks Earnings Preview
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https://www.nasdaq.com/articles/alphabet-microsoft-meta-apple-and-amazon-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – July 25, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN.
Previewing Big Tech Ahead of Huge Week for Wall Street
Snap shares took a big hit after coming out with quarterly numbers that many in the market see as offering clues to the outlook for digital advertising spending in the current uncertain macroeconomic environment.
The shock from the Instagram rival has put the spotlight on other Tech leaders that are on deck to report June-quarter results this week. Alphabet and Microsoft are set to report after the market's close on Tuesday (7/26), with Instagram parent Meta Platforms' ready to release its results after the closing bell on Wednesday (7/27), while Apple and Amazon offer up their quarterly financial information after the close on Thursday (7/29).
Wall Street analysts have been falling over each other to downgrade Snap shares after the disappointing print on Thursday. The Wall Street analysts' move brings to mind the saying about closing the barn doors after the horses have left. Another way to look at this mass rush to the exits could be the contrarian capitulation signal. Snap shares lost more than -30% of their value following the disappointing result, but they were already down more than -70% this year before the Q2 report came out.
Snap is a relatively modest player in the digital ad space, with Alphabet and Meta as the undisputed leaders of that market. Advertising spending is cyclical and should intuitively start weakening as the aggressive Fed tightening cycle takes effect.
To that extent, Alphabet and Meta are as exposed to these macro trends as Snap and others are. That said, the bottom-up nature of Google's search-driven ad platform likely gives it more 'stickiness' than a mere social media platform. You can see this in the performance variance between these operators in the above chart.
Advertisement spending by businesses is not the only category that will be under threat during an economic slowdown or a recession.
Tech giants like Microsoft, Alphabet and Amazon (through its Amazon Web Services or AWS arm) receive a ton of money from other companies for software and services. It is reasonable to expect those receipts to take a hit as customers get cautious in the face of macroeconomic challenges.
We will see what we hear from these companies in their Q2 releases, but historically software spending doesn't get cut to the same extent as ad spending. Microsoft, Amazon (AWS), and Alphabet are the leaders in the cloud computing space.
Revenue growth is expected to remain strong, with cost pressures weighing on earnings expectations. Needless to add that these Tech leaders are faced with compressed margins.
Whether the growth trend for these companies is decelerating or not is a function of your holding horizon. These companies are impressive growth engines in the long run, even if those estimates for 2023 and 2024 come down in the days ahead.
Ad spending may be coming down as this week's reports from Meta and Alphabet will reconfirm, but no one is suggesting that they are expected to lose share to your local newspaper's classified section. As the macroeconomic clouds clear, as they eventually will, these digital platforms will be there to capture those spending dollars.
Beyond the big 5 Tech players, total Q2 earnings for the Technology sector as a whole are expected to be down -8.9% from the same period last year on +2.8% higher revenues.
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.
Q2 Earnings Season Scorecard
Through Friday, July 22nd, we have seen Q2 results from 106 S&P 500 members or 21.2% of the index's total membership. Total earnings for these companies are down -6.9% on +7.2% higher revenues, with 71.7% beating EPS estimates and 63.2% beating revenue estimates.
The Finance sector has been a big drag on the 'headline' year-over-year growth rate for the companies that have reported already. Second quarter earnings growth for the Finance sector companies that have reported already are down -26.3% from the same period last year.
Excluding this Finance sector's drag, Q2 earnings growth for the rest of the index improves to +12.2%.
The EPS and revenue beats percentages are still tracking on the low side relative to historical periods.
This Week's Docket
We get into the heart of the Q2 reporting cycle this week, with almost 800 companies on deck to report quarterly results, including 171 S&P 500 members. In addition to the aforementioned Tech giants, this week's line-up includes a who's who of America Inc., ranging from Boeing and Pfizer to Coke, GM, and a host of other marquee players.
By this time next week, we will have seen Q2 results from 55% of the S&P 500 members and will have a reasonably good sense of the earnings lay of the land.
The Current Earnings Backdrop
The +3.7% 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 -5%.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Q2 Earnings Season Off to a Solid Start Despite Recession Fears
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Ad spending may be coming down as this week's reports from Meta and Alphabet will reconfirm, but no one is suggesting that they are expected to lose share to your local newspaper's classified section.
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Previewing Big Tech Ahead of Huge Week for Wall Street Snap shares took a big hit after coming out with quarterly numbers that many in the market see as offering clues to the outlook for digital advertising spending in the current uncertain macroeconomic environment.
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet and Microsoft are set to report after the market's close on Tuesday (7/26), with Instagram parent Meta Platforms' ready to release its results after the closing bell on Wednesday (7/27), while Apple and Amazon offer up their quarterly financial information after the close on Thursday (7/29).
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Beyond the big 5 Tech players, total Q2 earnings for the Technology sector as a whole are expected to be down -8.9% from the same period last year on +2.8% higher revenues.
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20094.0
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2022-07-25 00:00:00 UTC
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What Warren Buffett Can Teach You From His Top 3 Holdings
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https://www.nasdaq.com/articles/what-warren-buffett-can-teach-you-from-his-top-3-holdings
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There's a reason Warren Buffett is often regarded as one of -- if not the -- greatest investors to ever live: He's very good at it. Tens of billions of dollars good. Due to his success, people often look to his portfolio (via his company Berkshire Hathaway) to influence many of their investing decisions.
Berkshire Hathaway's portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. They each represent 41.3%, 10.2%, and 7.2% of Berkshire Hathaway's portfolio, respectively (as of March 31, 2022).
Image source: Getty Images
If you're wondering why a company with 50+ holdings has 58.7% of its portfolio in three stocks, it's because blue chip stocks have stood the test of time and proven to be great long-term investments, regardless of broader economic conditions.
Blue chip companies find a way to survive
For a company to be considered blue chip, it must be worth billions and be one of the top leaders in its sector, and you don't usually get to that point unless you have lots of resources. Resources that come in handy during bear markets, recessions, and everything in between. Warren Buffett has always preached long-term investing, and part of that is understanding that rough economic times are inevitable, and if companies can't survive those, they're likely not very good long-term investments.
Since the 1980s, Apple, Bank of America, and Coca-Cola have made it through Black Monday (1987), the dot-com bubble crash (late '90s/Early '00s), the Great Recession (2008), and the early stages of the COVID-19 pandemic (2020). Not only have they made it through, but they've also been valuable investments since then.
During the dot-com bubble in 2000, Apple traded at around $150 (the price at the time, not today's price after stock splits through the years) and dropped as low as $13 in 2002. It's since provided some of the greatest returns we've ever seen in stock market history.
From November 2006 to March 2009, Bank of America's stock dropped over 94%. Over the next decade, the stock increased by more than 750%. In early 2020, Coca-Cola saw its stock price plunge by more than 36%. In the little over two years since then, the stock has increased by more than 60%.
Keep your eyes on the long-term prize
It can be hard to convince yourself to focus on the long term when you're seeing your portfolio drop right before your eyes during bear markets and rough periods in the stock market, but it's necessary. If you're investing for the long term -- and you should be -- you have to believe the companies you're investing in will find ways to adjust to the times and produce great results in the long run.
One thing that Apple, Bank of America, Coca-Cola, and lots of other blue-chip companies have in common is they find a way to adapt to broader economic problems they didn't themselves create. Apple didn't cause the dot-com bubble, Bank of America wasn't the main culprit in the Great Recession, and Coca-Cola didn't cause a global pandemic. Yet each time, they had the resources available to adapt and weather the storm.
That's why, like Warren Buffett, you should rely on blue chip companies to represent the bulk of your portfolio. There's no such thing as a foolproof investment, but blue chip stocks are as good as it gets.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire Hathaway's portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. Since the 1980s, Apple, Bank of America, and Coca-Cola have made it through Black Monday (1987), the dot-com bubble crash (late '90s/Early '00s), the Great Recession (2008), and the early stages of the COVID-19 pandemic (2020). One thing that Apple, Bank of America, Coca-Cola, and lots of other blue-chip companies have in common is they find a way to adapt to broader economic problems they didn't themselves create.
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Berkshire Hathaway's portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Berkshire Hathaway's portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. Image source: Getty Images If you're wondering why a company with 50+ holdings has 58.7% of its portfolio in three stocks, it's because blue chip stocks have stood the test of time and proven to be great long-term investments, regardless of broader economic conditions. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Berkshire Hathaway's portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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20095.0
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2022-07-25 00:00:00 UTC
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US STOCKS-Dow rises at start of big earnings week, Microsoft drags Nasdaq
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https://www.nasdaq.com/articles/us-stocks-dow-rises-at-start-of-big-earnings-week-microsoft-drags-nasdaq
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Wells Fargo cuts Microsoft PT
Big Tech to report earnings later in the week
FOMC to kick off two-day policy meeting from Tuesday
Miner Newmont falls after raising annual cost forecast
Dow up 0.39%, S&P up 0.14%, Nasdaq down 0.23%
Updates to open
By Shreyashi Sanyal
July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week.
"The really big part of earnings season is here. So with confidence coming back right now, it can also quickly dissipate if we have disappointments from companies like Google and Microsoft on Tuesday," said Dennis Dick, retail trader at Triple D Trading.
Shares of the high-growth companies were mixed in the first hour of trading.
Microsoft fell 0.5% after Wells Fargo cut its price target, citing risks from inflation, rising rates and a stronger dollar on earnings.
The dollar .DXY, hovering near 20-year highs following an aggressive tightening cycle by the Fed, is seen as a headwind for U.S. companies, especially those with big global operations.
All of the three major indexes closed higher last week. The tech heavy Nasdaq .IXIC added 3.3%, the S&P 500 .SPX 2.4% and the Dow .DJI gained 2%.
The Fed is widely expected to deliver another super-sized 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
Focus will also be on the press conference by Chair Jerome Powell for clues on policymakers' thinking on future rate hikes amid concerns over an aggressive tightening tipping the economy into a recession.
"We expect Powell to remind that 75bps hikes are unusually large and that the funds rate is close to the FOMC's estimate of its longer-run level," said Paolo Zanghieri, senior economist at Generali Investments.
"This, and the signs of a material slowdown of the economy should tilt the balance for a 50 bps hike (in September), followed by another one in November and December."
Futures contracts tied to the U.S. Federal Reserve's policy rate 0#FF: suggested on Monday that benchmark interest rates will peak in January 2023 compared to February last week.
Meanwhile, advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.
A traditional measure of a recession is two consecutive quarters of GDP contraction, though the group that is the official arbiter of U.S. recessions looks at a broad range of indicators instead, including jobs and spending.
At 10:12 a.m. ET, the Dow Jones Industrial Average .DJI was up 123.98 points, or 0.39%, at 32,023.27. The S&P 500 .SPX was up 5.49 points, or 0.14%, at 3,967.12, while the Nasdaq Composite .IXIC was down 26.93 points, or 0.23%, at 11,807.19.
Shares of Newmont Corp NEM.N shed 10% after the miner raised its annual cost forecast and missed its second-quarter profit, hurt by lower gold prices and inflationary pressures.
Advancing issues outnumbered decliners by a 1.71-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 19 new highs and 52 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow up 0.39%, S&P up 0.14%, Nasdaq down 0.23% Updates to open By Shreyashi Sanyal July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft. Focus will also be on the press conference by Chair Jerome Powell for clues on policymakers' thinking on future rate hikes amid concerns over an aggressive tightening tipping the economy into a recession.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow up 0.39%, S&P up 0.14%, Nasdaq down 0.23% Updates to open By Shreyashi Sanyal July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft. Futures contracts tied to the U.S. Federal Reserve's policy rate 0#FF: suggested on Monday that benchmark interest rates will peak in January 2023 compared to February last week.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow up 0.39%, S&P up 0.14%, Nasdaq down 0.23% Updates to open By Shreyashi Sanyal July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft. The Fed is widely expected to deliver another super-sized 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. Wells Fargo cuts Microsoft PT Big Tech to report earnings later in the week FOMC to kick off two-day policy meeting from Tuesday Miner Newmont falls after raising annual cost forecast Dow up 0.39%, S&P up 0.14%, Nasdaq down 0.23% Updates to open By Shreyashi Sanyal July 25 (Reuters) - The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft. The dollar .DXY, hovering near 20-year highs following an aggressive tightening cycle by the Fed, is seen as a headwind for U.S. companies, especially those with big global operations.
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20096.0
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2022-07-25 00:00:00 UTC
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Big Week for Q2 Earnings, Economic Data
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AAPL
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https://www.nasdaq.com/articles/big-week-for-q2-earnings-economic-data
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Monday, July 25, 2022
We’re starting off relatively slowly, but this will be the biggest week forstock market datain several weeks: Home Sales, Durable Goods, Jobless Claims, PCE Inflation and Q2 GDP are all expected between now and Friday. Add in 1000 or so earnings reports released and the last Federal Open Market Committee (FOMC) meeting until after Labor Day, and it’s not hard to see we’re in for an eventful week.
Let’s start with the FOMC meeting, where Fed presidents assemble tomorrow and Wednesday to decide on monetary policy. By most accounts, it’s already a done deal: a 75 basis-point (bps) interest rate hike would move the Fed funds rate to 2.25-2.50%, up from 0.00-0.25% less than half a year ago. It would be the second-straight such raise, which we hadn’t seen since the first term of the Clinton administration.
The idea is to quash inflation numbers, which are at 40-year highs (+9.1% on the most recent Consumer Price Index print), while also keeping employment and consumer activity buoyant enough to skate around a recession. No one knows if 75 bps this time around is the magic bullet, but it is the apparent compromise between those voting Fed members who want to stamp out inflation all at once versus those who believe inflation can be contained with less aggressive methods.
After all, we may already be in a technical recession — two straight quarters of negative Gross Domestic Product (GDP) growth. In Q1, we saw a -1.6% headline emerge, and by many accounts Q2 was a tougher quarter economically than Q1. However, much of those Q1 losses had to do with supply-chain inventories which were the product of late-stage global pandemic conditions. For Q2, the Energy sector is expected to have dragged Q2 into positive GDP territory: +0.3% on the consensus as of today.
Personal Consumption Expenditures (PCE) for core June reads are expected to have doubled month over month but stayed even year over year: +0.6% and +4.7%, respectively. “Core” refers to the stripping out of volatile food and energy costs, and this doubling in short-term would reflect transitory inflation metrics, such as high gasoline prices, having become more entrenched into other aspects of the economy, such as Transportation and the costs of goods delivered.
Weekly Jobless Claims have been climbing notably of late, surpassing 250K for the first time in recent memory. These are expected to stabilize where they are, but it’s still a gain of more than 4000 new claims on the four-week moving average. This would tend to argue against Treasury Secretary Janet Yellen’s insistence that employment is very strong in the U.S. at the moment. But we are hearing in Q2 earnings conference calls about companies “right-sizing” heading into a possible recessionary period.
In terms of Q2 earnings, this week looks to carry the heaviest amount of reports from notable industry leaders, including nearly all of the so-called FAANG stocks — Google parent Alphabet GOOGL Tuesday, ex-Facebook Meta Platforms META Wednesday, and both Amazon AMZN and Apple AAPL Thursday. In addition, we’ll see results from Microsoft MSFT, Boeing BA, Ford F, Pfizer PFE and both ExxonMobil XOM and Chevron CVX.
Pre-market futures are looking to build back from Friday’s sell-off in what was otherwise a terrific week: the Nasdaq grew more than +3% in the past five trading days alone. Currently, the Dow is +116 points, the S&P 500 is +12 and the Nasdaq is +20 points. So far, July is easily the best-performing month of 2022, with the Nasdaq +7.3% so far, the S&P +4.7% and the Dow +3.7%. Cycle lows are now more than a month in our rearview mirror.
Questions or comments about this article and/or its author? Click here>>
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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The Boeing Company (BA): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In terms of Q2 earnings, this week looks to carry the heaviest amount of reports from notable industry leaders, including nearly all of the so-called FAANG stocks — Google parent Alphabet GOOGL Tuesday, ex-Facebook Meta Platforms META Wednesday, and both Amazon AMZN and Apple AAPL Thursday. Apple Inc. (AAPL): Free Stock Analysis Report Add in 1000 or so earnings reports released and the last Federal Open Market Committee (FOMC) meeting until after Labor Day, and it’s not hard to see we’re in for an eventful week.
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In terms of Q2 earnings, this week looks to carry the heaviest amount of reports from notable industry leaders, including nearly all of the so-called FAANG stocks — Google parent Alphabet GOOGL Tuesday, ex-Facebook Meta Platforms META Wednesday, and both Amazon AMZN and Apple AAPL Thursday. Apple Inc. (AAPL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report
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In terms of Q2 earnings, this week looks to carry the heaviest amount of reports from notable industry leaders, including nearly all of the so-called FAANG stocks — Google parent Alphabet GOOGL Tuesday, ex-Facebook Meta Platforms META Wednesday, and both Amazon AMZN and Apple AAPL Thursday. Apple Inc. (AAPL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report
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In terms of Q2 earnings, this week looks to carry the heaviest amount of reports from notable industry leaders, including nearly all of the so-called FAANG stocks — Google parent Alphabet GOOGL Tuesday, ex-Facebook Meta Platforms META Wednesday, and both Amazon AMZN and Apple AAPL Thursday. Apple Inc. (AAPL): Free Stock Analysis Report We’re starting off relatively slowly, but this will be the biggest week forstock market datain several weeks: Home Sales, Durable Goods, Jobless Claims, PCE Inflation and Q2 GDP are all expected between now and Friday.
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20097.0
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2022-07-25 00:00:00 UTC
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Meta Platforms (META) to Report Q2 Earnings: What to Expect?
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q2-earnings%3A-what-to-expect
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Meta Platforms META is set to report second-quarter 2022 results on Jul 27.
Meta expects total revenues between $28 billion and $30 billion for the second quarter of 2022.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $28.82 billion, indicating a decrease of 0.87% from the year-ago quarter’s reported figure.
The consensus mark for second-quarter earnings stands at $2.51 per share, which has remained unchanged over the past 30 days, suggesting a decline of 30.47% from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 5.99%.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Factors to Note
Meta’s Family of Apps — Facebook, Instagram, Messenger and WhatsApp — has been facing significant competition from the likes of TikTok and Snap SNAP in the ad dollar space. Meta’s competition with Twitter TWTR in the NFT space has also been intensifying.
Also, Instagram and Facebook’s ban in Russia is expected to have negatively impacted user as well as advertising revenue growth in the to-be-reported quarter. It is worth mentioning that Russia accounted for 1.5% of Meta’s advertising dollars.
Snap’s flagship platform, Snapchat, reaches 75% of the 13-34-year-old population of the United States, making it a more popular platform than Meta’s Facebook and Instagram in this demography.
These factors are likely to have hurt Meta’s year-over-year advertising revenue growth rate in second-quarter 2022.
Meta has been beaten by Twitter as the first social media giant to enter the NFT marketplace by launching a tool to showcase and sell NFTs on its platform.
META is currently facing the worst downturn in the company's history due to the global macro-economic situation, geopolitical tensions, rising inflation and U.S. Federal Reserve interest rate hikes.
Rising inflation is likely to have impacted the ad spending revenues of enterprises negatively, which in turn might have weighed on the ad revenues of Meta in the to-be-reported quarter. In the first quarter of 2022, Meta’s ad revenues represented 99.2% of total revenues and were used to fund the company’s Reality Labs initiatives, which may have taken a severe hit in the to-be-reported quarter.
Changes made by Apple AAPL in its iOS have limited Meta’s ability to track user activity trends.
Apple’s iOS changes have made ad targeting difficult, which in turn has increased the cost of driving outcomes. Measuring these outcomes has also become difficult. Meta expects these factors to hurt advertising growth in the second quarter and throughout 2022.
Meta’s advertisement revenues increased 6.1% year over year to $27 billion and accounted for 96.7% of first-quarter revenues; however, growth is looking tepid in the to-be-reported quarter.
In the second quarter of 2022, Meta expects a 3% headwind in foreign currency exchange rates, which reflects volatility due to the ongoing war.
In the to-be-reported quarter, Meta has lowered its total expenses in the range of $87 billion to $ 92 billion from a prior outlook of $90-$95 billion.
In the second quarter, Meta slowed down its investments in certain Reality Labs projects, which were costing the company a lot of capital as revenues from its primary source have been decreasing.
The company has been diversifying the investments in developing certain AI infrastructure, which will drive revenue growth across ad business and the Metaverse in the long run. This is expected to have aided in reducing operating expenses and might have favored the bottom-line growth in the second quarter.
Meta currently carries Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Q2 Developments
During the to-be-reported quarter, Meta announced that the company’s AI researchers and audio specialists from the Reality Labs team built three new AI models — Visual-Acoustic Matching, Visually-Informed Dereverberation and VisualVoice. The AI models currently available for developers will help Meta build the Metaverse as a more refined immersive reality space by making the sound more realistic in mixed and virtual reality experiences.
Meta started testing new ways for Instagram users to verify their age, starting with people in the United States. Apart from uploading their ID (driver’s license or ID card), users can use video selfies and social vouching to verify their age. Instagram requires people to be at least 13 years old to sign up. In some countries, the minimum age requirement is higher. Meta has been facing flak regarding child protection issues on the social networking platform and has taken the initiative to save children and teenagers from unwanted activities.
In order to deal with regulatory headwinds, Meta reached a settlement with the U.S. Department of Housing and Urban Development (“HUD”) that will change the way the company delivers housing ads to U.S. residents. Meta collaborated with the HUD for more than a year to develop a machine learning technology that will implement a new system called the variance reduction method to accurately reflect the targeted audience and rein in privacy breaches.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Twitter, Inc. (TWTR): Free Stock Analysis Report
Snap Inc. (SNAP): Free Stock Analysis Report
Meta Platforms, Inc. (META): 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.
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Changes made by Apple AAPL in its iOS have limited Meta’s ability to track user activity trends. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for second-quarter earnings stands at $2.51 per share, which has remained unchanged over the past 30 days, suggesting a decline of 30.47% from the figure reported in the year-ago quarter.
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Changes made by Apple AAPL in its iOS have limited Meta’s ability to track user activity trends. Apple Inc. (AAPL): Free Stock Analysis Report Also, Instagram and Facebook’s ban in Russia is expected to have negatively impacted user as well as advertising revenue growth in the to-be-reported quarter.
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Changes made by Apple AAPL in its iOS have limited Meta’s ability to track user activity trends. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Factors to Note Meta’s Family of Apps — Facebook, Instagram, Messenger and WhatsApp — has been facing significant competition from the likes of TikTok and Snap SNAP in the ad dollar space.
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Changes made by Apple AAPL in its iOS have limited Meta’s ability to track user activity trends. Apple Inc. (AAPL): Free Stock Analysis Report Meta’s advertisement revenues increased 6.1% year over year to $27 billion and accounted for 96.7% of first-quarter revenues; however, growth is looking tepid in the to-be-reported quarter.
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20098.0
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2022-07-25 00:00:00 UTC
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Crucial Reports This Week Determine 2022’s Path
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AAPL
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https://www.nasdaq.com/articles/crucial-reports-this-week-determine-2022s-path
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last week ended positively as better-than-expected earnings reports continued to stream in. Three of the past six weeks have been positive, which feels downright luxurious compared to what we have all had to deal with since the beginning of the year.
While it seems unlikely that this is the beginning of a new bull market, the market should have a much easier time avoiding further declines.
Traders sometimes refer to a market like this as “range-bound” or “flat,” as stock prices oscillate between the recent highs and lows. Of the last few bear markets, the market was range bound in 2010, 2011, and 2015. A sudden reversal back to the highs, like 2020, is much less common. A range-bound market can be a little scary for new investors, but they are a great time to add risk on the lows and pause when the market experiences a temporary bounce.
This week is a critical one for investor sentiment. We are cautiously optimistic that prices will stay relatively stable, but we are assuming the big reports coming up will look like the early reports we have seen so far. If we avoid any big disappointments, we may even want to start planning for an upside breakout later in the fourth quarter.
Reports We’re Watching
Tuesday, Jul. 26
There is a slew of consumer and tech stocks reporting on Tuesday, including General Motors (GM), Coca-Cola Co. (KO), McDonald’s Corp. (MCD), Alphabet Inc. ( GOOGL), and Microsoft Corp. (MSFT) .
It’s unlikely that earnings will be higher than they were last year on average, but that’s mostly priced into the market right now. What we are looking for is the inflation outlook from these companies. If the outlook is bad, it won’t matter what the profit numbers are – investors will sell. However, if management teams remain relatively sanguine about the impact of inflation, stock prices should be OK.
Wednesday, Jul. 27
The Fed is going to raise the target interest rate again on Wednesday. Traders in the bond market overwhelmingly expect that the Fed will raise the target rate by 0.75%. We don’t think the rate hike itself will affect the market, since traders already know it’s coming.
What we don’t know is what the Fed will say about future hikes. There is a press conference right after the announcement where the Fed Chairman will try to set expectations about inflation and rate hikes this year, and that event is usually a wild card. We think investors should avoid adding a lot of risk to their portfolio until that press conference is over.
Thursday, Jul. 28
Like most days this week, there will be a flood of new earnings reports, but after the market closes on Thursday, the report from Apple Inc. (AAPL) will have the biggest impact on the outlook for this quarter. Expectations for AAPL have improved a lot since June, so the risk of disappointment is highest on Thursday.
Friday, Jul. 29
The Fed’s favorite inflation measure comes out on Friday before the market opens, the Personal Consumption Expenditures (PCE) report. Last month, the PCE number was slightly better than expected, and the S&P 500 rose nearly 5%. We know the PCE will still be high, but if it’s just a tad lower than last month, it should ensure that stock prices won’t hit a new low in August.
What You Should Do
This is a pivotal week for the market. The Fed will be raising rates again on Wednesday and there will be market-moving earnings reports from big tech and consumer stocks. On average, profits will likely be down compared to last year, but what matters now is how these firms set expectations for the rest of 2022. This is a make-or-break week for the rest of 2022.
We have recommended cautiously adding positions in retail and tech stocks for the past few weeks. Those sectors were up 5.5 and 4.14% last week alone. We still think that is the right area of focus for now. However, because so many big tech firms like AAPL and MSFT will be coming out this week with earnings, we think investors should only consider new positions after those earnings reports are out.
Sincerely,
John Jagerson and Wade Hansen
Editors, Trading Opportunities
The post Crucial Reports This Week Determine 2022’s Path appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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28 Like most days this week, there will be a flood of new earnings reports, but after the market closes on Thursday, the report from Apple Inc. (AAPL) will have the biggest impact on the outlook for this quarter. Expectations for AAPL have improved a lot since June, so the risk of disappointment is highest on Thursday. However, because so many big tech firms like AAPL and MSFT will be coming out this week with earnings, we think investors should only consider new positions after those earnings reports are out.
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However, because so many big tech firms like AAPL and MSFT will be coming out this week with earnings, we think investors should only consider new positions after those earnings reports are out. 28 Like most days this week, there will be a flood of new earnings reports, but after the market closes on Thursday, the report from Apple Inc. (AAPL) will have the biggest impact on the outlook for this quarter. Expectations for AAPL have improved a lot since June, so the risk of disappointment is highest on Thursday.
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28 Like most days this week, there will be a flood of new earnings reports, but after the market closes on Thursday, the report from Apple Inc. (AAPL) will have the biggest impact on the outlook for this quarter. However, because so many big tech firms like AAPL and MSFT will be coming out this week with earnings, we think investors should only consider new positions after those earnings reports are out. Expectations for AAPL have improved a lot since June, so the risk of disappointment is highest on Thursday.
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However, because so many big tech firms like AAPL and MSFT will be coming out this week with earnings, we think investors should only consider new positions after those earnings reports are out. 28 Like most days this week, there will be a flood of new earnings reports, but after the market closes on Thursday, the report from Apple Inc. (AAPL) will have the biggest impact on the outlook for this quarter. Expectations for AAPL have improved a lot since June, so the risk of disappointment is highest on Thursday.
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20099.0
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2022-07-25 00:00:00 UTC
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US STOCKS-Wall St set to open higher at start of big week for earnings, Fed meet
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-at-start-of-big-week-for-earnings-fed-meet
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By Shreyashi Sanyal
July 25 (Reuters) - U.S. stock indexes were set to open higher on Monday as investors braced for a Federal Reserve policy meeting during the week and results from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation on demand.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week.
"The really big part of earnings season is here. So with confidence coming back right now, it can also quickly dissipate if we have disappointments from companies like Google and Microsoft on Tuesday," said Dennis Dick, retail trader at Triple D Trading.
Shares of the high-growth companies rose between 0.5% and 1.2% in premarket trading.
The dollar .DXY, hovering near 20-year highs following an aggressive tightening cycle by the Fed, is expected be a headwind for U.S. companies, especially those with a big global presence.
Financial stocks including American Express Co AXP.N and Citigroup Inc C.N advanced more than 1% each. Industrial shares such as Boeing Co BA.N and 3M Co MMM.N, also set to report this week, gained 0.8% each.
All of the three major indexes closed higher last week. The tech heavy Nasdaq .IXIC added 3.3%, the S&P 500 .SPX 2.4% and the Dow .DJI gained 2%.
The Fed is widely expected to deliver another super-sized 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy. Focus will also be on the press conference by Chair Jerome Powell for clues on policymakers' thinking on future rate hikes amid concerns over an aggressive tightening tipping the economy into a recession.
"We expect Powell to remind that 75bps hikes are unusually large and that the funds rate is close to the FOMC's estimate of its longer-run level," said Paolo Zanghieri, senior economist at Generali Investments.
"This, and the signs of a material slowdown of the economy should tilt the balance for a 50 bps hike (in September), followed by another one in November and December."
Futures contracts tied to the U.S. Federal Reserve's policy rate 0#FF: suggested on Monday that benchmark interest rates will peak in January 2023 compared to February last week.
Meanwhile, advance second-quarter GDP data on Thursday is likely to be negative.
At 8:35 a.m. ET, Dow e-minis 1YMcv1 were up 148 points, or 0.46%, S&P 500 e-minis EScv1 were up 15.75 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were up 36.25 points, or 0.29%.
Shares of Newmont Corp NEM.N fell 3.3% after the miner raised its annual cost forecast and missed its second-quarter profit, hurt by lower gold prices and inflationary pressures.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. By Shreyashi Sanyal July 25 (Reuters) - U.S. stock indexes were set to open higher on Monday as investors braced for a Federal Reserve policy meeting during the week and results from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation on demand. Focus will also be on the press conference by Chair Jerome Powell for clues on policymakers' thinking on future rate hikes amid concerns over an aggressive tightening tipping the economy into a recession.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. By Shreyashi Sanyal July 25 (Reuters) - U.S. stock indexes were set to open higher on Monday as investors braced for a Federal Reserve policy meeting during the week and results from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation on demand. Futures contracts tied to the U.S. Federal Reserve's policy rate 0#FF: suggested on Monday that benchmark interest rates will peak in January 2023 compared to February last week.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. By Shreyashi Sanyal July 25 (Reuters) - U.S. stock indexes were set to open higher on Monday as investors braced for a Federal Reserve policy meeting during the week and results from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation on demand. The Fed is widely expected to deliver another super-sized 75 basis-point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively ending pandemic-era support for the U.S. economy.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Meta Platforms Inc META.O, which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index's .SPX weightage, are scheduled to post earnings this week. By Shreyashi Sanyal July 25 (Reuters) - U.S. stock indexes were set to open higher on Monday as investors braced for a Federal Reserve policy meeting during the week and results from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation on demand. Shares of the high-growth companies rose between 0.5% and 1.2% in premarket trading.
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