Unnamed: 0 stringlengths 3 8 | Date stringlengths 23 23 | Article_title stringlengths 1 250 | Stock_symbol stringlengths 1 5 | Url stringlengths 44 135 | Publisher stringclasses 1 value | Author stringclasses 1 value | Article stringlengths 1 343k | Lsa_summary stringlengths 3 53.9k | Luhn_summary stringlengths 1 53.9k | Textrank_summary stringlengths 1 53.9k | Lexrank_summary stringlengths 1 53.9k |
|---|---|---|---|---|---|---|---|---|---|---|---|
20200.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street rallies with earnings in full swing | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-with-earnings-in-full-swing | nan | nan | By Echo Wang
July 19 (Reuters) - The main U.S. stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, offering some respite to investors worried about higher inflation denting the corporate bottomline.
Toy company Hasbro Inc HAS.O beat market estimates for quarterly profit, sending the toymaker's shares up 0.8%.
Shares of Halliburton rose 1.2% after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA
"Earnings have come in better than lowered expectations," Said Paul Kim, CEO of Simplify Asset Management in New York.
"So we're not seeing the bite of tighter monetary policy and inflation impacting revenue as much as feared."
Johnson & Johnson shares lost 1.6%, reversing earlier gains. The health care giant reported profit and sales that exceeded expectations but cut its earnings outlook for the year due to a soaring U.S. currency.
A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion.
IBM's shares fell 6.5%.
The U.S. dollar hovered just above a one-week low on Tuesday, marking its third straight day of declines as markets reduced the odds of a full percentage-point Federal Reserve rate hike this month. USD/
Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase.
Boosting the major indexes, Apple Inc AAPL.O gained 2.5%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year.
Other high-growth stocks such as Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were also trading higher.
In this earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 5.8%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
At 1:56 p.m. ET, the Dow Jones Industrial Average .DJI rose 644.72 points, or 2.07%, to 31,717.33, the S&P 500 .SPX gained 93.71 points, or 2.45%, to 3,924.56 and the Nasdaq Composite .IXIC added 322.62 points, or 2.84%, to 11,682.67.
All of the 11 major S&P 500 sector indexes gained, with at least eight of them adding more than 2% each.
Boeing Co BA.N jumped 4.8% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets.
Netflix Inc's NFLX.O shares rose 4.6% ahead of its results after market close.
Advancing issues outnumbered declining ones on the NYSE by a 5.43-to-1 ratio while on the Nasdaq, a 3.97-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 27 new highs and 39 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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. | Boosting the major indexes, Apple Inc AAPL.O gained 2.5%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Echo Wang July 19 (Reuters) - The main U.S. stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, offering some respite to investors worried about higher inflation denting the corporate bottomline. Shares of Halliburton rose 1.2% after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA "Earnings have come in better than lowered expectations," Said Paul Kim, CEO of Simplify Asset Management in New York. | Boosting the major indexes, Apple Inc AAPL.O gained 2.5%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Echo Wang July 19 (Reuters) - The main U.S. stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, offering some respite to investors worried about higher inflation denting the corporate bottomline. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. | Boosting the major indexes, Apple Inc AAPL.O gained 2.5%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Echo Wang July 19 (Reuters) - The main U.S. stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, offering some respite to investors worried about higher inflation denting the corporate bottomline. Shares of Halliburton rose 1.2% after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA "Earnings have come in better than lowered expectations," Said Paul Kim, CEO of Simplify Asset Management in New York. | Boosting the major indexes, Apple Inc AAPL.O gained 2.5%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Echo Wang July 19 (Reuters) - The main U.S. stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, offering some respite to investors worried about higher inflation denting the corporate bottomline. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. |
20201.0 | 2022-07-19 00:00:00 UTC | U.S. senator seeks passage of Big Tech antitrust bill as time runs short | AAPL | https://www.nasdaq.com/articles/u.s.-senator-seeks-passage-of-big-tech-antitrust-bill-as-time-runs-short | nan | nan | WASHINGTON, July 19 (Reuters) - A U.S. congressional leader on antitrust, Senator Amy Klobuchar, on Tuesday called for Congress to pass a bill to rein in Big Tech, as prospects of it becoming law seemed to be dimming.
Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google. Klobuchar, a lead sponsor along with Republican Chuck Grassley, has said she has the 60 votes required to pass the measure.
"We must pass legislation to put rules of the road in place for dominant tech companies," Klobuchar said in a statement Tuesday. "These platforms use their dominance to unfairly disadvantage their rivals, all at the expense of competition and consumers."
She is expected to give a speech on the Senate floor Tuesday evening on the Big Tech antitrust bill and related matters.
Schumer said Tuesday his emphasis was on a bill to boost chip manufacturing, and on judicial confirmations. Asked about antitrust bills, he said: "I'm working with Senator Klobuchar. I support these bills. ... We have to see that we have 60 votes."
The Senate has three weeks, including this one, before its scheduled August recess. When lawmakers return in September, expectations are that the focus will be on November midterm elections.
There has been discussion of considering Klobuchar's bill along with another bipartisan measure that addresses Apple AAPL.O and Google's control of their app stores.
Several bills to regulate the tech industry have been proposed, and experts thought these two antitrust bills had the best chance of passing this year because of bipartisan outrage over big tech companies. Democrats are worried about antitrust concerns while Republicans have accused tech platforms of stifling conservative voices.
An opponent of the measure said on Tuesday that it was "highly unlikely" to become law this year. Supporters disagree, and have continued to lobby for the anti-Big Tech measures.
(Reporting by Diane Bartz; Additional reporting by Rick Cowan; Editing by David Gregorio)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There has been discussion of considering Klobuchar's bill along with another bipartisan measure that addresses Apple AAPL.O and Google's control of their app stores. WASHINGTON, July 19 (Reuters) - A U.S. congressional leader on antitrust, Senator Amy Klobuchar, on Tuesday called for Congress to pass a bill to rein in Big Tech, as prospects of it becoming law seemed to be dimming. Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google. | There has been discussion of considering Klobuchar's bill along with another bipartisan measure that addresses Apple AAPL.O and Google's control of their app stores. Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google. "We must pass legislation to put rules of the road in place for dominant tech companies," Klobuchar said in a statement Tuesday. | There has been discussion of considering Klobuchar's bill along with another bipartisan measure that addresses Apple AAPL.O and Google's control of their app stores. WASHINGTON, July 19 (Reuters) - A U.S. congressional leader on antitrust, Senator Amy Klobuchar, on Tuesday called for Congress to pass a bill to rein in Big Tech, as prospects of it becoming law seemed to be dimming. Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google. | There has been discussion of considering Klobuchar's bill along with another bipartisan measure that addresses Apple AAPL.O and Google's control of their app stores. WASHINGTON, July 19 (Reuters) - A U.S. congressional leader on antitrust, Senator Amy Klobuchar, on Tuesday called for Congress to pass a bill to rein in Big Tech, as prospects of it becoming law seemed to be dimming. Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google. |
20202.0 | 2022-07-19 00:00:00 UTC | Apple To Slow Down Hiring, Spend Less In 2023 | AAPL | https://www.nasdaq.com/articles/apple-to-slow-down-hiring-spend-less-in-2023 | nan | nan | (RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. The potential move would see the company join a growing group of American companies like Meta Platforms (META) and Tesla Inc (TSLA) in slowing hiring.
According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.
Market analysts said, "Apple's move reflects a broader slowdown in investing in new things, new companies and new products. It signifies that inflation is an issue for these companies."
Fears had risen in recent months that aggressive interest rate hikes by the Federal Reserve could put the economy into a recession. The price pressures have also raised worries that customers could curb spending on discretionary items like smartphones.
Smartphone shipments declined 9% in the second quarter, according to reports. Still, Apple's iPhones remain among the most sold phones in the world, with the company holding a 17 percent market share just behind market leader Samsung, the data showed. Apple typically launches a new version of its iPhone and other wearable products in September ahead of the busy holiday season.
As of its last annual report, the company had about 154,000 full-time equivalent employees.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015. Fears had risen in recent months that aggressive interest rate hikes by the Federal Reserve could put the economy into a recession. | (RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015. Market analysts said, "Apple's move reflects a broader slowdown in investing in new things, new companies and new products. | (RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. The potential move would see the company join a growing group of American companies like Meta Platforms (META) and Tesla Inc (TSLA) in slowing hiring. According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015. | (RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. The potential move would see the company join a growing group of American companies like Meta Platforms (META) and Tesla Inc (TSLA) in slowing hiring. According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015. |
20203.0 | 2022-07-19 00:00:00 UTC | JPMorgan adds former J&J chief Gorsky to board | AAPL | https://www.nasdaq.com/articles/jpmorgan-adds-former-jj-chief-gorsky-to-board | nan | nan | July 19 (Reuters) - JPMorgan Chase & Co JPM.N said on Tuesday Alex Gorsky, former chief executive officer of Johnson & Johnson JNJ.N, has been elected as a director of the bank.
Gorsky had helped establish J&J as a major player in the rare diseases market and led the development of the healthcare giant's first single-shot COVID-19 vaccine.
As CEO, Gorsky also had to steer the company through some high-profile crises, including allegations that its Baby Powder contained cancer-causing asbestos and litigation that alleged it contributed to the opioid epidemic in the United States.
Gorsky, currently an executive chairman at J&J, had handed over the reins in January this year after almost a decade at the role.
His appointment at JPMorgan is effective immediately, the company said. He also sits on the boards of Apple Inc AAPL.O and IBM Corp IBM.N.
(Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath)
((Niket.Nishant@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | He also sits on the boards of Apple Inc AAPL.O and IBM Corp IBM.N. Gorsky had helped establish J&J as a major player in the rare diseases market and led the development of the healthcare giant's first single-shot COVID-19 vaccine. As CEO, Gorsky also had to steer the company through some high-profile crises, including allegations that its Baby Powder contained cancer-causing asbestos and litigation that alleged it contributed to the opioid epidemic in the United States. | He also sits on the boards of Apple Inc AAPL.O and IBM Corp IBM.N. July 19 (Reuters) - JPMorgan Chase & Co JPM.N said on Tuesday Alex Gorsky, former chief executive officer of Johnson & Johnson JNJ.N, has been elected as a director of the bank. Gorsky, currently an executive chairman at J&J, had handed over the reins in January this year after almost a decade at the role. | He also sits on the boards of Apple Inc AAPL.O and IBM Corp IBM.N. July 19 (Reuters) - JPMorgan Chase & Co JPM.N said on Tuesday Alex Gorsky, former chief executive officer of Johnson & Johnson JNJ.N, has been elected as a director of the bank. As CEO, Gorsky also had to steer the company through some high-profile crises, including allegations that its Baby Powder contained cancer-causing asbestos and litigation that alleged it contributed to the opioid epidemic in the United States. | He also sits on the boards of Apple Inc AAPL.O and IBM Corp IBM.N. July 19 (Reuters) - JPMorgan Chase & Co JPM.N said on Tuesday Alex Gorsky, former chief executive officer of Johnson & Johnson JNJ.N, has been elected as a director of the bank. Gorsky had helped establish J&J as a major player in the rare diseases market and led the development of the healthcare giant's first single-shot COVID-19 vaccine. |
20204.0 | 2022-07-19 00:00:00 UTC | After Hours Most Active for Jul 19, 2022 : PDBC, BEKE, NFLX, GRBK, QQQ, CSX, AAPL, VG, SYF, DM, TAL, IBM | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jul-19-2022-%3A-pdbc-beke-nflx-grbk-qqq-csx-aapl-vg-syf-dm-tal | nan | nan | The NASDAQ 100 After Hours Indicator is up 34.32 to 12,283.74. The total After hours volume is currently 98,497,877 shares traded.
The following are the most active stocks for the after hours session:
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ET (PDBC) is -0.02 at $17.33, with 4,435,378 shares traded. This represents a 31.09% increase from its 52 Week Low.
KE Holdings Inc (BEKE) is unchanged at $15.71, with 4,029,722 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Netflix, Inc. (NFLX) is +16.74 at $218.37, with 3,720,256 shares traded. Smarter Analyst Reports: Elastic Continues to Dip Despite Excellent Q2 Results
Green Brick Partners, Inc. (GRBK) is -0.0025 at $23.90, with 3,573,109 shares traded. GRBK's current last sale is 103.9% of the target price of $23.
Invesco QQQ Trust, Series 1 (QQQ) is +1.24 at $299.54, with 3,063,161 shares traded. This represents a 11.24% increase from its 52 Week Low.
CSX Corporation (CSX) is unchanged at $29.72, with 2,711,265 shares traded.CSX is scheduled to provide an earnings report on 7/20/2022, for the fiscal quarter ending Jun2022. The consensus earnings per share forecast is 0.47 per share, which represents a 40 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is +0.41 at $151.41, with 2,492,351 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vonage Holdings Corp. (VG) is unchanged at $20.99, with 2,340,206 shares traded. VG's current last sale is 99.95% of the target price of $21.
Synchrony Financial (SYF) is unchanged at $32.89, with 2,220,680 shares traded. As reported by Zacks, the current mean recommendation for SYF is in the "buy range".
Desktop Metal, Inc. (DM) is +0.01 at $2.52, with 2,009,107 shares traded. As reported by Zacks, the current mean recommendation for DM is in the "buy range".
TAL Education Group (TAL) is -0.04 at $4.74, with 1,924,574 shares traded. TAL's current last sale is 87.78% of the target price of $5.4.
International Business Machines Corporation (IBM) is +0.29 at $131.17, with 1,876,120 shares traded. IBM's current last sale is 87.45% of the target price of $150.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.41 at $151.41, with 2,492,351 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Invesco Optimum Yield Diversified Commodity Strategy No K-1 ET (PDBC) is -0.02 at $17.33, with 4,435,378 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.41 at $151.41, with 2,492,351 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range". | Apple Inc. (AAPL) is +0.41 at $151.41, with 2,492,351 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 98,497,877 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.41 at $151.41, with 2,492,351 shares traded. The NASDAQ 100 After Hours Indicator is up 34.32 to 12,283.74. |
20205.0 | 2022-07-19 00:00:00 UTC | Pre-Markets Try Again for Gains; J&J, Halliburton Beat in Q2 | AAPL | https://www.nasdaq.com/articles/pre-markets-try-again-for-gains-jj-halliburton-beat-in-q2 | nan | nan | Tuesday, July 19, 2022
Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Today, we’re seeing modestly higher levels that have not changed much since economic and Q2 earnings data has dropped: the Dow is +160 points, the Nasdaq +95 and the S&P 500 +25 points.
A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. The May headline was revised up to 1.59 million, which would still have been the lowest print since October of last year. As recently as April of this year, we were still north of 1.8 million new housing starts.
Building Permits — seen as a forward indicator of future starts — performed slightly better than anticipated to 1.69 million from 1.68 million expected, down -0.6% from the previous month’s unrevised 1.70 million. But today’s headline is still the lowest figure since the 1.62 million new permits we saw issued in September of last year. On both starts and permits, it’s clear the U.S. Housing sector is losing steam from its robust period over the previous six months or so.
The biggest weakness in this data is also the place where the sector relies heaviest: single-family homes, which have fallen -8% on both starts and permits, -11% year over year. Multi-family is improving, which is good news for Housing overall; the market is in need of new multi-unit rental properties. But the real gains are made in single-family, which is falling off.
This is good news for bringing down the tautness of U.S. inflation, even if it is a short-term hardship for homeowners looking to put their property on the market. From about the start of the Fed hiking interest rates, we’ve seen the housing market cool noticeably. In fact, one could argue we saw Q1 housing activity pulled from Q2 in anticipation of higher interest rates directly leading to higher mortgage costs.
Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. J&J is one of those companies that never misses on its bottom line — scroll back on its earnings charts for more than a decade for proof. Revenues of $24.02 billion in the quarter topped expectations by +0.45%.
Shares are up +1.1% on this news in today’s pre-market; the company is trading in the green throughout 2022, up +4.6% over the past six months. This, even though the company is trimming the hedges on its guidance through the rest of the year. For more on JNJ’s earnings, click here.
Meanwhile, oil services behemoth Halliburton HAL posted a strong Q2 in its report released this morning: earnings of 49 cents per share on $5.07 billion in quarterly sales outperformed the Zacks consensus by +8.9% and +7.7%, respectively. The company has benefited from high oil prices during the quarter, and the Zacks Rank #2 (Buy) stock has only one miss on its bottom line in the past five years. Shares are up +1.5% in the pre-market, +20% year to date. For more on HAL’s earnings, click here.
Questions or comments about this article and/or its author? Click here>>
Want to Know the #1 Semiconductor Stock for 2022?
Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.
This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.
Today, it's yours free with no obligation.
>>Give me access to my free special report.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Halliburton Company (HAL): 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. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report As recently as April of this year, we were still north of 1.8 million new housing starts. |
20206.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street ends sharply higher on strong corporate earnings | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-sharply-higher-on-strong-corporate-earnings | nan | nan | By Echo Wang
July 19 (Reuters) - Wall Street closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings ahead of expectations, offering some respite to investors worried about higher inflation denting the corporate bottomline.
Shares of HalliburtonHAL.N rose after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.O reported quarterly profit ahead of expectations.
Truist Financial Corp TFC.N also beat market estimates for quarterly profit, sending the bank's shares up.
"Earnings have come in better than lowered expectations," said Paul Kim, CEO of Simplify Asset Management in New York.
"So we're not seeing the bite of tighter monetary policy and inflation impacting revenue as much as feared."
Johnson & Johnson shares declined, reversing earlier gains. The healthcare giant reported profit and sales that exceeded expectations but cut its earnings outlook for the year due to a soaring U.S. currency.
A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion.
The U.S. dollar marked its third straight day of declines as markets reduced the odds of a full percentage-point Federal Reserve rate hike this month. USD/
Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase.
According to preliminary data, the S&P 500 .SPX gained 104.50 points, or 2.73%, to end at 3,935.35 points, while the Nasdaq Composite .IXIC gained 348.86 points, or 3.09%, to 11,708.91. The Dow Jones Industrial Average .DJI rose 742.68 points, or 2.39%, to 31,815.29.
"The macro picture hasn't changed," said Kim. "We still have falling earnings, high inflation pressures and a tightening Fed. So longer term, I don't think this type of rally has staying power."
In this earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 5.8%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 19 (Reuters) - Wall Street closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings ahead of expectations, offering some respite to investors worried about higher inflation denting the corporate bottomline. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. USD/ Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase. | Shares of HalliburtonHAL.N rose after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.O reported quarterly profit ahead of expectations. Truist Financial Corp TFC.N also beat market estimates for quarterly profit, sending the bank's shares up. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. | By Echo Wang July 19 (Reuters) - Wall Street closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings ahead of expectations, offering some respite to investors worried about higher inflation denting the corporate bottomline. Shares of HalliburtonHAL.N rose after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.O reported quarterly profit ahead of expectations. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. | Shares of HalliburtonHAL.N rose after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.O reported quarterly profit ahead of expectations. USD/ Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase. "The macro picture hasn't changed," said Kim. |
20207.0 | 2022-07-19 00:00:00 UTC | Netflix loses nearly 1 million subscribers, forecast misses Street estimates | AAPL | https://www.nasdaq.com/articles/netflix-loses-nearly-1-million-subscribers-forecast-misses-street-estimates | nan | nan | By Lisa Richwine
LOS ANGELES, July 19 (Reuters) - Netflix Inc NFLX.O said on Tuesday it lost 970,000 subscribers from April through June, averting the worst-case scenario projected by the company, but offered a forecast below Wall Street expectations for the current quarter.
It plans to launch an ad-supported tier next year, and it warned that the strong dollar was also hitting revenue booked from subscribers abroad.
Netflix had warned in April that it expected to lose 2 million customers in the current quarter, shocking Wall Street and raising questions about its long-term growth prospects.
While defections for the second quarter were not as steep as expected, Netflix estimated its new customer additions for July through September would amount to 1 million. Wall Street analysts were expecting 1.84 million, according to analysts polled by Refinitiv.
After years of red-hot growth, Netflix's fortunes have reversed as rivals including Walt Disney Co DIS.N, Warner Bros Discovery WBD.N and Apple Inc AAPL.O invest heavily in their own streaming services.
In a letter to shareholders, the company said it had further examined the slowdown, which it had attributed to a variety of factors including password sharing, competition and a sluggish economy.
Netflix remains the dominant streaming service around the world with nearly 221 million global paid subscribers.
In April, the company said it was addressing customer defections in part by planning a crackdown on password-sharing and launching the less-expensive tier with advertising. Last week, Netflix announced Microsoft Corp MSFT.O as its technology and sales partner for the ad-supported offering .
The company also is working to build on the popularity of the series "Stranger Things" and seeking to turn some of its biggest successes into franchises.
For April through June, earnings-per-share came in at $3.20.
Netflix said the strong U.S. dollar hit revenue, which grew 9%. Revenue would have increased by 13% without the foreign exchange impact, the company said.
(Reporting by Lisa Richwine in Los Angeles Editing by Peter Henderson and Matthew Lewis)
((lisa.richwine@thomsonreuters.com; Follow me on Twitter @LARichwine; 1-424-434-7324; Reuters Messaging: lisa.richwine.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. | After years of red-hot growth, Netflix's fortunes have reversed as rivals including Walt Disney Co DIS.N, Warner Bros Discovery WBD.N and Apple Inc AAPL.O invest heavily in their own streaming services. By Lisa Richwine LOS ANGELES, July 19 (Reuters) - Netflix Inc NFLX.O said on Tuesday it lost 970,000 subscribers from April through June, averting the worst-case scenario projected by the company, but offered a forecast below Wall Street expectations for the current quarter. Netflix had warned in April that it expected to lose 2 million customers in the current quarter, shocking Wall Street and raising questions about its long-term growth prospects. | After years of red-hot growth, Netflix's fortunes have reversed as rivals including Walt Disney Co DIS.N, Warner Bros Discovery WBD.N and Apple Inc AAPL.O invest heavily in their own streaming services. By Lisa Richwine LOS ANGELES, July 19 (Reuters) - Netflix Inc NFLX.O said on Tuesday it lost 970,000 subscribers from April through June, averting the worst-case scenario projected by the company, but offered a forecast below Wall Street expectations for the current quarter. It plans to launch an ad-supported tier next year, and it warned that the strong dollar was also hitting revenue booked from subscribers abroad. | After years of red-hot growth, Netflix's fortunes have reversed as rivals including Walt Disney Co DIS.N, Warner Bros Discovery WBD.N and Apple Inc AAPL.O invest heavily in their own streaming services. By Lisa Richwine LOS ANGELES, July 19 (Reuters) - Netflix Inc NFLX.O said on Tuesday it lost 970,000 subscribers from April through June, averting the worst-case scenario projected by the company, but offered a forecast below Wall Street expectations for the current quarter. Netflix had warned in April that it expected to lose 2 million customers in the current quarter, shocking Wall Street and raising questions about its long-term growth prospects. | After years of red-hot growth, Netflix's fortunes have reversed as rivals including Walt Disney Co DIS.N, Warner Bros Discovery WBD.N and Apple Inc AAPL.O invest heavily in their own streaming services. By Lisa Richwine LOS ANGELES, July 19 (Reuters) - Netflix Inc NFLX.O said on Tuesday it lost 970,000 subscribers from April through June, averting the worst-case scenario projected by the company, but offered a forecast below Wall Street expectations for the current quarter. Netflix said the strong U.S. dollar hit revenue, which grew 9%. |
20208.0 | 2022-07-19 00:00:00 UTC | Will Peloton Become Profitable After Its Latest Move? | AAPL | https://www.nasdaq.com/articles/will-peloton-become-profitable-after-its-latest-move | nan | nan | It has been a tough ride for Peloton Interactive (NASDAQ: PTON), whose shares have cratered 95% over the last year and a half. The pandemic was definitely good to the fitness innovator, as stuck-at-home consumers turned to convenient options to work out at home. But a reopening economy caused demand to fall and net losses to soar.
To help keep costs under control and improve the financial situation, management just announced that they will halt all in-house production of the company's exercise equipment and will instead rely solely on third-party manufacturers. This latest move has the potential to better position Peloton to be sustainably profitable sooner rather than later, something I'm sure investors desperately want.
Getting back into shape
In addition to suspending operations at Tonic Fitness Technology, a Taiwanese manufacturer that was acquired in Oct. 2019 for $48 million, and expanding its partnership agreement with Rexon Industrial, Peloton previously announced that it will sell the planned $400 million Ohio factory, called Peloton Output Park. Furthermore, this pivot calls into question what the company will do with its acquisition of Precor, which was purchased to boost manufacturing capabilities.
It's obvious in hindsight that the previous CEO, John Foley, overinvested in the hopes that the pandemic surge in demand would continue well into the future. But with physical gyms getting back to full strength, as well as worries of a potential economic slowdown, Peloton is facing a difficult time right now.
Unsurprisingly, Peloton was last profitable during the depths of the coronavirus pandemic. In 2020's second quarter, the business produced positive net income of $89.1 million with a margin of 14.7%. Over the past four quarters, however, Peloton has posted a cumulative net loss of $1.9 billion. For comparison's sake, the company's entire market capitalization is just $2.8 billion.
It's strikingly clear that the current management team, led by new CEO Barry McCarthy, has a primary objective of getting the financials of the business in order. Consequently, shareholders shouldn't be surprised by a huge change in direction like this one.
Owning your own factories and producing goods in-house benefits a company if it can reach mass scale, at which point the per-unit cost of merchandise is lowered and profitability can skyrocket. But this strategy also comes with drawbacks, mainly if a business isn't seeing as much demand as it had initially expected. If revenue doesn't meet or exceed what management had forecast, then the fixed costs of owning the manufacturing process will simply result in higher losses. We've seen this play out for Peloton.
On the other hand, outsourcing manufacturing is exactly what Peloton needs at this point in time. McCarthy is aiming for financial flexibility with a more variable cost structure. This is critical right now because Peloton has been facing an environment where it has been extremely difficult, if not impossible, to forecast demand with any level of certainty. Outsourcing manufacturing means that the business will only pay for each piece of equipment that gets made, and not directly for owning the actual factory itself.
Apple (NASDAQ: AAPL), for example, outsources the manufacturing of nearly all of its hardware products to other companies. And it has the most successful product of all time in the iPhone. Even with such massive demand, Apple has decided to focus on the design and software components as opposed to assembling the hardware, something Peloton wants to start doing now.
I certainly applaud Barry McCarthy so far. He took over a troubled business that was facing a laundry list of issues, and he has taken major steps to right the ship. While the latest decision to cut all in-house manufacturing in favor of an outsourced model appears to be the correct move, what really matters is if Peloton can drive higher demand for its exercise equipment, which will increase subscribers. Hopefully, this raises the chances that the company can generate positive free cash flow starting in fiscal 2023.
And this is what will ultimately move the stock price over the long term.
10 stocks we like better than Peloton Interactive
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 Peloton Interactive 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
Neil Patel has positions in Apple and Peloton Interactive. The Motley Fool has positions in and recommends Apple and Peloton Interactive. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL), for example, outsources the manufacturing of nearly all of its hardware products to other companies. To help keep costs under control and improve the financial situation, management just announced that they will halt all in-house production of the company's exercise equipment and will instead rely solely on third-party manufacturers. If revenue doesn't meet or exceed what management had forecast, then the fixed costs of owning the manufacturing process will simply result in higher losses. | Apple (NASDAQ: AAPL), for example, outsources the manufacturing of nearly all of its hardware products to other companies. Owning your own factories and producing goods in-house benefits a company if it can reach mass scale, at which point the per-unit cost of merchandise is lowered and profitability can skyrocket. The Motley Fool has positions in and recommends Apple and Peloton Interactive. | Apple (NASDAQ: AAPL), for example, outsources the manufacturing of nearly all of its hardware products to other companies. Getting back into shape In addition to suspending operations at Tonic Fitness Technology, a Taiwanese manufacturer that was acquired in Oct. 2019 for $48 million, and expanding its partnership agreement with Rexon Industrial, Peloton previously announced that it will sell the planned $400 million Ohio factory, called Peloton Output Park. While the latest decision to cut all in-house manufacturing in favor of an outsourced model appears to be the correct move, what really matters is if Peloton can drive higher demand for its exercise equipment, which will increase subscribers. | Apple (NASDAQ: AAPL), for example, outsources the manufacturing of nearly all of its hardware products to other companies. To help keep costs under control and improve the financial situation, management just announced that they will halt all in-house production of the company's exercise equipment and will instead rely solely on third-party manufacturers. The Motley Fool has positions in and recommends Apple and Peloton Interactive. |
20209.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street powers ahead with earnings in full swing | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-powers-ahead-with-earnings-in-full-swing | nan | nan | By Shreyashi Sanyal
July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as the earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as a stronger dollar dents profits.
A soaring U.S. currency led pharma major Johnson & Johnson JNJ.N to trim its annual adjusted profit view and IBM Corp IBM.N to warn of a nearly $3.5 billion hit.
IBM's shares fell 6.6%, while J&J edged 0.9% lower.
"The stronger dollar becomes the issue and that is going to get a pass this earning season, because we'd be more concerned if there was a degradation of demand which we're not seeing," said Art Hogan, chief market strategist at B. Riley.
The U.S. dollar hovered just above a one-week low on Tuesday, marking its third straight day of declines as markets reduced the odds of a full percentage-point Federal Reserve rate hike this month. USD/
Spiraling inflation initially led markets to price in a 100 basis points hike in interest rates in the upcoming Fed meeting later this month, until some policymakers signaled a 75 basis points increase.
"Most people are looking forward to the Fed meeting ... and that could be the last kitchen sink. We can now sort of recover through the rest of the year where people can actually start to play some offense rather than defense," said Sandy Villere, portfolio manager at Villere & Co.
Boosting the major indexes, Apple Inc AAPL.O gained 1.7%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year.
Other high-growth stocks such as Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were also trading higher.
In this earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 5.8%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
At 12:10 p.m. ET the Dow Jones Industrial Average .DJI was up 485.95 points, or 1.56%, at 31,558.56, the S&P 500 .SPX was up 72.15 points, or 1.88%, at 3,903.00, and the Nasdaq Composite .IXIC was up 250.25 points, or 2.20%, at 11,610.30.
All of the 11 major S&P 500 sector indexes gained, with at least seven of them adding more than 2% each.
Boeing Co BA.N jumped 4% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets.
Hasbro Inc HAS.O beat market estimates for quarterly profit, sending the toymaker's shares up 1.7%.
Netflix Inc's NFLX.O shares rose 3.6% ahead of its results after market close.
Meanwhile, the yield on 10-year Treasury notes US10YT=RR traded in a narrow range of 2.95% and 3.01%, buoying bets for riskier assets.
Advancing issues outnumbered decliners for a 5.73-to-1 ratio on the NYSE and a 4.07-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 31 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Boosting the major indexes, Apple Inc AAPL.O gained 1.7%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as the earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as a stronger dollar dents profits. The U.S. dollar hovered just above a one-week low on Tuesday, marking its third straight day of declines as markets reduced the odds of a full percentage-point Federal Reserve rate hike this month. | Boosting the major indexes, Apple Inc AAPL.O gained 1.7%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as the earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as a stronger dollar dents profits. USD/ Spiraling inflation initially led markets to price in a 100 basis points hike in interest rates in the upcoming Fed meeting later this month, until some policymakers signaled a 75 basis points increase. | Boosting the major indexes, Apple Inc AAPL.O gained 1.7%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as the earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as a stronger dollar dents profits. USD/ Spiraling inflation initially led markets to price in a 100 basis points hike in interest rates in the upcoming Fed meeting later this month, until some policymakers signaled a 75 basis points increase. | Boosting the major indexes, Apple Inc AAPL.O gained 1.7%, recovering almost all its declines from the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as the earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as a stronger dollar dents profits. USD/ Spiraling inflation initially led markets to price in a 100 basis points hike in interest rates in the upcoming Fed meeting later this month, until some policymakers signaled a 75 basis points increase. |
20210.0 | 2022-07-19 00:00:00 UTC | What to Watch with the FAANG Stock Earnings Charts | AAPL | https://www.nasdaq.com/articles/what-to-watch-with-the-faang-stock-earnings-charts | nan | nan | Earnings season picks up with over 250 companies expected to report earnings this week.
Included in that group are many of the big regional banks, the first of the FAANG stocks with Netflix, Tesla, and a bunch of other companies that could tell us a lot about the consumer and a possible recession.
Should you care about the FAANG stocks anymore?
Many investors still own them, even if it’s just in the big cap indexes.
They are all down over double digits in 2022.
Are they a deal or a value trap?
FAANG Stock Earnings Charts to Watch
1. Netflix NFLX
Netflix has beaten 3 quarters in a row. The beat, or the miss, has never been Netflix’s “problem.” It’s all about the number of subscribers and churn.
Netflix shares are down 68% year-to-date and now trade with a PEG ratio of just 1.2.
Is Netflix a value stock or do shares need to fall lower still?
2. Meta Platforms META
Meta Platforms has only missed once in the last 8 quarters, which is a great earnings surprise track record. Meta Platforms already warned that earnings would slow this year so it’s not a surprise that the shares have fallen 51% year-to-date.
Meta Platforms is the cheapest of the FAANG stocks on a P/E basis with a forward P/E of 14.5.
Is Meta Platforms over sold?
3. Apple AAPL
Apple has the best earnings surprise track record of the FAANG stocks. It hasn’t missed in 5 years. That’s impressive given the coronavirus pandemic.
Apple shares have performed the best of the FAANG stocks in 2022 as well. They are down just 15% in 2022.
But Apple still isn’t cheap, with a forward P/E of 24.6.
Does Apple still have more room to fall?
4. Amazon AMZN
Amazon is coming off a big earnings miss last quarter as inflationary pressures began to bite.
Shares of Amazon have fallen 32% year-to-date, but they’re not that cheap on a P/E basis because earnings are expected to plunge 84% year-over-year. It trades with a forward P/E of 214.
But is most of the bad news already priced into Amazon?
5. Alphabet GOOGL
Alphabet missed last quarter after beating 7 quarters in a row prior to that.
Shares just recently split 20 for 1, but are down 23% year-to-date.
After the sell-off, shares now trade with a PEG ratio of just 1.1. Sales are also still expected to be up 15.7% in 2022 and another 15% in 2023 after years of double-digit sales growth.
Is Alphabet a deal on this weakness?
[In full disclosure, Tracey owns shares of META, AMZN and GOOGL in her own personal portfolio.]
Want to Know the #1 Semiconductor Stock for 2022?
Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.
This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.
Today, it's yours free with no obligation.
>>Give me access to my free special report.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): 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. | Apple AAPL Apple has the best earnings surprise track record of the FAANG stocks. Apple Inc. (AAPL): Free Stock Analysis Report Included in that group are many of the big regional banks, the first of the FAANG stocks with Netflix, Tesla, and a bunch of other companies that could tell us a lot about the consumer and a possible recession. | Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL Apple has the best earnings surprise track record of the FAANG stocks. Netflix, Inc. (NFLX): Free Stock Analysis Report | Apple AAPL Apple has the best earnings surprise track record of the FAANG stocks. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META Meta Platforms has only missed once in the last 8 quarters, which is a great earnings surprise track record. | Apple AAPL Apple has the best earnings surprise track record of the FAANG stocks. Apple Inc. (AAPL): Free Stock Analysis Report It hasn’t missed in 5 years. |
20211.0 | 2022-07-19 00:00:00 UTC | Is This Bad News for Apple Stock? | AAPL | https://www.nasdaq.com/articles/is-this-bad-news-for-apple-stock | nan | nan | Today's video focuses on two recent events that could have caused Apple's (NASDAQ: AAPL) stock price to drop on Monday. The first is research by Canalys that shows that global smartphone shipments fell 9% in the second quarter of 2022. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of July 18, 2022. The video was published on July 18, 2022.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose 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. | Today's video focuses on two recent events that could have caused Apple's (NASDAQ: AAPL) stock price to drop on Monday. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Today's video focuses on two recent events that could have caused Apple's (NASDAQ: AAPL) stock price to drop on Monday. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Today's video focuses on two recent events that could have caused Apple's (NASDAQ: AAPL) stock price to drop on Monday. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Jose Najarro has no position in any of the stocks mentioned. | Today's video focuses on two recent events that could have caused Apple's (NASDAQ: AAPL) stock price to drop on Monday. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Jose Najarro has no position in any of the stocks mentioned. |
20212.0 | 2022-07-19 00:00:00 UTC | Pinterest Stock Surges After Interest From Activist Investor. Should You Buy Now? | AAPL | https://www.nasdaq.com/articles/pinterest-stock-surges-after-interest-from-activist-investor.-should-you-buy-now | nan | nan | Pinterest (NYSE: PINS) stock soared after it became public that activist investment firm Elliott Management has reportedly taken a 9% stake in the company. Shares were up as much as 20% in after-hours trading when the news broke after the markets closed on July 14.
The market was excited about the potential for the skilled management firm to turn things around for Pinterest, which has struggled since the economic reopening gained momentum. With that backdrop, should investors jump in and buy Pinterest stock right now? Let's consider.
Pinterest has no shortage of suitors
Pinterest is a social media platform that is free to join and use. The company makes money by showing advertisements to users browsing its app. In that regard, user growth is crucial for its prospects. As of March 31, Pinterest boasted 433 million monthly active users, up by 2 million from the previous quarter. Before this quarter, Pinterest was on a streak of three consecutive quarters of user losses. The company is still on a four-quarter trend of user losses from its most lucrative region, North America.
PINS Revenue (Quarterly YoY Growth) data by YCharts.
To make matters worse, Pinterest faces headwinds, including Apple's (NASDAQ: AAPL) privacy policy changes (which complicate its ability to show targeted advertising), Russia's invasion of Ukraine, and the looming risks of a U.S. recession. Those forces are all working together to lower Pinterest's revenue growth, which has decelerated from a peak of 125% in Q2 2021 to 18% in Q1 2022. Management estimates revenue will grow by just 11% in the upcoming quarter.
In June, founder and CEO Ben Silbermann stepped down from his role as CEO. Now, Elliott Management has taken a 9% stake in the social media company and will likely aim to influence operations. Perhaps the experienced investing group has ideas it feels will turn things around amid the headwinds. Or it might believe that the shares were undervalued after falling 77% off their highs. Elliott Management has been in discussion with Pinterest over the past several weeks; however, the details of those talks have not been revealed.
Recall also that Paypal (NASDAQ: PYPL) tried to acquire Pinterest last year, but ultimately, the purchase fell through when PayPal's shareholders balked at the idea. All in all, the recent news of the activist purchase provides no real reason to buy Pinterest stock.
Pinterest stock was already a good value
PINS Price to Free Cash Flow data by YCharts.
That said, Pinterest's stock was already a good value before this recent news broke. The company trades at a low price-to-free cash flow ratio of 20.5, has grown revenue from $756 million to $2.6 billion in the last three years, and has a total addressable market of more than $750 billion. Those reasons, not the Elliott purchase, make Pinterest stock a buy although the activist's interest might be validation of its excellent value.
10 stocks we like better than Pinterest
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Pinterest wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple, PayPal Holdings, and Pinterest. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To make matters worse, Pinterest faces headwinds, including Apple's (NASDAQ: AAPL) privacy policy changes (which complicate its ability to show targeted advertising), Russia's invasion of Ukraine, and the looming risks of a U.S. recession. Pinterest (NYSE: PINS) stock soared after it became public that activist investment firm Elliott Management has reportedly taken a 9% stake in the company. The market was excited about the potential for the skilled management firm to turn things around for Pinterest, which has struggled since the economic reopening gained momentum. | To make matters worse, Pinterest faces headwinds, including Apple's (NASDAQ: AAPL) privacy policy changes (which complicate its ability to show targeted advertising), Russia's invasion of Ukraine, and the looming risks of a U.S. recession. Pinterest (NYSE: PINS) stock soared after it became public that activist investment firm Elliott Management has reportedly taken a 9% stake in the company. Pinterest stock was already a good value PINS Price to Free Cash Flow data by YCharts. | To make matters worse, Pinterest faces headwinds, including Apple's (NASDAQ: AAPL) privacy policy changes (which complicate its ability to show targeted advertising), Russia's invasion of Ukraine, and the looming risks of a U.S. recession. Pinterest (NYSE: PINS) stock soared after it became public that activist investment firm Elliott Management has reportedly taken a 9% stake in the company. All in all, the recent news of the activist purchase provides no real reason to buy Pinterest stock. | To make matters worse, Pinterest faces headwinds, including Apple's (NASDAQ: AAPL) privacy policy changes (which complicate its ability to show targeted advertising), Russia's invasion of Ukraine, and the looming risks of a U.S. recession. Pinterest (NYSE: PINS) stock soared after it became public that activist investment firm Elliott Management has reportedly taken a 9% stake in the company. PINS Revenue (Quarterly YoY Growth) data by YCharts. |
20213.0 | 2022-07-19 00:00:00 UTC | U.S. Housing Starts Declined in June | AAPL | https://www.nasdaq.com/articles/u.s.-housing-starts-declined-in-june | nan | nan | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple (AAPL) in its hiring practices. Today, we’re seeing modestly higher levels that have not changed much since economic and Q2 earnings data has dropped: the Dow is +160 points, the Nasdaq +95 and the S&P 500 +25 points.
A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. The May headline was revised up to 1.59 million, which would still have been the lowest print since October of last year. As recently as April of this year, we were still north of 1.8 million new housing starts.
Building Permits — seen as a forward indicator of future starts — performed slightly better than anticipated to 1.69 million from 1.68 million expected, down -0.6% from the previous month’s unrevised 1.70 million. But today’s headline is still the lowest figure since the 1.62 million new permits we saw issued in September of last year. On both starts and permits, it’s clear the U.S. Housing sector is losing steam from its robust period over the previous six months or so.
The biggest weakness in this data is also the place where the sector relies heaviest: single-family homes, which have fallen -8% on both starts and permits, -11% year over year. Multi-family is improving, which is good news for Housing overall; the market is in need of new multi-unit rental properties. But the real gains are made in single-family, which is falling off.
This is good news for bringing down the tautness of U.S. inflation, even if it is a short-term hardship for homeowners looking to put their property on the market. From about the start of the Fed hiking interest rates, we’ve seen the housing market cool noticeably. In fact, one could argue we saw Q1 housing activity pulled from Q2 in anticipation of higher interest rates directly leading to higher mortgage costs.
Ahead of today’s bell, Johnson & Johnson (JNJ) has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. J&J is one of those companies that never misses on its bottom line — scroll back on its earnings charts for more than a decade for proof. Revenues of $24.02 billion in the quarter topped expectations by +0.45%.
Shares are up +1.1% on this news in today’s pre-market; the company is trading in the green throughout 2022, up +4.6% over the past six months. This, even though the company is trimming the hedges on its guidance through the rest of the year.
Meanwhile, oil services behemoth Halliburton (HAL) posted a strong Q2 in its report released this morning: earnings of 49 cents per share on $5.07 billion in quarterly sales outperformed the Zacks consensus by +8.9% and +7.7%, respectively. The company has benefited from high oil prices during the quarter, and the Zacks Rank #2 (Buy) stock has only one miss on its bottom line in the past five years. Shares are up +1.5% in the pre-market, +20% year to date.
Want to Know the #1 Semiconductor Stock for 2022?
Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.
This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.
Today, it's yours free with no obligation.
>>Give me access to my free special report.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Halliburton Company (HAL): 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. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple (AAPL) in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple (AAPL) in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson (JNJ) has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple (AAPL) in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson (JNJ) has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple (AAPL) in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report As recently as April of this year, we were still north of 1.8 million new housing starts. |
20214.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street rises as earnings kick into high gear | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-rises-as-earnings-kick-into-high-gear | nan | nan | By Shreyashi Sanyal
July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as stronger dollar dents profit.
A soaring U.S. currency led pharma major Johnson & Johnson JNJ.N to trim its annual adjusted profit view and IBM Corp IBM.N to warn of a nearly $3.5 billion hit.
IBM shares were down 7%, while J&J rose 0.3% as it beat quarterly earnings expectations.
"The stronger dollar becomes the issue and that is going to get a pass this earning season because we'd be more concerned if there was a degradation of demand which we're not seeing," said Art Hogan, chief market strategist at B. Riley.
Apple shares AAPL.O attempted a comeback, gaining 0.2% after shedding 2% in the previous session, when a report said the company planned on slowing hiring and spending growth next year.
Other high-growth stocks such as Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were also trading higher.
In the second-quarter earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 6%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
Spiraling inflation had initially led markets to price in a 100 basis points hike in interest rates in the Federal Reserve meeting later this month, until some policymakers signaled a 75 basis points increase.
At 9:45 a.m. ET the Dow Jones Industrial Average .DJI was up 240.23 points, or 0.77%, at 31,312.84, the S&P 500 .SPX was up 39.96 points, or 1.04%, at 3,870.81 and the Nasdaq Composite .IXIC was up 111.99 points, or 0.99%, at 11,472.04.
All of the 11 major S&P 500 sector indexes gained with at least six of them adding more than 1% each.
Boeing Co BA.N added 2.6% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets.
Hasbro Inc HAS.O beat market estimates for quarterly profit, sending shares of the toymaker up 0.7%.
Netflix NFLX.O shares shed 0.9% ahead of its results after market close.
Meanwhile, the yield on 10-year Treasury notes US10YT=RR traded in a narrow range of 2.95% and 3.01%, buoying bets for riskier assets.
Advancing issues outnumbered decliners by a 7.74-to-1 ratio on the NYSE and by a 4.16-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 11 new highs and 12 new lows.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila 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. | Apple shares AAPL.O attempted a comeback, gaining 0.2% after shedding 2% in the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as stronger dollar dents profit. "The stronger dollar becomes the issue and that is going to get a pass this earning season because we'd be more concerned if there was a degradation of demand which we're not seeing," said Art Hogan, chief market strategist at B. Riley. | Apple shares AAPL.O attempted a comeback, gaining 0.2% after shedding 2% in the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as stronger dollar dents profit. Hasbro Inc HAS.O beat market estimates for quarterly profit, sending shares of the toymaker up 0.7%. | Apple shares AAPL.O attempted a comeback, gaining 0.2% after shedding 2% in the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as stronger dollar dents profit. Spiraling inflation had initially led markets to price in a 100 basis points hike in interest rates in the Federal Reserve meeting later this month, until some policymakers signaled a 75 basis points increase. | Apple shares AAPL.O attempted a comeback, gaining 0.2% after shedding 2% in the previous session, when a report said the company planned on slowing hiring and spending growth next year. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes rose on Tuesday as earnings season moves beyond big banks, with investors keeping a close watch on the impact of higher inflation on demand even as stronger dollar dents profit. IBM shares were down 7%, while J&J rose 0.3% as it beat quarterly earnings expectations. |
20215.0 | 2022-07-19 00:00:00 UTC | Canoo Stock Is Up 130% in July — and Has Tons of Runway Left | AAPL | https://www.nasdaq.com/articles/canoo-stock-is-up-130-in-july-and-has-tons-of-runway-left | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Source: T. Schneider / Shutterstock.com
July has been a good month for electric vehicle (EV) stocks. And for a tiny EV maker by the name of Canoo (GOEV), it’s been an especially good month.
Month-to-date, the S&P Kensho Electric Vehicle Index is up about 8%. Meanwhile, Canoo stock is up nearly 130% in July. Those are some big gains. But believe it or not, the party in EV stocks may just be getting started.
The big-picture thesis here is simple.
Electric cars and vehicles are the future of auto transportation. It’s a future that’s travelled at warp speed these past few years. The number of EVs sold per year has grown by 3,000% since 2014. This year, EVs account for about 15% of total auto sales.
However, technological progress does not move in a linear fashion. For every two steps forward, it takes a step back.
Electric vehicles took two giant steps forward from 2018 to 2021, when EV penetration rose ~5X. That was thanks to the launch of more affordable electric cars with longer driving ranges, namely Tesla’s (TSLA) Model 3. Then, electric vehicles took a step back in 2022. And that was thanks to soaring battery metal prices and production hiccups in China (which controls about 60% of the world’s EV battery manufacturing capacity).
But on average, industrial metal prices have declined by about 30% over the past three months. At the same time, China is easing its COVID-19 lockdown policies. And as a result, manufacturing capacity in that country is rapidly expanding. China’s manufacturing PMI has expanded meaningfully in two consecutive months for the first time since late 2020, when, uncoincidentally, EV stocks were soaring.
In other words, the major headwinds that caused the EV Revolution to step back in 2022 are now fading. That means electric car stocks are ready to take two giant steps forward again.
The investment implication? It’s time to buy EV stocks. And it’s especially time to buy Canoo stock.
The Canoo Stock Bull Thesis
Source: Canoo media
One of our favorite stocks at the current moment is Canoo. It’s a U.S.-based EV manufacturer that’s building the most unique electric car in the market today.
Throughout 2021 and most of 2022, Canoo stock was hammered by executive departures, production delays, business model changes, and cash-burn concerns. Though, over the past month, GOEV has soared, rising as much as 150% after a string of positive developments.
First, the company announced a partnership with Walmart (WMT) for the order of thousands of electric delivery vans. Second, Canoo said that the U.S. Army was testing its vehicles for potential use in military operations.
Some are calling these positive developments “head fakes” for an otherwise troubled EV maker. We view them as reasons that Canoo stock could be a huge long-term winner.
To understand why, let’s revisit the multi-year bull thesis on GOEV stock.
In short, Canoo has assembled a world-class engineering team to build a breakthrough multi-purpose-platform (MPP) electric vehicle powertrain technology. And through some cool tricks like drive-by-wire, it eliminates all wasted space from a vehicle.
Therefore, this platform enables the construction of uniquely designed cars, vans, and trucks that maximize interior space. And it’s all on the same size vehicle platform as a competitor’s.
For example, the company’s Lifestyle vehicles can comfortably seat seven on a platform size that’s normally reserved for five-seater vehicles. The platform is actually shorter than a Tesla Model 3. Yet, the car has about double the passenger volume (188 cubic feet, versus 97 cubic feet for the Model 3).
Meanwhile, its pick-up truck and delivery van — both also built atop the same MPP — feature ~30% more cargo space than trucks and vans of the same size.
We view these “space” advantages as meaningful value props to potential customers.
For big families, a Canoo Lifestyle vehicle makes a lot of sense, especially at sub-$50,000 price points.
For logistics companies, a Canoo delivery van seems like the best option. It will reduce total transit time taken by maximizing the volume of cargo carried on each trip.
And for contractors, a Canoo pick-up truck looks very useful, since it maximizes workable cargo space.
To that end, we’ve long seen Canoo as emerging as one of the world’s leading manufacturers of electric vehicles.
The market hasn’t seen things our way. Canoo stock has been crushed over the past year. But it’s suddenly soaring again. Indeed, recent developments underscore that the Canoo stock bulls may have been right about the company all along.
Recent Developments Validate the Tech
As stated earlier, Canoo stock has been jumping recently for two reasons:
A big Walmart partnership and pre-order
News that the U.S. Army is testing Canoo vans.
These strongly validate the bull thesis on Canoo.
Walmart is the world’s largest retailer. By extension, it’s one of the largest delivery companies in the world, too. It’s choosing to buy 4,500 Canoo delivery vans, with the option to purchase up to 10,000. It’s also being given the right to acquire about 20% of Canoo. And not to mention, it made Canoo agree not to sell any vans to Amazon.
Connect those dots. Why would Walmart order up to 10,000 vans, strike an agreement to control about a fifth of the company, and make Canoo agree to not sell any vehicles to its largest competitor? The 10,000-unit order is one thing. And the equity grant and non-compete agreement elevate this deal to a whole new level.
Walmart must really like Canoo, and it must really see the value prop of these vans.
The U.S. Army news is much less meaningful but still important. The U.S. Army is another large entity that’s looking for space-maximizing vehicles for cargo transport. Uncoincidentally, it’s very interested in Canoo vehicles.
To that end, we believe the long-term bull thesis for Canoo stock has been bolstered over the past two weeks.
Canoo could always win in the EV race if it could prove its cars offer space-boosting advantages that space-conscious customers find appealing. Walmart and the U.S. Army are saying they like those advantages. And so is NASA (who also has a deal with Canoo).
Therefore, if Canoo can continue to execute, this stock could absolutely soar over the next few years.
goev
Huge Upside for GOEV Stock
Now, the significant risk with Canoo stock is liquidity.
In short, the company is burning cash like crazy to scale manufacturing of its vehicles. And it doesn’t have that much left on the balance sheet. At current burn rates, Canoo could run out of cash any moment (before it produces enough to become cash-flow positive).
It will have to tap the capital markets for more capital just to live to see another day.
But who would give a struggling EV maker with a massive burn rate and little demand validation a ton of capital to scale the business? The pool of potential financiers was limited…
Until Walmart came into the picture.
Now the question is: Who is going to give an EV maker with a massive pre-order from the world’s largest retailer enough capital to fulfill that pre-order? The pool of potential financiers for that EV maker is much, much bigger.
In other words, the Walmart deal doesn’t just validate Canoo’s MPP tech. It also illuminates a pathway forward for the company to secure enough non-dilutive financing to power forward.
A month ago, Canoo was an EV startup on the verge of bankruptcy. Now it has a clear path to hitting billions of dollars in revenue within the next few years.
The stock is still adjusting to this shift. Indeed, we wouldn’t be surprised to see Canoo stock take out the $10 level over the next six months.
But it won’t be the only EV stock that wins big in the near future…
The Final Word
We love what’s going on with GOEV stock today. And while we still think shares are risky, we believe the long-term upside potential from current levels – and odds of success – are enough to warrant taking a small, speculative position today.
But GOEV stock isn’t our favorite EV stock right now.
Instead, that title belongs to a tiny $3 technology stock. It may be the single most compelling 12-month investment opportunity in the market today.
You see, the world’s largest company — Apple (AAPL) — is about to the enter the EV game. It’s been working on a super-secret “Apple Car” project since 2015. Late last year, the company reportedly increased investments into the project, accelerating its development timeline.
That means Apple will likely launch its own EV within the next two years.
If the success of its iPhone, iPad, Mac, Apple Watch, etc. are anything to go on, it’s very possible the Apple Car will a monster hit. It’s even possible that this car unseats Tesla as the best-selling EV in the market.
If so, the Apple Car could be the biggest product Apple’s ever released… by far.
And per my analysis, the $3 stock I’m talking about is positioned to secure a partnership with Apple to supply a critical piece of technology to make the Apple Car work.
If that sounds like a big deal, it’s because it is. My modeling suggests this tiny stock could soar 40X over the next few years. It may be the most exciting investment opportunity in the market today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Canoo Stock Is Up 130% in July — and Has Tons of Runway Left 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. | You see, the world’s largest company — Apple (AAPL) — is about to the enter the EV game. In short, Canoo has assembled a world-class engineering team to build a breakthrough multi-purpose-platform (MPP) electric vehicle powertrain technology. Why would Walmart order up to 10,000 vans, strike an agreement to control about a fifth of the company, and make Canoo agree to not sell any vehicles to its largest competitor? | You see, the world’s largest company — Apple (AAPL) — is about to the enter the EV game. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: T. Schneider / Shutterstock.com July has been a good month for electric vehicle (EV) stocks. And that was thanks to soaring battery metal prices and production hiccups in China (which controls about 60% of the world’s EV battery manufacturing capacity). | You see, the world’s largest company — Apple (AAPL) — is about to the enter the EV game. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: T. Schneider / Shutterstock.com July has been a good month for electric vehicle (EV) stocks. The Canoo Stock Bull Thesis Source: Canoo media One of our favorite stocks at the current moment is Canoo. | You see, the world’s largest company — Apple (AAPL) — is about to the enter the EV game. China’s manufacturing PMI has expanded meaningfully in two consecutive months for the first time since late 2020, when, uncoincidentally, EV stocks were soaring. It’s a U.S.-based EV manufacturer that’s building the most unique electric car in the market today. |
20216.0 | 2022-07-19 00:00:00 UTC | Google faces $1 bln UK trial over app store pricing | AAPL | https://www.nasdaq.com/articles/google-faces-%241-bln-uk-trial-over-app-store-pricing | nan | nan | By Kirstin Ridley
LONDON, July 19 (Reuters) - Google GOOGL.O faces a London trial over an estimated 920-milion-pound ($1.1 billion) damages claim after a court authorised a lawsuit that alleges the Alphabet-owned tech giant overcharged 19.5 million customers for app store purchases.
The class action, which was certified by the Competition Appeal Tribunal on Monday, alleges Google abused its dominant position by charging up to 30% commission on popular apps on its Play Store, including Roblox, Candy Crush Saga and Tinder since October 2015.
A detailed judgment has yet to be published, a spokesperson for the claimant group said on Tuesday.
Google did not immediately reply to requests for comment.
Regulators, rivals and consumer champions are trying to curb Big Tech, filing lawsuits across the globe against the likes of Google and rival Apple AAPL.O over alleged anti-competitive behaviour. The European Union alone has fined Google more than 8 billion euros ($8.2 billion) in recent years over anti-trust practices.
The latest British case against Google, which is not expected to come to trial before 2024, is brought by Liz Coll, a former digital policy manager at the non-profit Citizens Advice service. She is being advised by law firm Hausfeld.
Coll alleges in the lawsuit that the Play Store commission is unlawful and unjustifiable, breaching European and British competition laws, and that Google is abusing its dominant position at the expense of British Android smartphone and tablet users.
Google generated $11.2 billion in revenue from its mobile app store in 2019, a court filing unsealed last year showed.
($1 = 0.8336 pounds)
($1 = 0.9760 euros)
(Reporting by Kirstin Ridley; Editing by Emelia Sithole-Matarise)
((kirstin.ridley@thomsonreuters.com; +44 (0) 207 513 5666;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Regulators, rivals and consumer champions are trying to curb Big Tech, filing lawsuits across the globe against the likes of Google and rival Apple AAPL.O over alleged anti-competitive behaviour. The class action, which was certified by the Competition Appeal Tribunal on Monday, alleges Google abused its dominant position by charging up to 30% commission on popular apps on its Play Store, including Roblox, Candy Crush Saga and Tinder since October 2015. The latest British case against Google, which is not expected to come to trial before 2024, is brought by Liz Coll, a former digital policy manager at the non-profit Citizens Advice service. | Regulators, rivals and consumer champions are trying to curb Big Tech, filing lawsuits across the globe against the likes of Google and rival Apple AAPL.O over alleged anti-competitive behaviour. By Kirstin Ridley LONDON, July 19 (Reuters) - Google GOOGL.O faces a London trial over an estimated 920-milion-pound ($1.1 billion) damages claim after a court authorised a lawsuit that alleges the Alphabet-owned tech giant overcharged 19.5 million customers for app store purchases. The class action, which was certified by the Competition Appeal Tribunal on Monday, alleges Google abused its dominant position by charging up to 30% commission on popular apps on its Play Store, including Roblox, Candy Crush Saga and Tinder since October 2015. | Regulators, rivals and consumer champions are trying to curb Big Tech, filing lawsuits across the globe against the likes of Google and rival Apple AAPL.O over alleged anti-competitive behaviour. By Kirstin Ridley LONDON, July 19 (Reuters) - Google GOOGL.O faces a London trial over an estimated 920-milion-pound ($1.1 billion) damages claim after a court authorised a lawsuit that alleges the Alphabet-owned tech giant overcharged 19.5 million customers for app store purchases. The class action, which was certified by the Competition Appeal Tribunal on Monday, alleges Google abused its dominant position by charging up to 30% commission on popular apps on its Play Store, including Roblox, Candy Crush Saga and Tinder since October 2015. | Regulators, rivals and consumer champions are trying to curb Big Tech, filing lawsuits across the globe against the likes of Google and rival Apple AAPL.O over alleged anti-competitive behaviour. A detailed judgment has yet to be published, a spokesperson for the claimant group said on Tuesday. Coll alleges in the lawsuit that the Play Store commission is unlawful and unjustifiable, breaching European and British competition laws, and that Google is abusing its dominant position at the expense of British Android smartphone and tablet users. |
20217.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street closes sharply higher on strong corporate earnings | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-closes-sharply-higher-on-strong-corporate-earnings | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Boeing rises on deal to sell jets to 777 Partners
Johnson & Johnson and IBM fall on dollar impact warning
Halliburton, Hasbro, Truist rise after profit beat
Indexes Up: Dow 2.43%, S&P 500 2.76%, Nasdaq 3.11%
Biggest one-day percentage gain for Nasdaq since June 24
Updates with closing prices, details
By Echo Wang
July 19 (Reuters) - U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.
The S&P 500 .SPX gained 2.8%, the highest close since June 9. The tech-heavy Nasdaq Composite .IXIC added 3.1%, marking the biggest one-day percentage gain since June 24.
Shares of HalliburtonHAL.Nrose 2.1% after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.Ogained 0.7% after reporting quarterly profit ahead of expectations.
Truist Financial Corp TFC.N also beat market estimates for quarterly profit, sending the bank's shares up 2.6%.
"Earnings have come in better than lowered expectations," said Paul Kim, CEO of Simplify Asset Management in New York.
"So we're not seeing the bite of tighter monetary policy and inflation impacting revenue as much as feared."
Johnson & Johnson shares lost 1.5%, reversing earlier gains. The healthcare giant reported profit and sales that exceeded expectations but cut its earnings outlook for the year due to a soaring U.S. currency.
A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion.
The U.S. dollar marked its third straight day of declines as markets reduced the odds of a full percentage-point Federal Reserve rate hike this month. USD/
Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase.
The Dow Jones Industrial Average .DJI rose 754.44 points, or 2.43%, to 31,827.05, the S&P 500 .SPX gained 105.84 points, or 2.76%, to 3,936.69 and the Nasdaq Composite .IXIC added 353.10 points, or 3.11%, to 11,713.15.
"The macro picture hasn't changed," said Kim. "We still have falling earnings, high inflation pressures and a tightening Fed. So longer term, I don't think this type of rally has staying power."
In this earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 5.8%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
Volume on U.S. exchanges was 10.95 billion shares, compared with the 11.76 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 4.88-to-1 ratio and on the Nasdaq, a 3.40-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 31 new highs and 56 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Boeing rises on deal to sell jets to 777 Partners Johnson & Johnson and IBM fall on dollar impact warning Halliburton, Hasbro, Truist rise after profit beat Indexes Up: Dow 2.43%, S&P 500 2.76%, Nasdaq 3.11% Biggest one-day percentage gain for Nasdaq since June 24 Updates with closing prices, details By Echo Wang July 19 (Reuters) - U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. USD/ Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Boeing rises on deal to sell jets to 777 Partners Johnson & Johnson and IBM fall on dollar impact warning Halliburton, Hasbro, Truist rise after profit beat Indexes Up: Dow 2.43%, S&P 500 2.76%, Nasdaq 3.11% Biggest one-day percentage gain for Nasdaq since June 24 Updates with closing prices, details By Echo Wang July 19 (Reuters) - U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. The tech-heavy Nasdaq Composite .IXIC added 3.1%, marking the biggest one-day percentage gain since June 24. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Boeing rises on deal to sell jets to 777 Partners Johnson & Johnson and IBM fall on dollar impact warning Halliburton, Hasbro, Truist rise after profit beat Indexes Up: Dow 2.43%, S&P 500 2.76%, Nasdaq 3.11% Biggest one-day percentage gain for Nasdaq since June 24 Updates with closing prices, details By Echo Wang July 19 (Reuters) - U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. Shares of HalliburtonHAL.Nrose 2.1% after the oilfield services provider posted a 41% increase in quarterly adjusted profit.L4N2Z02BA Toymaker Hasbro Inc HAS.Ogained 0.7% after reporting quarterly profit ahead of expectations. A strong dollar also weighed on shares of IT hardware and services company IBM Corp IBM.N, which beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Boeing rises on deal to sell jets to 777 Partners Johnson & Johnson and IBM fall on dollar impact warning Halliburton, Hasbro, Truist rise after profit beat Indexes Up: Dow 2.43%, S&P 500 2.76%, Nasdaq 3.11% Biggest one-day percentage gain for Nasdaq since June 24 Updates with closing prices, details By Echo Wang July 19 (Reuters) - U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. The tech-heavy Nasdaq Composite .IXIC added 3.1%, marking the biggest one-day percentage gain since June 24. "The macro picture hasn't changed," said Kim. |
20218.0 | 2022-07-19 00:00:00 UTC | Google to allow app developers to use rival payment systems, to cut fees | AAPL | https://www.nasdaq.com/articles/google-to-allow-app-developers-to-use-rival-payment-systems-to-cut-fees | nan | nan | By Foo Yun Chee
BRUSSELS, July 19 (Reuters) - Alphabet GOOGL.O unit Google said it will from Tuesday cut fees to 12%, from 15%, for non-gaming app developers on its Google Play App Store which switch to rival payment systems, as it moves to comply with new EU tech rules.
The world's most popular internet search engine said the fee cut applies only to European consumers while the freedom to use another payment system will eventually be expanded to gaming apps as well.
The move underscores a change in Google's strategy since last year where it now prefers to bow to regulatory and antitrust pressure with offers of concessions rather than embark on lengthy and distracting fights.
The EU rules known as the Digital Markets Act (DMA), which will come into force next year, require tech giants to allow app developers to use rival payment platforms for app sales or risk fines of as much as 10% of their global turnover.
Apple and Google are the most affected by this requirement.
"As part of our efforts to comply with these new rules, we are announcing a new programme to support billing alternatives for EEA (European Economic Area ) users," Estelle Werth, Google's director for EU government affairs and public policy, said in a blogpost.
"This will mean developers of non-gaming apps can offer their users in the EEA an alternative to Google Play's billing system when they are paying for digital content and services,” she said.
The EEA includes the 27 EU countries, Norway, Iceland and Liechtenstein.
"When a consumer uses an alternative billing system, the service fee the developer pays will be reduced by 3%," Werth said.
"Since 99% of developers currently qualify for a service fee of 15% or less, those developers would pay a service fee of 12% or lower based on transactions through alternative billing for EEA users acquired through the Play platform."
Critics say the fees charged by Apple AAPL.O and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power.
Google has been hit with more than 8 billion euros in EU antitrust fines in the last decade for anti-competitive practices related to its price comparison service, Android mobile operating system and advertising service.
(Reporting by Foo Yun Chee; Editing by Susan Fenton)
((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. | Critics say the fees charged by Apple AAPL.O and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power. The move underscores a change in Google's strategy since last year where it now prefers to bow to regulatory and antitrust pressure with offers of concessions rather than embark on lengthy and distracting fights. "As part of our efforts to comply with these new rules, we are announcing a new programme to support billing alternatives for EEA (European Economic Area ) users," Estelle Werth, Google's director for EU government affairs and public policy, said in a blogpost. | Critics say the fees charged by Apple AAPL.O and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - Alphabet GOOGL.O unit Google said it will from Tuesday cut fees to 12%, from 15%, for non-gaming app developers on its Google Play App Store which switch to rival payment systems, as it moves to comply with new EU tech rules. "This will mean developers of non-gaming apps can offer their users in the EEA an alternative to Google Play's billing system when they are paying for digital content and services,” she said. | Critics say the fees charged by Apple AAPL.O and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - Alphabet GOOGL.O unit Google said it will from Tuesday cut fees to 12%, from 15%, for non-gaming app developers on its Google Play App Store which switch to rival payment systems, as it moves to comply with new EU tech rules. "This will mean developers of non-gaming apps can offer their users in the EEA an alternative to Google Play's billing system when they are paying for digital content and services,” she said. | Critics say the fees charged by Apple AAPL.O and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - Alphabet GOOGL.O unit Google said it will from Tuesday cut fees to 12%, from 15%, for non-gaming app developers on its Google Play App Store which switch to rival payment systems, as it moves to comply with new EU tech rules. "This will mean developers of non-gaming apps can offer their users in the EEA an alternative to Google Play's billing system when they are paying for digital content and services,” she said. |
20219.0 | 2022-07-19 00:00:00 UTC | Former FDIC Chair Sheila Bair Helps Students Get Smarter About Debt | AAPL | https://www.nasdaq.com/articles/former-fdic-chair-sheila-bair-helps-students-get-smarter-about-debt | nan | nan | In this podcast, Motley Fool senior analyst Asit Sharma discusses:
Pepsi's strong quarterly results in the face of inflation and other headwinds.
Gatorade and Doritos helping to fuel better-than-expected profits.
Why he's keeping a close eye on Etsy's upcoming earnings report.
Motley Fool retirement expert Robert Brokamp talks with former FDIC chair Sheila Bair about how students can get smarter about debt and one stressful economic problem catching her attention.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 2/14/21
This video was recorded on July 12, 2022.
Chris Hill: We've got a Dividend King raising guidance, and the former head of the FDIC raising the caution flag. Motley Fool Money starts now. I'm Chris Hill joined by Motley Fool Senior Analyst Asit Sharma. Thanks for being here.
Asit Sharma: Chris, thank you for having me.
Chris Hill: Happy Prime Day.
Asit Sharma: Don't remind me I have to get some work done today. [laughs] I can't be scrolling to see what deals are out there.
Chris Hill: I think there are some flat-screen TVs on deep discount on Amazon, but let's talk about Pepsi. The suddenly interesting Pepsi, second-quarter profits and revenue came in higher-than-expected. For the second quarter in a row, Pepsi raised guidance. I see suddenly interesting because in a year where many stocks are down, Pepsi is holding steady, it is basically flat for the year, but that is well ahead of the S&P 500.
Asit Sharma: Yeah, I mean, flat for the year. You don't want your beverages to be flat. But in a year like this, if your stock is flat, that is spanking the market. PepsiCo here doing just what it's supposed to do. When markets are running hot, we forget about these big consumer goods conglomerates that promised to stay ahead of inflation by a couple of percentage points if they can do it. Usually, inflation is running two percentage points a year. So, if PepsiCo can grow its revenues by 4-5 percent, investors are happy. Here we have organic growth which grew 13 percent in the second quarter. The company is promising that organic growth will be 10 percent for the full year, year over year. That is going to likely outpace inflation. I hope, we've seen the worst of this inflationary spike. This company is really performing according to plan even though it's an extremely difficult environment for any multinational that is running soft drinks, snacks, both the healthy and the indulgent variety across the globe.
Chris Hill: You have got to give the management team credit because you dig into these results, and what you realize is that they are doing a very effective job of, in some cases, taking a little bit of hit on the margin line, a little bit of margin compression. But they are also effectively dealing with inflation by raising the cost of some of their big winners like Gatorade and Doritos. I think they've pulled off this balancing act quite nicely. If you think that can continue, this seems like one of those ballast type of stocks that could pay off in the long run.
Asit Sharma: Yeah, I mean, credit to CEO Ramon Laguarta who came in with this theme of faster, stronger, better which sounds like a piece of Electronica from the mid odds. However, it's been a good mantra to spread through the organization. He's focused on their direct store delivery model, which is in itself a supply chain exercise to improve, did that well in advance of the world becoming so out of whack with geopolitical risks, climate change, COVID, I can't even, I mean, the list is so long. But on the flip side, you have a consumer who really wants his or her snacks as they're used to seeing them in the grocery store, in the convenience store, we're going to the pump getting numbed by the price of gasoline, but still walking into that integrated display of PepsiCo products along with Frito-Lay products. So you've got your Mountain Dew and Doritos in there in front of you. What we're finding out is that consumers are still picking up those snacks and you're absolutely right, Chris, it's a combination of some very efficient bottom-line movement automation. The use of analytics, the use of just extremely efficient routes in delivering to stores. They save on fuel plus the ability to price in a little bit to raise prices enough so we're still willing to shell it out because in all honesty, who is going to give up their healthy or indulgent snacks? That's what makes you get through a period like this. That's your comfort food.
Chris Hill: Well, this is not one of those businesses that we think of when we think of businesses that have pricing power. We think of Apple and their ability to continually charge over a $1,000 for a phone. We've talked on this show earlier in the year about Chipotle and their ability to pass on prices. I never think of Pepsi in that category. But once again, they've proven that they actually, not only do they have pricing power, they're smart about how they use it.
Asit Sharma: Yes, they have worked with us for years under the cover of darkness to decrease the size of packaging. [laughs] So PepsiCo, Coca-Cola, and peers, I would throw Keurig Dr Pepper in there as well, have trained us to go for smaller packaging sizes. Smaller bottles of soft drinks, mini bottles, 7.5 ounces, or maybe those are milliliters. Well, the 7.5 size, I'll have to be honest here. Today I am measurement challenged. [laughs] The message of that story though is they pulled a lot of margin out of that exercise. Now when you bump up the price marginally on a smaller packaging, it's an even stronger exercise in pricing power, invisible to us. The ingeniousness of how these major conglomerates have exercised their pricing power. I'm sure people will study for a long time because it's so much more subtle than just the brute increases we're used to seeing on our Apple products and we shell up for those as well.
Chris Hill: Earning season kicks off later this week, I'm going to ask you the same question I asked Jason Moser yesterday. Is there a company and I know you follow a lot of companies, but is there one or two companies in particular that you're especially curious about this earnings season?
Asit Sharma: Well, this is an embarrassment of riches in that category, Chris, because I'm curious about every last company I follow. It's such a weird time in the market and in the world. But we have to choose because we've got to make a call here. I'm going to say Etsy is one that's at the top of my list. The reason is this is both a bellwether for platform businesses if you're a fan or a student of those. It's also something of a bellwether for the economy. Now you and I love to look at companies that are in the manufacturing industry as these quiet indicators of where the economy is going. Here's something from the other side of the coin. This is a company which really tracks discretionary income. It tracks our ability, our need, our desire to pick up artisan goods in many cases. Etsy's ability to really stay, let's pick up from a metaphor we talked about in this first segment on Pepsi, to stay flat. In that, I'm talking about their gross merchandise sales to keep that volume flat and not have it shrink to keep new sellers coming into the marketplace, new buyers, is going to be a feat to pull off. I'm very curious to see how well they'll be able to at least track along this flat baseline this year. I don't expect Etsy to surprise the market and say, guess what? We know, inflation's high. But people are finding comfort in paying up for a rather higher-end goods. I don't if you expect that to happen, but I believe there is some momentum the marketplace has in its brand power. In the trends we've seen, even last quarter where it was able to hang on to a lot of pandemic gains in a quarter you would have thought it would have slipped significantly. So I'm so curious about this one.
Chris Hill: As an Etsy shareholder, I'm also looking forward to their report in early August. Hopefully, the stock which is down nearly 60 percent year-to-date respond to some good news and hopefully some good guidance as well. Asit Sharma, always great talking to you. Thanks for being here.
Asit Sharma: Thanks so much, Chris.
Chris Hill: We're about to help you get smarter about student debt. ...
Chris Hill: Sheila Bair ran the FDIC during the great recession. On two occasions, Forbes magazine named her as one of the most powerful women in the world. Robert Brokamp caught up with her to talk about how students can get smarter about debt, and one economic problem that's caught her attention.
Robert Brokamp: The problem, of course, is that the cost of college has gone up at a rate that's around twice the rate of inflation. A lot of theories for why that is, one is maybe the easy availability of debt. Given your experience, are there any other reasons that strike you as a cause for a higher prices?
Sheila Bair: Well, there's not a lot of cost discipline. You think if people think it's faculty salaries are truly that there's too many buildings, administrative bloat. But I think that all stems from the lack of price discipline, which in turn stems from the lack of price transparency in competition and accountability for actually having a degree that's worth the money. It's very hard for students to get their arms around that. The department education has improved with much better disclosures about postgraduate income. There has been a greater public awareness about having a college degree isn't magically going to lead to all this extra money. It really depends a lot on where you go to school, especially what kind of degree you get, and the job market. That's really helping guide students to those kinds of decisions to make sure that they're going to be able to afford their debt is really what Student Debt Smarter is about. I do think there are these other factors, but really almost all of them stem from the lack of cost discipline, which in turn stems from the lack of transparency around pricing, which you're actually getting big when you get a college degree.
Robert Brokamp: I'll just say as someone who's married to a college professor, it's definitely not the professors' salaries that are causing.
Sheila Bair: No, it's not. I wish people would stop blaming [laughs] professors. We should be spending more on them unless on all these administrating people.
Robert Brokamp: Yes.
Sheila Bair: Absolutely.
Robert Brokamp: You've mentioned the Student Debt Smarter tool. It's at studentdebtsmarter.org. Something you've helped develop with the Peter G. Peterson Foundation. It's pretty easy to use. Tell us how it works.
Sheila Bair: It's basically put inputs. It's where you think you want to go to school, what you think you want to major in, when you're going to start school, and where you think you're going to live when you graduate. Those four factors really have the lion's share of impact in terms of how much debt you can afford to repay once you graduate. You can put in any combination, it's very easy. There's no data harvesting. Nobody's looking at your information, sharing your information. It's just for you, the student borrower and their families, to put in these different inputs. I think it encourages students to understand, is there financial education component to it. Because it helps students understand that the decisions they make will impact their capacity to repay debt when they graduate. Nobody's really telling them that right now, but these are important decisions that they need to factor into account. It also encourages students and their families to think holistically. So much of college financial aid now is like year-by-year, so really, what's the total amount of debt? It is also if you're going to have to borrow with private loans, Parent PLUS, those that have a higher market rates and subsidized debt, if factors add into it the higher rate. What is the all-in-cost going to be that's going to be affordable to you in terms of what you're going to be able to comfortably repay when you graduate. Again, I don't think anybody these days is encouraging students and their families should think in that way. But this is another really valuable piece of information that students don't have now that I think they will find very valuable.
Robert Brokamp: It's a very dynamic tool. I mean. I used my information. I went to Catholic University here in Washington DC. I was a English major. I was a teacher in Washington after I graduated. You put it in information, it tells your salary, which comes from the school via the Department of Education, because I provide that information of how much a median person who had that major from that school's making, has cost of living, even estimates taxes. The salary was probably lower than what a teacher makes, so I went back in and I put it in educator and I thought, OK. It adjusted, it moved up how much I can borrow from 32,000 to 36,000. But because I was in DC, I was like, well, what if I moved back home to Tampa where the cost of living is lower? Then it said I could borrow a little bit more. I thought just that in itself is a handy way because this is geared toward high school students to understand how all these moving parts come together where you pay this much to get this major and you want to live here, these are all the costs that are associated with that.
Sheila Bair: That's right. You can put in any combination of factors. Some of these other tools that are available now, they ask for all this personal financial information. You have put anything, you've got to have streams of records and spreadsheets to use these tools. It's just what's in your head, what's in the student's head, where do you think you might want to go to college? What do you think you might want to graduate in? Where do you think might want to live? That's all you need. You can put as many, initiate one and see how they compare and how those decisions impact the affordability of your debt. Again, this is a unique tool. Nobody really out there is encouraging students and their families to think this way. I think it's going to be hugely helpful to them.
Robert Brokamp: Nowadays there's a lot of talk about student debt. The amount of student debt has more than tripled since 2005 to where it's now 1.7 trillion. Then there's all this talk about student loan forgiveness. Do you have any opinion about what should be done about that?
Sheila Bair: Yeah. Well, this is a personal view. I am sympathetic to $10,000 of debt cancellation, at least for undergraduates. I think if you look at the analysis of who that benefits, that is the most progressive of the options, you're really helping. A good chunk of those students were in default, a good chunk of those students graduated but debt and no degree. They went to school, went to a bad school, just weren't prepared, the borrower didn't get the degree or they went to a poor quality school that didn't really give them income enhancing prospects. It's a progressive impact. I think it would be irresponsible to do that and not have some reforms of the system too. I mean, you don't want to just get right back into the soup again. You're going to encourage moral hazard by forgiving debt and creating potential expectation that's going to happen again. I must say, Student Debt Smarter, look, I think everybody there's a lot of robust disagreement about the wisdom of student debt cancellation. But I think one thing we all agree with is for new borrowers coming into the system, let's make sure they don't undertake unaffordable debt loans, which is really what Student Debt Smarter is about. Prospectively, I think this is a good piece of trying to solve this problem for those who have already taken on an affordable debt level, I am sympathetic to $10,000 of debt cancellation.
Robert Brokamp: Since this often becomes a political discussion, I think it's interesting to point out that you came to Washington to work on Bob Dole staff and you consider yourself a pretty traditional conservative.
Sheila Bair: I'm very traditional fiscal conservative. With my family finances too. My parents were depression era children and it really instilled fiscal prudence. I think I passed that on to my children too, and we save money. I understand not all parents can do that. But for parents who do have the capability, that is another way to minimize debt loads is when they're born, start saving, put it in FY29 or an education account. That's another good way to reduce the need to borrow.
Robert Brokamp: By education account, I assume you mean the Coverdell, which I don't think gets enough attention these days.
Sheila Bair: No, it doesn't. That's true. Banks will set them up too, it doesn't have to be a [inaudible 00:17:48] there are different options.
Robert Brokamp: Moving on from student debt and harkening back to your time as FDIC chair, you were early to see that there were problems in the housing and mortgage markets. You're now a senior advisor to the systemic risk counsel. Is there anything out there in the broader economy that's causing you any concerns?
Sheila Bair: The great financial crisis, this was The Bank and Credit Suisse of the '80s. Those are all catalyzed by a rising interest rate environment. People usually they quote and interest rates goes up, BancServ, that's a big benefit for them. They can charge more for their loans, but actually, it comes back to banks and a couple of ways. One, banks with large market exposures, you'd like Morgan Stanley, Goldman Sachs. Those big banks, the big money center banks. They have significant market exposures. They have clients to their prime brokerage. They have big market exposures. It's like Warren Buffett says, when the tide starts going out, you find out who's swimming naked and we've seen a few naked swimmers already. I do worry that the Fed, in particular through their stress testing, is not adequate focused on this. Their most recent stress tests assumed the deep recession. They stressed bank balance sheets to that, but they also assume input inflation when magically drop. Interest rates will go back to zero. Paul Volcker had to keep rates, keep money tight for two recession's before we finally got it under control. This idea that we could go into recession somehow, all these other problems are going to get magically fixed, just isn't correct. I do think it's called stagflation. We need to stress bags, these big banks, especially with market exposures through a stagflation environment, where you can have double-digit employment, double-digit interest rates, double-digit inflation. It could all coexist for a time before it starts to correct. I am worried about that. I think edge pharma systemic level, I think that's at the top of my list.
From my individual investor level, I worry about crypto. We've seen a couple of trillion dollars of wealth wiped out already. Some of their speculators, a lot of it being so are young people. The crypto industry really Mark is too young people, I hate it. It's volatile, it's not regular savings, put it in a broad-based index fund and leave it, set it, forget it. Those are the ways to build well, and I write money books for kids too. One of the things I try to do with my money books, there's so much literature out there about, here's how to get rich, here's how to invest in the stock market. Here's that to take it alone. Here's how to get a credit card, all that stuff. I tried to write books about how not to lose your money. You can buy these, get rich quick books, but most people, they just want financial security, they won't [...]. There may be smart enough to listen to Motley Fool if they are in their investing game and good for them, they should be doing the research, I mean, thoughtful about what they invest in. But most people just want to have some financial stability and get on with their life. But any lose money by investing in highly speculative things, investing in too good to be true schemes or just stupid stuff like hearing credit card balances and paying late fees are using overdraft protection. Those are the kinds of books that I try to educate young people starting in early age. But I do feel there's crypto thing. It's just another way to take money away from people who don't have the money to lose. I wish I've written about this. Please regulate this market. SEC, FED, CFTC, I don't care if somebody come in and regulate it because consumers need protections and they're not getting.
Robert Brokamp: I will point out, but I think it was in February of 2021 that you suggest that investors should avoid Bitcoin and you call the topic. Very good for you.
Sheila Bair: Yeah, I was about to Destin short, but it was [...] 20,000 now. I got a lot of flak from that. I don't care if I prevented some people, especially young people from buying it, speculating and I'm very glad. It is, what is the market is providing discipline now, but it's heart breaking stories of people whose been in there.
Robert Brokamp: My dear listeners, our guest has been Sheila Bair, children's book author, former FDIC chair and contributor to the development of the student debt smarter calculator available at student debt smarter.org. Sheila, thanks so much for joining us.
Sheila Bair: Thanks for bringing me, Robert. I really enjoyed it.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill, thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Asit Sharma has positions in Coca-Cola, Etsy, and Keurig Dr Pepper. Chris Hill has positions in Amazon, Apple, Chipotle Mexican Grill, Etsy, and PepsiCo Inc. Robert Brokamp, CFP(R) has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Bitcoin, Chipotle Mexican Grill, Etsy, and Goldman Sachs. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Motley Fool retirement expert Robert Brokamp talks with former FDIC chair Sheila Bair about how students can get smarter about debt and one stressful economic problem catching her attention. Asit Sharma: Yeah, I mean, credit to CEO Ramon Laguarta who came in with this theme of faster, stronger, better which sounds like a piece of Electronica from the mid odds. He's focused on their direct store delivery model, which is in itself a supply chain exercise to improve, did that well in advance of the world becoming so out of whack with geopolitical risks, climate change, COVID, I can't even, I mean, the list is so long. | In this podcast, Motley Fool senior analyst Asit Sharma discusses: Pepsi's strong quarterly results in the face of inflation and other headwinds. Motley Fool retirement expert Robert Brokamp talks with former FDIC chair Sheila Bair about how students can get smarter about debt and one stressful economic problem catching her attention. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. | Motley Fool retirement expert Robert Brokamp talks with former FDIC chair Sheila Bair about how students can get smarter about debt and one stressful economic problem catching her attention. Robert Brokamp: My dear listeners, our guest has been Sheila Bair, children's book author, former FDIC chair and contributor to the development of the student debt smarter calculator available at student debt smarter.org. Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. | Chris Hill: We're about to help you get smarter about student debt. That's really helping guide students to those kinds of decisions to make sure that they're going to be able to afford their debt is really what Student Debt Smarter is about. Sheila Bair: No, it doesn't. |
20220.0 | 2022-07-19 00:00:00 UTC | 10 Best Dividend Stocks of All Time | AAPL | https://www.nasdaq.com/articles/10-best-dividend-stocks-of-all-time | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividends were how people traditionally got their money out on investments. The obsession with capital gains is relatively recent.
It’s not the only way for management to give you money. Stock buybacks have become even-more popular than dividends in recent years. Buybacks support the price of a stock, they’re not taxed, and they help management as much as investors, as stock is increasingly used for compensation.
Dividend aristocrats, however, are companies that manage to raise their dividend every year for at least a quarter century. They’re companies you can put in your portfolio and then forget.
But the good times can end. When you hear bad news about a dividend stock you own pay attention. The fall, when it comes can be precipitous, and final.
A few years ago, General Electric (NYSE:GE) would have been an obvious member of this list. It had been a member of the Dow Industrials from its founding and had stayed on top of change for generations. But under Jeffrey Immelt it lost the plot. It got out of banking, entertainment and consumer appliances. Instead, it became an energy company, and it was crushed in the post-2014 energy bust. Today’s GE is in the process of a break-up that could lead to a retirement of the name.
7 Best Long-Term Dividend Stocks to Buy Right Now
There are some great dividend stocks that aren’t on this list. The Coca-Cola Co. (NYSE:KO) has paid a rising dividend for decades, but the rise has been gradual. Pepsi-Cola (NYSE:PEP) is a great dividend company, but results have been inconsistent.
You may note also note a paucity of tech stocks on this list., There’s a reason for that. Tech companies need a lot of cash to get through the market’s valleys. They must continue to invest, even when business slows, or they miss the next rise. Companies like Intel (NASDAQ:INTC) and Cisco Systems (NASDAQ:CSCO), with strong dividends, may be seen as coasting, vulnerable to both new trends and the unforgiving pace of change.
When building a dividend portfolio, look to recent performance as well as history. Look for management whose language you can comprehend. Long words and fancy charts are often hiding poor performance. Look for a commitment to the dividend, to pride in it. Mostly, look for market advantages that are scaled and can last.
Then relax. Your money is making money.
Ticker Company Recent Price
XOM Exxon Mobil $84.54
AAPL Apple $150.17
MSFT Microsoft $256.72
HD Home Depot $292.41
IBM IBM $139.92
MO Altria $41.99
JNJ Johnson & Johnson $178.23
CVX Chevron $137.65
WMT Walmart $129.07
PG Procter & Gamble $144.91
Exxon Mobil (XOM): 20th Century Limited
Source: Jonathan Weiss / Shutterstock.com
No company has produced more profit over the last century than Exxon Mobil (NYSE:XOM). No company has ever done more damage to the environment, putting life on Earth at imminent risk in the 21st century.
Exxon Mobil is the largest piece of the old Standard Oil monopoly, which scaled the production and refining of oil in the 19th century under John D. Rockefeller and began paying dividends in 1882. As Standard Oil of New Jersey it became part of the Dow Jones average in 1928, when the list first expanded to its present number of 30. Over 90 years it created $1 trillion in wealth.
The last few years, however, have been a roller coaster. Exxon Mobil was a big part of the 2010s’ oil boom, then part of the decade’s bust. Shares bottomed in late 2020 at $34/share. Even as the stock price fell, the dividend continued to increase. It now stands at 88 cents/share.
Exxon Mobil stock peaked at over $100/share in June, opening July 13 at $84. At that price the dividend yields 4.2%, still respectable but nothing like it was at its 2020 low. I have written that it’s a false dawn. Either we wean the Earth off fossil fuels, or companies like Exxon will destroy it.
Apple (AAPL): Scaled Monopoly
Source: Eric Broder Van Dyke / Shutterstock.com
For many years Exxon Mobil was the largest company in the world by market cap. Today that crown is held by Apple (NASDAQ:AAPL).
The Rockefeller of Apple was the late Steve Jobs (1955-2011), the iPhone his crowning achievement. But his management genius may be eclipsed by successor Tim Cook, who has taken control of the supply chain, invested in cloud data centers, and maintained control of Apple’s software and application ecosystem.
The 7 Best Tech Dividend Stocks to Buy Right Now
It’s that ecosystem that’s the key to Apple’s profits. There are no Apple clones, and apps pay a 30% commission on sales made through Apple’s app store. Profits from the app store have let Apple enter a host of consumer markets, from health with the Apple Watch to media with Apple TV+, to banking and payments with Apple Pay and the Apple Credit card.
Jobs was not a fan of dividends, but Cook has been paying them since 2012. He has also used stock splits and buybacks to keep the stock price reasonable. On a split-adjusted level Apple’s first dividend was worth less than .1 cent/share. Today the dividend is 23 cents/share. The yield for new shareholders is just .64%, but if you have stayed with the stock since Cook’s ascension it’s 4.2%.
What Jobs liked most were capital gains. Cook has increased the value of Apple by nearly 1,000%, and its market cap is now $2.34 trillion. It can’t lift the market by itself, but unlike Exxon it has every chance of leading the next leg up.
Microsoft (MSFT): King of the Cloud
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT) paid its first dividend in 2003, when its success was based on control over the Windows operating system. It survived the government’s antitrust assault and, once it ended, came to dominate the new industry of cloud computing.
As Tim Cook’s performance eclipsed Steve Jobs’ at Apple, so Satya Nadella has outdone Microsoft co-founder Bill Gates. The key to his success is the cloud. This is a network of huge, networked data centers that use parallel processing and open source to maintain cost control. By renting this capacity, and moving its own software to it, Microsoft build its infrastructure for cash flow. It’s a landlord whose tenants pay all the costs. That’s why I call it a cloud czar.
Since being named CEO in 2014, Nadella has increased the dividend by 400%, from 47 cents/share to $1.90. He has also delivered 256% of capital gains, an average of 32% per year, even with the 2022 bear market taking the stock down by more than 40%. If you bought Microsoft 5 years ago, when it was at $82, your dividend is now yielding over 9%. Grab it now and you could get a similar performance.
Home Depot (HD): King of all Retail
Source: Mihai_Andritoiu / Shutterstock.com
Home Depot (NYSE:HD) is younger than either Apple or Microsoft but has performed even better for dividend investors.
Home Depot was founded in 1978 as a large hardware store. Its IPO was in 1981. It paid its first dividend in 1989. That was the equivalent of 13 cents/share, with shares worth about $20.50. The most recent dividend was $1.90/share, or $7.60/year.
7 Cheap Semiconductor Stocks to Buy Now
Today Home Depot has over 2,300 stores, and a scaled online sales operation. It has eclipsed Coca-Cola as Atlanta’s premier dividend stock. Just as Coke had Pepsico, Home Depot has Lowes (NYSE:LOW), the huge Charlotte, North Carolina, chain to share its dominance.
The current yield on Home Depot’s dividend is 2.65%, as the bear market has sent the stock down 27% from its high. Its price to earnings ratio is now below 18, making it an incredible bargain for a long-term value investor.
IBM (IBM): The Negative Example
Source: shutterstock.com/LCV
For most of the 20th century, International Business Machines (NYSE:IBM) dominated the field of office automation. From punch cards and typewriters to mainframes and the IBM PC, no one ever got fired for buying IBM.
It’s still a great dividend stock. The $1.65/share quarterly payout will yield you 4.74% if you buy it today. But for the last decade IBM has been a great example of what not to do as a tech company, and how devotion to the dividend can destroy value.
By prioritizing the payout early in the 2000s, rather than investing heavily in the cloud, IBM lost the biggest opportunity of this century. With a market cap of $124 billion it’s now worth less than one-third Meta Platforms (NASDAQ:META), which was founded in 2004. Microsoft, barely a start-up when it supplied IBM its PC operating system, could now buy it 15 times over.
But there is the dividend. IBM has been paying dividends since 1989. The payout was reduced in the early 1990s, to as little as 13 cents/share, but then began a steady climb. The 2021 spin-off of Kyndryl (NYSE:KD), its services division, brought a temporary spike to dividends, in the form of Kyndryl stock.
The 2019 acquisition of open source pioneer Red Hat is finally delivering a growth story for current CEO Arvind Krishna. But this will never be your father’s IBM. Dividends killed it.
Altria (MO): Merchants of Death
Source: Kristi Blokhin / Shutterstock.com
Altria (NYSE:MO), the tobacco company, is the health industry equivalent of Exxon Mobil.
Studies proving cigarettes cause cancer are 60 years old. The addictive qualities of nicotine, the active ingredient in tobacco, are also well known. But people still smoke. Since 2008, when it first began offering dividends, Altria has become one of the world’s premier dividend stocks, the dividend tripling from 29 cents/share to 90 cents. Since 2008 the stock price has gained 161% as well.
7 Best Dow Stocks to Buy in July
The dividend has continued to grow despite a sales plateau, with 2021 sales just 5.3% ahead of those in 2018. While cigarette taxes have risen, so have Altria’s prices. The average pack now costs $8. You could get a carton for less when I was a kid in the 1960s.
Altria is still built on cigarettes like Marlboro and oral products like Copenhagen. But it also has a wine business, Ste. Michelle, which had $18 million in profit during fiscal year 2021 on sales of $150 million.
The tobacco business repels many ethical investors. But if you can stand the smell, you will make money. At its July 13 price of $42, the 90 cent/share dividend yielded over 9%. Until recently it was seen as safe, but the price has dropped by one-third since early May. If you like income, it’s a bargain.
Johnson & Johnson (JNJ): Drug Standout
Source: Sundry Photography / Shutterstock.com
The only drug company on this list is Johnson & Johnson (NYSE:JNJ). It is a true dividend aristocrat, with a payout that has every year in the last half-century, and now stands at $1.01/share.
In 2021 JNJ brought nearly $21 billion of $97 billion in revenue to the net income line and paid out $11 billion in dividends. The yield on that dividend was 1.53% on July 13.
JNJ, however, is about to shrink. Like other drug companies, it is spinning out its consumer products division. The business had $14.6 billion in sales last year. Separately it spun out its baby powder unit, to limit liability from lawsuits.
Many of the remaining drugs are sold under the name Janssen, a Belgian company acquired in 1961. Among its drugs are Stelara and Tremfaya, which treat psoriasis and arthritis, as well as Concerta, an ADHD drug, and a Covid-19 vaccine.
Previous industry spin-outs saw the patented drug companies do better than the consumer brands. That may be the case here as well. Meanwhile, you have one of 2022’s best investments.
Chevron (CVX): The Pepsi of Big Oil
Source: Trong Nguyen / Shutterstock.com
Chevron (NYSE:CVX), like Exxon Mobil, is descended from the old Standard Oil monopoly. In this case it’s the old Standard Oil of California. Its recent history has been one of consolidation, buying Gulf Oil in the 1980s and Texaco in the year 2000. Like Exxon, it develops oil fields around the world, owns refineries and has a retail operation.
Chevron has been paying steady and rising dividends for decades. Since the start of the century, it has risen eight-fold. The most recent hike, in May, was to $1.42/share per quarter. This gave it a yield on July 13 of 4.12%, on a price of $135/share.
5 Best Stocks to Buy if You Have $100 to Spend
Chevron uses debt to handle the ups-and-downs of the oil business. Debt rises when oil prices are low, then falls when they are high. Its immense 2021, sales growing 65% to over $152 billion, and 10% of that reported as net income, let it cut its debt load by $12 billion.
In recent years it has also been cutting its capital budget. This continued to fall in 2021, from $8.9 billion to $7.6 billion. It is this slow-motion liquidation that helped create the current oil spike. Spending on exploration and refining both fell despite rising prices. That may be good for the planet, and good for investors, but it has been bad for the market since Russia’s invasion of Ukraine.
Walmart (WMT): Legacy of a Cheapskate
Source: BCFC / Shutterstock.com
Walmart (NYSE:WMT) founder Sam Walton was a legendary cheapskate, who lived a modest life. His legacy is a dividend aristocrat, now offering 10 times the payout of 30 years ago, and the world’s largest fortune. Taken together, the fortune now held by “Mr. Sam’s” descendants is worth $247 billion. Elon Musk is worth $225 billion.
For investors, Walmart is an example of how misleading yield can be. The current dividend of 56 cents/share yields just 1.79% if you buy the stock today. But if you bought 10 years ago, when the stock was at $65, your current yield on that investment is 3.34%, and its value has more than doubled, even with the current bear market.
Under Doug McMillon, a Walmart lifer who began as a grocery bagger and CEO since 2014, Walmart has made Amazon (NASDAQ:AMZN) its Moby Dick, seeking to copy or counter its every move. This includes a sale to compete with Prime Day, a membership plan called Walmart Plus, and a third party marketplace, warehousing and fulfilling orders from small merchants.
Walmart’s revenue is growing at less than 5%/year, but McMillon has doubled net income since 2018. This makes its $6 billion in dividend payments and capital budget of $13 billion affordable. Walmart had $24 billion in operating cash flow last year, and almost $12 billion in cash at the end of March.
Procter & Gamble: Keep it Simple
Source: Jonathan Weiss / Shutterstock.com
As Procter & Gamble (NYSE:PG) cut some product lines and sold off others in the late 2010s, I openly wondered if it could maintain its dividend.
I need not have worried. The dividend has continued to increase, from less than 75 cents/share in 2019 to over 91 cents in May. The budget for dividends has increased by $750 million/year. Procter & Gamble is a true dividend aristocrat.
7 Best Long-Term Dividend Stocks to Buy Right Now
This has kept the stock’s losses in 2022 below 12%, while the average Dow stock has lost almost 17%. The falling price makes the yield even better. The dividend was yielding 2.51% on July 13.
P&G makes what it calls “care” products. These include Tide detergent, Crest toothpaste and Old Spice deodorant. These are backed by a $11.5 billion ad budget, the world’s largest, which the company proudly refused to cut even during the pandemic.
I won’t doubt P&G again.
On the date of publication, Dana Blankenhorn held long positions in INTC, AAPL, AMZN, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post 10 Best Dividend Stocks of All Time 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. | Ticker Company Recent Price XOM Exxon Mobil $84.54 AAPL Apple $150.17 MSFT Microsoft $256.72 HD Home Depot $292.41 Apple (AAPL): Scaled Monopoly Source: Eric Broder Van Dyke / Shutterstock.com For many years Exxon Mobil was the largest company in the world by market cap. Today that crown is held by Apple (NASDAQ:AAPL). | Ticker Company Recent Price XOM Exxon Mobil $84.54 AAPL Apple $150.17 MSFT Microsoft $256.72 HD Home Depot $292.41 Apple (AAPL): Scaled Monopoly Source: Eric Broder Van Dyke / Shutterstock.com For many years Exxon Mobil was the largest company in the world by market cap. Today that crown is held by Apple (NASDAQ:AAPL). | Ticker Company Recent Price XOM Exxon Mobil $84.54 AAPL Apple $150.17 MSFT Microsoft $256.72 HD Home Depot $292.41 Apple (AAPL): Scaled Monopoly Source: Eric Broder Van Dyke / Shutterstock.com For many years Exxon Mobil was the largest company in the world by market cap. Today that crown is held by Apple (NASDAQ:AAPL). | Ticker Company Recent Price XOM Exxon Mobil $84.54 AAPL Apple $150.17 MSFT Microsoft $256.72 HD Home Depot $292.41 Apple (AAPL): Scaled Monopoly Source: Eric Broder Van Dyke / Shutterstock.com For many years Exxon Mobil was the largest company in the world by market cap. Today that crown is held by Apple (NASDAQ:AAPL). |
20221.0 | 2022-07-19 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, UnitedHealth Group, Equinor, GSK and Eaton | AAPL | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-unitedhealth-group-equinor-gsk-and-eaton | nan | nan | For Immediate Release
Chicago, IL – July 19, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Inc. UNH, Equinor ASA EQNR, GSK plc GSK and Eaton Corp. plc ETN.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Apple, UnitedHealth, Equinor & Others
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., UnitedHealth Group Inc. and Equinor ASA. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have gained +3.6% over the past year against the Zacks Tech sector's -24.7% decline and the S&P 500 index's -9.9% decline. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
Nevertheless, the availability of new Mac Studio and new iPad Air is expected to drive top-line growth. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment. Services revenue growth is expected to be in strong double digits for the June quarter.
However, Apple did not provide revenue guidance for the third quarter of fiscal 2022. Apple expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line along with unfavorable forex condition is also expected to hurt its revenues. The absence of Russian revenues will also hurt the top line.
(You can read the full research report on Apple here >>>)
UnitedHealth shares have outperformed the Zacks Medical - HMOs industry over the past year (+31.2% vs. +26.6%). The zacks analyst believes that the company's top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.
For this year, the company expects revenues in the range of $317-$320 billion. Its solid health services segment provides diversification benefits. The firm's government business remains well-poised for growth. A sturdy balance sheet enables investments and prudent capital deployment through share buybacks and dividends.
However, softness in commercial business due to COVID-induced volatilities persists. Also, the rising operating costs are hurting UnitedHealth's bottom line. As such, the stock warrants a cautious stance.
(You can read the full research report on UnitedHealth here >>>)
Equinor shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+75.4% vs. +46.2%). The company is one of the premier integrated energy companies, with operations spreading across 30 countries. In 2021, the company completed 21 exploration wells, with 8 commercial discoveries.
Equinor announced significant oil discoveries at the Johan Castberg field in the Barents Sea, which will further increase its profitability in the field. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.
However, the company's significant exposure to debt can affect its financial flexibility. Also, it is not being able to capture the potential profit growth from commodity prices that have reached record highs. As such, the stock warrants a cautious stance.
(You can read the full research report on Equinor here >>>)
Other noteworthy reports we are featuring today include GSK plc (GSK) and Eaton Corp. plc (ETN).
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
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
GlaxoSmithKline plc (GSK): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Equinor ASA (EQNR): 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. | Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Inc. UNH, Equinor ASA EQNR, GSK plc GSK and Eaton Corp. plc ETN. Apple Inc. (AAPL): Free Stock Analysis Report The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem. | Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Inc. UNH, Equinor ASA EQNR, GSK plc GSK and Eaton Corp. plc ETN. Apple Inc. (AAPL): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., UnitedHealth Group Inc. and Equinor ASA. | Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Inc. UNH, Equinor ASA EQNR, GSK plc GSK and Eaton Corp. plc ETN. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, UnitedHealth, Equinor & Others The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Inc. UNH, Equinor ASA EQNR, GSK plc GSK and Eaton Corp. plc ETN. Apple Inc. (AAPL): Free Stock Analysis Report Services revenue growth is expected to be in strong double digits for the June quarter. |
20222.0 | 2022-07-19 00:00:00 UTC | Pre-Market Most Active for Jul 19, 2022 : STIM, TQQQ, SQQQ, QQQ, AAPL, GOEV, NIO, IBM, NVTA, AMC, WFG, CCL | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-jul-19-2022-%3A-stim-tqqq-sqqq-qqq-aapl-goev-nio-ibm-nvta-amc-wfg | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 82.25 to 11,959.75. The total Pre-Market volume is currently 29,981,435 shares traded.
The following are the most active stocks for the pre-market session:
Neuronetics, Inc. (STIM) is +0.71 at $4.35, with 7,019,840 shares traded. STIM's current last sale is 43.5% of the target price of $10.
ProShares UltraPro QQQ (TQQQ) is +0.5 at $26.67, with 3,174,900 shares traded. This represents a 25.09% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -1.09 at $51.80, with 2,013,383 shares traded. This represents a 84.01% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +2.04 at $291.44, with 1,048,028 shares traded. This represents a 8.23% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.22 at $147.29, with 917,789 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Canoo Inc. (GOEV) is +0.02 at $3.98, with 819,583 shares traded. As reported by Zacks, the current mean recommendation for GOEV is in the "strong buy range".
NIO Inc. (NIO) is +0.12 at $20.96, with 562,908 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
International Business Machines Corporation (IBM) is -8.23 at $129.90, with 529,431 shares traded. IBM's current last sale is 86.6% of the target price of $150.
Invitae Corporation (NVTA) is -0.28 at $2.39, with 503,726 shares traded. NVTA's current last sale is 25.84% of the target price of $9.25.
AMC Entertainment Holdings, Inc. (AMC) is +0.31 at $16.85, with 364,781 shares traded. AMC's current last sale is 337% of the target price of $5.
West Fraser Timber Co. Ltd (WFG) is +21.26 at $104.50, with 347,568 shares traded. As reported by Zacks, the current mean recommendation for WFG is in the "buy range".
Carnival Corporation (CCL) is +0.18 at $9.83, with 335,009 shares traded. CCL's current last sale is 70.21% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.22 at $147.29, with 917,789 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -1.09 at $51.80, with 2,013,383 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.22 at $147.29, with 917,789 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range". | Apple Inc. (AAPL) is +0.22 at $147.29, with 917,789 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 29,981,435 shares traded. | Apple Inc. (AAPL) is +0.22 at $147.29, with 917,789 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 82.25 to 11,959.75. |
20223.0 | 2022-07-19 00:00:00 UTC | GLOBAL MARKETS-Bond yields jump, euro rallies on prospect of bigger ECB rate hikes | AAPL | https://www.nasdaq.com/articles/global-markets-bond-yields-jump-euro-rallies-on-prospect-of-bigger-ecb-rate-hikes | nan | nan | By Tom Wilson
LONDON, July 19 (Reuters) - Euro zone bond yields jumped and the euro rallied on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected, while equity markets turned positive after a shaky start to the day.
The euro EUR=EBS jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday.
Euro zone government bond yields also shot higher. Germany's two-year bond yield, sensitive to near-term rate expectations, climbed around 10 bps to its highest in over two weeks at around 0.64%.DE10YT=RR.
In equity markets, the broader Euro STOXX 600 .STOXX turned positive after earlier falling as much as 0.6%. Leading the charge was French power giant EDF EDF.PA, which surged 15% on nationalisation plans.
"Right now it's cautious mode. It's not necessarily plain defence and really being short markets," said Olivier Marciot, senior portfolio manager at Unigestion.
"Really little exposures all over the place, and waiting for some sort of clearer direction to deploy risk."
The MSCI world equity index .MIWD00000PUS, which tracks shares in 50 countries, eked its way into positive territory, and was last up 0.1%.
Wall Street futures gauges EScv1NQcv1 pointed to gains of almost 1%. U.S. equity markets had closed lower on Monday, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year.
The dollar's retreat from last week's two-decade peak, continued, with the greenback hovering just above a one-week low touched on Monday.
The dollar index, which gauges the unit against six counterparts =USD, was down 0.9% at 106.52, on course for its biggest daily loss in a month and well back from the high of 109.29 last week, a level not seen since September 2002.
Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2%.
TAMING INFLATION
How central banks try to tame inflation was central to traders' thinking. The Bank of Japan also meets on Thursday, though little change is expected from the ultra dovish BOJ.
Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve's meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise.
"It's a bit like 'paint by numbers' at the moment, you've got a picture to fill in, but we don't have all the colours yet," said Kerry Craig,global marketstrategist at JPMorgan Asset Management.
"There are a couple of things missing (such as) the direction of the labour market and unemployment rate in the U.S., and whether central banks will step back and say 'that's the peak in inflation and we don't need to be as hawkish', or 'we're going to be really aggressive'."
Commodities were also at the fore.
Russia's Gazprom has told customers in Europe it cannot guarantee gas supplies because of "extraordinary" circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the West over Moscow's invasion of Ukraine.
Oil prices fell, with Brent crude LCOc1 down 1.4% at $104.88 a barrel, while U.S. crude CLc1 dropped 1.5% to $101.12.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Tom Wilson in London and Alun John in Hong Kong; Editing by Bernadette Baum)
((alun.john@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. | U.S. equity markets had closed lower on Monday, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. The euro EUR=EBS jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday. "There are a couple of things missing (such as) the direction of the labour market and unemployment rate in the U.S., and whether central banks will step back and say 'that's the peak in inflation and we don't need to be as hawkish', or 'we're going to be really aggressive'." | U.S. equity markets had closed lower on Monday, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson LONDON, July 19 (Reuters) - Euro zone bond yields jumped and the euro rallied on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected, while equity markets turned positive after a shaky start to the day. The euro EUR=EBS jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday. | U.S. equity markets had closed lower on Monday, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson LONDON, July 19 (Reuters) - Euro zone bond yields jumped and the euro rallied on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected, while equity markets turned positive after a shaky start to the day. Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve's meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise. | U.S. equity markets had closed lower on Monday, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson LONDON, July 19 (Reuters) - Euro zone bond yields jumped and the euro rallied on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected, while equity markets turned positive after a shaky start to the day. The euro EUR=EBS jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday. |
20224.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Futures rise as Apple ekes out gains as earnings gather steam | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-rise-as-apple-ekes-out-gains-as-earnings-gather-steam | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.64%, S&P 0.83%, Nasdaq 0.85%
July 19 (Reuters) - U.S. stock index futures rose on Tuesday as Apple shares edged higher after sharply dropping in the previous session, while investors focused on another round of earnings to gauge the strength of corporate America.
Shares of the iPhone maker AAPL.O rose 0.3% in premarket trading on Tuesday, along with other high-growth stocks including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O.
Apple fell 2% and dragged U.S. stocks lower on Monday after a report that the company will slow hiring and spending growth next year.
Shares of Boeing Co BA.N added 2.1% premarket on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets.
As second-quarter earnings season officially kicked off, analysts now expect aggregate year-on-year S&P 500 second-quarter profit growth of 6%, down from the 6.8% estimate at the beginning of the quarter, according to Refinitiv data.
Johnson & Johnson JNJ.N fell 0.4% after the drugmaker trimmed its full-year adjusted profit forecast on a stronger dollar.
IBM Corp IBM.N, which reported after close on Monday, also warned of about $3.5 billion hit due to a stronger dollar. Its shares fell 5.8%.
Hasbro Inc HAS.O posted a 10% rise in quarterly adjusted earnings, but shares of the toymaker fell 1.2%.
At 6:53 a.m. ET, Dow e-minis 1YMcv1 were up 198 points, or 0.64%, S&P 500 e-minis EScv1 were up 32 points, or 0.83%, and Nasdaq 100 e-minis NQcv1 were up 101 points, or 0.85%.
(Reporting by Shreyashi Sanyal 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. | Shares of the iPhone maker AAPL.O rose 0.3% in premarket trading on Tuesday, along with other high-growth stocks including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Apple fell 2% and dragged U.S. stocks lower on Monday after a report that the company will slow hiring and spending growth next year. | Shares of the iPhone maker AAPL.O rose 0.3% in premarket trading on Tuesday, along with other high-growth stocks including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O. Futures up: Dow 0.64%, S&P 0.83%, Nasdaq 0.85% July 19 (Reuters) - U.S. stock index futures rose on Tuesday as Apple shares edged higher after sharply dropping in the previous session, while investors focused on another round of earnings to gauge the strength of corporate America. As second-quarter earnings season officially kicked off, analysts now expect aggregate year-on-year S&P 500 second-quarter profit growth of 6%, down from the 6.8% estimate at the beginning of the quarter, according to Refinitiv data. | Shares of the iPhone maker AAPL.O rose 0.3% in premarket trading on Tuesday, along with other high-growth stocks including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O. Futures up: Dow 0.64%, S&P 0.83%, Nasdaq 0.85% July 19 (Reuters) - U.S. stock index futures rose on Tuesday as Apple shares edged higher after sharply dropping in the previous session, while investors focused on another round of earnings to gauge the strength of corporate America. Apple fell 2% and dragged U.S. stocks lower on Monday after a report that the company will slow hiring and spending growth next year. | Shares of the iPhone maker AAPL.O rose 0.3% in premarket trading on Tuesday, along with other high-growth stocks including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Johnson & Johnson JNJ.N fell 0.4% after the drugmaker trimmed its full-year adjusted profit forecast on a stronger dollar. |
20225.0 | 2022-07-19 00:00:00 UTC | Singapore's Phillip Securities launches Asia market for U.S. stocks | AAPL | https://www.nasdaq.com/articles/singapores-phillip-securities-launches-asia-market-for-u.s.-stocks | nan | nan | SINGAPORE, July 19 (Reuters) - Singapore-based broker Phillip Securities said its clients could trade in some U.S. stocks and exchange-traded funds during Asian hours from Tuesday, rather than having to wait for the New York session.
The new market-making service extends to nearly 40 popular stocks such as Tesla TSLA.O, Alphabet GOOG.O, and Apple AAPL.N, and funds tracking the S&P 500 SPY.N and Nasdaq QQQ.N, Phillip said, adding that the service was launched in response to demand from customers.
It operates from 9 a.m. to 5 p.m. Singapore time (0100 GMT to 0900 GMT), which is mostly outside the regular and pre- and post-market trading hours for U.S. markets that function between 0800 GMT and 0000 GMT. The minimum transaction size is $20,000 and prices will be quoted via Phillips' trading platform.
(Reporting by Rae Wee; editing by Uttaresh.V)
((Rae.Wee@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The new market-making service extends to nearly 40 popular stocks such as Tesla TSLA.O, Alphabet GOOG.O, and Apple AAPL.N, and funds tracking the S&P 500 SPY.N and Nasdaq QQQ.N, Phillip said, adding that the service was launched in response to demand from customers. SINGAPORE, July 19 (Reuters) - Singapore-based broker Phillip Securities said its clients could trade in some U.S. stocks and exchange-traded funds during Asian hours from Tuesday, rather than having to wait for the New York session. The minimum transaction size is $20,000 and prices will be quoted via Phillips' trading platform. | The new market-making service extends to nearly 40 popular stocks such as Tesla TSLA.O, Alphabet GOOG.O, and Apple AAPL.N, and funds tracking the S&P 500 SPY.N and Nasdaq QQQ.N, Phillip said, adding that the service was launched in response to demand from customers. It operates from 9 a.m. to 5 p.m. Singapore time (0100 GMT to 0900 GMT), which is mostly outside the regular and pre- and post-market trading hours for U.S. markets that function between 0800 GMT and 0000 GMT. The minimum transaction size is $20,000 and prices will be quoted via Phillips' trading platform. | The new market-making service extends to nearly 40 popular stocks such as Tesla TSLA.O, Alphabet GOOG.O, and Apple AAPL.N, and funds tracking the S&P 500 SPY.N and Nasdaq QQQ.N, Phillip said, adding that the service was launched in response to demand from customers. SINGAPORE, July 19 (Reuters) - Singapore-based broker Phillip Securities said its clients could trade in some U.S. stocks and exchange-traded funds during Asian hours from Tuesday, rather than having to wait for the New York session. It operates from 9 a.m. to 5 p.m. Singapore time (0100 GMT to 0900 GMT), which is mostly outside the regular and pre- and post-market trading hours for U.S. markets that function between 0800 GMT and 0000 GMT. | The new market-making service extends to nearly 40 popular stocks such as Tesla TSLA.O, Alphabet GOOG.O, and Apple AAPL.N, and funds tracking the S&P 500 SPY.N and Nasdaq QQQ.N, Phillip said, adding that the service was launched in response to demand from customers. SINGAPORE, July 19 (Reuters) - Singapore-based broker Phillip Securities said its clients could trade in some U.S. stocks and exchange-traded funds during Asian hours from Tuesday, rather than having to wait for the New York session. It operates from 9 a.m. to 5 p.m. Singapore time (0100 GMT to 0900 GMT), which is mostly outside the regular and pre- and post-market trading hours for U.S. markets that function between 0800 GMT and 0000 GMT. |
20226.0 | 2022-07-19 00:00:00 UTC | This Billionaire Investor Is Buying Pinterest Stock. Should You? | AAPL | https://www.nasdaq.com/articles/this-billionaire-investor-is-buying-pinterest-stock.-should-you | nan | nan | Pinterest (NYSE: PINS) investors got a rare piece of good news on Thursday evening when The Wall Street Journal reported that activist investor Elliott Management has accumulated a 9% stake in the social media company.
Shares of Pinterest jumped 16% on the news on Friday, showing investors are hungry for a positive catalyst after the stock fell roughly 75% from its peak last year. Helmed by billionaire Paul Singer, Elliott is known for its aggressive tactics in its tech investments. For example, it pushed for Jack Dorsey's resignation as CEO of Twitter and successfully urged eBay to spin off its Stubhub and Classified businesses.
Pinterest just named a new CEO with co-Founder Ben Silbermann moving to the Executive Chairman. The company is bringing in Bill Ready as CEO, who previously led Alphabet's e-commerce and payments business.
That move shows Pinterest doubling down on a strategy it's already talked about repeatedly on earnings calls: building an e-commerce business to complement its core advertising model.
Elliott has held discussions with Pinterest over the last several weeks as it's built its stake in the company, though it's unclear what the two parties have discussed.
Pinterest, which serves as an image-discovery engine allowing users to post or search images to help with projects like children's activities, wedding planning, or home improvement, is a unique property in social media. With nearly 500 million monthly active users, the business would appear to have significant potential.
However, investors have soured on the company as its user base declined last year as the pandemic boom faded and some of its new users returned to real-world activities. At the same time, the company's once sky-high revenue growth has returned to earth, with the top line growing 18% to $575 million in the first quarter. Second-quarter guidance called for just an 11% revenue increase.
With its stake in Pinterest now worth more than $1 billion, Elliott clearly sees an opportunity in Pinterest. Should you follow the activist investor into the struggling social media stock?
The good news
While the market may have bailed on the image-sharing site, there are a number of reasons to like Pinterest stock right now, especially at the current price.
First, the user decline is over, though year-over-year figures are still falling. In the first quarter, the company recorded 433 million MAUs, which was down 9% from Q1 2021 but a slight improvement from the 431 million MAUs it had in Q4 2021. That's a sign that the hangover from the pandemic boom is fading and the company's user base should return to steady growth.
Unlike a number of tech sector growth stocks, Pinterest is also profitable. It finished 2021 with $814.3 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), or a 32% margin. Even on a GAAP (generally accepted accounting principles) basis, the company brought in $318 million in net income, or $0.46 per share. Profit margins are expected to shrink this year as top-line growth slows and the company invests in areas like native content, Pinner experience, and shopping, but that's no cause for alarm.
As Pinterest and its peers have demonstrated time and time again, digital advertising is a high-margin business at scale.
The risks
The pandemic was something of a white elephant for Pinterest and other tech stocks. Performance boomed during the social distancing period, but now that that surge has disappeared, the market's perception of the business is broken, and it's unclear whether Pinterest can deliver strong organic growth again or if the company was just the beneficiary of a once-in-a-lifetime pandemic.
While being a unique business has its advantages, it also means Pinterest's business model is unproven, and there is some evidence that the company struggles to convert new users into frequent users. Unlike sites like Facebook or Snapchat, users don't come to Pinterest to connect with friends, so the impetus to visit the site regularly is based strictly on need or a specific use case rather than a social connection. Compared to its social media peers, that appears to be a weakness.
Should you buy Pinterest?
On balance, the pros seem to outweigh the cons here. In particular, Pinterest looks oversold as the sell-off is primarily due to temporary conditions. For example, the decline in users has since ended, consumer behavior is shifting back to real-world activities, there is a slowdown in advertising due to Apple's privacy changes, and fears of a recession weigh on business investments.
The stock is down because of those temporary conditions, but the core value proposition of Pinterest is still clear. It attracts more than 400 million users at least once a month, and it delivers an experience they can't get anywhere else. The platform is also especially valuable to advertisers because, unlike other social media sites, users want to see ads. Often, they come to the site with a purchase intent, something that doesn't happen with Facebook or Instagram.
That quality is what gives Pinterest so much potential to an investor like Elliott and why it makes so much sense for the company to invest in e-commerce. Selling directly on the site seems like a no-brainer, and if the company can make it work, the stock should be in a much better place five years from now.
At the current price, the downside to owning Pinterest seems limited. And with a market cap of just $13 billion and the explosive potential of e-commerce, the upside could easily lead to long-term gains of 5x or even 10x.
10 stocks we like better than Pinterest
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Pinterest wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Pinterest. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Pinterest, and Twitter. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short July 2022 $57.50 calls on eBay, 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. | Pinterest, which serves as an image-discovery engine allowing users to post or search images to help with projects like children's activities, wedding planning, or home improvement, is a unique property in social media. Performance boomed during the social distancing period, but now that that surge has disappeared, the market's perception of the business is broken, and it's unclear whether Pinterest can deliver strong organic growth again or if the company was just the beneficiary of a once-in-a-lifetime pandemic. For example, the decline in users has since ended, consumer behavior is shifting back to real-world activities, there is a slowdown in advertising due to Apple's privacy changes, and fears of a recession weigh on business investments. | However, investors have soured on the company as its user base declined last year as the pandemic boom faded and some of its new users returned to real-world activities. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Pinterest, and Twitter. The Motley Fool recommends eBay and recommends the following options: long March 2023 $120 calls on Apple, short July 2022 $57.50 calls on eBay, and short March 2023 $130 calls on Apple. | Pinterest (NYSE: PINS) investors got a rare piece of good news on Thursday evening when The Wall Street Journal reported that activist investor Elliott Management has accumulated a 9% stake in the social media company. Performance boomed during the social distancing period, but now that that surge has disappeared, the market's perception of the business is broken, and it's unclear whether Pinterest can deliver strong organic growth again or if the company was just the beneficiary of a once-in-a-lifetime pandemic. While being a unique business has its advantages, it also means Pinterest's business model is unproven, and there is some evidence that the company struggles to convert new users into frequent users. | Unlike a number of tech sector growth stocks, Pinterest is also profitable. That quality is what gives Pinterest so much potential to an investor like Elliott and why it makes so much sense for the company to invest in e-commerce. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Pinterest, and Twitter. |
20227.0 | 2022-07-19 00:00:00 UTC | Should Invesco QQQ (QQQ) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-invesco-qqq-qqq-be-on-your-investing-radar-2 | nan | nan | Launched on 03/10/1999, the Invesco QQQ (QQQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $160.72 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.64%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 54.90% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 52.21% of total assets under management.
Performance and Risk
QQQ seeks to match the performance of the NASDAQ-100 Index before fees and expenses. The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
The ETF has lost about -27.71% so far this year and is down about -18.55% in the last one year (as of 07/19/2022). In the past 52-week period, it has traded between $271.39 and $403.99.
The ETF has a beta of 1.09 and standard deviation of 27.87% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco QQQ carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQ is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. While iShares Russell 1000 Growth ETF has $59.08 billion in assets, Vanguard Growth ETF has $68.36 billion. IWF has an expense ratio of 0.19% and VUG charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Invesco QQQ (QQQ): 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
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.56% 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 $160.72 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report While iShares Russell 1000 Growth ETF has $59.08 billion in assets, Vanguard Growth ETF has $68.36 billion. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 03/10/1999, the Invesco QQQ (QQQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. |
20228.0 | 2022-07-19 00:00:00 UTC | Russia says it will fine Apple for violating antitrust laws | AAPL | https://www.nasdaq.com/articles/russia-says-it-will-fine-apple-for-violating-antitrust-laws | nan | nan | Adds statement, background
July 19 (Reuters) - Russia's competition authority said on Tuesday it would fine U.S. tech giant Apple APPL.O for violating Russian antitrust laws and abusing its dominant position in the app store market.
The federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an administrative investigation.
Moscow has long objected to foreign tech platforms' influence in the Russian market, but the simmering dispute has escalated since Russia invaded Ukraine in February.
"The company has abused its dominant position in the iOS app distribution market," the FAS said in a statement.
"Apple prohibits iOS app developers from telling clients inside the app about the possibility of paying for purchases outside the App Store or using alternative payment methods."
Apple did not immediately respond to a request for comment.
Moscow has hit Western firms with a string of fines for violating internet laws that critics say are an attempt by the Kremlin to exert more control over the online space.
They include rules to store customer data on Russian servers, delete content upon request by Russia's communications regulator and open local offices in the country.
The decision to move against Apple on antitrust grounds echoes the European Commission's high-profile pursuit of the company for what it has called a "closed ecosystem" that "unfairly shielded" Apple from competition.
After initially hitting firms with fines in the tens or hundreds of thousands, Russia is significantly ramping up its financial penalties. On Monday, Russia fined Google $370 million for what it says were repeated refusals to remove content.
(Reporting by Reuters; Editing by Edmund Blair)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds statement, background July 19 (Reuters) - Russia's competition authority said on Tuesday it would fine U.S. tech giant Apple APPL.O for violating Russian antitrust laws and abusing its dominant position in the app store market. Moscow has long objected to foreign tech platforms' influence in the Russian market, but the simmering dispute has escalated since Russia invaded Ukraine in February. They include rules to store customer data on Russian servers, delete content upon request by Russia's communications regulator and open local offices in the country. | Adds statement, background July 19 (Reuters) - Russia's competition authority said on Tuesday it would fine U.S. tech giant Apple APPL.O for violating Russian antitrust laws and abusing its dominant position in the app store market. "The company has abused its dominant position in the iOS app distribution market," the FAS said in a statement. "Apple prohibits iOS app developers from telling clients inside the app about the possibility of paying for purchases outside the App Store or using alternative payment methods." | Adds statement, background July 19 (Reuters) - Russia's competition authority said on Tuesday it would fine U.S. tech giant Apple APPL.O for violating Russian antitrust laws and abusing its dominant position in the app store market. "Apple prohibits iOS app developers from telling clients inside the app about the possibility of paying for purchases outside the App Store or using alternative payment methods." The decision to move against Apple on antitrust grounds echoes the European Commission's high-profile pursuit of the company for what it has called a "closed ecosystem" that "unfairly shielded" Apple from competition. | Adds statement, background July 19 (Reuters) - Russia's competition authority said on Tuesday it would fine U.S. tech giant Apple APPL.O for violating Russian antitrust laws and abusing its dominant position in the app store market. The federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an administrative investigation. Moscow has hit Western firms with a string of fines for violating internet laws that critics say are an attempt by the Kremlin to exert more control over the online space. |
20229.0 | 2022-07-19 00:00:00 UTC | European shares drop but EDF surge limits losses | AAPL | https://www.nasdaq.com/articles/european-shares-drop-but-edf-surge-limits-losses | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
July 19 (Reuters) - European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses.
Than pan-European STOXX 600 index .STOXX fell 0.5% after rallying strongly in the previous two sessions. MKTS/GLOB
Interest rate-hike worries heightened after sources said European Central Bank policymakers will discuss whether to raise rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation.
Technology stocks .SX8P slumped 1.4% after a Bloomberg report said Apple Inc AAPL.O plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Rising COVID-19 cases in China, the world's second-largest economy and top metals consumer, also hit sentiment. Base metals fell, dragging European miners down 1.0%.
EDF EDF.PA jumped 15% after France's government said it will offer 12 euros apiece to take full control of the power company in a buyout offer that gives it free hand to run the group as it contends with a European energy crisis.
In earnings, drugmaker Novartis NOVN.S gained 0.2% and London-listed money transfer co Wise Plc WISEa.L rose 11.2% after results.
(Reporting by Susan Mathew in Bengaluru; Editing by Sherry Jacob-Phillips)
((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Technology stocks .SX8P slumped 1.4% after a Bloomberg report said Apple Inc AAPL.O plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window July 19 (Reuters) - European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses. MKTS/GLOB Interest rate-hike worries heightened after sources said European Central Bank policymakers will discuss whether to raise rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation. | Technology stocks .SX8P slumped 1.4% after a Bloomberg report said Apple Inc AAPL.O plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window July 19 (Reuters) - European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses. Base metals fell, dragging European miners down 1.0%. | Technology stocks .SX8P slumped 1.4% after a Bloomberg report said Apple Inc AAPL.O plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window July 19 (Reuters) - European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses. EDF EDF.PA jumped 15% after France's government said it will offer 12 euros apiece to take full control of the power company in a buyout offer that gives it free hand to run the group as it contends with a European energy crisis. | Technology stocks .SX8P slumped 1.4% after a Bloomberg report said Apple Inc AAPL.O plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window July 19 (Reuters) - European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses. Than pan-European STOXX 600 index .STOXX fell 0.5% after rallying strongly in the previous two sessions. |
20230.0 | 2022-07-19 00:00:00 UTC | 7 Best High-Growth Stocks for Young Investors | AAPL | https://www.nasdaq.com/articles/7-best-high-growth-stocks-for-young-investors | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best high-growth stocks for young investors is our topic today. Many of the high-growth darlings of the pandemic have remained under steady pressure during the first half of 2022. Signs of an imminent recession and geopolitical turmoil continue to drag down broader indices and growth-focused exchange-traded funds (ETFs).
For instance, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) and the Vanguard Growth Index Fund ETF (NYSEARCA:VUG) have fallen 27% and 28% year-to-date (YTD), respectively. Meanwhile, the S&P 500 index has fallen 18% over the same period.
Yet, investing regularly over many decades is known to be a great wealth creator for retail investors.
Let’s assume that you are now 25, with $1,000 in savings and that you plan to retire at age 65. You decide to invest that $1,000 in a fund now and make an additional $3,000 of contributions annually at the start of each year. You have 40 years to invest. The annual return is 7%, compounded once a year. At the end of 40 years, the total amount saved becomes goes well over $650,000.
And if you were to increase the amount of annual contributions from $3,000 to $4,000, the total amount saved becomes close to $870,000.
What you’re seeing is the power of time that young investors have and compound interest working together. And that’s why getting the best high-growth stocks for young investors can have an outsized impact on your retirement.
Despite the recent setbacks in equities, growth stocks have historically outperformed the rest of the market in the long run. So when the economy recovers, these shares will once again lead the surge higher.
7 Best Long-Term Dividend Stocks to Buy Right Now
With that information, here are seven of the best high-growth stocks for young investors to buy in July.
ABNB Airbnb $97.67
AAPL Apple $147.07
BKNG Booking $1,738.79
COST Costco $516.30
DFS Discover Financial Services $105.26
MASI Masimo $126.31
MNST Monster Beverage $95.02
Airbnb (ABNB)
Source: AlesiaKan / Shutterstock
52-week range: $86.71 – $212.58
Online lodging platform Airbnb (NASDAQ:ABNB) leads off this list of the best high-growth stocks for young investors. It matches guests with potential hosts. As it does not own any of the properties, instead receiving commissions from each booking, it operates an asset-light businesses.
In 2021, Airbnb had over 300 million booked nights.
Airbnb reported first-quarter financials in early May. Revenue was $1.5 billion, representing a 70% YOY increase, as travel recovered from the pandemic. Diluted loss per share was $1.95, compared to a loss of three cents the year before. Free cash flow (FCF) was $1.2 billion.
Recently, the company codified a ban on parties and events in the vast majority of their listings. This permanent ban follows the temporary one that has been in force since August 2020. Hosts and community leaders have welcomes the measures and could help the top line in the quarters ahead.
ABNB stock has tumbled 39% YTD. Shares are trading at 51 times forward earnings and 8.9 times sales. Analysts’ 12-month median forecast stands at $174.
Apple (AAPL)
Source: View Apart / Shutterstock.com
52-week range: $129.04 – $182.94
Apple (NASDAQ:AAPL) is a true giant and one of the Big Four tech companies. It creates some of the best-known brands, such as the iPhone, iPad, iMac, and iOS operating system, as well as numerous apps and software titles. It dominates around half of the U.S. smartphone market.
In late April, Apple released Q2 FY22 results. Revenue was up 9% YOY to $97.3 billion. Diluted earnings per share (EPS) was $1.52, compared to $1.40 the year before. Cash and equivalents totaled $28.1 billion.
The company recently committed to expanding its support for a common password-less sign-in created by the Fast Identity Online (FIDO) Alliance. In conjunction with Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), the expansion will give websites and apps the ability to provide a password-less sign-in option. FIDO authentication will also be possible across multiple devices.
CNBC host Jim Cramer suggests investors own, but not trade, AAPL shares. Many analysts concur. Therefore, Apple is one of the leading companies to belong in a young investor’s portfolio.
The 7 Best Tech Dividend Stocks to Buy Right Now
AAPL stock has lost almost 17% YTD. Forward price-to-earnings (P/E) and price-to-sales (P/S) numbers are 23.7x and 6.5x, respectively. Wall Street’s 12-month median forecast stands at $185.
Booking (BKNG)
Source: Denys Prykhodov / Shutterstock.com
52-week range: $1,669.34 – $2715.66
Travel and leisure tech play Booking (NASDAQ:BKNG) operates such brands as Booking, Priceline, Kayak, and OpenTable. It oversees around 28 million listings globally, and 590 million room nights were booked in 2021.
In early May, Booking announced Q1 earnings. Total revenue was $2.7 billion, a 136% bump YOY. Diluted EPS was $3.90, compared to a diluted loss per share of $5.26 the prior year. FCF was $1.7 billion.
Recently, Booking’s subsidiary OpenTable entered into a strategic partnership with Inline, which provides online restaurant reservations in East Asia. Booking has also made a financial investment in Inline. Wall Street will be keeping an eye on how Booking’s top line will benefit from access to Inline’s portfolio of restaurants.
BKNG stock has fallen 28% YTD. Shares are trading at 18 times forward earnings and 5.6 times sales. Analysts’ 12-month median forecast stands at $2,600.
Costco Wholesale (COST)
Source: Shutterstock
52-week range: $406.51 – $612.27
Warehouse retailer Costco Wholesale (NASDAQ:COST) operates via a membership model. It has over 830 warehouses spread across 12 countries, with plans to open warehouses in New Zealand and Sweden this year.
Analysts highlight that the company’s success is primarily due to low prices, driven by low overhead costs. Management operate a 14% cap on the markup of items it sells. So in the current high inflationary scene, Costco gets increased attention from consumers.
In late May, Costco presented Q3 FY22 metrics. Net sales totaled $51.6 billion, increasing 16.3% YOY. Diluted EPS was $3.04, compared to $2.75 the previous year. Cash and equivalents totaled $11.2 billion.
The company recently purchased the remaining 45% shares in Costco-Taiwan, which has over three million members. There are a total of 14 Costco-Taiwan stores owned by a joint venture between Costco and the President Group.
7 Cheap Semiconductor Stocks to Buy Now
COST stock has dropped 9% YTD but still has appreciated almost 26% over the past 12 months. Forward P/E and P/S numbers are 36.4x and 1.07x, respectively. Wall Street’s 12-month median forecast stands at $546.50.
Discover Financial Services (DFS)
Source: Jonathan Weiss / Shutterstock.com
52-week range: $88.02 – $135.69
Financial services giant Discover Financial Services (NYSE:DFS) operates Discover Bank, the Discover and Pulse networks, and Diners Club International. Its products include credit cards, checking and savings accounts, and loans.
In late April, Discover issued Q1 financials. Total revenue net of interest expense was $2.9 billion, a 4% increase YOY. Diluted EPS was $4.22, compared to $5.04 the prior year.
Recently, the financial group established a strategic partnership with Italy-based Bancomat, gaining access to that country. Bancomat manages Italy’s most widespread and well-known cash withdrawal and payment schemes. As Americans start traveling again internationally, such partnerships will help contribute to top-line growth.
DFS stock has lost almost 8% YTD. The dividend yield is 2.3%. Shares are trading at 7.1 times forward earnings and 2.5 times sales. Analysts’ 12-month median forecast stands at $133.
Masimo (MASI)
Source: Shutterstock
52-week range: $112.07 – $305.21
Medical technology name Masimo (NASDAQ:MASI) focuses on health-monitoring technologies. Its flagship product, the Masimo SET pulse oximetry, is highly regarded globally.
Masimo reported Q1 earnings in early May. Revenue was $304 million, representing 3.2% YOY growth in constant currency. Diluted EPS was 93 cents, increasing from 90 cents the year before. Cash and equivalents totaled $720 million.
Recently, the company announced the limited release of the Masimo W1 health watch for consumers, which measures oxygen saturation, pulse rate, perfusion index, respiration rate, and step count. Wall Street monitors the research and development (R&D) efforts as Masimo as new products will help seal its strong position in these niche area.
7 Best Dow Stocks to Buy in July
MASI stock has tumbled 57% YTD. Forward P/E and P/S numbers are 31.2x and 5.9x, respectively. Wall Street’s 12-month median forecast stands at $145.
Monster Beverage (MNST)
Source: Sheila Fitzgerald / Shutterstock.com
52-week range: $71.78 – $99.89
Energy drinks manufacturer Monster Beverage (NASDAQ:MNST) is my final pick for this list of the best high-growth stocks for young investors. It’s known for Monster Energy, Relentless, Burn, and NOS. Monster is the second best-selling energy drink brand, closely following Red Bull in market share.
Monster released Q1 results in May. Net sales totaled $1.52 billion, up 22.1% YOY. Diluted net income per share was 55 cents, compared to 59 cents the previous year. Cash and equivalents totaled $1.01 billion.
The company recently completed its acquisition of CANarchy Craft Brewery, a craft beer and hard seltzer company. The purchase brings the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch brands to the Monster portfolio. The move into alcoholic beverages has caught investors’ attention.
MNST stock has lost 1% YTD and has gained more than 2% over the past year. Shares are trading at 35.6 times forward earnings and 9 times sales. Analysts’ 12-month median forecast stands at $100.
On the date of publication, Tezcan Gecgil, Ph.D., 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 Best High-Growth Stocks for Young Investors 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. | ABNB Airbnb $97.67 AAPL Apple $147.07 BKNG Booking $1,738.79 COST Costco $516.30 DFS Discover Financial Services $105.26 MASI Masimo $126.31 MNST Monster Beverage $95.02 Airbnb (ABNB) Source: AlesiaKan / Shutterstock 52-week range: $86.71 – $212.58 Online lodging platform Airbnb (NASDAQ:ABNB) leads off this list of the best high-growth stocks for young investors. Apple (AAPL) Source: View Apart / Shutterstock.com 52-week range: $129.04 – $182.94 Apple (NASDAQ:AAPL) is a true giant and one of the Big Four tech companies. CNBC host Jim Cramer suggests investors own, but not trade, AAPL shares. | ABNB Airbnb $97.67 AAPL Apple $147.07 BKNG Booking $1,738.79 COST Costco $516.30 DFS Discover Financial Services $105.26 MASI Masimo $126.31 MNST Monster Beverage $95.02 Airbnb (ABNB) Source: AlesiaKan / Shutterstock 52-week range: $86.71 – $212.58 Online lodging platform Airbnb (NASDAQ:ABNB) leads off this list of the best high-growth stocks for young investors. Apple (AAPL) Source: View Apart / Shutterstock.com 52-week range: $129.04 – $182.94 Apple (NASDAQ:AAPL) is a true giant and one of the Big Four tech companies. CNBC host Jim Cramer suggests investors own, but not trade, AAPL shares. | ABNB Airbnb $97.67 AAPL Apple $147.07 BKNG Booking $1,738.79 COST Costco $516.30 DFS Discover Financial Services $105.26 MASI Masimo $126.31 MNST Monster Beverage $95.02 Airbnb (ABNB) Source: AlesiaKan / Shutterstock 52-week range: $86.71 – $212.58 Online lodging platform Airbnb (NASDAQ:ABNB) leads off this list of the best high-growth stocks for young investors. Apple (AAPL) Source: View Apart / Shutterstock.com 52-week range: $129.04 – $182.94 Apple (NASDAQ:AAPL) is a true giant and one of the Big Four tech companies. CNBC host Jim Cramer suggests investors own, but not trade, AAPL shares. | ABNB Airbnb $97.67 AAPL Apple $147.07 BKNG Booking $1,738.79 COST Costco $516.30 DFS Discover Financial Services $105.26 MASI Masimo $126.31 MNST Monster Beverage $95.02 Airbnb (ABNB) Source: AlesiaKan / Shutterstock 52-week range: $86.71 – $212.58 Online lodging platform Airbnb (NASDAQ:ABNB) leads off this list of the best high-growth stocks for young investors. Apple (AAPL) Source: View Apart / Shutterstock.com 52-week range: $129.04 – $182.94 Apple (NASDAQ:AAPL) is a true giant and one of the Big Four tech companies. CNBC host Jim Cramer suggests investors own, but not trade, AAPL shares. |
20231.0 | 2022-07-19 00:00:00 UTC | 1 Fat Dividend Stock Down Nearly 50% to Buy Hand Over Fist Right Now | AAPL | https://www.nasdaq.com/articles/1-fat-dividend-stock-down-nearly-50-to-buy-hand-over-fist-right-now | nan | nan | The past year has been a terrible one for Skyworks Solutions (NASDAQ: SWKS). Share prices of the chipmaker have crashed close to 50% thanks to the overall gloom in the stock market, as well as weakness in smartphone sales this year.
Known for supplying its chips to major smartphone original equipment manufacturers (OEMs) such as Apple (NASDAQ: AAPL) and Samsung, Skyworks' recent results haven't been confidence-inspiring, either. However, savvy investors looking to buy a tech stock with a nice dividend yield that could deliver healthy upside in the long run should take a closer look at Skyworks, especially considering its enticing valuation.
Let's examine the reasons why this beaten-down stock looks like a solid bet right now.
Skyworks Solutions pays an attractive dividend
Skyworks Solutions sports an attractive dividend yield of 2.25%, which is higher than the technology sector's average yield of 1.37%. It is worth noting that Skyworks has increased its dividend substantially over the last seven years. The company's quarterly dividend payout has grown from $0.11 per share in 2014 to $0.56 per share currently.
Skyworks' last dividend increase was announced in July 2021, when management hiked the quarterly payout by 12%. More importantly, its low payout ratio indicates that there is room for growth. The company has a dividend payout ratio of 19%, which means that its earnings are strong enough to support the current payout.
Moreover, analysts are forecasting double-digit annual earnings growth from Skyworks for the next five years, which would be an improvement over the bottom-line growth it has clocked in the last five years. As such, the company seems poised to continue increasing its dividend. CFO Kris Sennesael indicated the same on the Mayearnings conference callwhen responding to an analyst's query.
In all, it won't be surprising to see Skyworks becoming a top dividend play in the long run as it increases its payout, but this is not the only reason why you should be buying the stock.
The company has a big growth driver
Skyworks Solutions is facing headwinds on account of supply chain disruptions, which was evident from the company's fiscal 2022 second-quarter report that was released in May. Skyworks' CFO pointed out on the earnings call that it hasn't been able to "fulfill the strong end customer demand" thanks to the disruptions.
Despite the headwinds, Skyworks is expected to finish fiscal 2022 with an 8% increase in revenue to $5.5 billion and a 6% jump in earnings to $11.10 per share. But it won't be surprising to see the company grow at a faster pace thanks to Apple, which accounted for 54% of its total revenue in fiscal Q2.
The demand for Apple's iPhones remains robust in the 5G era and that's the reason why Skyworks is witnessing healthy demand from its largest customer. The company's revenue from Apple was up more than 20% year over year in the March quarter.
Skyworks' relationship with Apple can give the former a solid boost in the second half of 2022 and beyond. That's because Apple may be looking to increase its iPhone production this year in a bid to cater to the millions of users that are currently in an upgrade window. Foxconn, which assembles iPhones for Apple, recently raised its full-year outlook and expects to see substantial year-over-year growth in the third quarter.
This doesn't seem surprising, as around 240 million of Apple's installed base of 1 billion iPhones are at least 3.5 years old, according to Wedbush Securities analyst Daniel Ives. As a result, Apple could increase its iPhone builds this year to satisfy the solid end-market demand. But more importantly, Apple's iPhone shipments could keep heading higher in the 5G era thanks to its command of this market.
Apple dominated the 5G smartphone market with a 31% share in 2021, according to Strategy Analytics. It looks well-placed to lead in this space in 2022 as well thanks to the launch of the 5G-enabled iPhone SE, which is expected to sell 30 million units. Apple's solid share of the 5G smartphone market bodes well for the company, as shipments of devices supporting the latest wireless standard could hit 1.18 billion units in 2025, compared to 549 million last year, according to third-party estimates.
Investors should also note that Apple has started using more of Skyworks' content in its smartphones. So Skyworks could benefit from a mix of stronger volumes and pricing in the 5G era from its biggest customer.
Looking beyond Apple
While Skyworks does rely on Apple for a large chunk of its revenue, it is worth noting that the company's non-mobile business is also gaining traction. Its revenue from the broad markets segment -- which includes different verticals such as automotive, the Internet of Things (IoT), aerospace and defense, and Wi-Fi routers, among others -- jumped 36% year over year to $523 million in fiscal Q2. The segment produced 39% of the company's total quarterly revenue.
Skyworks expects this segment to clock 40% year-over-year growth once again in the June quarter. More importantly, the fast-growing markets that Skyworks serves through its non-mobile business may lead to impressive long-term growth. For instance, Skyworks provides various IoT solutions such as home security, automation, and connected homes. Now, the smart home market is expected to post 21% annual growth through 2028, which is just an indication of the massive opportunity at hand in the broad markets business.
And finally, Skyworks' cheap valuation is the icing on the cake. The stock is trading at 11.6 times trailing earnings and 7.6 times forward earnings. These multiples represent a significant discount to the S&P 500's earnings multiple of 21, which tells us that now is a good time to buy this tech stock, as it can deliver a healthy mix of price upside and dividend income.
10 stocks we like better than Skyworks Solutions
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 Skyworks Solutions 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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Skyworks Solutions 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. | Known for supplying its chips to major smartphone original equipment manufacturers (OEMs) such as Apple (NASDAQ: AAPL) and Samsung, Skyworks' recent results haven't been confidence-inspiring, either. However, savvy investors looking to buy a tech stock with a nice dividend yield that could deliver healthy upside in the long run should take a closer look at Skyworks, especially considering its enticing valuation. Apple's solid share of the 5G smartphone market bodes well for the company, as shipments of devices supporting the latest wireless standard could hit 1.18 billion units in 2025, compared to 549 million last year, according to third-party estimates. | Known for supplying its chips to major smartphone original equipment manufacturers (OEMs) such as Apple (NASDAQ: AAPL) and Samsung, Skyworks' recent results haven't been confidence-inspiring, either. However, savvy investors looking to buy a tech stock with a nice dividend yield that could deliver healthy upside in the long run should take a closer look at Skyworks, especially considering its enticing valuation. Skyworks Solutions pays an attractive dividend Skyworks Solutions sports an attractive dividend yield of 2.25%, which is higher than the technology sector's average yield of 1.37%. | Known for supplying its chips to major smartphone original equipment manufacturers (OEMs) such as Apple (NASDAQ: AAPL) and Samsung, Skyworks' recent results haven't been confidence-inspiring, either. Skyworks Solutions pays an attractive dividend Skyworks Solutions sports an attractive dividend yield of 2.25%, which is higher than the technology sector's average yield of 1.37%. Looking beyond Apple While Skyworks does rely on Apple for a large chunk of its revenue, it is worth noting that the company's non-mobile business is also gaining traction. | Known for supplying its chips to major smartphone original equipment manufacturers (OEMs) such as Apple (NASDAQ: AAPL) and Samsung, Skyworks' recent results haven't been confidence-inspiring, either. However, savvy investors looking to buy a tech stock with a nice dividend yield that could deliver healthy upside in the long run should take a closer look at Skyworks, especially considering its enticing valuation. The company's revenue from Apple was up more than 20% year over year in the March quarter. |
20232.0 | 2022-07-19 00:00:00 UTC | Russia says Apple violates antitrust laws | AAPL | https://www.nasdaq.com/articles/russia-says-apple-violates-antitrust-laws | nan | nan | July 19 (Reuters) - Russia's competition authority said on Tuesday that U.S. tech giant Apple APPL.O is in violation of the country's antitrust laws due to its dominant position in the app store market.
In a statement, the federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an investigation.
(Reporting by Reuters)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Russia's competition authority said on Tuesday that U.S. tech giant Apple APPL.O is in violation of the country's antitrust laws due to its dominant position in the app store market. In a statement, the federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an investigation. (Reporting by Reuters) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Russia's competition authority said on Tuesday that U.S. tech giant Apple APPL.O is in violation of the country's antitrust laws due to its dominant position in the app store market. In a statement, the federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an investigation. (Reporting by Reuters) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Russia's competition authority said on Tuesday that U.S. tech giant Apple APPL.O is in violation of the country's antitrust laws due to its dominant position in the app store market. In a statement, the federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an investigation. (Reporting by Reuters) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Russia's competition authority said on Tuesday that U.S. tech giant Apple APPL.O is in violation of the country's antitrust laws due to its dominant position in the app store market. In a statement, the federal anti-monopoly service (FAS) said it would levy a turnover-based fine against Apple, the size of which would be determined during the course of an investigation. (Reporting by Reuters) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20233.0 | 2022-07-19 00:00:00 UTC | Recession, rate-hike worries rattle European shares; EDF surges | AAPL | https://www.nasdaq.com/articles/recession-rate-hike-worries-rattle-european-shares-edf-surges | nan | nan | By Susan Mathew
July 19 (Reuters) - European shares fell on Tuesday, hit by worries about a hawkish European Central Bank and slowing economic growth, although a 15% surge in French power giant EDF on nationalisation plans capped losses.
Technology stocks .SX8P led the decline with a 1.7% drop after a Bloomberg report said Apple Inc AAPL.O planned to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Apple suppliers including STMicroelectronics STM.MI, ams OSRAM AMS.S and ASML ASML.AS fell between 1.3% and 2.8%.
"(The Apple warning) raised fears once again that a recession is fast approaching. This brought down tech shares generally and this negative sentiment has spilled over into other sectors," said Stuart Cole, a senior macro strategist at Equiti Capital.
The pan-European STOXX 600 index .STOXX fell 0.5% after rallying strongly in the previous two sessions. MKTS/GLOB
European miners .SXPP fell 1.1% as rising COVID-19 cases in China kept alive doubts about demand from the world's top metal consumer. MET/L
Meanwhile, sources said ECB policymakers would discuss whether to raise interest rates by 25 or 50 basis points at their meeting on Thursday to tame record-high inflation.
The central bank had earlier signalled that it would hike rates by 25 bps this month, postponing a bigger move to September.
"It's a tough place for the ECB to be - it needs to materially tighten policy to fight inflation but at the same time needs a loose policy to support the dire fiscal positions in some of its member countries," said Cole.
The STOXX 600 has fallen about 15% this year as equities globally took a hit amid worries that monetary policy tightening would squeeze economic growth. With COVID-19 lockdowns disrupting economic activity in China and the Russia-Ukraine war hurting energy supplies to Europe, the outlook looks bleak.
Shares of EDF EDF.PA jumped after the French government said it would offer 12 euros apiece to take full control of the power company in a buyout that gives it free hand to run the group as it contends amid the energy crisis.
In earnings-driven moves, drugmaker Novartis NOVN.S and London-listed money transfer company Wise Plc WISEa.L rose 0.7% and 12.8%, respectively.
Auto makers Volvo VOLVb.ST and Alstom ALSO.PA fell despite positive earnings, as did telecoms operator Telenor TEL.OL. Swedish banking group Swedbank SWEDa.ST slipped 1.4% after reporting a smaller-than-expected net profit.
About 13% of the companies listed on the STOXX 600 have reported quarterly results so far in this earnings season, and 60% of them have topped estimates, according to Refinitiv data.
(Reporting by Susan Mathew in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Technology stocks .SX8P led the decline with a 1.7% drop after a Bloomberg report said Apple Inc AAPL.O planned to slow hiring and spending growth next year in some units to cope with a potential economic downturn. This brought down tech shares generally and this negative sentiment has spilled over into other sectors," said Stuart Cole, a senior macro strategist at Equiti Capital. Shares of EDF EDF.PA jumped after the French government said it would offer 12 euros apiece to take full control of the power company in a buyout that gives it free hand to run the group as it contends amid the energy crisis. | Technology stocks .SX8P led the decline with a 1.7% drop after a Bloomberg report said Apple Inc AAPL.O planned to slow hiring and spending growth next year in some units to cope with a potential economic downturn. By Susan Mathew July 19 (Reuters) - European shares fell on Tuesday, hit by worries about a hawkish European Central Bank and slowing economic growth, although a 15% surge in French power giant EDF on nationalisation plans capped losses. The STOXX 600 has fallen about 15% this year as equities globally took a hit amid worries that monetary policy tightening would squeeze economic growth. | Technology stocks .SX8P led the decline with a 1.7% drop after a Bloomberg report said Apple Inc AAPL.O planned to slow hiring and spending growth next year in some units to cope with a potential economic downturn. By Susan Mathew July 19 (Reuters) - European shares fell on Tuesday, hit by worries about a hawkish European Central Bank and slowing economic growth, although a 15% surge in French power giant EDF on nationalisation plans capped losses. The STOXX 600 has fallen about 15% this year as equities globally took a hit amid worries that monetary policy tightening would squeeze economic growth. | Technology stocks .SX8P led the decline with a 1.7% drop after a Bloomberg report said Apple Inc AAPL.O planned to slow hiring and spending growth next year in some units to cope with a potential economic downturn. By Susan Mathew July 19 (Reuters) - European shares fell on Tuesday, hit by worries about a hawkish European Central Bank and slowing economic growth, although a 15% surge in French power giant EDF on nationalisation plans capped losses. Apple suppliers including STMicroelectronics STM.MI, ams OSRAM AMS.S and ASML ASML.AS fell between 1.3% and 2.8%. |
20234.0 | 2022-07-19 00:00:00 UTC | GLOBAL MARKETS-European shares slip, dollar pauses with central banks in view | AAPL | https://www.nasdaq.com/articles/global-markets-european-shares-slip-dollar-pauses-with-central-banks-in-view | nan | nan | By Tom Wilson and Alun John
LONDON/HONG KONG, July 19 (Reuters) - European shares slipped on Tuesday, while the dollar hovered below last week's peak, with investors eyeing central bank meetings this week for clues on market direction.
The broader Euro STOXX 600 .STOXX fell 0.6%, with indexes in Paris .FCHI and Frankfurt .GDAXI both down 0.9%.
Traders were on edge with few immediate pieces of macroeconomic or political news to drive direction, market players said.
"Right now it's cautious mode. It's not necessarily plain defence and really being short markets," said Olivier Marciot, senior portfolio manager at Unigestion.
"Really little exposures all over the place, and waiting for some sort of clearer direction to deploy risk."
MSCI world equity index .MIWD00000PUS, which tracks shares in 50 countries, fell 0.1%.
Wall Street futures gauges EScv1NQcv1 pointed to slim gains. U.S. equity markets had closed lower overnight, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year.
The dollar continued its slow retreat from last week's two-decade peak, hovering just above a one-week low touched on Monday.
The dollar index =USD - which gauges the greenback against six counterparts - was down 0.3% at 107.100, well back from the high of 109.29 last week, a level not seen since September, 2002.
Euro zone government bond yields edged down as bond markets took comfort from a pullback in lofty gas prices, with German Bund yields falling 2.5 bps to 1.19 DE10YT=RR.
Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%.
Market players pointed to central bank meetings later in the week as likely drivers of market moves.
The European Central Bank and Bank of Japan both meet on Thursday, with the ECB widely expected to begin raising rates from their pandemic era lows with a 25 basis point hike, while little change is expected from the ultra dovish BOJ.
The euro EUR=EBS jumped 0.7% to $1.0223 after Reuters reported that ECB policymakers will discuss whether to raise interest rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation.
MURKY PICTURE
But with markets awaiting major macroeconomic news, the overall picture was murky.
"It's a bit like 'paint by numbers' at the moment, you've got a picture to fill in, but we don't have all the colours yet," said Kerry Craig,global marketstrategist at JPMorgan Asset Management.
"There are a couple of things missing (such as) the direction of the labour market and unemployment rate in the U.S., and whether central banks will step back and say 'that's the peak in inflation and we don't need to be as hawkish', or 'we're going to be really aggressive'."
Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve's meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise.
The euro, under pressure amid soaring energy costs, has recovered somewhat from its brief fall below one U.S. dollar last week for the first time since 2002.
Underscoring the jeopardy the euro faces, Russia's Gazprom has told customers in Europe it cannot guarantee gas supplies because of "extraordinary" circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the West over Moscow's invasion of Ukraine.
Oil, also struggling to find a clear direction, rose slightly gaining 5% overnight. Brent crude LCOc1 was flat at $105.84 a barrel, while U.S. crude CLc1 was up 0.2% lower at $102.576.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Tom Wilson in London and Alun John in Hong kOng; Editing by Christian Schmollinger, Simon Cameron-Moore and Ed Osmond)
((alun.john@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. | U.S. equity markets had closed lower overnight, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. The euro EUR=EBS jumped 0.7% to $1.0223 after Reuters reported that ECB policymakers will discuss whether to raise interest rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation. "There are a couple of things missing (such as) the direction of the labour market and unemployment rate in the U.S., and whether central banks will step back and say 'that's the peak in inflation and we don't need to be as hawkish', or 'we're going to be really aggressive'." | U.S. equity markets had closed lower overnight, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson and Alun John LONDON/HONG KONG, July 19 (Reuters) - European shares slipped on Tuesday, while the dollar hovered below last week's peak, with investors eyeing central bank meetings this week for clues on market direction. The European Central Bank and Bank of Japan both meet on Thursday, with the ECB widely expected to begin raising rates from their pandemic era lows with a 25 basis point hike, while little change is expected from the ultra dovish BOJ. | U.S. equity markets had closed lower overnight, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson and Alun John LONDON/HONG KONG, July 19 (Reuters) - European shares slipped on Tuesday, while the dollar hovered below last week's peak, with investors eyeing central bank meetings this week for clues on market direction. Market players pointed to central bank meetings later in the week as likely drivers of market moves. | U.S. equity markets had closed lower overnight, impacted by reports Apple AAPL.O plans to slow hiring and spending growth next year. By Tom Wilson and Alun John LONDON/HONG KONG, July 19 (Reuters) - European shares slipped on Tuesday, while the dollar hovered below last week's peak, with investors eyeing central bank meetings this week for clues on market direction. Wall Street futures gauges EScv1NQcv1 pointed to slim gains. |
20235.0 | 2022-07-19 00:00:00 UTC | US STOCKS-Wall Street set to rise as earnings pick up pace | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-rise-as-earnings-pick-up-pace | nan | nan | By Shreyashi Sanyal
July 19 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as earnings season shifts to high gear beyond big banks, with investors keeping a closing eye on the impact of stronger dollar on corporate America.
A soaring U.S. currency led pharma major Johnson & Johnson JNJ.N to trim its annual adjusted profit view and IBM Corp IBM.N to warn of a nearly $3.5 billion hit.
IBM shares were down 5.7% in premarket trading while JNJ rose 1.3% as it beat quarterly earnings expectations.
"The stronger dollar becomes the issue and that is going to get a pass this earning season because we'd be more concerned if there was a degradation of demand which we're not seeing," said Art Hogan, chief market strategist at B. Riley.
Apple shares AAPL.O attempted a comeback, gaining 0.4% in premarket trading after shedding 2% in the previous session.
Other high-growth stocks such as Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were also trading higher.
In the second-quarter earnings season, analysts expect aggregate year-on-year S&P 500 profit to grow 6%, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
Boeing Co BA.N added 1.4% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets.
Hasbro Inc HAS.O beat market estimates for quarterly profit, sending shares of the toymaker up 1%.
At 8:53 a.m. ET, Dow e-minis 1YMcv1 were up 223 points, or 0.72%, S&P 500 e-minis EScv1 were up 35.25 points, or 0.92%, and Nasdaq 100 e-minis NQcv1 were up 111.75 points, or 0.94%.
Netflix NFLX.O shares were up 1% ahead of its results after market close.
Meanwhile, the yield on 10-year Treasury notes US10YT=RR traded in a narrow range of 2.95% and 3.01%, buoying bets for riskier assets.
(Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila 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. | Apple shares AAPL.O attempted a comeback, gaining 0.4% in premarket trading after shedding 2% in the previous session. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as earnings season shifts to high gear beyond big banks, with investors keeping a closing eye on the impact of stronger dollar on corporate America. "The stronger dollar becomes the issue and that is going to get a pass this earning season because we'd be more concerned if there was a degradation of demand which we're not seeing," said Art Hogan, chief market strategist at B. Riley. | Apple shares AAPL.O attempted a comeback, gaining 0.4% in premarket trading after shedding 2% in the previous session. A soaring U.S. currency led pharma major Johnson & Johnson JNJ.N to trim its annual adjusted profit view and IBM Corp IBM.N to warn of a nearly $3.5 billion hit. IBM shares were down 5.7% in premarket trading while JNJ rose 1.3% as it beat quarterly earnings expectations. | Apple shares AAPL.O attempted a comeback, gaining 0.4% in premarket trading after shedding 2% in the previous session. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as earnings season shifts to high gear beyond big banks, with investors keeping a closing eye on the impact of stronger dollar on corporate America. IBM shares were down 5.7% in premarket trading while JNJ rose 1.3% as it beat quarterly earnings expectations. | Apple shares AAPL.O attempted a comeback, gaining 0.4% in premarket trading after shedding 2% in the previous session. By Shreyashi Sanyal July 19 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as earnings season shifts to high gear beyond big banks, with investors keeping a closing eye on the impact of stronger dollar on corporate America. IBM shares were down 5.7% in premarket trading while JNJ rose 1.3% as it beat quarterly earnings expectations. |
20236.0 | 2022-07-19 00:00:00 UTC | Japanese stocks post modest gains ahead of BOJ policy meet | AAPL | https://www.nasdaq.com/articles/japanese-stocks-post-modest-gains-ahead-of-boj-policy-meet | nan | nan | TOKYO, July 19 (Reuters) - Japanese stocks extended gains on Tuesday, though performances were modest with investors reluctant to make big moves ahead of this week's Bank of Japan policy meeting, despite lowered estimates for aggressive tightening by the U.S. Federal Reserve.
The Nikkei share average .N225 started trade 0.8% higher to break through the psychological barrier of 27,000 before finishing at 26,961.68 as markets closed up 0.65% for the day.
The broader Topix .TOPX gained 0.54%.
"The level 27,000 seems to have become the key barrier," said a market participant at a domestic securities firm. "We'd like to see new market factors to help decisively break through it."
Of the Nikkei's 225 components, 171 made gains, 52 made losses, and two traded flat.
European stock index futures were down ahead of markets opening, with FTSE 100 futures FFlc1 dropping 0.38% and Euro STOXX 50 STXEc1 dipping 0.60%.
Shares of Japanese heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida's government won't set a ceiling on defence spending in the next annual budget.
Kawasaki Heavy Industries Ltd 7012.T rose 5.22%, and Mitsubishi Heavy Industries Ltd 7011.T was up 2.5%.
Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected.
Sony Group Corp 6758.T, Apple's primary image sensor supplier, gained 2.32%. Components makers Murata Manufacturing Co Ltd 6981.T and Taiyo Yuden Co Ltd 6976.T were up 0.24% and 1.1%, respectively.
Utilities companies weighed in the Nikkei, with the sector down 1.36% overall.
Kansai Electric Power Co Inc 9503.T lost 2.78%, and Tokyo Electric Power Co Holdings Inc 9501.T was down 2.38%.
Video game maker Nintendo 7974.T fell 2.50% to wipe out gains made on Friday, when its share price jumped 2.33% on the news that it was buying an animation studio.
(Reporting by Sam Byford and Tokyo markets team; Editing by Sherry Jacob-Phillips)
((Sam.Byford@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. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. TOKYO, July 19 (Reuters) - Japanese stocks extended gains on Tuesday, though performances were modest with investors reluctant to make big moves ahead of this week's Bank of Japan policy meeting, despite lowered estimates for aggressive tightening by the U.S. Federal Reserve. Shares of Japanese heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida's government won't set a ceiling on defence spending in the next annual budget. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. Of the Nikkei's 225 components, 171 made gains, 52 made losses, and two traded flat. Shares of Japanese heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida's government won't set a ceiling on defence spending in the next annual budget. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. TOKYO, July 19 (Reuters) - Japanese stocks extended gains on Tuesday, though performances were modest with investors reluctant to make big moves ahead of this week's Bank of Japan policy meeting, despite lowered estimates for aggressive tightening by the U.S. Federal Reserve. Of the Nikkei's 225 components, 171 made gains, 52 made losses, and two traded flat. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. The Nikkei share average .N225 started trade 0.8% higher to break through the psychological barrier of 27,000 before finishing at 26,961.68 as markets closed up 0.65% for the day. Of the Nikkei's 225 components, 171 made gains, 52 made losses, and two traded flat. |
20237.0 | 2022-07-18 00:00:00 UTC | Apple (AAPL) Spending Cuts Drain Rally; IBM Beats Again | AAPL | https://www.nasdaq.com/articles/apple-aapl-spending-cuts-drain-rally-ibm-beats-again | nan | nan | Sometimes entities have a hard time enjoying prosperity, and this latest bear-market rally would appear to fit this description. Starting off the day and the new trading week up big, a report regarding Apple Inc. AAPL slowing its pace of hiring and spending in some (as yet undetermined) segments sent shares down -2% during the course of the trading session.
Because Apple makes up around 7% of the total Dow 30 and is an outsized component of the Nasdaq and S&P 500 as well, this one simple story — which, to be fair, does conclude that an economic downturn is on its way — pretty much single-handedly turned what looked like the second day of market participants feeling their oats into something resembling a typical trading day in 2022: the Dow finished -216 points (from north of +350 earlier) or -0.69%, the Nasdaq dropped -0.81%, the S&P -0.84% and the small-cap Russell 2000 -0.34%.
Apple does not report fiscal Q3 earnings for another week and a half, but in the meantime we’ve got plenty of big names ready to usher quarterly verdicts in the coming days, including Johnson & Johnson JNJ Tuesday morning, Netflix NFLX tomorrow afternoon, Tesla TSLA after Wednesday’s closing bell, and Twitter TWTR — which has spent much of the last quarter under the considerable shadow of Elon Musk’s promise to reform the social media giant — on Friday morning.
IBM Corp. IBM reported Q2 earnings after today’s closing bell, beating on the bottom line as almost always (IBM has only one earnings miss in more than five years) while also outpacing revenues in the quarter. Earnings of $2.31 per share topped Zacks consensus by 2 cents on $15.54 billion in revenues, which improved on the $15.12 billion expected.
The tech giant saw a currency impact to revenue (on a strong U.S. dollar worldwide) of $900 million in the quarter, and the company lowered its guidance on free cash flow through the end of 2022 on currency issues, as well as exiting the Russian market. But Gross Margins in the quarter grew +56.5%, higher than analysts were expecting.
Overall, this was a solid quarter for IBM, which has led business growth with its Red Hat acquisition in the hybrid cloud market. This has been a solid move for the company, which had spent much of the several years trailing its Big Tech brethren in terms of stock market performance. Shares are down -3% on the new in late trading; clearly a “sell the news” situation, as IBM had been up +5% over the past six months.
Questions or comments about this article and/or its author? Click here>>
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
International Business Machines Corporation (IBM): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Twitter, Inc. (TWTR): 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. | Starting off the day and the new trading week up big, a report regarding Apple Inc. AAPL slowing its pace of hiring and spending in some (as yet undetermined) segments sent shares down -2% during the course of the trading session. Apple Inc. (AAPL): Free Stock Analysis Report Because Apple makes up around 7% of the total Dow 30 and is an outsized component of the Nasdaq and S&P 500 as well, this one simple story — which, to be fair, does conclude that an economic downturn is on its way — pretty much single-handedly turned what looked like the second day of market participants feeling their oats into something resembling a typical trading day in 2022: the Dow finished -216 points (from north of +350 earlier) or -0.69%, the Nasdaq dropped -0.81%, the S&P -0.84% and the small-cap Russell 2000 -0.34%. | Apple Inc. (AAPL): Free Stock Analysis Report Starting off the day and the new trading week up big, a report regarding Apple Inc. AAPL slowing its pace of hiring and spending in some (as yet undetermined) segments sent shares down -2% during the course of the trading session. Apple does not report fiscal Q3 earnings for another week and a half, but in the meantime we’ve got plenty of big names ready to usher quarterly verdicts in the coming days, including Johnson & Johnson JNJ Tuesday morning, Netflix NFLX tomorrow afternoon, Tesla TSLA after Wednesday’s closing bell, and Twitter TWTR — which has spent much of the last quarter under the considerable shadow of Elon Musk’s promise to reform the social media giant — on Friday morning. | Starting off the day and the new trading week up big, a report regarding Apple Inc. AAPL slowing its pace of hiring and spending in some (as yet undetermined) segments sent shares down -2% during the course of the trading session. Apple Inc. (AAPL): Free Stock Analysis Report Apple does not report fiscal Q3 earnings for another week and a half, but in the meantime we’ve got plenty of big names ready to usher quarterly verdicts in the coming days, including Johnson & Johnson JNJ Tuesday morning, Netflix NFLX tomorrow afternoon, Tesla TSLA after Wednesday’s closing bell, and Twitter TWTR — which has spent much of the last quarter under the considerable shadow of Elon Musk’s promise to reform the social media giant — on Friday morning. | Starting off the day and the new trading week up big, a report regarding Apple Inc. AAPL slowing its pace of hiring and spending in some (as yet undetermined) segments sent shares down -2% during the course of the trading session. Apple Inc. (AAPL): Free Stock Analysis Report IBM Corp. IBM reported Q2 earnings after today’s closing bell, beating on the bottom line as almost always (IBM has only one earnings miss in more than five years) while also outpacing revenues in the quarter. |
20238.0 | 2022-07-18 00:00:00 UTC | GLOBAL MARKETS-Stocks edge up, dollar dips as Fed hike expectations lessened | AAPL | https://www.nasdaq.com/articles/global-markets-stocks-edge-up-dollar-dips-as-fed-hike-expectations-lessened | nan | nan | By Chuck Mikolajczak
NEW YORK, July 18 (Reuters) - A gauge of global stocks edged higher on Monday as a late-session sell-off in U.S. equities trimmed earlier gains while the dollar slipped as investors tamped down expectations that the Federal Reserve will take a more aggressive approach in hiking interest rates next week.
Expectations for a 100 basis points rate hike by the Fed at its policy meeting next week stood at about 29%, according to CME's FedWatch Tool after reaching as high as 80% last week.
Recent readings on inflation came in above expectations but showed tentative signs that higher prices may be starting to ease, giving the U.S. central bank a possible cushion to raise rates at a smaller 75 basis points increment.
"As we as we entered into the quiet period, the Fed seems to be leaning more towards 75 basis points than to 100 basis points," said Jim Barnes, director of fixed income at Bryn Mawr Trust.
"The more recent economic data that we got on Friday was more upbeat and today's rising Treasury yields seem to be catching up with the market's activity from Friday, as well as the equity market from today."
A strong start to the trading session for stocks on Wall Street fizzled out, however, as a drop in Apple Inc AAPL.O weighed following a Bloomberg report that the iPhone maker plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
"We were starting to slide a little before then, just a little bit, and when that hit, obviously Apple slid a little quicker than the market did, so maybe it was an excuse to sell off," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
U.S. equities initially rose in part due to gains in bank stocks .SPXBK, which had risen about 3% on the heels of earnings from Goldman Sachs GS.N, up 2.5% and Bank of America, up 0.05%, before fading.
The Dow Jones Industrial Average .DJI fell 216.51 points, or 0.69%, to 31,071.75; the S&P 500 .SPX lost 32.34 points, or 0.84%, to 3,830.82; and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05.
Of the 40 S&P 500 companies that have reported earnings through Monday morning, 80% have been above estimates, per Refinitiv data, tracking slightly below the 81% rate over the past four quarters.
The pan-European STOXX 600 index .STOXX rose 0.93% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.06%. European stocks closed off a three-week high hit earlier in the day on worries about the impact of an energy shortage in the region.
Benchmark 10-year U.S. Treasury notes US10YT=RR last fell 12/32 in price to yield 2.9725%, from 2.93% late on Friday.
Before the Fed meeting next week, the European Central Bank is poised to raise rates for the first time in more than a decade on Thursday, with a hike of 25 basis points expected.
As the region deals with its own inflationary pressures, Russia's Gazprom GAZP.MM told customers in Europe it cannot guarantee gas supplies because of 'extraordinary' circumstances, according to a letter from Gazprom that will add to European fears of fuel shortages.
In light of the shifting view of next week's Fed meeting, the U.S. dollar retreated from the 20-year high hit last week, helping the euro move away from parity against the greenback.
The dollar index =USD fell 0.38%, with the euro EUR= up 0.56% to $1.0143.
Oil prices jumped, boosted by mounting concerns over gas supply from Russia and the lower dollar, offsetting demand fears brought on by a possible recession and China lockdowns.
U.S. crude CLc1 settled up 5.13% at $$102.60 per barrel and Brent LCOc1 settled at $106.27, up 5.05% on the day.
Global FX performancehttp://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
(Additional reporting by Rodrigo Campos; editing by Jonathan Oatis)
((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. | A strong start to the trading session for stocks on Wall Street fizzled out, however, as a drop in Apple Inc AAPL.O weighed following a Bloomberg report that the iPhone maker plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. By Chuck Mikolajczak NEW YORK, July 18 (Reuters) - A gauge of global stocks edged higher on Monday as a late-session sell-off in U.S. equities trimmed earlier gains while the dollar slipped as investors tamped down expectations that the Federal Reserve will take a more aggressive approach in hiking interest rates next week. Recent readings on inflation came in above expectations but showed tentative signs that higher prices may be starting to ease, giving the U.S. central bank a possible cushion to raise rates at a smaller 75 basis points increment. | A strong start to the trading session for stocks on Wall Street fizzled out, however, as a drop in Apple Inc AAPL.O weighed following a Bloomberg report that the iPhone maker plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. Expectations for a 100 basis points rate hike by the Fed at its policy meeting next week stood at about 29%, according to CME's FedWatch Tool after reaching as high as 80% last week. Before the Fed meeting next week, the European Central Bank is poised to raise rates for the first time in more than a decade on Thursday, with a hike of 25 basis points expected. | A strong start to the trading session for stocks on Wall Street fizzled out, however, as a drop in Apple Inc AAPL.O weighed following a Bloomberg report that the iPhone maker plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. By Chuck Mikolajczak NEW YORK, July 18 (Reuters) - A gauge of global stocks edged higher on Monday as a late-session sell-off in U.S. equities trimmed earlier gains while the dollar slipped as investors tamped down expectations that the Federal Reserve will take a more aggressive approach in hiking interest rates next week. Expectations for a 100 basis points rate hike by the Fed at its policy meeting next week stood at about 29%, according to CME's FedWatch Tool after reaching as high as 80% last week. | A strong start to the trading session for stocks on Wall Street fizzled out, however, as a drop in Apple Inc AAPL.O weighed following a Bloomberg report that the iPhone maker plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. Before the Fed meeting next week, the European Central Bank is poised to raise rates for the first time in more than a decade on Thursday, with a hike of 25 basis points expected. As the region deals with its own inflationary pressures, Russia's Gazprom GAZP.MM told customers in Europe it cannot guarantee gas supplies because of 'extraordinary' circumstances, according to a letter from Gazprom that will add to European fears of fuel shortages. |
20239.0 | 2022-07-18 00:00:00 UTC | US STOCKS-Wall Street closes down on slide in Apple shares, bank stocks | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-closes-down-on-slide-in-apple-shares-bank-stocks | nan | nan | By Echo Wang
July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year.
After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close.
Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Goldman Sachs advanced 2.5% as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading.
Worries about a larger one percentage point rate hike at the end of July eased following remarks from Fed officials last week that the policymakers could stick to a 75 basis point hike.
"It's really hard to sustain upward momentum," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "And that's kind of the story of bear markets."
The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05.
Nine of the 11 major sectors of the S&P 500 lost ground, with healthcare .SPXHC and utilities .SPLRCU suffering the largest percentage drop, while energy .SPNY took the biggest gain.
Earnings from big technology companies next week will be closely watched, after their shares came under immense selling pressure through much of this year.
Among other tech stocks, Google parent Alphabet fell 2.5%. IBM declined 1.3%.
Volume on U.S. exchanges was 10.63 billion shares, compared with the 12.15 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 31 new lows; the Nasdaq Composite recorded 30 new highs and 78 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. (Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington) ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. |
20240.0 | 2022-07-18 00:00:00 UTC | Lawsuit accuses Apple of antitrust violations over Apple Pay | AAPL | https://www.nasdaq.com/articles/lawsuit-accuses-apple-of-antitrust-violations-over-apple-pay | nan | nan | By Jonathan Stempel
July 18 (Reuters) - Apple Inc AAPL.O was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet.
According to a complaint filed in San Francisco federal court, Apple "coerces" consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets such as Google Pay and Samsung Pay.
The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege.
It also said Apple's conduct minimizes the incentive for the Cupertino, California-based company to make Apple Pay work better and make it more resistant to security breaches.
"Apple's conduct harms not only issuers, but also consumers and competition as a whole," the complaint said.
The lawsuit seeks unspecified triple damages, and a halt to Apple's alleged anticompetitive conduct.
Apple did not immediately respond to requests for comment.
The company already faces a possible heavy fine after European Union regulators on May 2 said it had abused its dominance in iOS devices and mobile wallets by refusing to give payment rivals access to its technology.
According to the complaint, Apple charges issuers a 0.15% fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing.
The plaintiff is represented by the law firms Hagens Berman Sobol Shapiro and Sperling & Slater.
Last August, they helped obtain a $100 million settlement for smaller iOS developers that claimed Apple overcharged them on commissions.
The case is Affinity Credit Union v Apple Inc, U.S. District Court, Northern District of California, No. 22-04174.
(Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Jonathan Stempel July 18 (Reuters) - Apple Inc AAPL.O was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet. According to a complaint filed in San Francisco federal court, Apple "coerces" consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets such as Google Pay and Samsung Pay. The company already faces a possible heavy fine after European Union regulators on May 2 said it had abused its dominance in iOS devices and mobile wallets by refusing to give payment rivals access to its technology. | By Jonathan Stempel July 18 (Reuters) - Apple Inc AAPL.O was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet. The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege. According to the complaint, Apple charges issuers a 0.15% fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing. | By Jonathan Stempel July 18 (Reuters) - Apple Inc AAPL.O was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet. The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege. According to the complaint, Apple charges issuers a 0.15% fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing. | By Jonathan Stempel July 18 (Reuters) - Apple Inc AAPL.O was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet. The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege. "Apple's conduct harms not only issuers, but also consumers and competition as a whole," the complaint said. |
20241.0 | 2022-07-18 00:00:00 UTC | Stocks Turn Negative as Investors Eye More Recession Indicators | AAPL | https://www.nasdaq.com/articles/stocks-turn-negative-as-investors-eye-more-recession-indicators | nan | nan | This morning's earnings-fueled optimism evaporated by the end of the day. The Dow erased a more than 350-point gain to finish the day 215 points lower, while the S&P and Nasdaq also logged muted drops. A report from Bloomberg covering Apple's (AAPL) plans to slow hiring and growth spending spooked traders, while the NAHB monthly confidence index marked its second biggest one-month drop on record. Meanwhile, Wall Street's "fear gauge" -- the Cboe Volatility Index (VIX) snapped a three-day losing streak.
Continue reading for more on today's market, including:
Shining a light on this promising solar energy name.
Why investors should clean out their portfolio of Clorox shares.
Plus, the retail stock to avoid; TSLA options activity ramps up; and what bruised PARA this morning.
The Dow Jones Average (DJI - 31,072.61) lost 215.7 points, or 0.7% for the day. Goldman Sachs (GS) led the gainers, adding 2.5%. Merck (MRK) paced the losers, shedding 2.8%.
The S&P 500 Index (SPX - 3,830.85) lost 32.3 points, or 0.8% for the day. Meanwhile, the Nasdaq Composite (IXIC - 11,360.05) shed 92.4 points, or 0.8% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 25.30) added 1.1 point, or 4.4% for the day.
5 Things to Know Today
A poll of McDonald's franchises by the National Owners Association, an independent franchisee advocacy group for store owners, showed an overwhelming majority calling for a "no confidence" vote on the fast food giant's CEO Chris Kempczinski and its U.S. president Joe Erlinger. (CNBC)
Doctor Anthony Fauci, now 81 years old, said he will likely be retiring by the "end of Biden's first term." (MarketWatch)
Steer clear of this retail concern right now.
Behind the pre-earnings surge in Tesla's options pits.
The bear note that bruised Paramount Global stock this morning.
Traders Buy Into Last Week's Dip in Oil Prices
Oil rose once again during today's session as many bought into last week's steep drop amid renewed supply fears. Specifically, President Joe Biden's visit to Saudi Arabia yielded few results when it came to talks over renewed oil production in the region. August-dated crude added $5.01, or 5.1%, to finish at $102.60 per barrel for the day.
Gold prices rose off their 20-month lows on Monday, posting their first gain in three sessions as the U.S. Dollar showed some give and investors brushed off the recent rise in interest rates. August-dated gold added $6.60, or 0.4%, to close at $1,710.20 an ounce.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A report from Bloomberg covering Apple's (AAPL) plans to slow hiring and growth spending spooked traders, while the NAHB monthly confidence index marked its second biggest one-month drop on record. Specifically, President Joe Biden's visit to Saudi Arabia yielded few results when it came to talks over renewed oil production in the region. Gold prices rose off their 20-month lows on Monday, posting their first gain in three sessions as the U.S. Dollar showed some give and investors brushed off the recent rise in interest rates. | A report from Bloomberg covering Apple's (AAPL) plans to slow hiring and growth spending spooked traders, while the NAHB monthly confidence index marked its second biggest one-month drop on record. Meanwhile, Wall Street's "fear gauge" -- the Cboe Volatility Index (VIX) snapped a three-day losing streak. Lastly, the Cboe Market Volatility Index (VIX - 25.30) added 1.1 point, or 4.4% for the day. | A report from Bloomberg covering Apple's (AAPL) plans to slow hiring and growth spending spooked traders, while the NAHB monthly confidence index marked its second biggest one-month drop on record. The Dow erased a more than 350-point gain to finish the day 215 points lower, while the S&P and Nasdaq also logged muted drops. Lastly, the Cboe Market Volatility Index (VIX - 25.30) added 1.1 point, or 4.4% for the day. | A report from Bloomberg covering Apple's (AAPL) plans to slow hiring and growth spending spooked traders, while the NAHB monthly confidence index marked its second biggest one-month drop on record. Plus, the retail stock to avoid; TSLA options activity ramps up; and what bruised PARA this morning. Lastly, the Cboe Market Volatility Index (VIX - 25.30) added 1.1 point, or 4.4% for the day. |
20242.0 | 2022-07-18 00:00:00 UTC | Warren Buffett Is Increasing His Bets Big-Time in These 3 Sectors | AAPL | https://www.nasdaq.com/articles/warren-buffett-is-increasing-his-bets-big-time-in-these-3-sectors | nan | nan | When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett makes a move, Wall Street and investors rightly pay close attention. That's because the Oracle of Omaha's investing track record is practically unmatched over the past six decades.
Since becoming CEO in 1965, Buffett has created more than $600 billion in value for his company's shareholders, and has nearly doubled up the average annual return of the benchmark S&P 500, including dividends (20.1% annualized for Berkshire's Class A shares (BRK.A) versus 10.5% for the S&P 500). For added content, Berkshire Hathaway's stock could lose 99% of its value and Buffett's company would still be handily outperforming the S&P 500 since 1965.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
With the S&P 500 currently entrenched in a bear market, Buffett has had ample opportunity to put some of his company's vast treasure chest of capital to work. In particular, he's been increasing Berkshire Hathaway's bets big-time in three sectors.
Energy
The first sector Buffett has demonstrated an insatiable appetite for of late is energy. More specifically, Buffett can't stop buying integrated oil and natural gas stocks Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Berkshire Hathaway added more than 120.9 million shares of Chevron during the first quarter and has made numerous additional purchases to its stake in Occidental.
The most logical reason for Buffett and his investing team to pile into energy stocks is the belief that energy commodity prices will remain elevated for years. Most major energy companies had to pare back their capital expenditures during the pandemic. This lack of investment, coupled with Russia's invasion of Ukraine, threatens to throw a monkey wrench into the global energy supply chain for years. Companies with upstream drilling and exploration segments should benefit nicely from elevated oil, natural gas, and natural gas liquids pricing.
However, Chevron and Occidental are both integrated energy companies. This means that, in addition to their higher-margin upstream drilling segments, they operate midstream (e.g., transmission pipelines and/or storage) and downstream assets (e.g., chemical plants and/or refineries). If, for instance, the price of crude oil were to continue to back off of its multidecade high, this would lower input costs for Chevron's and Occidental's downstream assets, which, with added demand, can lift operating margins.
Although Buffett has piled into Chevron and Occidental Petroleum, it should be noted that Chevron is in far better financial shape. Occidental's acquisition of Anadarko in 2019 left the company bloated with debt. While historically high commodity prices are helping Occidental reduce its debt and strengthen its balance sheet, Chevron offers far more financial flexibility right now.
Technology
A second sector that Warren Buffett is increasing his bets on big-time is technology. That might come as a bit of a surprise given that the Oracle of Omaha hasn't always had the best track record when investing in tech stocks. However, recent buying activity certainly shows an affinity for tech-driven innovation.
During the first quarter, Berkshire Hathaway increased its position in Apple (NASDAQ: AAPL) by close to 3.8 million shares. Perhaps even more shocking was Buffett's company's reveal that it had taken a nearly 121 million-share position in personal computer and printing solutions company HP (NYSE: HPQ).
Although it might seem as if the Oracle of Omaha has a new-found love for tech stocks, this buying activity likely has more to do with value investing and brand awareness than anything else.
With regard to Apple, Buffett has plainly acknowledged that it's one of Berkshire's pillars. It's a company with an extremely loyal customer base, a well-recognized brand, and it's relied on innovation to drive its sales and profits to record levels. Even though Apple's growth strategy now centers on higher-margin subscription services, the company continues to be a leader in product innovation (e.g., the iPhone accounted for half of all U.S. smartphone share in the first quarter).
As for HP, the driving force looks to be valuation. Though the growth heyday for laptops and printers has long since passed, consumer and enterprise demand for desktops and laptops remains surprisingly transparent. At just 7 times Wall Street's forecast earnings for 2022 and 2023, there looks to be a safe floor beneath the shares of HP.
These tech stocks have also been an excellent source of capital returns. Apple has repurchased almost $500 billion worth of its own stock since the beginning of 2013, while HP returned $1.3 billion to shareholders through its dividend and buyback program in the most recent quarter.
Image source: Getty Images.
Financials
Last but not least, Buffett has been beefing up Berkshire Hathaway's bets on the financial sector. During the first quarter, Buffett's company bought over 55 million shares of money-center bank Citigroup (NYSE: C), and opened stakes in Ally Financial (NYSE: ALLY) and conglomerate Markel.
Buying stakes in bank stocks and insurance companies is nothing new for the Oracle of Omaha. In fact, it's probably the least surprising thing he's done in 2022. Buffett is well aware that recessions are an inevitable part of the U.S. economy. But rather than trying to time when downturns will occur, he understands that periods of expansion last disproportionately longer than recessions. Thus, buying bank and insurance stocks allows Buffett's company to take advantage of the natural expansion of the U.S. and global economy over time.
Another reason to love financial stocks right now is the Federal Reserve's aggressive monetary policy shift. With the U.S. inflation rate hitting a four-decade high of 9.1% in June, the nation's central bank has no choice but to aggressively raise interest rates. Banks like Citigroup and Ally Financial should generate more net-interest income from the variable-rate loans they respectively have outstanding.
Aside from the expectation that bank earnings will rise on the heels of hawkish monetary policy, Buffett and right-hand man Charlie Munger haven't been afraid to pull the trigger on repurchasing more shares of their own company. Since the Berkshire Hathaway board of directors adjusted the company's stock buyback parameters in July 2018, Buffett and Munger have overseen the repurchase of more than $61 billion worth of Berkshire Hathaway's Class A and B shares.
If there's one sector you can pretty much always count on to see Buffett betting big on, it's financials.
10 stocks we like better than Chevron
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 Chevron 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
Ally and Citigroup are advertising partners of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), HP, and Markel. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | During the first quarter, Berkshire Hathaway increased its position in Apple (NASDAQ: AAPL) by close to 3.8 million shares. If, for instance, the price of crude oil were to continue to back off of its multidecade high, this would lower input costs for Chevron's and Occidental's downstream assets, which, with added demand, can lift operating margins. Even though Apple's growth strategy now centers on higher-margin subscription services, the company continues to be a leader in product innovation (e.g., the iPhone accounted for half of all U.S. smartphone share in the first quarter). | During the first quarter, Berkshire Hathaway increased its position in Apple (NASDAQ: AAPL) by close to 3.8 million shares. When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett makes a move, Wall Street and investors rightly pay close attention. More specifically, Buffett can't stop buying integrated oil and natural gas stocks Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). | During the first quarter, Berkshire Hathaway increased its position in Apple (NASDAQ: AAPL) by close to 3.8 million shares. During the first quarter, Buffett's company bought over 55 million shares of money-center bank Citigroup (NYSE: C), and opened stakes in Ally Financial (NYSE: ALLY) and conglomerate Markel. Since the Berkshire Hathaway board of directors adjusted the company's stock buyback parameters in July 2018, Buffett and Munger have overseen the repurchase of more than $61 billion worth of Berkshire Hathaway's Class A and B shares. | During the first quarter, Berkshire Hathaway increased its position in Apple (NASDAQ: AAPL) by close to 3.8 million shares. The most logical reason for Buffett and his investing team to pile into energy stocks is the belief that energy commodity prices will remain elevated for years. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), HP, and Markel. |
20243.0 | 2022-07-18 00:00:00 UTC | Australia shares set to fall; NZ flat | AAPL | https://www.nasdaq.com/articles/australia-shares-set-to-fall-nz-flat | nan | nan | July 19 (Reuters) - Australian shares are likely to open lower on Tuesday as warnings of slowing hiring by U.S. tech and banking giants like Apple Inc and Goldman Sachs Group Inc have reignited fears among investors of a global economic downturn.
The local share price index futures dropped 0.4%, a 131.1-point discount to the underlying S&P/ASX 200 index close. The benchmark rose 1.2% on Monday.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index was nearly flat in early trade.
(Reporting by Archishma Iyer in Bengaluru; Editing by Leslie Adler) ((Archishma.Iyer@thomsonreuters.com)) ((For more information on DIARIES & DATA: U.S. earnings diary [RESF/US] Wall Street Week Ahead [.N/O] Global Economy Week Ahead [DATA/] ................................................................ For latest top breaking news across all markets
[NEWS1])) Keywords: AUSTRALIA STOCKS/MORNING
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Australian shares are likely to open lower on Tuesday as warnings of slowing hiring by U.S. tech and banking giants like Apple Inc and Goldman Sachs Group Inc have reignited fears among investors of a global economic downturn. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index was nearly flat in early trade. (Reporting by Archishma Iyer in Bengaluru; Editing by Leslie Adler) ((Archishma.Iyer@thomsonreuters.com)) ((For more information on DIARIES & DATA: U.S. earnings diary [RESF/US] Wall Street Week Ahead [.N/O] Global Economy Week Ahead [DATA/] ................................................................ For latest top breaking news across all markets [NEWS1])) Keywords: AUSTRALIA STOCKS/MORNING The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The local share price index futures dropped 0.4%, a 131.1-point discount to the underlying S&P/ASX 200 index close. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index was nearly flat in early trade. (Reporting by Archishma Iyer in Bengaluru; Editing by Leslie Adler) ((Archishma.Iyer@thomsonreuters.com)) ((For more information on DIARIES & DATA: U.S. earnings diary [RESF/US] Wall Street Week Ahead [.N/O] Global Economy Week Ahead [DATA/] ................................................................ For latest top breaking news across all markets [NEWS1])) Keywords: AUSTRALIA STOCKS/MORNING The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The local share price index futures dropped 0.4%, a 131.1-point discount to the underlying S&P/ASX 200 index close. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index was nearly flat in early trade. (Reporting by Archishma Iyer in Bengaluru; Editing by Leslie Adler) ((Archishma.Iyer@thomsonreuters.com)) ((For more information on DIARIES & DATA: U.S. earnings diary [RESF/US] Wall Street Week Ahead [.N/O] Global Economy Week Ahead [DATA/] ................................................................ For latest top breaking news across all markets [NEWS1])) Keywords: AUSTRALIA STOCKS/MORNING The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 19 (Reuters) - Australian shares are likely to open lower on Tuesday as warnings of slowing hiring by U.S. tech and banking giants like Apple Inc and Goldman Sachs Group Inc have reignited fears among investors of a global economic downturn. The local share price index futures dropped 0.4%, a 131.1-point discount to the underlying S&P/ASX 200 index close. The benchmark rose 1.2% on Monday. |
20244.0 | 2022-07-18 00:00:00 UTC | Australian shares subdued in choppy trade; NZ down | AAPL | https://www.nasdaq.com/articles/australian-shares-subdued-in-choppy-trade-nz-down | nan | nan | July 19 (Reuters) - Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc AAPL.O and Goldman Sachs GS.N.
The S&P/ASX 200 index .AXJO was down 0.1% at 6,680.2 by 0055 GMT. The benchmark rose 1.2% on Monday.
Goldman warned it may slow hiring and cut expenses after reporting a 48% slump in quarterly profit, while a Bloomberg report said Apple was planning to do the same for next year. The developments dragged Wall Street lower overnight. .N
Investors are also awaiting minutes of the Reserve Bank of Australia's July meeting for more clarity on its policy tightening stance.
Domestic technology stocks .AXIJ led losses with a near 2% drop, following their peers' slide on the Nasdaq Composite Index .IXIC.
Xero Ltd XRO.AX and ASX-listed shares of Block Inc SQ2.AX declined 3.6% and 2.3% respectively.
Financials .AXFJ slipped 0.4%, with two out of "Big Four" banks falling 0.2% and 1.3% respectively.
However, energy stocks .AXEJ were one amongst the gainers, jumping as much as 4.2%, seeing its best day since June 8 after oil prices jumped. O/R
Miners .AXMM gained 1.3% as iron ore prices in China crossed $100 per tonne, after Asia's largest economy sought to ease concerns in the trouble-ridden property sector. Index heavyweights Rio Tinto Ltd RIO.AX and Fortescue Metals Group FMG.AX climbed 1.5% and 2.1%, respectively. IRONORE/
BHP Group BHP.AX joined Rio Tinto in warning about labour shortages and inflationary pressures. Its shares, however, rose about 1.9%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was down 0.4% at 11,114.2.
(Reporting by Archishma Iyer in Bengaluru; editing by Uttaresh.V)
((Archishma.Iyer@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. | July 19 (Reuters) - Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc AAPL.O and Goldman Sachs GS.N. .N Investors are also awaiting minutes of the Reserve Bank of Australia's July meeting for more clarity on its policy tightening stance. O/R Miners .AXMM gained 1.3% as iron ore prices in China crossed $100 per tonne, after Asia's largest economy sought to ease concerns in the trouble-ridden property sector. | July 19 (Reuters) - Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc AAPL.O and Goldman Sachs GS.N. Domestic technology stocks .AXIJ led losses with a near 2% drop, following their peers' slide on the Nasdaq Composite Index .IXIC. IRONORE/ BHP Group BHP.AX joined Rio Tinto in warning about labour shortages and inflationary pressures. | July 19 (Reuters) - Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc AAPL.O and Goldman Sachs GS.N. Goldman warned it may slow hiring and cut expenses after reporting a 48% slump in quarterly profit, while a Bloomberg report said Apple was planning to do the same for next year. Domestic technology stocks .AXIJ led losses with a near 2% drop, following their peers' slide on the Nasdaq Composite Index .IXIC. | July 19 (Reuters) - Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc AAPL.O and Goldman Sachs GS.N. Index heavyweights Rio Tinto Ltd RIO.AX and Fortescue Metals Group FMG.AX climbed 1.5% and 2.1%, respectively. Its shares, however, rose about 1.9%. |
20245.0 | 2022-07-18 00:00:00 UTC | Japanese stocks edge higher ahead of BOJ policy meeting | AAPL | https://www.nasdaq.com/articles/japanese-stocks-edge-higher-ahead-of-boj-policy-meeting | nan | nan | TOKYO, July 19 (Reuters) - Japanese stocks posted modest gains on Tuesday after a three-day weekend, with investors reluctant to make major bets ahead of a policy meeting by the Bank of Japan, despite lowered estimates for aggressive monetary tightening by the U.S. Federal Reserve.
The Nikkei share average .N225 opened 0.8% higher to break through the psychological barrier of 27,000, briefly retreating before making another push to finish at 26,977.37 at the end of the morning session, up 0.71% for the day.
The broader Topix .TOPX gained 0.49%.
"It's tough to continue buying ahead of the Bank of Japan's monetary policy meeting this week and earnings season getting underway," said a market participant at a domestic securities firm.
Of Nikkei's 225 components, 164 made gains, 58 made losses, and three traded flat.
Shares of heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida's government won't set a ceiling on defense spending in the next annual budget.
Kawasaki Heavy Industries Ltd 7012.T rose 4.28%, and Mutsubishi Heavy Industries Ltd 7011.T was up 3.07%.
Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected.
Sony Group Corp 6758.T, Apple's primary image sensor supplier, gained 2.72%. Components makers Murata Manufacturing Co Ltd 6981.T and Taiyo Yuden Co Ltd 6976.T were down 0.05% and up 0.99%, respectively.
Utilities companies weighed in the Nikkei, with the sector down 1.41% overall.
Kansai Electric Power Co Inc 9503.T lost 2.35%, and Tokyo Electric Power Co Holdings Inc 9501.T was down 1.87%.
(Reporting by Sam Byford and Tokyo markets team; Editing by Sherry Jacob-Phillips)
((Sam.Byford@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. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. TOKYO, July 19 (Reuters) - Japanese stocks posted modest gains on Tuesday after a three-day weekend, with investors reluctant to make major bets ahead of a policy meeting by the Bank of Japan, despite lowered estimates for aggressive monetary tightening by the U.S. Federal Reserve. "It's tough to continue buying ahead of the Bank of Japan's monetary policy meeting this week and earnings season getting underway," said a market participant at a domestic securities firm. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. "It's tough to continue buying ahead of the Bank of Japan's monetary policy meeting this week and earnings season getting underway," said a market participant at a domestic securities firm. Of Nikkei's 225 components, 164 made gains, 58 made losses, and three traded flat. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. TOKYO, July 19 (Reuters) - Japanese stocks posted modest gains on Tuesday after a three-day weekend, with investors reluctant to make major bets ahead of a policy meeting by the Bank of Japan, despite lowered estimates for aggressive monetary tightening by the U.S. Federal Reserve. Of Nikkei's 225 components, 164 made gains, 58 made losses, and three traded flat. | Even as shares of Apple Inc AAPL.O made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn't appear to be broadly affected. TOKYO, July 19 (Reuters) - Japanese stocks posted modest gains on Tuesday after a three-day weekend, with investors reluctant to make major bets ahead of a policy meeting by the Bank of Japan, despite lowered estimates for aggressive monetary tightening by the U.S. Federal Reserve. Of Nikkei's 225 components, 164 made gains, 58 made losses, and three traded flat. |
20246.0 | 2022-07-18 00:00:00 UTC | POLL-Taiwan June export orders seen growing for second straight month on tech demand | AAPL | https://www.nasdaq.com/articles/poll-taiwan-june-export-orders-seen-growing-for-second-straight-month-on-tech-demand | nan | nan | For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
Orders median forecast +5.6% y/y (prior month +6%)
Data due Wednesday, July 20, 4:00 p.m. (0800 GMT)
TAIPEI, July 19 (Reuters) - Taiwan's export orders likely grew for a second consecutive month in June after falling for the first time in two years in April, a Reuters poll showed on Tuesday, supported by demand for technology products.
The median forecast from a poll of 16 economists expects export orders to rise 5.6% from a year ago. Forecasts ranged for an expansion of between 1.2% and 9.3%.
The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
But they returned to growth in May, expanding a better-than-expected 6% to $55.43 billion.
The government has predicted June orders to be between 3.3% and 6.1% higher than a year before.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O.
The data for June will be released on Wednesday.
(Poll compiled by Anant Chandak, Arsh Mogre and Carol Lee; Reporting by Ben Blanchard; Editing by Rashmi Aich)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +5.6% y/y (prior month +6%) Data due Wednesday, July 20, 4:00 p.m. (0800 GMT) TAIPEI, July 19 (Reuters) - Taiwan's export orders likely grew for a second consecutive month in June after falling for the first time in two years in April, a Reuters poll showed on Tuesday, supported by demand for technology products. The median forecast from a poll of 16 economists expects export orders to rise 5.6% from a year ago. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +5.6% y/y (prior month +6%) Data due Wednesday, July 20, 4:00 p.m. (0800 GMT) TAIPEI, July 19 (Reuters) - Taiwan's export orders likely grew for a second consecutive month in June after falling for the first time in two years in April, a Reuters poll showed on Tuesday, supported by demand for technology products. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +5.6% y/y (prior month +6%) Data due Wednesday, July 20, 4:00 p.m. (0800 GMT) TAIPEI, July 19 (Reuters) - Taiwan's export orders likely grew for a second consecutive month in June after falling for the first time in two years in April, a Reuters poll showed on Tuesday, supported by demand for technology products. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +5.6% y/y (prior month +6%) Data due Wednesday, July 20, 4:00 p.m. (0800 GMT) TAIPEI, July 19 (Reuters) - Taiwan's export orders likely grew for a second consecutive month in June after falling for the first time in two years in April, a Reuters poll showed on Tuesday, supported by demand for technology products. Forecasts ranged for an expansion of between 1.2% and 9.3%. |
20247.0 | 2022-07-18 00:00:00 UTC | US STOCKS-Wall Street reverses course on slide in Apple shares | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-reverses-course-on-slide-in-apple-shares | nan | nan | By Echo Wang
July 18 (Reuters) - Wall Street stocks declined on Monday on a slide in bank stocks and shares of Apple AAPL.O, after a report said the company plans to slow hiring and spending growth next year.
The S&P 500 financial sector .SPSY was down 0.16% despite earnings from big banks beating profit expectations.
Apple shares reversed course to trade down 1.8% at $147.4 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Goldman Sachs Group Inc GS.Nadvanced 2.1% as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading. Bank of America Corp BAC.N also rose 0.34% after beating analysts' estimates for quarterly profit.
"Financials have generally been better or at least better than feared so far," said Zachary Hill, head of portfolio strategy at Horizon Investments in Charlotte, North Carolina, referring to U.S. earnings trends.
Worries about a larger one percentage point rate hike at the end of July eased following remarks from Fed officials last week that the policymakers could stick to a 75 basis point hike.
"The main … big macro driver that's been on everyone's lips for the last six or so months … is inflation and what the Fed is going to do," said Hill, noting the market recovered slightly as investors dialed back expectations on the Fed's interest hike.
At 3:08 p.m. ET, the Dow Jones Industrial Average .DJI fell 71.92 points, or 0.23%, to 31,216.34, the S&P 500 .SPX lost 15.63 points, or 0.40%, to 3,847.53 and the Nasdaq Composite .IXIC dropped 55.17 points, or 0.48%, to 11,397.25.
Four out of 11 major sectors of the S&P 500 rose, with the
energy sector .SPNYleading the gain by adding 2.2%.
Earnings from big technology companies next week will be closely watched, after their shares came under immense selling pressure through much of this year.
Among other shares, Boeing Co BA.N jumped 0.9% after Delta Air Lines Inc DAL.N said it would buy 100 MAX 10 jets worth about $13.5 billion at list prices and had options to buy another 30. Shares of Delta jumped 4.0%.
Advancing issues outnumbered declining ones on the NYSE by a 2.01-to-1 ratio; on the Nasdaq, a 1.40-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 25 new highs and 53 new lows.
(Reporting by Echo Wang in New York; Additinoal reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street stocks declined on Monday on a slide in bank stocks and shares of Apple AAPL.O, after a report said the company plans to slow hiring and spending growth next year. Apple shares reversed course to trade down 1.8% at $147.4 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. "Financials have generally been better or at least better than feared so far," said Zachary Hill, head of portfolio strategy at Horizon Investments in Charlotte, North Carolina, referring to U.S. earnings trends. | By Echo Wang July 18 (Reuters) - Wall Street stocks declined on Monday on a slide in bank stocks and shares of Apple AAPL.O, after a report said the company plans to slow hiring and spending growth next year. The S&P 500 financial sector .SPSY was down 0.16% despite earnings from big banks beating profit expectations. Apple shares reversed course to trade down 1.8% at $147.4 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. | By Echo Wang July 18 (Reuters) - Wall Street stocks declined on Monday on a slide in bank stocks and shares of Apple AAPL.O, after a report said the company plans to slow hiring and spending growth next year. Apple shares reversed course to trade down 1.8% at $147.4 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. (Reporting by Echo Wang in New York; Additinoal reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington) ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street stocks declined on Monday on a slide in bank stocks and shares of Apple AAPL.O, after a report said the company plans to slow hiring and spending growth next year. The S&P 500 financial sector .SPSY was down 0.16% despite earnings from big banks beating profit expectations. Worries about a larger one percentage point rate hike at the end of July eased following remarks from Fed officials last week that the policymakers could stick to a 75 basis point hike. |
20248.0 | 2022-07-18 00:00:00 UTC | Wall Street ends lower on slide in Apple shares, bank stocks | AAPL | https://www.nasdaq.com/articles/wall-street-ends-lower-on-slide-in-apple-shares-bank-stocks | nan | nan | By Echo Wang
July 18 (Reuters) - Wall Street stocks closedlower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year.
After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close.
Apple shares reversed course to trade down on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Goldman Sachs advanced as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading.
Worries about a larger one percentage point rate hike at the end of July eased following remarks from Fed officials last week that the policymakers could stick to a 75 basis point hike.
"It's really hard to sustain upward momentum," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "And that's kind of the story of bear markets."
According to preliminary data, the S&P 500 .SPX lost 32.43 points, or 0.84%, to end at 3,830.73 points, while the Nasdaq Composite .IXIC lost 95.54 points, or 0.83%, to 11,356.88. The Dow Jones Industrial Average .DJI fell 215.12 points, or 0.69%, to 31,073.14.
Earnings from big technology companies next week will be closely watched, after their shares came under immense selling pressure through much of this year.
Among other shares, Boeing Co BA.N jumped after Delta Air Lines Inc DAL.N said it would buy 100 MAX 10 jets worth about $13.5 billion at list prices and had options to buy another 30. Shares of Delta also jumped.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street stocks closedlower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. Apple shares reversed course to trade down on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. | By Echo Wang July 18 (Reuters) - Wall Street stocks closedlower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. Apple shares reversed course to trade down on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. According to preliminary data, the S&P 500 .SPX lost 32.43 points, or 0.84%, to end at 3,830.73 points, while the Nasdaq Composite .IXIC lost 95.54 points, or 0.83%, to 11,356.88. | By Echo Wang July 18 (Reuters) - Wall Street stocks closedlower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. Apple shares reversed course to trade down on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. (Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington) ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Echo Wang July 18 (Reuters) - Wall Street stocks closedlower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. According to preliminary data, the S&P 500 .SPX lost 32.43 points, or 0.84%, to end at 3,830.73 points, while the Nasdaq Composite .IXIC lost 95.54 points, or 0.83%, to 11,356.88. |
20249.0 | 2022-07-18 00:00:00 UTC | Alphabet (GOOGL) Boosts Google Maps With Recent Capability | AAPL | https://www.nasdaq.com/articles/alphabet-googl-boosts-google-maps-with-recent-capability | nan | nan | Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps.
Reportedly, Google is gearing up to add a capability to Google Maps, which will allow users to specify the engine type of the vehicle they are driving.
By providing the specifications of the engine, Google Maps users can view the most energy-efficient routes which will save their fuel.
The latest useful feature is expected to deliver enhanced mapping experience which in turn is expected to boost the adoption rate of Google Maps in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google Maps Initiatives
Apart from the recent capability, Google added a widget to Google Maps, which updates information on nearby traffic at the user’s current location.
Additionally, Google introduced a feature to Searches and Maps, which shows “Identifies as LGBTQ+ owned” on the business profiles of sellers belonging to the LGBTQ+ community.
Google is making efforts to show estimated toll prices for planned routes on Google Maps to users of both Android and iOS.
All these endeavors will continue to help Google drive momentum among its users. This, in turn, is likely to get reflected in the performance of the Google Services segment, which will benefit Alphabet’s overall financial performance.
Google Services generated $61.5 billion revenues (90.4% of total revenues) in first-quarter 2022, up 20.1% from the prior-year quarter’s level.
Moreover, strengthening financial performance will aid GOOGL in winning investors’ confidence in the near term. Shares of GOOGL have been down 22.8% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 28.8%.
Competitive Threat
However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services.
Apple, which has lost 15.4% in the year-to-date period, offers its web mapping service named Apple Maps. It provides directions and an estimated arrival time for driving, walking, cycling and public transportation navigation.
Recently, Apple introduced a capability to its Apple Maps app for iOS 16 users, which lets them add multi-stop routing to the app.
Thus, Apple’s growing efforts to enrich its web mapping application threaten Alphabet’s market position.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Aspen Technology AZPN and Agilent Technologies A, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen technology has returned 15.7% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Agilent Technologies has lost 25.5% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 10%.
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
Agilent Technologies, Inc. (A): Free Stock Analysis Report
Aspen Technology, Inc. (AZPN): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Competitive Threat However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services. Apple Inc. (AAPL): Free Stock Analysis Report By providing the specifications of the engine, Google Maps users can view the most energy-efficient routes which will save their fuel. | Competitive Threat However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services. Apple Inc. (AAPL): Free Stock Analysis Report Recently, Apple introduced a capability to its Apple Maps app for iOS 16 users, which lets them add multi-stop routing to the app. | Competitive Threat However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps. | Competitive Threat However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services. Apple Inc. (AAPL): Free Stock Analysis Report Reportedly, Google is gearing up to add a capability to Google Maps, which will allow users to specify the engine type of the vehicle they are driving. |
20250.0 | 2022-07-18 00:00:00 UTC | Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-2 | nan | nan | If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $12.05 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.87%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 47.70% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.06% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 53.67% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has lost about -25.57% so far this year and is down about -15.57% in the last one year (as of 07/18/2022). In the past 52-week period, it has traded between $50.47 and $73.48.
The ETF has a beta of 1.04 and standard deviation of 26.38% for the trailing three-year period, making it a medium risk choice in the space. With about 241 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $68.94 billion in assets, Invesco QQQ has $162.09 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.06% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $12.05 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.06% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.06% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.06% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000. |
20251.0 | 2022-07-18 00:00:00 UTC | Pegasus phone spyware used to target 30 Thai activists, cyber watchdogs say | AAPL | https://www.nasdaq.com/articles/pegasus-phone-spyware-used-to-target-30-thai-activists-cyber-watchdogs-say | nan | nan | BANGKOK, July 18 (Reuters) - At least 30 political activists in Thailand have been hacked using Israeli surveillance spyware Pegasus, according to a joint investigation by human rights and cyber monitoring groups, which suspect the attacks were launched locally.
The probe by Thai human rights group iLaw, Southeast Asian internet watchdog Digital Reach and Toronto-based Citizen Lab, followed a mass alert from Apple Inc AAPL.O in November informing thousands of iPhone users, including in Thailand, that they were targets of "state-sponsored attackers".
Pegasus has been used by governments to spy on journalists, activists, and dissidents and the Israeli firm behind it, NSO Group, has been sued by Apple and placed on a U.S. trade blacklist.
iLaw in its report on Monday said 24 political activists, three academics and three members of civil society groups were targeted between October 2020 and November 2021, ranging from one to 14 hacking incidents each.
Yingcheep Atchanont, programme manager at iLaw, was among those hacked and said his group would investigate further, and pursue legal action once it becomes clear who in Thailand was operating Pegasus.
"NSO has said that they only sell the software to governments and that all the victims here are Thai government critics, so they benefited the most," he said.
NSO Group and a spokesperson for Thailand's government did not immediately respond to requests for comment.
Wetang Phuangsup, a spokesperson for Thailand's ministry of Digital Economy and Society, said his ministry was not aware of any usage of spyware by the government.
Citizen Lab's report, which was separate to that of iLaw, examined digital traces left in the victims' phones and identified Pegasus usage in Thailand as far back as May 2014.
John Scott-Railton, a Citizen Lab researcher, said the investigation showed Pegasus was being operated in Thailand, with many more hacking victims likely.
"What we uncovered is a lot of targeting of dozens of people over a specific time frame, but having done investigation into Pegasus... over the decade, I am confident that it is the tip of the iceberg," he said in an online presentation on Monday.
(Reporting by Panu Wongcha-um; Editing by Martin Petty)
((Panu.Wongcha-um@thomsonreuters.com; +6626488658))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The probe by Thai human rights group iLaw, Southeast Asian internet watchdog Digital Reach and Toronto-based Citizen Lab, followed a mass alert from Apple Inc AAPL.O in November informing thousands of iPhone users, including in Thailand, that they were targets of "state-sponsored attackers". BANGKOK, July 18 (Reuters) - At least 30 political activists in Thailand have been hacked using Israeli surveillance spyware Pegasus, according to a joint investigation by human rights and cyber monitoring groups, which suspect the attacks were launched locally. "What we uncovered is a lot of targeting of dozens of people over a specific time frame, but having done investigation into Pegasus... over the decade, I am confident that it is the tip of the iceberg," he said in an online presentation on Monday. | The probe by Thai human rights group iLaw, Southeast Asian internet watchdog Digital Reach and Toronto-based Citizen Lab, followed a mass alert from Apple Inc AAPL.O in November informing thousands of iPhone users, including in Thailand, that they were targets of "state-sponsored attackers". BANGKOK, July 18 (Reuters) - At least 30 political activists in Thailand have been hacked using Israeli surveillance spyware Pegasus, according to a joint investigation by human rights and cyber monitoring groups, which suspect the attacks were launched locally. John Scott-Railton, a Citizen Lab researcher, said the investigation showed Pegasus was being operated in Thailand, with many more hacking victims likely. | The probe by Thai human rights group iLaw, Southeast Asian internet watchdog Digital Reach and Toronto-based Citizen Lab, followed a mass alert from Apple Inc AAPL.O in November informing thousands of iPhone users, including in Thailand, that they were targets of "state-sponsored attackers". BANGKOK, July 18 (Reuters) - At least 30 political activists in Thailand have been hacked using Israeli surveillance spyware Pegasus, according to a joint investigation by human rights and cyber monitoring groups, which suspect the attacks were launched locally. Citizen Lab's report, which was separate to that of iLaw, examined digital traces left in the victims' phones and identified Pegasus usage in Thailand as far back as May 2014. | The probe by Thai human rights group iLaw, Southeast Asian internet watchdog Digital Reach and Toronto-based Citizen Lab, followed a mass alert from Apple Inc AAPL.O in November informing thousands of iPhone users, including in Thailand, that they were targets of "state-sponsored attackers". BANGKOK, July 18 (Reuters) - At least 30 political activists in Thailand have been hacked using Israeli surveillance spyware Pegasus, according to a joint investigation by human rights and cyber monitoring groups, which suspect the attacks were launched locally. NSO Group and a spokesperson for Thailand's government did not immediately respond to requests for comment. |
20252.0 | 2022-07-18 00:00:00 UTC | BMW Starts Nickel-and-Diming Car Buyers. Will Other Automakers Follow? | AAPL | https://www.nasdaq.com/articles/bmw-starts-nickel-and-diming-car-buyers.-will-other-automakers-follow | nan | nan | When you buy a luxury car, you expect that, in addition to high performance, you're paying up for amenities that are not available in more basic models. The fit and trim are usually better, and you often get new features first before they work their way down to mainstream models, like automatic parallel parking.
German automaker BMW (OTC: BAMXF)(OTC: BMWYY), however, views the premium nature of these perks a little differently. The luxury car company has begun charging buyers subscription fees to access features that are built into every vehicle they produce.
In a global economy beset by rampant inflation, high gas prices, and the possibility of a recession on the horizon, other automakers may see this as a way to generate incremental streams of revenue to help offset sagging car sales. But they would do so at their own peril.
Image source: Getty Images.
Microtransactions or microaggressions?
The Verge reports that BMW has a slew of new "microtransactions" for its cars sold in various countries such as the U.K., Germany, South Africa, and New Zealand (apparently not the U.S. just yet) that include subscriptions for things like heated seats, Apple's CarPlay technology, automatic map updates, adaptive high beams, and even being able to play engine noises in the vehicle.
A number of these features, such as heated seats and CarPlay functionality, can be found standard in even the base model of mass-market vehicles, while others like adaptive headlights have often been an upgrade. And while a lot of the features can be purchased with a one-time fee, BMW is trying to turn the options into a recurring revenue stream.
By building its cars with all of the features built into the software, it can turn them on and off with the flip of a switch.
In the U.K., for example, heating the front seats of your pricey new BMW will set you back 15 British pounds a month, or a one-time fee of 350 pounds (roughly $415 at recent exchange rates). Being able to have adaptive high beams that automatically dim when oncoming cars approach would cost you 10 pounds a month, or 200 pounds for the "unlimited" option, the equivalent of around $237.
In comparison, Volkswagen (OTC: VWAGY) will charge you $955 to add the feature to your 2022 Jetta as part of its Driver Assistance package, which includes a bunch of other high-tech features, such as automatic braking if you get too close to a car in front of you and monitoring your blind spots -- that will cost you another 750 pounds, or $883, on your BMW.
A new way to pay
It used to be only your bank or wireless carrier would ding you with fees for whatever service they offered, but BMW's plan seems more reminiscent of when airlines began charging passengers for every amenity.
First, it was for carry-on bags, but now air travelers can find fees for choosing a seat, paying for snacks, using a plane's Wi-Fi, or even having a nonalcoholic beverage. Not many people think the flying experience has improved with the imposition of those fees.
In reality, BMW is only changing the way it charges you, at least for some of the options, but buyers may not like the idea of having to open their wallet every time they want a new feature, particularly since they're all built into the car anyway.
It's also going to cost BMW more money to build their cars packed with features, many of which will never be used. BMW has been enjoying rising profits because of the spiraling cost of a new car, but nickel-and-diming customers may end up working against it.
New car prices are already at record highs, with the average car price at $45,844, a 14.5% increase from last year. Yet car sales over the first six months of 2022 are expected to be 5.8 million, a better-than-19% drop from the year-ago period.
Introducing niggling charges for what many might think ought to be a standard feature in a luxury car will win the automakers few friends and could further exacerbate declining sales.
10 stocks we like better than BMW
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 BMW 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
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Volkswagen AG. The Motley Fool recommends BMW 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. | In a global economy beset by rampant inflation, high gas prices, and the possibility of a recession on the horizon, other automakers may see this as a way to generate incremental streams of revenue to help offset sagging car sales. The Verge reports that BMW has a slew of new "microtransactions" for its cars sold in various countries such as the U.K., Germany, South Africa, and New Zealand (apparently not the U.S. just yet) that include subscriptions for things like heated seats, Apple's CarPlay technology, automatic map updates, adaptive high beams, and even being able to play engine noises in the vehicle. A new way to pay It used to be only your bank or wireless carrier would ding you with fees for whatever service they offered, but BMW's plan seems more reminiscent of when airlines began charging passengers for every amenity. | The Verge reports that BMW has a slew of new "microtransactions" for its cars sold in various countries such as the U.K., Germany, South Africa, and New Zealand (apparently not the U.S. just yet) that include subscriptions for things like heated seats, Apple's CarPlay technology, automatic map updates, adaptive high beams, and even being able to play engine noises in the vehicle. Being able to have adaptive high beams that automatically dim when oncoming cars approach would cost you 10 pounds a month, or 200 pounds for the "unlimited" option, the equivalent of around $237. The Motley Fool recommends BMW and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | The Verge reports that BMW has a slew of new "microtransactions" for its cars sold in various countries such as the U.K., Germany, South Africa, and New Zealand (apparently not the U.S. just yet) that include subscriptions for things like heated seats, Apple's CarPlay technology, automatic map updates, adaptive high beams, and even being able to play engine noises in the vehicle. In comparison, Volkswagen (OTC: VWAGY) will charge you $955 to add the feature to your 2022 Jetta as part of its Driver Assistance package, which includes a bunch of other high-tech features, such as automatic braking if you get too close to a car in front of you and monitoring your blind spots -- that will cost you another 750 pounds, or $883, on your BMW. In reality, BMW is only changing the way it charges you, at least for some of the options, but buyers may not like the idea of having to open their wallet every time they want a new feature, particularly since they're all built into the car anyway. | When you buy a luxury car, you expect that, in addition to high performance, you're paying up for amenities that are not available in more basic models. The Verge reports that BMW has a slew of new "microtransactions" for its cars sold in various countries such as the U.K., Germany, South Africa, and New Zealand (apparently not the U.S. just yet) that include subscriptions for things like heated seats, Apple's CarPlay technology, automatic map updates, adaptive high beams, and even being able to play engine noises in the vehicle. That's right -- they think these 10 stocks are even better buys. |
20253.0 | 2022-07-18 00:00:00 UTC | Apple to slow hiring, spending for some teams next year - Bloomberg | AAPL | https://www.nasdaq.com/articles/apple-to-slow-hiring-spending-for-some-teams-next-year-bloomberg | nan | nan | Adds details
July 18 (Reuters) - Apple Inc AAPL.O intends to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter.
The changes will not affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015, the report said.
Shares of the company, which did not immediately respond to a Reuters request for comment, reversed course to trade down nearly a percent at $148.95.
Apple is the latest company with plans to slow hiring, joining Meta Platforms META.O, Tesla Inc TSLA.O and a number of U.S. banks as they prepare for a potential economic slowdown.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Aditya Soni)
((ankur.banerjee@thomsonreuters.com;; Mobile - +919591691912; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details July 18 (Reuters) - Apple Inc AAPL.O intends to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter. The changes will not affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015, the report said. Apple is the latest company with plans to slow hiring, joining Meta Platforms META.O, Tesla Inc TSLA.O and a number of U.S. banks as they prepare for a potential economic slowdown. | Adds details July 18 (Reuters) - Apple Inc AAPL.O intends to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter. Apple is the latest company with plans to slow hiring, joining Meta Platforms META.O, Tesla Inc TSLA.O and a number of U.S. banks as they prepare for a potential economic slowdown. (Reporting by Ankur Banerjee in Bengaluru; Editing by Aditya Soni) ((ankur.banerjee@thomsonreuters.com;; Mobile - +919591691912; Twitter: @AnkurBanerjee17;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details July 18 (Reuters) - Apple Inc AAPL.O intends to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter. Apple is the latest company with plans to slow hiring, joining Meta Platforms META.O, Tesla Inc TSLA.O and a number of U.S. banks as they prepare for a potential economic slowdown. (Reporting by Ankur Banerjee in Bengaluru; Editing by Aditya Soni) ((ankur.banerjee@thomsonreuters.com;; Mobile - +919591691912; Twitter: @AnkurBanerjee17;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details July 18 (Reuters) - Apple Inc AAPL.O intends to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter. The changes will not affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015, the report said. Shares of the company, which did not immediately respond to a Reuters request for comment, reversed course to trade down nearly a percent at $148.95. |
20254.0 | 2022-07-18 00:00:00 UTC | Did Snap's Prospects Worsen After Its Latest Warning to Investors? | AAPL | https://www.nasdaq.com/articles/did-snaps-prospects-worsen-after-its-latest-warning-to-investors | nan | nan | Snap (NYSE: SNAP) is scheduled to report fiscal 2022 second-quarter earnings after the markets close on Thursday, July 22. The social media company faces headwinds that are causing revenue growth to slow. These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation.
Management already gave investors a mid-quarter warning that the period was progressing considerably worse than expected. Shareholders will want to pay close attention to see if Snap's quarter worsened further after it updated investors on May 23.
Snap to miss the lower end of guidance
On that day, the company informed the market that macroeconomic conditions had worsened quickly since it issued projections on April 21. They added that those forces would likely cause Snap to miss even the lower end of its revenue and profitability forecast for the second quarter. With its first-quarter earnings, management said revenue growth in the second quarter would be in the range of 20% to 25% at the midpoint. Meanwhile, it said adjusted earnings before interest, taxes, depreciation, and amortization would fall between breakeven and $50 million.
Management then tried to reassure investors by saying, "We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat and continue to see significant opportunities to grow our average revenue per user over the long term." But the latter statement had little effect as the stock crashed following the warning.
Fortunately, Snap is starting from a brisk pace of growth. In its most recent quarter, which ended on March 31, revenue increased by 38% from the same quarter in the prior year. Even if the headwinds mentioned above pull down this growth rate, it could remain above double digits while it adjusts the business to counter these forces.
The company's app is free to join and use, so it has little to lose from a customer's standpoint as inflation pinches purchasing power. On the contrary, folks may look to the social media app as a lower-cost (free) alternative form of entertainment as prices rise for fuel, movie tickets, and concerts. However, marketers may be willing to spend less to gain the attention of consumers who are themselves less inclined to spend money.
Snap boasts 332 million daily active users, up 13 million from the previous quarter. Impressively, the company has sustained user growth despite the economic reopening, which has created more options on what folks could do with their time.
What this could mean for Snap investors
Analysts on Wall Street expect Snap to report revenue of $1.14 billion and a loss per share of $0.01. If the company reaches those projections, it will mean a revenue increase of 35.4% from the same period a year before. Meanwhile, earnings per share (EPS) would turn negative after it reported a positive $0.01 in the same quarter last year. Interestingly, analyst estimates for revenue growth of 35% seem overly optimistic, considering management already said revenue growth would be below the lower end of its guidance (20% for Q2).
SNAP Price to Free Cash Flow data by YCharts
Snap's valuation is down but is still expensive on an absolute basis with a price-to-free-cash-flow ratio of 106. Investors will want to steer clear of this investment until it puts the headwinds behind it or its valuation becomes more favorable.
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.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Snap Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation. Snap to miss the lower end of guidance On that day, the company informed the market that macroeconomic conditions had worsened quickly since it issued projections on April 21. Even if the headwinds mentioned above pull down this growth rate, it could remain above double digits while it adjusts the business to counter these forces. | These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation. Shareholders will want to pay close attention to see if Snap's quarter worsened further after it updated investors on May 23. What this could mean for Snap investors Analysts on Wall Street expect Snap to report revenue of $1.14 billion and a loss per share of $0.01. | These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation. Snap (NYSE: SNAP) is scheduled to report fiscal 2022 second-quarter earnings after the markets close on Thursday, July 22. What this could mean for Snap investors Analysts on Wall Street expect Snap to report revenue of $1.14 billion and a loss per share of $0.01. | These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation. Shareholders will want to pay close attention to see if Snap's quarter worsened further after it updated investors on May 23. Interestingly, analyst estimates for revenue growth of 35% seem overly optimistic, considering management already said revenue growth would be below the lower end of its guidance (20% for Q2). |
20255.0 | 2022-07-18 00:00:00 UTC | Disney (DIS) Set to Hike ESPN+ Subscription Price by 43% | AAPL | https://www.nasdaq.com/articles/disney-dis-set-to-hike-espn-subscription-price-by-43 | nan | nan | The Walt Disney Company DIS is hiking the monthly subscription price of ESPN+ by $3 or 43%. Per Reuters, ESPN+ subscription will now increase to $9.99 on monthly basis beginning Aug 23. Annual subscription prices will go up to $99.99 from $69.99. However, the company will not hike price for the subscribers using the bundled services.
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) has been able to attract subscribers amid stiff competition from the likes of Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok.
Disney+ garnered 137.7 million paid subscribers within a short span of its availability (launched Nov 12, 2019). Hulu and ESPN+ had 45.6 million and 22.3 million paid subscribers, respectively, at the end of second-quarter fiscal 2022.
Disney’s focus on sports streaming, particularly live sports, is expected to drive growth for ESPN+. For instance, ESPN+ offers tournaments like UFC Lightweight Championship, Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis (Wimbledon and the Australian Open), and live sporting events, original shows, series and documentaries.
Disney+: Key Growth Driver for Disney
Disney shares are having a terrible 2022. The company’s profitability is expected to be negatively impacted by higher investments in content, which will drive up programming and production costs at Media and Entertainment Distribution. Disney now expects to cut overall film and TV spending by $1 billion to $32 billion in fiscal 2022.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Shares of this Zacks Rank #3 (Hold) company have lost 38.5% year to date compared with the Zacks Consumer Discretionary sector’s decline of 34.6% on a year-to-date basis.
Nevertheless, Disney benefits from the growing popularity of Disney+ owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base.
Disney+ has emerged as a key growth driver for Disney, primarily driven by its solid content portfolio. Disney has an impressive line-up of big-budget movies slated to be released over the next couple of years, a number of which will appear on Disney+ simultaneously with their theatrical releases.
Disney recently began offering its streaming service, Disney+, in 16 countries across the Middle East and North Africa. Thanks to its robust content portfolio, the company remains on track to achieve its guidance of 230-260 million paid subscribers for Disney+ by the end of fiscal 2024. Expansion into the Middle East and North Africa will further help Disney in its cause.
Given the breadth of content of Disney+, the streaming platform is expected to grab the second spot in the region, with a subscriber base of 6.5 million in the region by 2027, trailing only Netflix, which is likely to have a viewer base of 11 million, per Digital TV Research data.
Netflix has been leveraging the talent of local producers in Asia lately, and some of its bets have turned into home runs, such as The White Tiger and Crash Landing on You. Netflix has renewed a raft of its Asian originals lately, including Korean hits like Squid Game, teen zombie horror All Of Us Are Dead, and D.P.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. This year, Apple TV+ has earned 52 Emmy nominations, with the second season of Ted Lasso getting 20 nominations overall. Another show, Severance, has garnered 14 total nominations in its first season.
Disney like Netflix is expanding its Asian presence. The company recently announced a deal to bring a documentary series and a concert featuring the electrifying, mega-popular K-Pop band, BTS, to Disney+.
A Key Stock to Consider
Nexstar Media NXST with a Zacks Rank #2 (Buy) is a better-ranked stock in the same sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nexstar Media shares are up 12.5% on a year-over-year basis. The Zacks Consensus Estimate for second-quarter 2022 is pegged at $5.46 per share, unchanged over the past 30 days.
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
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Nexstar Media Group, Inc (NXST): 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. | Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) has been able to attract subscribers amid stiff competition from the likes of Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The company’s profitability is expected to be negatively impacted by higher investments in content, which will drive up programming and production costs at Media and Entertainment Distribution. | Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) has been able to attract subscribers amid stiff competition from the likes of Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company DIS is hiking the monthly subscription price of ESPN+ by $3 or 43%. | Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) has been able to attract subscribers amid stiff competition from the likes of Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company Price and Consensus The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote Shares of this Zacks Rank #3 (Hold) company have lost 38.5% year to date compared with the Zacks Consumer Discretionary sector’s decline of 34.6% on a year-to-date basis. | Apple Inc. (AAPL): Free Stock Analysis Report Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) has been able to attract subscribers amid stiff competition from the likes of Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok. Disney’s focus on sports streaming, particularly live sports, is expected to drive growth for ESPN+. |
20256.0 | 2022-07-18 00:00:00 UTC | Can Apple (AAPL) Keep the Earnings Surprise Streak Alive? | AAPL | https://www.nasdaq.com/articles/can-apple-aapl-keep-the-earnings-surprise-streak-alive | nan | nan | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Apple (AAPL). This company, which is in the Zacks Computer - Mini computers industry, shows potential for another earnings beat.
This maker of iPhones, iPads and other products has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.70%.
For the last reported quarter, Apple came out with earnings of $1.52 per share versus the Zacks Consensus Estimate of $1.43 per share, representing a surprise of 6.29%. For the previous quarter, the company was expected to post earnings of $1.89 per share and it actually produced earnings of $2.10 per share, delivering a surprise of 11.11%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Apple lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Apple has an Earnings ESP of +0.88% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 28, 2022.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report For the last reported quarter, Apple came out with earnings of $1.52 per share versus the Zacks Consensus Estimate of $1.43 per share, representing a surprise of 6.29%. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. |
20257.0 | 2022-07-18 00:00:00 UTC | Get Ready for Earnings Season With EPS | AAPL | https://www.nasdaq.com/articles/get-ready-for-earnings-season-with-eps | nan | nan | It’s the first full week of earnings reports as major banks continue to report their second quarter performance and economic outlook for the second half, having kicked off last week with mixed performances from Morgan Stanley and JPMorgan Chase. Major companies begin reporting this week and in a season of prolonged market volatility, earnings are being closely watched by all.
Goldman Sachs was first to release earnings Monday morning, beating expectations in both revenue and earnings, with markets responding positively, all while warning that inflation has become “deeply entrenched” in the U.S. economy, according to David Solomon, CEO of Goldman Sachs. Bank of America has also beat expectations for its quarterly revenue.
S&P 500 companies begin reporting this week too, and the expectation is that profits will have grown 4.2% in the second quarter of 2022 with a 10.2% growth in revenue over the same period according to FactSet data.
Image source: FactSet
“We expect the results to be generally okay,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told CNBC. “I think focus will primarily be on margins and to the extent to which companies are able to pass along higher input costs, that’ll dictate where perhaps valuations can go.”
EPS Invests in Companies with Positive Earnings
With earnings season just kicking off, an easy way to capitalize on companies with cumulative positive earnings is through investment in the WisdomTree U.S. LargeCap Fund (EPS).
"While companies are likely to cite recessionary concerns during earnings, there will be areas of growth as some are able to benefit from higher commodity prices or pass along higher costs," said Todd Rosenbluth, head of research at VettaFi.
EPS seeks to track the WisdomTree U.S. LargeCap Index, an index that is constructed of the 500 largest companies by market cap from the WisdomTree Total Market Index. This parent index is made up of companies that are listed, incorporated, and domiciled in the U.S. and have positive, cumulative earnings for the four most recent fiscal quarters closest to the annual screening date for the index.
The index is weighted by earnings based on the aggregate earnings of each company, with a max cap to sector representation of 25% (the real estate sector is capped at 15%). The weights may fluctuate depending on market performance and trends as well as volume factor adjustments and are reset annually at rebalance.
The fund utilizes representative sampling and invests at least 95% of assets in the component securities of the index under normal circumstances.
EPS carries an expense ratio of 0.08% and current top allocations include Apple at 6.24%, Alphabet at 4.81%, and Microsoft at 4.08%.
For more news, information, and strategy, visit the Modern Alpha Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Major companies begin reporting this week and in a season of prolonged market volatility, earnings are being closely watched by all. S&P 500 companies begin reporting this week too, and the expectation is that profits will have grown 4.2% in the second quarter of 2022 with a 10.2% growth in revenue over the same period according to FactSet data. Image source: FactSet “We expect the results to be generally okay,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told CNBC. | It’s the first full week of earnings reports as major banks continue to report their second quarter performance and economic outlook for the second half, having kicked off last week with mixed performances from Morgan Stanley and JPMorgan Chase. Major companies begin reporting this week and in a season of prolonged market volatility, earnings are being closely watched by all. “I think focus will primarily be on margins and to the extent to which companies are able to pass along higher input costs, that’ll dictate where perhaps valuations can go.” EPS Invests in Companies with Positive Earnings With earnings season just kicking off, an easy way to capitalize on companies with cumulative positive earnings is through investment in the WisdomTree U.S. LargeCap Fund (EPS). | Goldman Sachs was first to release earnings Monday morning, beating expectations in both revenue and earnings, with markets responding positively, all while warning that inflation has become “deeply entrenched” in the U.S. economy, according to David Solomon, CEO of Goldman Sachs. “I think focus will primarily be on margins and to the extent to which companies are able to pass along higher input costs, that’ll dictate where perhaps valuations can go.” EPS Invests in Companies with Positive Earnings With earnings season just kicking off, an easy way to capitalize on companies with cumulative positive earnings is through investment in the WisdomTree U.S. LargeCap Fund (EPS). EPS seeks to track the WisdomTree U.S. LargeCap Index, an index that is constructed of the 500 largest companies by market cap from the WisdomTree Total Market Index. | Bank of America has also beat expectations for its quarterly revenue. “I think focus will primarily be on margins and to the extent to which companies are able to pass along higher input costs, that’ll dictate where perhaps valuations can go.” EPS Invests in Companies with Positive Earnings With earnings season just kicking off, an easy way to capitalize on companies with cumulative positive earnings is through investment in the WisdomTree U.S. LargeCap Fund (EPS). EPS seeks to track the WisdomTree U.S. LargeCap Index, an index that is constructed of the 500 largest companies by market cap from the WisdomTree Total Market Index. |
20258.0 | 2022-07-18 00:00:00 UTC | Will Revenue Contraction Affect AT&T's (T) Q2 Earnings? | AAPL | https://www.nasdaq.com/articles/will-revenue-contraction-affect-atts-t-q2-earnings | nan | nan | AT&T Inc. T is scheduled to report second-quarter 2022 results, before the opening bell, on Jul 21. In the last reported quarter, adjusted earnings missed the Zacks Consensus Estimate by a penny. In the second quarter, the company is likely to have recorded lower revenues year over year despite improving market conditions due to continued infrastructure investments for 5G rollout across the country, spin-off and divestment of businesses.
Factors at Play
In the second quarter, AT&T continued to expand its 5G network infrastructure and launched 5G+ service in select areas. The company’s 5G network currently covers more than 277 million users across the country and its 5G+ network is available in parts of 40 cities. AT&T deployed the C-Band spectrum in a phased manner in the second quarter to further expand its 5G+ coverage and delayed deployment near airports as part of the FAA deal. The company aims to reach 70 million to 75 million people by the end of 2022 with its 5G+ service and targets to cover up to 200 million people in 2023. It is benefiting from lower levels of wireless churn due to seamless access to 5G technology on its unlimited wireless plans for consumers and businesses and the growing adoption of Unlimited Elite wireless plans. Such initiatives are likely to get reflected in the upcoming results.
During the to-be-reported quarter, AT&T collaborated with Northrop Grumman to deliver an open-architecture solution to help the DoD connect sensors and data from all domains. The collaboration brings together some of the best capabilities in defense and commercial communications to meet the evolving requirements of Joint All Domain Command and Control. It will help the DoD develop high-performing and intuitive technologies that seamlessly share data across secure networks. This, in turn, will likely facilitate it to differentiate its 5G offering and gain a competitive advantage by bundling relevant use cases and tariff features to drive higher 5G consumer adoption. This is likely to have translated into higher revenues for the company.
During the quarter, AT&T continued with its aggressive fiber build-out initiatives as it aims to connect 3.5-4 million additional locations with fiber each year to significantly increase its existing fiber footprint to more than 30 million locations by the end of 2025. The company expects that 75% of its network footprint will be either served by fiber or 5G, which will likely halve its legacy copper services exposure. These simplification initiatives are likely to have driven additional cost savings while creating new revenue opportunities.
However, adverse foreign currency translations and high operating costs for 5G deployments and fiber expansion are likely to have led to soft margins in the quarter. The infrastructure investments are expected to have weighed on the margins. Moreover, AT&T has divested its advertising and analytics division, Xandr, to Microsoft and has completed the spin-off of WarnerMedia to Discovery during the quarter. The transaction might enable the carrier to trim its huge debt burden and focus on core businesses. The divestitures are likely to have contracted the revenue base on a year-over-year basis.
The Zacks Consensus Estimate for total revenues of the company stands at $29,318 million, indicating a decline from $44,045 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 59 cents per share. It had reported 89 cents in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for AT&T for the second quarter. 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. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.61%, with the former pegged at 60 cents and the latter at 59 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AT&T Inc. Price and EPS Surprise
AT&T Inc. price-eps-surprise | AT&T Inc. Quote
Zacks Rank: AT&T has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
TELUS Corporation TU is set to release quarterly numbers on Jul 29. It has an Earnings ESP of +25.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Qorvo Inc. QRVO is +0.41% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 3.
The Earnings ESP for Apple Inc. AAPL is +0.88% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jul 28.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
TELUS Corporation (TU): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Qorvo, Inc. (QRVO): 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. | The Earnings ESP for Apple Inc. AAPL is +0.88% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report During the to-be-reported quarter, AT&T collaborated with Northrop Grumman to deliver an open-architecture solution to help the DoD connect sensors and data from all domains. | The Earnings ESP for Apple Inc. AAPL is +0.88% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report It is benefiting from lower levels of wireless churn due to seamless access to 5G technology on its unlimited wireless plans for consumers and businesses and the growing adoption of Unlimited Elite wireless plans. | The Earnings ESP for Apple Inc. AAPL is +0.88% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report In the last reported quarter, adjusted earnings missed the Zacks Consensus Estimate by a penny. | The Earnings ESP for Apple Inc. AAPL is +0.88% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report In the second quarter, the company is likely to have recorded lower revenues year over year despite improving market conditions due to continued infrastructure investments for 5G rollout across the country, spin-off and divestment of businesses. |
20259.0 | 2022-07-18 00:00:00 UTC | 3 Stocks You'll Be Happy You Own When the Bear Market Is Over | AAPL | https://www.nasdaq.com/articles/3-stocks-youll-be-happy-you-own-when-the-bear-market-is-over-0 | nan | nan | Bear markets can be a great time to buy stocks that will help juice portfolio returns for years to come. Not every stock declines for the same reason in a down market, and that can bring opportunities for investors that want to pick individual stocks.
There's nothing wrong with taking a more passive approach and buying index funds during a downturn. But stock pickers can do even better by getting shares of great companies whose stocks can realize strong recoveries after a bear market ends. Three great names to own coming out of the current bear market are Tesla (NASDAQ: TSLA), NextEra Energy (NYSE: NEE), and Apple (NASDAQ: AAPL).
Looking for reliability
Investors that got burned betting on speculative stocks might change their approach when the next bull run occurs. That doesn't mean people shouldn't still want to own fast-growing names -- but reliable profits and positive cash flow should be more of a focus. Tesla has been one of those fast-growing stocks in a fast-growing sector. Of course, that combination has led to a high valuation. But the business has plenty of runway left to go. It isn't just growing sales, it has real net income.
Data source: Tesla. Chart by author.
The company has increased profits at a compound quarterly growth rate of 65.9% over the past year. But Tesla shares are down approximately 32% in 2022, and are about flat from the start of 2021.
The company has run into some headwinds from supply chain issues, new plant start-up challenges, and COVID-19-related production delays at its Shanghai plant. CEO Elon Musk has also had other distractions from the saga with Twitter as well as the leader of Tesla's autonomous driving segment leaving the company. With the EV sector looking like it should grow for years to come -- the U.S. just recently passed the milestone of having 5% of new cars sales being electric -- Tesla is a stock long-term investors should want to hold when this bear market ends.
Reliable income also helps
Utilities and other more defensive sectors aren't being hit as hard as growth stocks during this downturn. But investors don't need stocks like NextEra Energy to drop to make them good buys right now. NextEra isn't just a utility, either -- it has a growth segment in its renewable energy subsidiary NextEra Energy Resources. Its renewable energy and battery storage assets are in the sweet spot of a sector with strong momentum.
But investors also get reliable income from NextEra Energy. While the company expects its earnings to grow at a steady mid-to-high single-digit rate through 2025, it projects a 10% annual growth rate in its dividends per share for at least another couple of years. And if history is any guide, the company should achieve that.
NEE Dividend data by YCharts
NextEra has also recently been wading into the water utilities market to boost its cash flow and support that growing dividend.
Getting a discount
A third approach to investing in today's down market is to try and get a discount on a great company. Apple stock is offering that right now. The company reported a record for fiscal second quarter (ended March 26) revenue that grew 9% year-over-year. And it has more than $190 billion in cash, which is always a nice backstop during economic downturns. After dropping nearly 20% this year, Apple is also trading near a multi-year low price-to-earnings (P/E) ratio.
Apple has increased annual revenue by 60% over the last five years. That's not easy to do when the market cap is already near $1 trillion. Investors recognized that and Apple is now valued at more than $2.3 trillion. But the revenue growth has accelerated over the last 18 months, making the stock still a good buy today.
Together, Tesla, NextEra Energy, and Apple help add diversity to a portfolio. But they also each hold something an investor should want when the market swings from bear to bull mode. Buying them now is a great way to position yourself for that inevitable swing.
10 stocks we like better than Tesla
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Howard Smith has positions in Apple and NextEra Energy. The Motley Fool has positions in and recommends Apple, NextEra Energy, Tesla, and Twitter. 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. | Three great names to own coming out of the current bear market are Tesla (NASDAQ: TSLA), NextEra Energy (NYSE: NEE), and Apple (NASDAQ: AAPL). Bear markets can be a great time to buy stocks that will help juice portfolio returns for years to come. CEO Elon Musk has also had other distractions from the saga with Twitter as well as the leader of Tesla's autonomous driving segment leaving the company. | Three great names to own coming out of the current bear market are Tesla (NASDAQ: TSLA), NextEra Energy (NYSE: NEE), and Apple (NASDAQ: AAPL). That doesn't mean people shouldn't still want to own fast-growing names -- but reliable profits and positive cash flow should be more of a focus. The Motley Fool has positions in and recommends Apple, NextEra Energy, Tesla, and Twitter. | Three great names to own coming out of the current bear market are Tesla (NASDAQ: TSLA), NextEra Energy (NYSE: NEE), and Apple (NASDAQ: AAPL). But stock pickers can do even better by getting shares of great companies whose stocks can realize strong recoveries after a bear market ends. With the EV sector looking like it should grow for years to come -- the U.S. just recently passed the milestone of having 5% of new cars sales being electric -- Tesla is a stock long-term investors should want to hold when this bear market ends. | Three great names to own coming out of the current bear market are Tesla (NASDAQ: TSLA), NextEra Energy (NYSE: NEE), and Apple (NASDAQ: AAPL). But stock pickers can do even better by getting shares of great companies whose stocks can realize strong recoveries after a bear market ends. That's right -- they think these 10 stocks are even better buys. |
20260.0 | 2022-07-17 00:00:00 UTC | 5 Red Flags for Unity Software's Future | AAPL | https://www.nasdaq.com/articles/5-red-flags-for-unity-softwares-future | nan | nan | Unity Software (NYSE: U) was one of the hottest tech IPOs of 2020. More than half of the world's mobile, console, and PC games were already created by its namesake engine -- which greatly simplified the development of cross-platform games -- and it was expanding its ecosystem with integrated ads, other monetization features, and tools for non-gaming applications.
Unity went public at $52 per share in September 2020. It opened at $75 and surged to an all-time high of $210 last November, but now trades in the low $30s. Unity's stock collapsed for three simple reasons.
Image source: Getty Images.
First, rising interest rates drove investors away from frothier growth stocks. At its peak, Unity traded at over 50 times the sales it would generate in 2021. Today, it trades at a more reasonable eight times this year's sales. Second, that shift caused investors to abandon unprofitable companies like Unity.
Third, Unity's top-line growth is decelerating. Its revenue rose 43% to $772 million in 2020 and grew 44% to $1.1 billion in 2021, but it expects a severe slowdown this year as it rebuilds the machine-learning algorithm for Unity Ads, a key component of its Operate Solutions platform which started ingesting "bad data" in the first quarter of 2022. That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS.
Unity might seem like a contrarian buy after its steep decline, but investors should review these five red flags before pulling the trigger.
1. Unity laid off its AI and software engineers
Last month, Unity laid off about 4% of its workforce, or slightly more than 200 employees. Most of those layoffs reportedly occurred across its artificial intelligence (AI) and engineering departments, which was odd because it likely needed those employees to rebuild the company's problematic advertising algorithm.
2. Unity bought ironSource right after those layoffs
Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps.
The all-stock deal values ironSource at $4.4 billion, which represents a whopping 74% premium to its 30-day average trading price, and will further dilute Unity's existing shares -- which have already expanded 7% year over year on a weighted-average basis in its first quarter of 2022. It will also inherit ironSource's workforce of 995 employees and 126 contractors.
Bringing in ironSource right after dismissing its own employees suggests that Unity realized it would be easier to simply buy another company's app monetization platform instead of rebuilding its own algorithm.
Unity claims the merger will deliver a run rate of $1 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2024, as well as over $300 million in adjusted EBITDA synergies by the third year. However, this merger could also suffer from acquisition indigestion -- and there's no guarantee ironSource can fix Unity Ads.
3. Unity is reducing its full-year forecast
Along with the ironSource announcement, Unity reduced its full-year revenue forecast from 23% to 30% growth to just 18% to 23% growth.
That's well below Unity's long-term target of generating more than 30% annual revenue growth and implies that Unity Ads is still in deep trouble. The broader slowdown of the gaming market in a post-lockdown market could also be exacerbating that pain. In addition, it suggests that Unity is buying ironSource -- which is expected to generate almost 60% as much revenue as Unity this year -- to inorganically achieve over 30% revenue growth again.
4. Unity is taking on $1 billion in fresh debt
Unity's two largest investors, Silver Lake and Sequoia, plan to invest $1 billion in Unity through new convertible notes which will be issued after the merger closes. Those notes will bear an annual interest rate of 2%, mature in 2027, and sport a conversion price of $48.89 per share.
Unity had already issued $1.7 billion in convertible notes (with a 0% rate), and it ended the first quarter of 2022 with a debt-to-equity ratio of 1.1. ironSource ended its latest quarter with a much lower debt-to-equity ratio of 0.3. Therefore, it seems like Silver Lake and Sequoia are pushing the companies to merge to reduce Unity's leverage so it can take on more debt.
5. Unity's board OK'd a $2.5 billion buyback
On its own, Unity is unprofitable on a generally accepted accounting principles (GAAP) basis. ironSource squeezed out a GAAP profit of $60 million from $553 million in revenue in 2021.
That's why it was baffling when Unity's board authorized a $2.5-billion buyback plan, which will last for 24 months, to be executed after the merger closes. Unity says it will use those buybacks to reduce the dilution from the all-stock merger, but it would arguably be wiser to invest that cash into improvements for its core game engine and ancillary services.
I'm less hopeful about Unity's future
I personally own some shares of Unity, and I've been cautiously optimistic about its turnaround efforts so far. However, these five red flags suggest it's still stuck in the mud and could continue sinking for the foreseeable future.
10 stocks we like better than Unity Software Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Leo Sun has positions in Apple and Unity Software Inc. The Motley Fool has positions in and recommends Apple and Unity Software Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Its revenue rose 43% to $772 million in 2020 and grew 44% to $1.1 billion in 2021, but it expects a severe slowdown this year as it rebuilds the machine-learning algorithm for Unity Ads, a key component of its Operate Solutions platform which started ingesting "bad data" in the first quarter of 2022. Bringing in ironSource right after dismissing its own employees suggests that Unity realized it would be easier to simply buy another company's app monetization platform instead of rebuilding its own algorithm. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity is reducing its full-year forecast Along with the ironSource announcement, Unity reduced its full-year revenue forecast from 23% to 30% growth to just 18% to 23% growth. Unity is taking on $1 billion in fresh debt Unity's two largest investors, Silver Lake and Sequoia, plan to invest $1 billion in Unity through new convertible notes which will be issued after the merger closes. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity bought ironSource right after those layoffs Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps. In addition, it suggests that Unity is buying ironSource -- which is expected to generate almost 60% as much revenue as Unity this year -- to inorganically achieve over 30% revenue growth again. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity bought ironSource right after those layoffs Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps. 10 stocks we like better than Unity Software Inc. |
20261.0 | 2022-07-17 00:00:00 UTC | Wall St Week Ahead-Recession fears loom over U.S. value stocks | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-recession-fears-loom-over-u.s.-value-stocks-0 | nan | nan | By Lewis Krauskopf
NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates.
Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O.
That dynamic shifted this year, as the Federal Reserve kicked off its first interest rate-hike cycle since 2018, disproportionately hurting growth stocks, which are more sensitive to higher interest rates. The Russell 1000 value index .RLV is down around 13% year-to-date, while the Russell 1000 growth index .RLG has fallen about 26%.
This month, however, fears that the Fed's monetary policy tightening could bring on a U.S. recession have shifted the momentum away from value stocks, which tend to be more sensitive to the economy. The Russell value index is up 0.7% in July, compared with a 3.4% gain for its growth-stock counterpart.
"If you think we are in a recession or are going into a recession, that does not necessarily ... work to the advantage of value stocks," said Chuck Carlson, chief executive at Horizon Investment Services.
The nascent shift to growth stocks is one example of how investors are adjusting portfolios in the face of a potential U.S. economic downturn. BofA Global Research on Thursday cut its year-end target price for the S&P 500 to 3,600 from 4,500 previously and became the latest Wall Street bank to forecast a coming recession.
The index closed at 3,863.16 on Friday and is down 18.95% this year.
Corporate earnings arriving in force next week will give investors a better idea of how soaring inflation has affected companies' bottom lines, with results from Goldman Sachs GS.N, Johnson & Johnson JNJ.N and Tesla TSLA.O among those on deck.
For much of the year, value stocks benefited from broader market trends. Energy shares, which comprise around 7% of the Russell 1000 value index, soared over the first half of 2022, jumping along with oil prices as supply constraints for crude were exacerbated by Russia's invasion of Ukraine.
But energy shares along with crude prices and other commodities have tumbled in recent weeks on concerns that a recession would sap demand.
A recession also stands to weigh on bank stocks, with a slowing economy hurting loan growth and increasing credit losses. Financial shares represent nearly 19% of the value index.
An earnings beat from Citigroup, however, buoyed bank shares on Friday, with the S&P 500 banks index .SPXBKgaining 5.76%.
At the same time, tech and other growth companies also tend to have businesses that are less cyclical and more likely able to weather a broad economic slowdown.
"People pay a premium for growth stocks when growth is scarce," said Burns McKinney, portfolio manager at NFJ Investment Group.
JPMorgan analysts earlier this week wrote they believe growth stocks have a "tactical opportunity" to make up lost ground, citing cheaper valuations after this year's sharp sell-off as one of the reasons.
Value stock proponents cite many reasons for the investing style to continue its run.
Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream.
Meanwhile, earnings per share for value companies are expected to rise 15.6% this year, more than twice the rate of growth companies, Credit Suisse estimates.
Data from UBS Global Wealth Management on Thursday showed value stocks tend to outperform growth stocks when inflation is running above 3% - around a third of the 9.1% annual growth U.S. consumer prices registered in June.
Josh Kutin, head of asset allocation, North America at Columbia Threadneedle, believes a possible U.S. recession in the next year would be a mild one, leaving economically sensitive value stocks primed to outperform if growth picks up.
"If I had to pick one, I'd still pick value over growth," he said. "But that conviction has come down since the start of the year," Kutin said.
U.S. value stocks holding up better than growth stockshttps://tmsnrt.rs/3yIKn6A
(Reporting by Lewis Krauskopf, additional reporting by David Randall and Ira Iosebashvili; Editing by Ira Iosebashvili and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. JPMorgan analysts earlier this week wrote they believe growth stocks have a "tactical opportunity" to make up lost ground, citing cheaper valuations after this year's sharp sell-off as one of the reasons. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream. Data from UBS Global Wealth Management on Thursday showed value stocks tend to outperform growth stocks when inflation is running above 3% - around a third of the 9.1% annual growth U.S. consumer prices registered in June. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. The Russell 1000 value index .RLV is down around 13% year-to-date, while the Russell 1000 growth index .RLG has fallen about 26%. |
20262.0 | 2022-07-17 00:00:00 UTC | What's the Best Stock Warren Buffett Owns Right Now? | AAPL | https://www.nasdaq.com/articles/whats-the-best-stock-warren-buffett-owns-right-now | nan | nan | Warren Buffett doesn't claim to be a great stock-picker. He maintains adamantly that he and his longtime associate Charlie Munger are instead "business-pickers." Of course, that ability to pick great businesses had resulted in plenty of fantastic stocks landing in Buffett's portfolio.
What's the best stock Buffett owns right now? It's not an easy decision. Here are my picks for the top three contenders.
1. Berkshire Hathaway
There's no doubt which stock is Buffett's personal favorite. It's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). That doesn't automatically make Berkshire Buffett's best stock. However, I put it at the top of the list for three key reasons.
First, Berkshire offers a significant level of diversification with one stock. It's nearly like buying an exchange-traded fund (ETF). Berkshire itself fully owns a wide range of successful businesses, including insurers GEICO and General Re, railroad operator BNSF, and renewable energy leader Berkshire Hathaway Energy. In addition, the conglomerate has stakes in more than 40 publicly traded companies.
Second, Berkshire's financial strength is rock-solid. The company generated leveraged free cash flow of $69.5 billion over the past 12 months. It ended the first quarter with cash, cash equivalents, and short-term investments totaling $102.7 billion. Buffett wrote in his latest letter to Berkshire shareholders, "We want your company to be financially impregnable." That's a great goal -- and one that continues to be achieved.
Third, Berkshire has been a huge winner for investors over the long term. Sure, there's no guarantee that the future will be as bright as the past. However, Berkshire's success is due in large part to the culture that Buffett has built. That culture will likely survive long after he's no longer at the helm.
2. Markel
You can take most of what I said about Berkshire Hathaway and apply it to Markel (NYSE: MKL) as well. Markel is one of the most recent additions to Berkshire's portfolio. It's also the best new Buffett stock, in my view.
Markel is basically a "baby Berkshire." Its market cap of under $17 billion is less than 3% the size of Berkshire. The company focuses on insurance (in this case, specialty insurance). It also owns a variety of other businesses outside of the insurance sector. And Markel invests in the stocks of other companies, notably including Berkshire Hathaway.
In short, Markel's business model is a lot like Berkshire's. Its core business is inflation-resistant, helping Markel stock to handily outperform the overall stock market this year.
I think that over the next decade, Markel could even top Berkshire's performance. It helps that the company is smaller. But Markel's investments also include more higher-growth stocks than Berkshire's portfolio does.
3. Apple
Buffett referred to Apple (NASDAQ: AAPL) as one of Berkshire's "four giants" in his recent letter to shareholders. That's an apt description. Although Berkshire owns only 5.6% of Apple, the tech stock represents a whopping 41.8% of Berkshire's total investment portfolio.
Apple doesn't offer the level of diversification that Berkshire and Markel do. However, it's hard to find a company with greater customer loyalty. Apple is also managed exceptionally well. In 2020, Buffett said that Apple is "probably the best business I know in the world." Earlier this year, he wrote that Apple CEO Tim Cook is "brilliant."
Through the years, Apple has built an extremely sticky ecosystem centered around its iPhone. The company routinely delivers solid growth thanks to the increased demand for ancillary products and services in this ecosystem as well as its annual iPhone upgrades.
Sure, Apple stock is down quite a bit so far in 2022. That's mainly due to the overall stock market weakness, although the company continues to face some supply chain challenges as well. But those are only temporary issues. With growth opportunities in augmented reality and self-driving cars, Apple should remain a big winner for Buffett.
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
Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Buffett referred to Apple (NASDAQ: AAPL) as one of Berkshire's "four giants" in his recent letter to shareholders. Of course, that ability to pick great businesses had resulted in plenty of fantastic stocks landing in Buffett's portfolio. The company routinely delivers solid growth thanks to the increased demand for ancillary products and services in this ecosystem as well as its annual iPhone upgrades. | Apple Buffett referred to Apple (NASDAQ: AAPL) as one of Berkshire's "four giants" in his recent letter to shareholders. And Markel invests in the stocks of other companies, notably including Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel. | Apple Buffett referred to Apple (NASDAQ: AAPL) as one of Berkshire's "four giants" in his recent letter to shareholders. Although Berkshire owns only 5.6% of Apple, the tech stock represents a whopping 41.8% of Berkshire's total investment portfolio. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keith Speights has positions in Apple and Berkshire Hathaway (B shares). | Apple Buffett referred to Apple (NASDAQ: AAPL) as one of Berkshire's "four giants" in his recent letter to shareholders. What's the best stock Buffett owns right now? And Markel invests in the stocks of other companies, notably including Berkshire Hathaway. |
20263.0 | 2022-07-17 00:00:00 UTC | 2 Software Stocks to Buy Hand Over Fist, and 1 To Avoid | AAPL | https://www.nasdaq.com/articles/2-software-stocks-to-buy-hand-over-fist-and-1-to-avoid | nan | nan | The state of growth tech stocks has changed dramatically over the last nine months. Many flew high until late last year, but amid the bear market, a few have fallen more than 80% from their 52-week peak.
This means that many of these stocks have become great buys. Nonetheless, a few remain on the avoid list, meaning investors should remain selective with where they add positions. With an understanding of these factors, investors may want to consider Duolingo (NASDAQ: DUOL) and Roku (NASDAQ: ROKU), while steering clear of Fastly (NYSE: FSLY).
Overlooking this small-cap stock would be quite the faux pas
Jake Lerch (Duolingo): Occasionally, we can get lost in a sea of numbers when researching stocks. Scrutinizing revenue, earnings, and free cash flow can make the eyes glaze over. And yes, all these figures are important. But ultimately, if a company can provide customers with a life-changing product, that company is likely to succeed -- and enrich its shareholders in the process. Just ask longtime shareholders of Apple, Tesla, or Microsoft.
Duolingo might not be the next Apple, but its product can be life-changing. The company runs a language-learning website and app. It offers over 40 language courses, including English, Chinese, German, French, Italian, and many others.
However, what really separates Duolingo from other language-learning companies is its focus on fun. It's part of the company's "gamification" strategy. Duolingo's steps of language mastery are arranged like levels in a game. Learners win badges for sign-in streaks; users can post their accomplishments on social media, generating kudos from friends and family. While the company offers a free version of its app, it generates most of its revenue from paid subscriptions to its premium mode.
Duolingo is small, with a market capitalization of only $4.3 billion. However, it already boasts some impressive metrics. Daily active users (DAUs) were 12.5 million as of the first quarter of 2022 -- up 31% year over year. What's more, paid subscribers rose to 2.9 million, an increase of 60% year over year.
Despite these solid figures, the stock has dropped 28% over the last year. But, if you're an investor looking for a mid-cap stock that could translate into a winner a year or two down the road, Duolingo is a name you should know.
A possible recession will not stop this tech giant's business case
Will Healy (Roku): In the streaming universe, channels, viewers, and advertisers have flocked to Roku. As a primarily neutral platform, it has attracted streaming channels, and its inexpensive players, affordable TVs, and easy-to-use platform continue to attract viewers.
However, most of its revenue comes from advertising. It offers advertisers the ability to target specific markets, and data analytics tools to measure their success. Additionally, television advertising is transitioning to streaming, and Roku should continue to drive higher revenues as that trend claims larger shares of the TV ad market.
Nonetheless, its stock has struggled in the current bear market. Amid that sell-off, Roku stock has lost more than 80% of its value, likely due to a slowdown in growth with the end of lockdowns and a drop in consumer spending.
In the first quarter of 2022, net revenue came in at $734 million. While that increased 28% year over year, it fell short of the 55% net revenue increase in 2021. Roku also reported a Q1 loss of $26 million, down from a $76 million profit in the year-ago quarter. Increases in the cost of sales amid supply chain challenges and rising operating expenses brought about that loss.
But despite the disappointment, the shift in ad dollars to streaming will probably continue. Consequently, the company expects revenue growth to pick up, increasing to 35% in 2022.
Moreover, its price-to-sales ratio has fallen to four, its lowest level since 2017 and down from a peak of 33 in early 2021. As the market recovers and the shift to streaming ads continues, Roku stock looks increasingly like a stock to buy now and hold forever.
Time to disconnect from this former highflier
Justin Pope (Fastly): This content delivery network provider was arguably the toast of Wall Street during COVID-19 in 2020; the stock soared from roughly $20 per share to nearly $130 at its peak. Today shares trade at just $12. Fastly's been bruised and battered in this bear market, but don't assume it's poised to see its former highs.
Fastly operates a content delivery network (CDN). Massive amounts of data constantly travel the world through the internet. For a long time, information would travel from on-premise servers to wherever in the world users needed it. This would potentially create slow or ineffective network performance if data had to travel long distances.
A CDN network stations servers worldwide, all with stored copies of the data it hosts. When that data is needed, the CDN sends that data from the servers located closest to the destination, providing quick and reliable speeds.
Fastly bills customers based on the traffic volume on its network, and it enjoyed strong growth from some big customers, including TikTok. However, Fastly lost TikTok's business and hasn't been able to recover. You can see below how revenue growth has slowed, and cash burn has deepened.
FSLY Revenue (Quarterly YoY Growth) data by YCharts
Fastly's struggles reached a head in May when CEO Joshua Bixby announced plans to leave the company. He's waiting to step down until Fastly hires a new CEO, which essentially makes him a lame duck at the moment.
So, where do investors go from here? Perhaps new leadership will turn things back in the right direction. Maybe a larger technology company could acquire Fastly. But these are what-ifs; the company has roughly $934 million in debt against $640 million in cash and short-term investments, a negative net balance. The stock price is down, making it harder to issue new shares to raise cash if needed.
Things could work out in the long run, and investors could do very well if that comes to pass. However, a bear market like this pummels both strong and broken companies, and there are probably too many better opportunities out than Fastly's stock.
10 stocks we like better than Duolingo, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Duolingo, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Jake Lerch has positions in Tesla. Justin Pope has positions in Roku. Will Healy has positions in Roku. The Motley Fool has positions in and recommends Apple, Fastly, Microsoft, Roku, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, television advertising is transitioning to streaming, and Roku should continue to drive higher revenues as that trend claims larger shares of the TV ad market. Time to disconnect from this former highflier Justin Pope (Fastly): This content delivery network provider was arguably the toast of Wall Street during COVID-19 in 2020; the stock soared from roughly $20 per share to nearly $130 at its peak. FSLY Revenue (Quarterly YoY Growth) data by YCharts Fastly's struggles reached a head in May when CEO Joshua Bixby announced plans to leave the company. | As the market recovers and the shift to streaming ads continues, Roku stock looks increasingly like a stock to buy now and hold forever. The Motley Fool has positions in and recommends Apple, Fastly, Microsoft, Roku, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | With an understanding of these factors, investors may want to consider Duolingo (NASDAQ: DUOL) and Roku (NASDAQ: ROKU), while steering clear of Fastly (NYSE: FSLY). As the market recovers and the shift to streaming ads continues, Roku stock looks increasingly like a stock to buy now and hold forever. However, a bear market like this pummels both strong and broken companies, and there are probably too many better opportunities out than Fastly's stock. | Duolingo's steps of language mastery are arranged like levels in a game. However, most of its revenue comes from advertising. 10 stocks we like better than Duolingo, Inc. |
20264.0 | 2022-07-17 00:00:00 UTC | 2 Warren Buffett Stocks You'll Wish You'd Bought on the Dip | AAPL | https://www.nasdaq.com/articles/2-warren-buffett-stocks-youll-wish-youd-bought-on-the-dip | nan | nan | Even at 91 years old, Warren Buffett is widely regarded as one of the greatest investors in the world. During his ongoing 55-year tenure at his Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company, he has delivered an average annual return of 20%, double the return of the benchmark S&P 500 stock market index.
Buffett's investment philosophy is surprisingly simple: focus on companies that make consistent profits, return money to their shareholders, and have diverse revenue streams. Most importantly, however, he buys these companies with the intention of holding for the extreme long term.
Here are two of Berkshire's best picks that have consistently fit the bill over their respective multidecade histories and are likely to continue doing so.
The case for Amazon
Amazon (NASDAQ: AMZN) went public in 1997, just as the internet technology boom was really heating up. Warren Buffett tends to shy away from businesses he doesn't quite understand, so he avoided Amazon stock, despite recognizing the company for its innovation. It's returned over 122,000% since its IPO. Although Berkshire made a $1 billion purchase in 2019, Warren Buffett has repeatedly expressed regret for not buying in sooner.
Amazon is now the global leader in e-commerce but also has evolved into an incredibly diverse company. Its Amazon Web Services (AWS) business is widely regarded as the No. 1 cloud services provider, and its advertising segment has generated $32.6 billion in sales over the last four quarters -- even more than Alphabet's YouTube video platform.
Advertising could be a strong source of revenue for Amazon going forward as the company leverages its growing portfolio of digital assets. These include its music platform and the rights to the NFL's Thursday Night Football on its Prime streaming service. But for now, AWS is the star of the show, serving as the profitability engine behind the entire company. Despite accounting for just 14% of Amazon's $477.7 billion in total revenue, AWS is responsible for all of its operating income over the last four quarters.
Earlier this year, Amazon announced a new $10 billion share-buyback program, which was the last piece in the Buffett puzzle. Now Amazon is profitable, diverse, and returns money to shareholders. It also has a 25-year track record of performance. With Amazon stock currently down 41% from its all-time high amid the broader tech sell-off, investors might want to buy the dip.
The case for Apple
Not only is Apple (NASDAQ: AAPL) the largest company in the world, with a $2.3 trillion market valuation, but it's also the largest position in Buffett's portfolio. It makes up 41.1% of Berkshire's $322.7 billion in total stock holdings, and like Amazon, it checks all the boxes.
While Apple is best known for its hardware products like the iPhone, iPad, AirPods, and Mac line of computers, it has rapidly expanded its portfolio of services, which are growing more quickly and are more profitable at the margin. These include Apple Pay, Apple Music, iCloud, and the Apple TV+ streaming platform, to name a few.
Where a consumer might purchase a new iPhone once every year or two, most of Apple's services brands are subscription-based, so they generate recurring revenue every month, in many cases. Over the last four quarters, the services segment has made up 19.4% of Apple's total $386 billion in revenue, so it's still a relatively small part of the overall business. But it grew by 24.4%, compared to the prior-12-month period, which is much faster than the products segment's 17.3% growth.
Based on Apple's most recent second quarter of fiscal 2022 (ended March 26), the services segment had a gross profit margin of 72%, compared to just 36% for products. That's because Apple's services are digital and can be delivered instantly with low costs, whereas hardware is expensive to make. In any case, the two business units complement each other nicely and have combined for $101 billion in net income (profit) in the last four quarters.
What does Apple do with all that money? Besides investing in new innovations, it's returning a significant amount to shareholders in two ways. First, it pays a modest quarterly dividend of $0.23 per share, which equates to a dividend yield of 0.68%. Second, it has a very large share-buyback program, totaling $90 billion at the moment, but it follows $43 billion in the last two quarters and another $85 billion in the fiscal 2021 full year.
It's little wonder Buffett is hot on Apple stock. Since the stock trades at a 20% discount from its all-time high, maybe you should be, too.
Find out why Amazon is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Amazon is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of 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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The case for Apple Not only is Apple (NASDAQ: AAPL) the largest company in the world, with a $2.3 trillion market valuation, but it's also the largest position in Buffett's portfolio. Buffett's investment philosophy is surprisingly simple: focus on companies that make consistent profits, return money to their shareholders, and have diverse revenue streams. While Apple is best known for its hardware products like the iPhone, iPad, AirPods, and Mac line of computers, it has rapidly expanded its portfolio of services, which are growing more quickly and are more profitable at the margin. | The case for Apple Not only is Apple (NASDAQ: AAPL) the largest company in the world, with a $2.3 trillion market valuation, but it's also the largest position in Buffett's portfolio. Buffett's investment philosophy is surprisingly simple: focus on companies that make consistent profits, return money to their shareholders, and have diverse revenue streams. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). | The case for Apple Not only is Apple (NASDAQ: AAPL) the largest company in the world, with a $2.3 trillion market valuation, but it's also the largest position in Buffett's portfolio. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | The case for Apple Not only is Apple (NASDAQ: AAPL) the largest company in the world, with a $2.3 trillion market valuation, but it's also the largest position in Buffett's portfolio. Even at 91 years old, Warren Buffett is widely regarded as one of the greatest investors in the world. Over the last four quarters, the services segment has made up 19.4% of Apple's total $386 billion in revenue, so it's still a relatively small part of the overall business. |
20265.0 | 2022-07-15 00:00:00 UTC | SPY, PLRG: Big ETF Outflows | AAPL | https://www.nasdaq.com/articles/spy-plrg%3A-big-etf-outflows | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 14,750,000 units were destroyed, or a 1.6% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.8%, and Microsoft is higher by about 2.3%.
And on a percentage change basis, the ETF with the biggest outflow was the PLRG ETF, which lost 200,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
VIDEO: SPY, PLRG: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in morning trading today Apple is up about 0.8%, and Microsoft is higher by about 2.3%. And on a percentage change basis, the ETF with the biggest outflow was the PLRG ETF, which lost 200,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. VIDEO: SPY, PLRG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 14,750,000 units were destroyed, or a 1.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the PLRG ETF, which lost 200,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. VIDEO: SPY, PLRG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 14,750,000 units were destroyed, or a 1.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the PLRG ETF, which lost 200,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. VIDEO: SPY, PLRG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 14,750,000 units were destroyed, or a 1.6% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.8%, and Microsoft is higher by about 2.3%. And on a percentage change basis, the ETF with the biggest outflow was the PLRG ETF, which lost 200,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. |
20266.0 | 2022-07-15 00:00:00 UTC | Noteworthy ETF Inflows: QQQ, AAPL, MSFT, PEP | AAPL | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-qqq-aapl-msft-pep-0 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $358.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 546,650,000 to 547,900,000). Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is up about 0.8%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and PepsiCo Inc (Symbol: PEP) is up by about 0.2%. For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average:
Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $290.67. 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. | Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is up about 0.8%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and PepsiCo Inc (Symbol: PEP) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $358.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 546,650,000 to 547,900,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is up about 0.8%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and PepsiCo Inc (Symbol: PEP) is up by about 0.2%. For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $290.67. 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 ». | Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is up about 0.8%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and PepsiCo Inc (Symbol: PEP) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $358.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 546,650,000 to 547,900,000). For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $290.67. | Among the largest underlying components of QQQ, in trading today Apple Inc (Symbol: AAPL) is up about 0.8%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and PepsiCo Inc (Symbol: PEP) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $358.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 546,650,000 to 547,900,000). For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average: Looking at the chart above, QQQ's low point in its 52 week range is $269.28 per share, with $408.71 as the 52 week high point — that compares with a last trade of $290.67. |
20267.0 | 2022-07-15 00:00:00 UTC | Should You Buy GOOG on Monday After Its Big Split? | AAPL | https://www.nasdaq.com/articles/should-you-buy-goog-on-monday-after-its-big-split | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’ve talked about how some great stocks are on sale right now.
Here’s one for you: What if a stock went from $2,260 per share to $113… in one day… and nothing about this dominant business changed?
You will see that Monday morning with shares of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
But don’t get too excited. In this case, $113 = $2,260.
That’s impossible, of course. So what’s going on?
GOOG shares are splitting 20:1. After Friday’s close, every single GOOG share gets divided into 20 shares. There will now be 20X more shares on the market, but the price per share be 1/20th of what it used to be.
This is not some once-in-a-lifetime bargain to jump on.
However, interesting things can and do happen around stock splits. So in today’s Market360, let’s look at whether this particular split is a buying opportunity.
Why Would GOOG Split?
This is the second time in six weeks that a $2,000 stock has split 20-to-1.
Amazon (NASDAQ:AMZN) closed at $2,447 on Friday, June 3. On Monday, June 6, it opened $125.25 after the split. Perhaps not coincidentally, the stock hit its highest price that day since the end of April. As of this writing, it is down about 10% since then.
If it feels like you’ve been hearing a lot about stock splits, that’s not because the number of splits has gone up. It’s because big and well-known stocks are doing the splitting.
In the last two years, Amazon, Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA) have all split. Tesla has another one in the works — a proposed 3-for-1 split shareholders will vote on at the company’s annual meeting Aug. 4. And one of the crazy meme stocks, GameStop (NYSE:GME), will split 4-for-1 next Friday, July 22.
The main reason companies split is to make their shares cheaper. In Alphabet’s case, the 20-to-1 split is an instant 95% price cut. That makes the stock more affordable, especially to individual investors.
Honestly, now that investors can buy fractional shares, splitting changes things less than it used to. Still, the companies want to make their stock as accessible as possible to retail investors, and a lower price is the best way to do that.
Is the Split an Opportunity?
Stock splits do tend to attract investors. I closely monitor buying pressure in stocks as it is a sizable chunk of my quantitative analysis, so I do follow splits closely.
Stocks also usually get at least a minor bump. Over the last five years, stocks that split are up one year later 61% of the time, according to the folks at Bespoke. But the bottom line is less encouraging. Stocks that split outperformed the market less than half the time.
A split by itself is not an automatic buy signal. It is a minor factor when compared to a company’s fundamentals.
I have followed Alphabet for a long time. I still think of it as Google, even though it has been almost seven years since the name changed. As you may have seen, MarketWatch has called me “the advisor who recommended Google before anyone else.”
I still like it all of these years later. It is one of the biggest business success stories of our time.
But that doesn’t mean I view the stock as a buy all of the time. In fact, right now I would consider it more of a hold.
While I think the split could bring in new investors — in fact, I think it could pop 8% on Monday — the biggest problem right now is earnings momentum. Earnings are expected to shrink nearly 3% in the current quarter and about 1% for the fiscal year. Alphabet fell short of expectations last quarter by 3.6%, which isn’t a huge miss, but any miss for the company has been rare in recent years.
So, should you run out and snap up shares of GOOG after the split?
Well, according to my Portfolio Grader, the answer is no — though that doesn’t mean it’s a sell either.
As you can see in the Report Card above, GOOG has been a “Hold” in my Portfolio Grader for about three months now. It holds a C-rating for its Fundamental Grade, which is not bad but reflective of the current earnings situation. Its Quantitative Rating is a bit higher at B, and that may hold up after the split if buying pressure builds.
My recommendation is to hang on to GOOG if you own it, but I would be hesitant to buy it now if you don’t. Alphabet is a great company in the midst of an earnings lull, not unlike a lot of other companies. When that tide starts to run, I would expect it to again be a buy at its post-split share price.
P.S. If you are looking for a stock to buy right now, I encourage you to check out my latest presentation with the investor known as “The Prophet” — Whitney Tilson.
Together, we’ve recommended 37 different stocks for gains of 1,000+%. And today, we’re both making the exact same big prediction.
We cover a historic demo in downtown Houston, Texas, that could reshape the market and create millionaires on a single investment.
And yes, we provide a free recommendation.
The only catch is, you’ll want to get in now… while prices are still cheap.
Click here to access the full details.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Amazon.com (AMZN), Alphabet Inc. (GOOG), NVIDIA Corporation (NVDA)
The post Should You Buy GOOG on Monday After Its Big Split? 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. | In the last two years, Amazon, Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA) have all split. If you are looking for a stock to buy right now, I encourage you to check out my latest presentation with the investor known as “The Prophet” — Whitney Tilson. We cover a historic demo in downtown Houston, Texas, that could reshape the market and create millionaires on a single investment. | In the last two years, Amazon, Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA) have all split. You will see that Monday morning with shares of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Amazon (NASDAQ:AMZN) closed at $2,447 on Friday, June 3. | In the last two years, Amazon, Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA) have all split. If it feels like you’ve been hearing a lot about stock splits, that’s not because the number of splits has gone up. Over the last five years, stocks that split are up one year later 61% of the time, according to the folks at Bespoke. | In the last two years, Amazon, Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA) have all split. After Friday’s close, every single GOOG share gets divided into 20 shares. There will now be 20X more shares on the market, but the price per share be 1/20th of what it used to be. |
20268.0 | 2022-07-15 00:00:00 UTC | Is Netflix a Value Stock Ahead of Earnings? | AAPL | https://www.nasdaq.com/articles/is-netflix-a-value-stock-ahead-of-earnings | nan | nan | Today’s episode of Full Court Finance at Zacks explores Netflix NFLX stock ahead of its second quarter earnings release on Tuesday, July 19. The streaming TV stock has been one of the hardest hit growth names on the market. And some investors might start digging into Netflix stock again soon as it approaches possible value status.
Stocks climbed Friday morning as Wall Street prepares to officially enter the busy stretch of corporate earnings season. The big banks helped kick things off and many are now likely growing anxious for the technology results, as big tech continues to drag down the market. Netflix is one of the first huge names to report.
Netflix tumbled alongside many other growth stocks off the Nasdaq’s November peaks. Yet it’s hard to find any well-established, marquee names that have been hit harder than NFLX. The stock is down roughly 70% in 2022 alone compared to the larger Zacks Tech Sector’s 30% fall. The drop includes two massive post-earnings release falls that came on the back of disappointing user growth and forecasts.
Image Source: Zacks Investment Research
The streaming TV pioneer faces increased competition from Disney DIS, Amazon AMZN, Apple AAPL, and nearly every other major media company as streaming attempts to overtake linear TV. Netflix has taken on debt to fuel its original content push and it doesn’t have other revenue streams to bolster its efforts like many of its larger competitors.
Netflix’s days of 25% to 30% top-line growth are likely over, and it is scrambling to make changes to help it attract more users. This includes plans to finally introduce an ad-supported tier after years of speculation. News broke recently that it will partner with Microsoft on its ad-tier efforts.
Even though it faces challenges and a slowdown in growth, NFLX is still expected to lift its revenue from roughly $30 billion in 2021 to $35 billion in 2023. And with the stock now trading where it was in 2017, its valuation looks far more reasonable.
Netflix’s earnings revisions have trended downward to help it land a Zacks Rank #4 (Sell) right now. On top of that, the market volatility and its recent post-earnings release selloffs likely mean investors should wait until Netflix executives provide updated guidance and see how Wall Street reacts before they consider NFLX as a value play.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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. | Image Source: Zacks Investment Research The streaming TV pioneer faces increased competition from Disney DIS, Amazon AMZN, Apple AAPL, and nearly every other major media company as streaming attempts to overtake linear TV. Apple Inc. (AAPL): Free Stock Analysis Report Today’s episode of Full Court Finance at Zacks explores Netflix NFLX stock ahead of its second quarter earnings release on Tuesday, July 19. | Image Source: Zacks Investment Research The streaming TV pioneer faces increased competition from Disney DIS, Amazon AMZN, Apple AAPL, and nearly every other major media company as streaming attempts to overtake linear TV. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report | Image Source: Zacks Investment Research The streaming TV pioneer faces increased competition from Disney DIS, Amazon AMZN, Apple AAPL, and nearly every other major media company as streaming attempts to overtake linear TV. Apple Inc. (AAPL): Free Stock Analysis Report Today’s episode of Full Court Finance at Zacks explores Netflix NFLX stock ahead of its second quarter earnings release on Tuesday, July 19. | Image Source: Zacks Investment Research The streaming TV pioneer faces increased competition from Disney DIS, Amazon AMZN, Apple AAPL, and nearly every other major media company as streaming attempts to overtake linear TV. Apple Inc. (AAPL): Free Stock Analysis Report Netflix is one of the first huge names to report. |
20269.0 | 2022-07-15 00:00:00 UTC | Putin signs law seeking to help Russian investors ditch frozen assets | AAPL | https://www.nasdaq.com/articles/putin-signs-law-seeking-to-help-russian-investors-ditch-frozen-assets | nan | nan | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.
MOSCOW, July 15 (Reuters) - Russian investors will have the right to ask foreign institutions holding their frozen securities to transfer depositary accounting rights to a Russian organisation, according to a law signed by President Vladimir Putin late on Thursday.
Around six trillion roubles ($105.1 billion) of foreign shares held by Russians have been frozen as a result of Western sanctions and Russia's own authorities and platforms restricting trading in foreign assets, the central bank has estimated.
Investors have the right to submit an application for the depositary accounting rights of its foreign-held shares to be transferred to a Russian entity within 90 days from the law's publication, the text of the law said.
Russia saw a boom in private investment in the years leading up to its decision in February to send armed forces into Ukraine, with foreign stocks such as Apple AAPL.Oand Tesla TSLA.O popular among a growing army of retail investors.
Moscow's access to the international economic and global trading systems has been severely restricted as a result of the West's unprecedented sanctions.
Russia's leaders and the central bank are trying to shield the country from those restrictions, accelerating a de-dollarisation drive and encouraging Russians to store their assets domestically in roubles and through Russian securities in order to protect them from possible future sanctions.
Officials have said that the law could allows Russian holders of securities of Russian companies issued abroad, including sovereign Eurobonds, to exit from these assets.
(Reporting by Reuters; Editing by Alistair Bell)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Russia saw a boom in private investment in the years leading up to its decision in February to send armed forces into Ukraine, with foreign stocks such as Apple AAPL.Oand Tesla TSLA.O popular among a growing army of retail investors. This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. Moscow's access to the international economic and global trading systems has been severely restricted as a result of the West's unprecedented sanctions. | Russia saw a boom in private investment in the years leading up to its decision in February to send armed forces into Ukraine, with foreign stocks such as Apple AAPL.Oand Tesla TSLA.O popular among a growing army of retail investors. MOSCOW, July 15 (Reuters) - Russian investors will have the right to ask foreign institutions holding their frozen securities to transfer depositary accounting rights to a Russian organisation, according to a law signed by President Vladimir Putin late on Thursday. Around six trillion roubles ($105.1 billion) of foreign shares held by Russians have been frozen as a result of Western sanctions and Russia's own authorities and platforms restricting trading in foreign assets, the central bank has estimated. | Russia saw a boom in private investment in the years leading up to its decision in February to send armed forces into Ukraine, with foreign stocks such as Apple AAPL.Oand Tesla TSLA.O popular among a growing army of retail investors. MOSCOW, July 15 (Reuters) - Russian investors will have the right to ask foreign institutions holding their frozen securities to transfer depositary accounting rights to a Russian organisation, according to a law signed by President Vladimir Putin late on Thursday. Around six trillion roubles ($105.1 billion) of foreign shares held by Russians have been frozen as a result of Western sanctions and Russia's own authorities and platforms restricting trading in foreign assets, the central bank has estimated. | Russia saw a boom in private investment in the years leading up to its decision in February to send armed forces into Ukraine, with foreign stocks such as Apple AAPL.Oand Tesla TSLA.O popular among a growing army of retail investors. This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, July 15 (Reuters) - Russian investors will have the right to ask foreign institutions holding their frozen securities to transfer depositary accounting rights to a Russian organisation, according to a law signed by President Vladimir Putin late on Thursday. |
20270.0 | 2022-07-15 00:00:00 UTC | Netflix (NFLX) Set to Report Q2 Earnings: What to Expect? | AAPL | https://www.nasdaq.com/articles/netflix-nflx-set-to-report-q2-earnings%3A-what-to-expect | nan | nan | Netflix NFLX is set to report second-quarter 2022 results onJul 19.
The company forecasts its second-quarter earnings to be $3 per share, suggesting a year-over-year decline of 20%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.90 per share, down 2% over the past 30 days. The figure indicates 2.36% decline from the year-ago quarter’s reported figure.
Netflix expects total revenues to increase 9.7% year over year to $8.053 billion. The consensus mark for second-quarter revenues is currently pegged at $8.03 billion, suggesting 9.33% growth from the figure reported in the year-ago quarter.
Netflix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in the remaining one, the average surprise being 25.42%.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions.
Netflix’s shares have lost 71% year to date, underperforming the Zacks Broadcast Radio and Television industry’s decline of 57.2%.
Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL.
Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+ owing to a strong content portfolio and a cheaper bundle offering.
Disney is also expanding into international markets. Disney+, as of Apr 2, 2022, had 137.7 million paid subscribers compared with 103.6 million as of Apr 2, 2021.
Comcast’s Peacock is well poised to grow, owing to its vast library of IP and new productions. Comcast is also planning to leverage Sky’s brand and scale to expand Peacock’s footprint internationally.
Apple’s streaming service, Apple TV+, is gaining recognition, with Ted Lasso season 2 garnering 20 Emmy Award nominations and CODA winning three Academy Awards. This is expected to boost Apple TV+’s viewership.
However, courtesy of its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is still dominating the streaming market.
This Zacks Rank #4 (Sell) company expects to end the second quarter of 2022 with 219.64 million paid subscribers globally, indicating growth of 5% from the year-ago quarter.
The Zacks Consensus Estimate for paid memberships at the end of the period is pegged at 224.23 million, slightly lower than management’s expectation.
The Zacks Consensus Estimate for paid total streaming net membership loss is pegged at 1.662 million.
Netflix’s growing popularity in Asia Pacific (APAC) and Latin America (LATAM), thanks to its diversified content offerings in regional languages, is expected to have driven top-line growth.
The consensus mark for second-quarter 2022 APAC revenues is pegged at $944 million, indicating 18.1% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for LATAM revenues is pegged at $1.01 billion, suggesting almost 16.8% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.56 billion, suggesting 6.8% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for United States and Canada revenues stands at $3.51 billion, indicating 8.4% growth from the figure reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): 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. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Factors to Consider Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for second-quarter revenues is currently pegged at $8.03 billion, suggesting 9.33% growth from the figure reported in the year-ago quarter. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for second-quarter 2022 APAC revenues is pegged at $944 million, indicating 18.1% growth from the figure reported in the year-ago quarter. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for earnings is currently pegged at $2.90 per share, down 2% over the past 30 days. |
20271.0 | 2022-07-15 00:00:00 UTC | Wall St Week Ahead-Recession fears loom over U.S. value stocks | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-recession-fears-loom-over-u.s.-value-stocks | nan | nan | By Lewis Krauskopf
NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates.
Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O.
That dynamic shifted this year, as the Federal Reserve kicked off its first interest rate-hike cycle since 2018, disproportionately hurting growth stocks, which are more sensitive to higher interest rates. The Russell 1000 value index .RLV is down around 13% year-to-date, while the Russell 1000 growth index .RLG has fallen about 26%.
This month, however, fears that the Fed's monetary policy tightening could bring on a U.S. recession have shifted the momentum away from value stocks, which tend to be more sensitive to the economy. The Russell value index is up 0.7% in July, compared with a 3.4% gain for its growth-stock counterpart.
"If you think we are in a recession or are going into a recession, that does not necessarily ... work to the advantage of value stocks," said Chuck Carlson, chief executive at Horizon Investment Services.
The nascent shift to growth stocks is one example of how investors are adjusting portfolios in the face of a potential U.S. economic downturn. BofA Global Research on Thursday cut its year-end target price for the S&P 500 to 3,600 from 4,500 previously and became the latest Wall Street bank to forecast a coming recession.
The index closed at 3,863.16 on Friday and is down 18.95% this year.
Corporate earnings arriving in force next week will give investors a better idea of how soaring inflation has affected companies' bottom lines, with results from Goldman Sachs GS.N, Johnson & Johnson JNJ.N and Tesla TSLA.O among those on deck.
For much of the year, value stocks benefited from broader market trends. Energy shares, which comprise around 7% of the Russell 1000 value index, soared over the first half of 2022, jumping along with oil prices as supply constraints for crude were exacerbated by Russia's invasion of Ukraine.
But energy shares along with crude prices and other commodities have tumbled in recent weeks on concerns that a recession would sap demand.
A recession also stands to weigh on bank stocks, with a slowing economy hurting loan growth and increasing credit losses. Financial shares represent nearly 19% of the value index.
An earnings beat from Citigroup, however, buoyed bank shares on Friday, with the S&P 500 banks index .SPXBKgaining 5.76%.
At the same time, tech and other growth companies also tend to have businesses that are less cyclical and more likely able to weather a broad economic slowdown.
"People pay a premium for growth stocks when growth is scarce," said Burns McKinney, portfolio manager at NFJ Investment Group.
JPMorgan analysts earlier this week wrote they believe growth stocks have a "tactical opportunity" to make up lost ground, citing cheaper valuations after this year's sharp sell-off as one of the reasons.
Value stock proponents cite many reasons for the investing style to continue its run.
Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream.
Meanwhile, earnings per share for value companies are expected to rise 15.6% this year, more than twice the rate of growth companies, Credit Suisse estimates.
Data from UBS Global Wealth Management on Thursday showed value stocks tend to outperform growth stocks when inflation is running above 3% - around a third of the 9.1% annual growth U.S. consumer prices registered in June.
Josh Kutin, head of asset allocation, North America at Columbia Threadneedle, believes a possible U.S. recession in the next year would be a mild one, leaving economically sensitive value stocks primed to outperform if growth picks up.
"If I had to pick one, I'd still pick value over growth," he said. "But that conviction has come down since the start of the year," Kutin said.
U.S. value stocks holding up better than growth stockshttps://tmsnrt.rs/3yIKn6A
(Reporting by Lewis Krauskopf, additional reporting by David Randall and Ira Iosebashvili; Editing by Ira Iosebashvili and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. JPMorgan analysts earlier this week wrote they believe growth stocks have a "tactical opportunity" to make up lost ground, citing cheaper valuations after this year's sharp sell-off as one of the reasons. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. Growth stocks are still more expensive than value shares on a historical basis, with the Russell 1000 growth index trading at a 65% premium to its value counterpart, compared to a 35% premium over the past 20 years, according to Refinitiv Datastream. Data from UBS Global Wealth Management on Thursday showed value stocks tend to outperform growth stocks when inflation is running above 3% - around a third of the 9.1% annual growth U.S. consumer prices registered in June. | Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's .SPX gains were driven by tech-focused giants such as Amazon.com Inc AMZN.O and Apple Inc AAPL.O. By Lewis Krauskopf NEW YORK, July 15 (Reuters) - Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates. The Russell 1000 value index .RLV is down around 13% year-to-date, while the Russell 1000 growth index .RLG has fallen about 26%. |
20272.0 | 2022-07-15 00:00:00 UTC | 1 Highly Underrated Moat in Growth Stocks | AAPL | https://www.nasdaq.com/articles/1-highly-underrated-moat-in-growth-stocks | nan | nan | When it comes to moats, most investors think of advantages like network effects or superior brand recognition. And while those are both very strong competitive edges, there is one underrated moat that can create an incredible advantage for many of today's high-growth companies.
It's called switching costs.
Think of switching costs as the hoops a customer has to jump through to switch to a competitor's product. It could be as simple as paying a fee to get out of a contract like with cellphone service providers or as complicated as reorganizing an entire company's internal processes when switching integral software products like customer relationship management (CRM) tools.
The harder it is to switch, the wider the moat.
Image source: Getty Images.
Let's take a look at how switching costs provide a competitive advantage in the following industries and companies:
1. Smartphones
Apple (NASDAQ: AAPL) has some of the strongest switching cost advantages of any company.
On numerous occasions, Samsung has released smartphones with superior features to the iPhone, and yet few choose to make the switch. While branding certainly plays a role, switching costs are an enormous factor in this retention.
To change phones, you'd have to navigate the complex process of transferring your photos and other data from the Apple ecosystem to Android. You'd also have to learn an entirely new operating system in a time when most people depend on their phones on a day-to-day basis for both work and their personal lives.
Lastly, by switching, you would lose the convenience of having your phone seamlessly integrate into the Apple device ecosystem. For those who have invested in more than one Apple device, this is a big hoop to jump through. And with over a billion devices sold, that represents a big chunk of Apple customers.
iPhone users know from experience just how difficult it can be to switch to a non-Apple phone. This barrier to change embodies the power of switching costs and is in no small part why Apple has dominated the industry for many years.
2. Enterprise software companies
Software-as-a-Service (SaaS) companies are some of the biggest benefactors of switching costs, particularly those that serve enterprises. The deeper the integration of the SaaS solution into the daily operations of a company, the more difficult it is for the customer to switch.
This is because, even if a competitor offers a similar service at a lower price, the business will have to leverage its IT team to deploy the new software and migrate any data needed from the old platform. Once that's complete, they'll have to train the staff on how to use the new software and go through a period of reduced efficiency while the entire transition takes place.
That process is extremely complex and highly time-consuming. Most organizations would rather stick with their current software provider than go through all that. This makes quality enterprise software products extremely sticky and gives these companies significant pricing power.
This stickiness is evident in the market-beating returns of the major SaaS leaders. Consider the 10-year returns of Salesforce (NYSE: CRM), Adobe (NASDAQ: ADBE), Microsoft (NASDAQ: MSFT), and ServiceNow (NYSE: NOW) vs. the S&P 500 over the same period:
CRM Total Return Level data by YCharts.
As these software companies continue to add additional products and services, they further engrain themselves into the core operations of their clients, only strengthening their moats.
A high dollar-based net retention rate (above 100%) gives investors an indication of the quality of the product and the strength of the company's switching costs.
3. Medical device companies
While the medical device industry can be poorly covered by the financial media, it offers one of the best opportunities for high switching costs.
This is because healthcare providers such as doctor's offices and hospitals have the luxury of largely disregarding cost since it's passed onto the patient and insurance companies. This means they are mainly focused on the functionality of the devices, and if such devices work well, healthcare providers are loath to switch to a competitor.
This can be seen in Masimo's (NASDAQ: MASI) domination of the pulse oximeter market (those electronic clips that go over your finger to measure your blood oxygen level).
Their devices are found in 90% of the top hospitals in the U.S., and there is little reason for medical facilities to switch to a competitor because they are state-of-the-art and are ultimately paid for by the patients and their insurance providers.
The ultimate pricing power
As the economy seems to be worsening, brand loyalty alone will begin to lose its pricing power. When people's wallets get tight, they are likely to start trading in their $5 Starbucks (NASDAQ: SBUX) lattes for cheap, home-brewed Joe.
But the pricing power found in switching costs is strong enough to endure an economic downturn. Switching coffee is easy, but a multibillion-dollar corporation changing its payroll software is a whole other story.
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
Mark Blank has positions in Masimo. The Motley Fool has positions in and recommends Adobe Inc., Apple, Microsoft, Salesforce, Inc., ServiceNow, Inc., and Starbucks. The Motley Fool recommends Masimo and recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., short July 2022 $85 calls on Starbucks, 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. | Smartphones Apple (NASDAQ: AAPL) has some of the strongest switching cost advantages of any company. It could be as simple as paying a fee to get out of a contract like with cellphone service providers or as complicated as reorganizing an entire company's internal processes when switching integral software products like customer relationship management (CRM) tools. This is because, even if a competitor offers a similar service at a lower price, the business will have to leverage its IT team to deploy the new software and migrate any data needed from the old platform. | Smartphones Apple (NASDAQ: AAPL) has some of the strongest switching cost advantages of any company. This makes quality enterprise software products extremely sticky and gives these companies significant pricing power. Consider the 10-year returns of Salesforce (NYSE: CRM), Adobe (NASDAQ: ADBE), Microsoft (NASDAQ: MSFT), and ServiceNow (NYSE: NOW) vs. the S&P 500 over the same period: CRM Total Return Level data by YCharts. | Smartphones Apple (NASDAQ: AAPL) has some of the strongest switching cost advantages of any company. Enterprise software companies Software-as-a-Service (SaaS) companies are some of the biggest benefactors of switching costs, particularly those that serve enterprises. The Motley Fool recommends Masimo and recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple. | Smartphones Apple (NASDAQ: AAPL) has some of the strongest switching cost advantages of any company. Think of switching costs as the hoops a customer has to jump through to switch to a competitor's product. Let's take a look at how switching costs provide a competitive advantage in the following industries and companies: 1. |
20273.0 | 2022-07-15 00:00:00 UTC | Investors Should Buy the Dip on These 2 FAANG Stocks | AAPL | https://www.nasdaq.com/articles/investors-should-buy-the-dip-on-these-2-faang-stocks | nan | nan | Technology stocks have been absolutely slaughtered by Wall Street in 2022. High inflation, which has led to aggressive monetary policy tightening by the Federal Reserve, continued supply chain issues related to the ongoing pandemic, and global economic impacts from the war in Ukraine have all contributed to a rising fear among investors. Together, they have induced one of the worst starts to a year in the stock market's history.
Even the FAANG stocks (an acronym for five prominent U.S. tech stocks) have been notably affected. Right now, it appears that stock prices are moving based on sentiment rather than fundamentals, leaving opportunistic buyers with several promising investment opportunities over the long run.
Let's take a closer look at two FAANG stocks that investors should earnestly consider buying today.
Image source: Getty Images.
1. Meta Platforms
Social media titan Meta Platforms (NASDAQ: META) -- formerly known as Facebook, the "F" in FAANG -- has watched its stock price nosedive 53% year to date. The sell-off is related to a variety of macroeconomic factors, like high inflation, rising interest rates, softness in e-commerce, and the war in Ukraine. Those are in addition to company-related issues such as Apple (NASDAQ: AAPL) iOS privacy changes and Meta's increased focus on short-form video to compete with ByteDance's TikTok. Short-form videos currently monetize at a slower rate than News Feed and Stories.
These issues were apparent in the company's latest earnings report: Total sales increased just 6.6% year over year to $27.9 billion, and its diluted earnings per share (EPS) decreased 17.6% to $2.72. User growth on the Facebook platform is decelerating as well. In the first quarter, daily active users and monthly active users grew 4.4% and 2.9%, up to 1.96 billion and 2.94 billion, respectively.
For the full year, Wall Street analysts expect Meta's total revenue to expand 6.8% year over year to $126 billion, and its EPS to contract 15.3% to $11.67. Next year, however, which is when comparable metrics will normalize, analysts project the company's top and bottom lines to grow 16.2% and 17.6%, respectively.
The company has $14.9 billion in cash and cash equivalents and has generated $39.8 billion in free cash flow (FCF) over a 12-month span, showing its ability to ride out any storm and continually invest in its business. Couple that with its measly price-to-earnings multiple of only 12.4, which is well below its five-year mean of 27.9, and Meta seems to be a great investment opportunity at the moment.
2. Apple
In a slightly different situation than Meta, Apple's business has been firing on all cylinders of late. In its second quarter of 2022, the iPhone maker grew total sales by 8.6% year over year to $97.3 billion, beating Wall Street estimates by 3.5%, and its diluted EPS rose 8.6% to $1.52, beating consensus expectations by 6.2%.
The impressive top-line growth was driven by a strong outing from its Services segment, which surged 17.3% during the quarter, up to $19.8 billion. The segment includes Apple Music, Apple TV+, Apple Pay, Apple Card, the App Store, AppleCare, and more.
The company's gross profit margin expanded 124 basis points to finish at 43.7%, compared to 42.5% a year ago, and its operating margin remained stable at 30.8%. Apple has $28.1 billion in cash and cash equivalents and has produced a whopping $105.8 billion in FCF in the past 12 months.
In spite of the solid operational performance and top-notch balance sheet, the stock price has slumped 19.9% since the start of the year. It's now trading at 23.7 times earnings, nearing its five-year mean of 23.1. In a market bristling with uncertainty, Apple is a phenomenal investment for prudent investors -- especially if its earnings multiple dips below its five-year average in the coming trading sessions.
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
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Luke Meindl has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Those are in addition to company-related issues such as Apple (NASDAQ: AAPL) iOS privacy changes and Meta's increased focus on short-form video to compete with ByteDance's TikTok. High inflation, which has led to aggressive monetary policy tightening by the Federal Reserve, continued supply chain issues related to the ongoing pandemic, and global economic impacts from the war in Ukraine have all contributed to a rising fear among investors. In a market bristling with uncertainty, Apple is a phenomenal investment for prudent investors -- especially if its earnings multiple dips below its five-year average in the coming trading sessions. | Those are in addition to company-related issues such as Apple (NASDAQ: AAPL) iOS privacy changes and Meta's increased focus on short-form video to compete with ByteDance's TikTok. These issues were apparent in the company's latest earnings report: Total sales increased just 6.6% year over year to $27.9 billion, and its diluted earnings per share (EPS) decreased 17.6% to $2.72. For the full year, Wall Street analysts expect Meta's total revenue to expand 6.8% year over year to $126 billion, and its EPS to contract 15.3% to $11.67. | Those are in addition to company-related issues such as Apple (NASDAQ: AAPL) iOS privacy changes and Meta's increased focus on short-form video to compete with ByteDance's TikTok. Meta Platforms Social media titan Meta Platforms (NASDAQ: META) -- formerly known as Facebook, the "F" in FAANG -- has watched its stock price nosedive 53% year to date. The segment includes Apple Music, Apple TV+, Apple Pay, Apple Card, the App Store, AppleCare, and more. | Those are in addition to company-related issues such as Apple (NASDAQ: AAPL) iOS privacy changes and Meta's increased focus on short-form video to compete with ByteDance's TikTok. For the full year, Wall Street analysts expect Meta's total revenue to expand 6.8% year over year to $126 billion, and its EPS to contract 15.3% to $11.67. The segment includes Apple Music, Apple TV+, Apple Pay, Apple Card, the App Store, AppleCare, and more. |
20274.0 | 2022-07-15 00:00:00 UTC | Taiwan accuses Chinese Apple supplier of stealing secrets, charges 14 | AAPL | https://www.nasdaq.com/articles/taiwan-accuses-chinese-apple-supplier-of-stealing-secrets-charges-14 | nan | nan | TAIPEI, July 15 (Reuters) - Taiwanese prosecutors on Friday accused a Chinese Apple Inc AAPL.O supplier of stealing commercial secrets from a Taiwanese supplier and poaching its workforce to win orders from the U.S. company, saying it had charged 14 people.
Taiwan has been stepping up efforts to stop what it views as underhand and illegal activities by Chinese firms to steal know-how and poach away talent in what Taipei's government views as a threat to the island's tech prowess.
Prosecutors in New Taipei said after a year-and-a-half investigation they had found that China's Luxshare Precision Industry Co Ltd 002475.SZ had targeted Taiwanese competitor Catcher Technology Co Ltd 2474.TW "in order to quickly enter the Apple production chain to win orders".
Luxshare "lured" Catcher's China based research and development team with promises of high salaries and stole business secrets from the Taiwanese firm, causing them big losses, the prosecutors said in a statement.
Luxshare was doing this in order to be able to "quickly build factories and mass produce cases for iPhones, iPads and other products", the statement said.
Luxshare did not immediately respond to a request for comment, and neither did Apple.
New Taipei prosecutors have now charged 14 people in connection with the case for breach of trust and taking commercial secrets for use overseas, they added.
"The department will do its best to investigate such cases to maintain the sound development of our country's enterprises and ensure the competitiveness of national industries."
Catcher, which makes iPhone and iPad cases, said in a statement it continues to implement and optimise the protection of trade secrets and intellectual property rights, and will investigate anything that infringes on its rights and interests.
The company is cooperating with the probe, it added.
In May, Taiwanese authorities raided 10 companies or their R&D centres operating in Taiwan without approval suspected of illegally poaching chip engineers and other tech talent.
(Reporting by Ben Blanchard Editing by Tomasz Janowski)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, July 15 (Reuters) - Taiwanese prosecutors on Friday accused a Chinese Apple Inc AAPL.O supplier of stealing commercial secrets from a Taiwanese supplier and poaching its workforce to win orders from the U.S. company, saying it had charged 14 people. Luxshare "lured" Catcher's China based research and development team with promises of high salaries and stole business secrets from the Taiwanese firm, causing them big losses, the prosecutors said in a statement. New Taipei prosecutors have now charged 14 people in connection with the case for breach of trust and taking commercial secrets for use overseas, they added. | TAIPEI, July 15 (Reuters) - Taiwanese prosecutors on Friday accused a Chinese Apple Inc AAPL.O supplier of stealing commercial secrets from a Taiwanese supplier and poaching its workforce to win orders from the U.S. company, saying it had charged 14 people. Taiwan has been stepping up efforts to stop what it views as underhand and illegal activities by Chinese firms to steal know-how and poach away talent in what Taipei's government views as a threat to the island's tech prowess. Prosecutors in New Taipei said after a year-and-a-half investigation they had found that China's Luxshare Precision Industry Co Ltd 002475.SZ had targeted Taiwanese competitor Catcher Technology Co Ltd 2474.TW "in order to quickly enter the Apple production chain to win orders". | TAIPEI, July 15 (Reuters) - Taiwanese prosecutors on Friday accused a Chinese Apple Inc AAPL.O supplier of stealing commercial secrets from a Taiwanese supplier and poaching its workforce to win orders from the U.S. company, saying it had charged 14 people. Prosecutors in New Taipei said after a year-and-a-half investigation they had found that China's Luxshare Precision Industry Co Ltd 002475.SZ had targeted Taiwanese competitor Catcher Technology Co Ltd 2474.TW "in order to quickly enter the Apple production chain to win orders". Luxshare "lured" Catcher's China based research and development team with promises of high salaries and stole business secrets from the Taiwanese firm, causing them big losses, the prosecutors said in a statement. | TAIPEI, July 15 (Reuters) - Taiwanese prosecutors on Friday accused a Chinese Apple Inc AAPL.O supplier of stealing commercial secrets from a Taiwanese supplier and poaching its workforce to win orders from the U.S. company, saying it had charged 14 people. Taiwan has been stepping up efforts to stop what it views as underhand and illegal activities by Chinese firms to steal know-how and poach away talent in what Taipei's government views as a threat to the island's tech prowess. Prosecutors in New Taipei said after a year-and-a-half investigation they had found that China's Luxshare Precision Industry Co Ltd 002475.SZ had targeted Taiwanese competitor Catcher Technology Co Ltd 2474.TW "in order to quickly enter the Apple production chain to win orders". |
20275.0 | 2022-07-15 00:00:00 UTC | 3 Vanguard ETFs That Could Help You Retire a Millionaire | AAPL | https://www.nasdaq.com/articles/3-vanguard-etfs-that-could-help-you-retire-a-millionaire-3 | nan | nan | The Vanguard Group is one of the giants in the investment world, with a reputation built on its portfolio of low-cost index funds. It has emerged as the second-largest provider of exchange-traded funds, or ETFs, with about $1.8 trillion in ETF assets under management, second only to iShares, which is owned by BlackRock (NYSE: BLK).
Vanguard offers about 75 different ETFs, tracking just about every sector, style, industry, and asset class you can think of. There are three that stand out for their popularity, performance, and price that could help you build a sizable nest egg and retire a millionaire.
1. Vanguard Russell 1000 Growth ETF
Vanguard offers two great large-cap growth ETFs: Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). The two have similar performance histories, but I like the Russell 1000 Growth ETF a little better as it provides slightly more diversification with 498 stocks in the portfolio, including some mid-cap names. It also has a lower expense ratio, just 0.08%, compared to 0.10% for the S&P 500 Growth ETF.
The Russell 1000 Growth Index ETF tracks the Russell 1000 Growth Index, and its three largest holdings are Apple, Microsoft, and Amazon. Not only is it cheaper, but it has better long-term performance. Through June 30, the ETF is down 18.8% for the past year, but it has annualized returns of 14.2% and 14.7% for the five- and 10-year periods -- which is the best of just about any Vanguard ETF, except the one that will be featured next in this article.
Image source: Getty Images.
2. Vanguard Information Technology ETF
The one ETF that has a better 10-year track record than the Russell 1000 Growth ETF is the Vanguard Information Technology ETF (NYSEMKT: VGT). While the technology sector has gotten beat up in this current bear market, it has been the dominant force in the market for the past 20 years -- and in this digital age we are living in, expect that dominance to continue in the years to come.
This ETF tracks the MSCI USA IMI Information Technology Index, and includes roughly 400 information technology stocks across the market-cap spectrum -- although it is cap-weighted, so the bulk of it is in large-caps. The three largest holdings -- similar to the Russell 1000 Growth ETF -- are Apple, Microsoft, and Nvidia.
Over the past one-year period through June 30, it is down 17.5%, while its five- and 10-year annualized returns are 19.5% and 18.2%, respectively. What sets it apart from most of its competitors is its low expense ratio of just 0.10%.
3. Vanguard Value ETF
While the first two suggested ETFs are built for long-term growth, the Vanguard Value ETF (NYSEMKT: VTV) balances things out a bit. It invests in the CRSP US Large Cap Value Index, which tracks about 350 large-cap value stocks that meet value screens for various metrics, including price-to-book (P/B) ratio, price-to-sales (P/S) ratio, price-to-earnings (P/E) ratio, and price-to-dividend ratio. The three largest holdings are Berkshire Hathaway, Johnson & Johnson, and UnitedHealth.
This ETF is only down 1.8% over the past one-year period through June 30. It has an annualized return of 9.2% over the past five years through June 30, and 11.8% over the past 10 years. Its expense ratio is a minuscule 0.04%.
Retire a millionaire?
It is certainly possible to retire a millionaire with investments in these three Vanguard ETFs with a long enough time horizon. So for the sake of this hypothetical, lets look out 10 years and see where you'd be, based on their annualized returns over the past decade.
If you started with a total of $15,000 and invested $5,000 in each ETF every year, with $100 contributed to each ETF every month, you'd have a total of about $140,000 after 10 years.
Now, we don't have a track record for these funds that goes back 30 years, but we can make a calculation based on their benchmarks. The Russell 1000 Growth Index has posted an annualized return of about 8.5% over the past 30 years through July 11, the CRSP Large Cap Value Index has returned about 8.2% annually over that stretch, and technology stocks, as measured by the Nasdaq Composite Index, have returned about 10.5% on an annualized basis over 30 years.
^RLG data by YCharts
Using those long-term returns, a $5,000 initial investment in each, with $100 contributed every month, would total about $809,000. That's not quite $1 million, but with Social Security and any funds in an employer-sponsored plan, you'd be in that ballpark. If you have less than 30 years to retirement, the goal of reaching $1 million becomes a lot tougher and would require a larger initial investment and monthly contributions.
But if you have a good 401(k) and have contributed to it since you started working in your twenties, you should be well on your way to the $1 million mark. And an investment in these ETFs outside of that will help you get there faster.
10 stocks we like better than Vanguard Russell 1000 Growth ETF
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 Vanguard Russell 1000 Growth ETF 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. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, Nvidia, and Vanguard Value ETF. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group 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. | The two have similar performance histories, but I like the Russell 1000 Growth ETF a little better as it provides slightly more diversification with 498 stocks in the portfolio, including some mid-cap names. If you have less than 30 years to retirement, the goal of reaching $1 million becomes a lot tougher and would require a larger initial investment and monthly contributions. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, Nvidia, and Vanguard Value ETF. | Vanguard Russell 1000 Growth ETF Vanguard offers two great large-cap growth ETFs: Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). The Russell 1000 Growth Index ETF tracks the Russell 1000 Growth Index, and its three largest holdings are Apple, Microsoft, and Amazon. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group 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. | Vanguard Russell 1000 Growth ETF Vanguard offers two great large-cap growth ETFs: Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). Vanguard Information Technology ETF The one ETF that has a better 10-year track record than the Russell 1000 Growth ETF is the Vanguard Information Technology ETF (NYSEMKT: VGT). The Russell 1000 Growth Index has posted an annualized return of about 8.5% over the past 30 years through July 11, the CRSP Large Cap Value Index has returned about 8.2% annually over that stretch, and technology stocks, as measured by the Nasdaq Composite Index, have returned about 10.5% on an annualized basis over 30 years. | Vanguard Russell 1000 Growth ETF Vanguard offers two great large-cap growth ETFs: Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). The Russell 1000 Growth Index ETF tracks the Russell 1000 Growth Index, and its three largest holdings are Apple, Microsoft, and Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, Nvidia, and Vanguard Value ETF. |
20276.0 | 2022-07-15 00:00:00 UTC | Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-2 | nan | nan | Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Wisdomtree. DTD has been able to amass assets over $1.01 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. Dividend Index.
The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.28%.
It has a 12-month trailing dividend yield of 2.56%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Healthcare sector - about 16.30% of the portfolio. Consumer Staples and Financials round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.95% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 25.42% of total assets under management.
Performance and Risk
So far this year, DTD has lost about -10.70%, and is down about -2.04% in the last one year (as of 07/15/2022). During this past 52-week period, the fund has traded between $56.16 and $65.68.
The fund has a beta of 0.92 and standard deviation of 22.76% for the trailing three-year period, which makes DTD a medium risk choice in this particular space. With about 644 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total 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 $50.06 billion in assets, Vanguard Value ETF has $91.96 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.
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
WisdomTree U.S. Total Dividend ETF (DTD): 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. | When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.95% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.95% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.95% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.95% of the fund's total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market. |
20277.0 | 2022-07-15 00:00:00 UTC | Can Shiba Inu Reach $1? | AAPL | https://www.nasdaq.com/articles/can-shiba-inu-reach-%241-4 | nan | nan | Shiba Inu's (CRYPTO: SHIB) performance this year is a far cry from last year. Back then, the popular meme token soared a mind-boggling 45,000,000%.
So far this year, it's been on the decline, but things may be turning around for Shiba Inu. It's climbed about 12% over the past month.
This crypto player also has a couple of catalysts on the horizon. Shiba Inu is launching a metaverse project and a layer-2 scaling solution. Could these and other efforts help it to eventually reach $1? Let's find out.
Shib Army support
Shiba Inu initially surged to fame thanks to its loyal fan base, known as the Shib Army, and they've invested in the meme token and promoted it across social media. This goes along with the general idea behind Shiba Inu at its creation. The token was meant to be "an experiment in decentralized spontaneous community building," according to its white paper.
But what is Shiba Inu exactly? It's a token running on the Ethereum blockchain. You can stake Shiba Inu and earn passive income or use it as a payment method. And now, those uses are expanding. Shiba Inu is opening up its metaverse project, which includes the sale of virtual land.
Shiba Inu started by making about 36,000 lots available this spring, but the goal is to sell more than 100,000 pieces of land. That will offer buyers access to a whole word of Shiba Inu activities. This metaverse project is one of the potential catalysts for Shiba Inu this year.
The second catalyst is Shibarium. That's the layer-2 scaling solution that will allow Shiba Inu to leave behind the congestion and high fees that go along with operating on Ethereum. The goal is to migrate to Shibarium at some point this year.
The coin-supply problem
Along with this, Shiba Inu also is tackling one of its biggest problems, which is coin supply. It opened a burn portal this past spring. This is meant to reduce the coin supply. The idea is right, and Shiba Inu today has about 549 trillion tokens in circulation, which trade for a fraction of a cent. If they were priced at $1 each, the market value of Shiba Inu would total $549 trillion.
By comparison, the whole cryptocurrency market was valued at about $3 trillion at its highest level last year. And major companies with a history of profit and revenue are valued lower, too. For example, Apple's market capitalization is about $2.3 trillion. Clearly, with this many tokens, Shiba Inu can't make it to $1.
Lowering the supply is key. But the problem is, even that effort isn't likely to work. To reach a market value of just under $1 trillion, 99% of today's token supply would have to be destroyed. That means most of today's Shiba Inu holders would have to burn their holdings -- and they wouldn't benefit from the cryptocurrency's eventual gains.
Yes, catalysts do lie ahead for Shiba Inu and may offer this cryptocurrency a lift. The effort to burn tokens could help the value of Shiba Inu edge higher in the near term, too. But considering today's circulating supply, these efforts can't fight against solid math, which is telling us that Shiba Inu isn't on the path to reaching $1.
10 stocks we like better than Shiba Inu
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 Shiba Inu 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
Adria Cimino has positions in Ethereum. The Motley Fool has positions in and recommends Apple and Ethereum. 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. | Shiba Inu started by making about 36,000 lots available this spring, but the goal is to sell more than 100,000 pieces of land. That's the layer-2 scaling solution that will allow Shiba Inu to leave behind the congestion and high fees that go along with operating on Ethereum. That means most of today's Shiba Inu holders would have to burn their holdings -- and they wouldn't benefit from the cryptocurrency's eventual gains. | Clearly, with this many tokens, Shiba Inu can't make it to $1. To reach a market value of just under $1 trillion, 99% of today's token supply would have to be destroyed. But considering today's circulating supply, these efforts can't fight against solid math, which is telling us that Shiba Inu isn't on the path to reaching $1. | The idea is right, and Shiba Inu today has about 549 trillion tokens in circulation, which trade for a fraction of a cent. Clearly, with this many tokens, Shiba Inu can't make it to $1. But considering today's circulating supply, these efforts can't fight against solid math, which is telling us that Shiba Inu isn't on the path to reaching $1. | But what is Shiba Inu exactly? This metaverse project is one of the potential catalysts for Shiba Inu this year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
20278.0 | 2022-07-15 00:00:00 UTC | The Latest From Big Tech, Including a High-End VR Headset and Lock Screen Monetization | AAPL | https://www.nasdaq.com/articles/the-latest-from-big-tech-including-a-high-end-vr-headset-and-lock-screen-monetization | nan | nan | In this podcast, Motley Fool senior analysts Maria Gallagher and Jason Moser discuss:
The June jobs report, falling gas prices, and the shifting employment landscape.
Apple (NASDAQ: AAPL) and Google looking to monetize the lock screen of your phone.
Meta Platforms (NASDAQ: META) planning to launch a $1,000 VR headset.
A big rationale for Levi's (NYSE: LEVI) dividend increase.
The latest from Amazon, Upstart Holdings, and GameStop.
Motley Fool contributor Rachel Warren talks with Jay Jacobs, U.S. head of thematics and active equity ETFs at BlackRock, about the trends he and his team are watching in infrastructure, emerging markets, and healthcare.
Maria and Jason answer a listener's question about Warner Bros Discovery, and share two stocks on their radar: Paycom and Procore Technologies.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than 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
This video was recorded on July 8, 2022.
Chris Hill: We've got the latest from Big Tech, the big macro, and a preview of the next big consumer electronics device. Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Chris Hill and I am joined by Motley Fool Senior Analyst Jason Moser and Maria Gallagher. Good to see you both.
Maria Gallagher: Nice to see you.
Jason Moser: Hey.
Chris Hill: We've got the latest headlines from Wall Street. We'll get an update on emerging trends, and as always we've got a couple of stocks on our radar, but we begin with the big macro. The US economy added more than 370,000 jobs in June, the unemployment rate stands at 3.6 percent. The average rate for a 30-year fixed mortgage fell to 5.3 percent, and the average price of gas has fallen by $0.30 per gallon over the past three weeks. Maria, no shortage of macro data points. What stands out to you?
Maria Gallagher: I think actually right now is a really fascinating time to study the job market. As you said, there were about 372,000 new hires, which is about 100,000 more than expected. This is powered by leisure, hospitality, and healthcare. The unemployment, like you said, is at the post-pandemic low of 3.6 percent for the fourth consecutive month. Average hourly earnings rose by 0.1 percent from the last year and 0.3 percent on the month, and the number of hours worked averages about 34.5. But I think it's really interesting too. When we're looking at this record low unemployment and as that continues, but we still have inflation and we have wage increases, you have a lot more calls for unionization because I think we're in a situation where labor has more power that we haven't really seen since the late 1970s. Union membership is at a multi-decade low, but the majority of workers across sectors say they support increased unionization in their own workplaces. I think that's going to be really fascinating to see as we see more calls for increasing unemployment and seeing how that power continues to shift.
Chris Hill: Jason, what stands out to you when you look at all the macro data out there?
Jason Moser: Yeah, I agree with Maria there that labor right now does have probably more power than it has in a long time and they really need to make use of that. I think they know that they're on the clock and I think that at some point here these things obviously go in cycles. At some point here we're going to see the shoe on the other foot in regard to these jobs. We saw the labor force participation rate ticked down just a little bit. I think when you look at the data beyond just the jobs market, it paints a picture of a consumer that's starting to feel pretty pinched here. The personal savings rate for May quoted at 5.2 percent, that was cut literally in half from a year ago.
But even more concerning, I think, is it's down from 7.4 percent in 2019. Now you couple that with the fact that the ongoing revolving credit numbers, people are spending more and more on their credit cards. That was up 20 percent in April from the previous month to just over $1.1 trillion. That broke the pre-pandemic record of $1.1 trillion, and so you're seeing more people having to rely on credit cards in order to get things done. Obviously, coping with a very high inflationary environment, wages are not keeping up with that inflation. I think we're starting to see this clock, it's ticking down to a more challenged consumer which it's ultimately going to play out I think here on this jobs market. It's going to be interesting to see at what point we see that flip over.
Chris Hill: Now let's get to some of the companies that are making headlines this week. After the closing bell on Thursday, Upstart Holdings shared preliminary results for its second quarter, and the reaction from investors was both swift and negative. Shares of the consumer lending company fell 20 percent on Friday. Jason, last fall, Upstart Holdings was $400 a share and today it's below 30.
Jason Moser: Yeah. It it's obviously been a very tough slog for Upstart. Its stock is down I think somewhere around 80 percent year-to-date. I liked the value proposition applying artificial intelligence to the credit industry. It sounds great on the service, but the big question over the last several quarters was, and I think still is, how will they perform in a higher interest rate environment? I guess we're starting to see how. It is clearly becoming a more difficult environment to assess credit worthiness. I think we're going to continue to see lending balances going up, you'd got to going back to what we were just talking about in the big macro there. We'll see late payments, we'll see more defaults. I think the key really is, is Upstart going to be able to prove out their value proposition, that their AI is this predictive and is helpful as they claim it to be? Maybe it is. I don't know.
It really is going to have to be a wait and see, but you can't guide down like this and expect anything else from the market, particularly in this environment. They guided down on revenue, now they're calling for $228 million for the quarter versus 295-305 million they call for just a quarter ago. That net loss is going to become greater than they initially guided for as well. They quoted the reasons for the change first, the marketplace is funding constraints and there's concerns about the macro economy among lenders and capital market participants as they quoted in the release there, that makes a lot of sense. They also noted that they converted some loans on their balance sheet into cash and that impacted revenue growth as well. You put it all together, there are just a lot of question marks as to how this business is going to be able to perform as the cost of doing business continues to rise, and it looks like that trend is poised to continue. I just don't have this one at the top of my list, but I think really it just boils down to whether they can prove out the case that their AI is really as good as they say it is.
Chris Hill: We've talked recently about companies and Upstart Holdings is certainly one of them whose valuations have come down dramatically as you think about the second half of the year and the prospect for larger tech companies coming in, snapping up smaller ones. Do you think Upstart Holdings is now at the point where larger companies are starting to kick the tires and think about maybe making an acquisition if they can't turn it around on their own?
Jason Moser: It's possible, but this is certainly a very competitive environment. There are plenty of companies out there that are trying to tackle this from a few different angles, so I don't know that looking at Upstart as an acquisition target. At least in the near term, makes a lot of sense. But it's certainly possible that valuation becomes a little bit too attractive for a bigger player in this space to just glance over.
Chris Hill: This week, Amazon shook up the food delivery industry by taking a stake in Grubhub. It's part of a deal that will give Amazon Prime members food delivery perks as part of their subscription. Maria, you tell me, how do you think DoorDash is feeling about Grubhub's new partner?
Maria Gallagher: It's interesting because I think DoorDash probably isn't feeling great. There is a large group of people who now have their competitor for free essentially. But it's important to remember how much market share DoorDash has. DoorDash has about 60 percent of the meal delivery services, Uber Eats is second, Grubhub is in third place. What this deal looks like is that Prime members get a free year-long Grubhub membership, zero delivery fees. Amazon can buy additional stake in Grubhub as well in the future. But I think what's interesting is Grubhub at the end of this is either really hoping that the end of the free year, it's provided such value people keep paying for it, or that people forget that they are now paying for it and it just becomes part of your unknowing subscriptions that a lot of us have at this point. But what they're thinking and what their strategy is to retain people. DoorDash had something called DoorDash for students, and then after that ended they had customer retention of less than 50 percent. This isn't actually that proven of a strategy, so I understand where they're coming from but I don't know that that value proposition is there. I don't know that their unit economics are there, that after a year is going to be profitable for Grubhub.
Chris Hill: We were talking about this before the show, Maria. You're not only much younger than me, you also engage in food delivery a lot more than I do. It really seems like the thing where from the consumer side, there's no real big switching costs. You can have all these apps on your phones until one of these businesses steps up with some real incentive. These are businesses that at the moment aren't that sticky.
Maria Gallagher: Yeah. I don't know if anyone heard about the Grubhub free lunch in New York. That was a complete debacle in New York City where they didn't really won the drivers, they didn't really won the restaurants. People thought they were getting their lunch at 12:00. They didn't get their lunch until 4:00 PM or didn't get it at all. Grubhub doesn't really even have the infrastructure to scale the way they might want to, and so you have these incentives for users and trying to get them interested. But then when you get them interested, if they have a bad experience, I think that's going to be more of a net-negative for Grubhub than maybe they want it to be as they lost a lot of money and they didn't gain that many people liking them.
Chris Hill: If you've got $1,000 burning a hole in your pocket, Meta Platforms has the device that they would like to sell you. Details after the break, so stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here with Maria Gallagher and Jason Moser. This week, Bloomberg reported that later in the year, Meta Platforms is planning to sell a high-end VR headset called the Meta Quest Pro and the price tag will be over $1,000. Maria, that is a higher price point than I would have guessed, particularly since this is coming from a company that has poked fun at Apple in the past for selling expensive devices.
Maria Gallagher: It's a high price point and it is trying to compete with Apple's headset that is going on sale next year. It's apparently going to have better graphics processing, it's going to include high-resolution cameras, there is going to be more eye-tracking, more storage, new controllers, high-resolution displays. But it's just this continued push into the metaverse obviously. They're talking through some other advancements with very fun code names like Butterscotch, Starburst, Holocake, and Mirror Lake. [laughs] They're talking about this new line of augmented reality smart glasses, which are meant to project images onto the real world instead of just blocking with the screen, they're working on making the headsets less bulky and more easy to use, they're talking about using them for medical school and fishing with your dad was one of the examples if you're living very far away. They're working on making it applicable to a lot of different people. I think they're just continuing to try and blur this line of what is real and what isn't and are people going to pay for something that isn't real and can they make it real enough to make it worth it? I think is the biggest question on everybody's mind.
Chris Hill: It's going to be really interesting to see what consumer reviews come out about these devices when they're finally unleashed. Jason, let's stick with high-priced devices because there were also reports out this week that both Apple and Google are looking to make use of the lock screen on iPhones and Android phones, if I'm reading this correctly, I might be seeing ads pop up on my phone when it's locked.
Jason Moser: Well, it sounds like that is a possibility, that certainly what they're investigating and it seems like that happens at least in some capacity. Now, there's a start-up company called Glance in which Google has an investment. But ultimately, yeah, the idea is here that they view this lock screen as very valuable digital real estate and ultimately this is just going further upstream in order to capture those eyeballs. I can actually imagine here that advertising partners would find that to be some of the most valuable digital real estate in that it's essentially first-in-line. That lock screen is the first thing you see when you open your phone. I think really, from a consumer's perspective, this doesn't sound ideal necessarily, it sounds exhausting.
I think execution right, implementation is a question mark. How would they do this in such a way where users feel like it's helpful as opposed to a hindrance or something that they don't want? I can't imagine this is something that would offer a lower price point phone, at least in Apple's case, if they decide to pursue this, maybe Android, it seems more in line with their business model. I would hope there would be some way to opt-out of it if you're a consumer, if you don't like it, I know I would. But, again, I understand in theory, that is some very valuable real estate that ultimately is not being utilized to its fullest today.
Chris Hill: It'd be really interesting to see what pricing power comes with that type of real estate. Maria, let me tie it back to Meta Platforms for a second because Meta has already put a freeze on hiring. CEO Mark Zuckerberg made comments that some current employees may want to leave of their own accord if they're not up to the challenges ahead. Along those lines, this week, Twitter announced it's laying off some employees as it continues to try and close its deal with Elon Musk and I was saying to Jason before we started recording, I'm so happy I'm not a Twitter shareholder because the drama going on at that company just seems to go higher month-by-month.
Maria Gallagher: It seems like an episode of Succession, honestly, I'm seeing what the drama unfolds with Twitter. They laid off a third of their recruiting team, which of a group of people that I think indicates that they're probably not planning to hire again for a while, like you said, there is a hiring freeze. We are seeing this with the tech companies. There was Coinbase who both rescinded offers and laid off a bunch of people, there are hiring freezes at Facebook like you said, or Meta. I think it's interesting to see a lot of these companies that for many years were talking about how there's no end to their growth saying, OK, maybe there's an end-to-end growth or maybe there's a little bit of a slowdown of our growth that we're seeing right now. I don't think it's uncommon and I think we're going to keep seeing it over the next couple of quarters, next couple of years.
Chris Hill: Thursday was an eventful day for GameStop. In the morning, the company announced a four-for-one stock split that will take effect later this month, in the afternoon, GameStop fired its CFO and announced it will be laying off employees as a way to cut costs. A lot to unpack there, Jason, what stands out to you?
Jason Moser: It feels like, Maria said it just a minute ago in regard to Twitter, the drama, it feels like we could set up a little drama basket here, Chris. Twitter would be in that basket and I think GameStop belongs in it as well. This is the gift that keeps on giving as far as covering investing news because there's always something. What ultimately stood out to me though, is the company has made more than 600 corporate hires since the start of 2021. I can't fathom what led to that decision-making. We're not talking about store managers, we're not talking about store-based employees, we're talking about corporate hires here. It just strikes me as completely the opposite of what you would really want to do. This is a company in turnaround mode.
Anytime you are in turnaround mode, you need to be paying attention to every single cost that's going out that door. I was very surprised to see that it had become that bloated. I appreciate the fact that they are going to try to right-size the business there, it does seem like a CFO who was there for only a year. They quoted, "he was fired because he wasn't a right culture fit and he was too hands-off." Yeah, I get that. You want that CFO to be very hands-on, Chris. GameStop is just one where I'm happy to watch this one, it's entertaining, I think, from the perspective of just what goes on day to day. But, like they stay with turnarounds, oftentimes they don't end up turning around and that could be the case with this one.
Chris Hill: Thank you for those details on the CFO because whether I own shares of the company or not, anytime a CFO leaves suddenly, I'm always curious to find out why. What is the story behind that? Second-quarter profits for Levi's came in higher than expected. The iconic jeans company also announced its raising it's quarterly dividend 20 percent. Maria, nice to see the strong results from Levi's, but this is a business that has struggled over the past year. Why are they hiking their dividend this much?
Maria Gallagher: The people who are really going to benefit from this hike of the dividend are the Levi Strauss-Haas Family who still own nearly 40 percent of shares outstanding. I wrote in my notes, they gave themselves a nice little gift for doing well. They had net revenues of 1.5 billion, up 15 percent, up 17 percent in the US, up three percent in Europe, and up 16 percent in Asia. I was actually interested to see their numbers from last year that most of their sale is men's, I thought that most of their sales were women's, but 65 percent of their sales are in the men's category, so they're really shifting more and focusing more on the women's category and trying to expand in tops. Also, the global jeans market is $100 billion industry which I also didn't know, so they still think they have a lot of room to grow within that industry. But, it was a good quarter and the people who are benefiting the most is that family from this hike in their dividend.
Chris Hill: I'm actually not surprised by the gender breakdown because when I think of Levi's, I just think of men wearing Levi's, I don't know any women who own Levi's jeans?
Maria Gallagher: All my friends own Levi's jeans.
Chris Hill: Really?
Maria Gallagher: Yeah.
Chris Hill: This is why you are so much hipper than me.
Maria Gallagher: I think it's coming back in style. I think Levi's were super in fashion for a while, but now they're really making a comeback.
Jason Moser: I'm wearing Levi's right now, Chris.
Maria Gallagher: Jason's ahead of the curve.
Chris Hill: The lesson is always never listen to me when it comes to fashion. All right, Maria Gallagher, Jason Moser, we'll see you later in the show. Up next, we've got a conversation with Jay Jacobs from BlackRock about emerging trends investors are going to want to watch. Don't go anywhere. You're listening to Motley Fool Money.
Our conversation with Jay Jacobs is coming up next, but first, a message from our friends at BiggerPockets.
Dave Meyer: Real estate investing is one of the best ways to build long-term wealth. But to be a successful investor, you need to know what news and trends to pay attention to and what's just noise. I'm Dave Meyer, real estate investor and VP of Analytics at BiggerPockets. In my new show On the Market: A BiggerPockets podcast presented by Fundrise, we bring you expert perspectives in a digestible format so you can make informed investing decisions and we make it fun. I promise you, On the Market is definitely not another boring new show. Each week, I chat with a panel of experts about the latest news and trends affecting the real estate investing world. We touch on things like government policy, 3D printed houses, investing in the metaverse, and more. Join us every Monday for On the Market, a podcast designed to help you invest with confidence. Just search On the Market and your favorite podcast app, that's On the Market.
Chris Hill: Welcome back to Motley Fool Money. I'm Chris Hill. You've heard us talk on this show before about investing in trends, and in particular, trends that have staying power. One person who's focused on this is Jay Jacobs. He's the US Head of Thematics and Active Equity ETFs at BlackRock. Earlier this year, Jay coauthored The Great Acceleration, a report about megatrend changes that Wall Street may be underestimating. Motley Fool contributor, Rachel Warren, caught up with Jacobs to talk about the trends he and his team are watching in infrastructure, emerging markets, and healthcare.
Rachel Warren: There's a quote from the report that notes, "Development of the COVID-19 vaccines were highly compressed from preclinical research to official authorization. The development times were nearly 10 times faster than historical timelines for vaccine development." From your vantage point, what do you see as being some of the most exciting trends and developments that are shaping the healthcare industry at this point in time?
Jay Jacobs: At a broad level, one of the most exciting and maybe one of the most optimistic viewpoints in the world today is the growth of the field of genomics. Doing medicine at the genetic level are really refined, precise, personalized form of medicine that can treat many different diseases in ways that we've never been able to treat them before. If you think about if you go to a doctor and you say I have this issue, what do they tend to ask? They ask family history, they ask for age, they ask for gender, just really basic biomarkers. Then they tried to tell you this is the right medicine for you or this is what you might experience with this ailment.
But what if you can get it at genetic level where they really look at all the different markers that makes an individual who they are, and they can treat an individual based on those simple genetic characteristics? You can get much more precise, much more accurate forms of medicine going forward. mRNA based vaccines were a huge leap forward for genomic medicine. I suppose really the programming a vaccine at a generic level to attack the coronavirus. It's worked incredibly effectively, but it's also brought billions of dollars of investment to mRNA based vaccines. It's broad regulatory excitement around mRNA based vaccines. mRNA has been around for decades, but frankly, it didn't have the funding or the regulatory environment to support it. Now it does.
The question is, how do we take the success of mRNA based vaccines and apply it to something like the common flu or to HIV? Can it even be applied to some cancers? It's really amazing to see this technology being used in different applications going forward. Then beyond that, can we do more genetic testing to get more genetic data at the individual level? Can we build precision medicine that can edit or modify individuals' genes? There's over 10,000 diseases that if we just modified one gene in someone's genome, would completely alleviate the disease. Can we get to that finite of a level and treat people at the genetic level? I think it's incredibly exciting. I think we're really just at the beginning of this new wave of healthcare going forward.
Rachel Warren: There's so many innovations that I think are so exciting for investors to watch right now. That leads me into the third and final megatrend that The Great Acceleration report highlighted, which is the power of the purse. I want to highlight a key quote here. The report said, "While lockdown slowed economic activity, they could not derail major demographic trends. Amid the pandemic, millions of US millennials entered peak spending years, ages 35-55. Similarly, emerging market consumers cemented their places of dominant customer group representing over 50 percent of global spending. As a result of these trends, millennials and emerging market consumers are now, and will be for several decades to come, essential drivers of the global economy." Against that backdrop, what are some of the industries or sectors that you see as being most affected by these millennial in emerging market consumers over the next 5-10 years?
Jay Jacobs: We really see it as two distinct segments. One is looking at emerging food and AgTech. So looking at the millennials in the United States, this is a very sustainably minded generation that really thinks about when they're buying food, what is the source of this food? How clean is it? Is it organic? How did it get to this farmers market? How did they get to this store that I'm buying it from? They're making these really sustainable decisions. That's really important because if you're a food manufacturing company and you are developing products that are unhealthy, or unsustainable, or using more negative processes in creating that food, millennials are going to gravitate away from that product and move toward something that's healthier and a more sustainable process.
What are the companies that are leading in the process of moving toward more sustainable practices of food, we think they're going to be a big beneficiary of this millennial generation that has more money. That because they're in their peak earning years, are spending more money, because many millennials now have homes and kids. We don't necessarily think of millennials as 40-year-olds with homes and kids, but that's a lot of millennials these days. Millennials are inheriting trillions of dollars from the baby boomer generation. Their spending preferences really are going to matter a lot to the American economy, and those spending preferences are different because they care about things like sustainability much more than previous generations.
Then similarly, if we look overseas, the emerging market consumer, because of the rise of the middle-class overseas and because of the growing population that's primarily happening overseas, is now the dominant consumer in the world today. If you're a consumer packaged goods companies selling internationally and you're not thinking about emerging market consumers, you're missing out on the majority of your potential market. What are their unique challenges and unique preferences? Well, there's over two billion consumers overseas that don't have access to banking today, but they do have a cellphone. Sixty percent of them have a cellphone.
How do we think about extending financial services to those two-plus billion people overseas that have an electronic connection to the Internet? We think one of the big beneficiaries will be decentralized finance, being able to help at-scale these individuals invest, borrow, lend, all the basic banking technologies that are much more available in developed countries like the United States, but so far have not been made widely available to people in emerging markets. It's really looking about these distinct groups and thinking about, what are their unique challenges and needs and who are providing the products and services to them going forward.
Rachel Warren: I love to talk a little bit more about the thematic investing approach. What does that look like in practice? How can, we as long-term investors, weave that approach into our investing strategy against the backdrop of the current market?
Jay Jacobs: Absolutely. One of the things that we like to look at in thematic investing is what's called the adoption curve. It's really this S-shaped pattern of adoption where we see what is a technology today, pick anything that's a newer tech like electric vehicles. We can look at, at one end of the curve is, what is the total addressable market? In the case of electric vehicles, it's basically the 90 million or so cars that are sold each year. Then how many cars are actually sold that are electric? Right now, we're in high single-digits penetration, so we're around 7, 8 million electric vehicles being sold each year.
We have a lot of ways to go for that adoption. We think about things like, what will it take to get that adoption? Is it cost? Is it quality? Is it just espousing the benefits of electric vehicles? Is it the infrastructure? But really trying to understand, what is the conviction behind this theme and what is the opportunity behind this theme? That is step 1. Step 2 is, is this theme investable? Many of these really powerful structural trends we're seeing around the world today are investable and many are non-investable. The idea behind investability is, can we find a basket of companies that has high purity to this theme? Sticking with the electric vehicles example, I'm sure you can think of many famous electric vehicle companies, but also ones involved in lithium mining and battery production and parts and components for electric vehicles.
Really thinking about that entire ecosystem that would benefit from the rise of electric vehicles. We think about conviction. We think about investability. Then the third thing we think about is time horizon. When is this theme likely to take off? Is this going to happen tomorrow, which would be very soon? Or is this going to happen to 100 years from now, which would be very far away? Really the sweet spot for us is thinking 5-20 years to that future, which gives us plenty of time to develop the theme, to research the theme, to bring it out to investors, and it doesn't put as much of an emphasis on entry and exit points. This is not a trade, this is an investment over time. When we think about those three checklist items for thematic investing, that's how we arrive at many of the themes that we've discussed today.
Rachel, in terms of your question of, where does this fit in the portfolio? This is actually a slightly more nuanced question for thematic investing because many themes cut across sector and cut across geography. We don't care if an electric vehicle company is in the US or if it's overseas. We don't care if it's categorized as a tech company or an industrials company. We're trying to find the companies that are best positioned to benefit from the materialization of this theme. Sometimes that makes it a little bit harder to fit in the portfolio. But what we suggest is that people keep a core portfolio intact using a very efficient, broad-based core. Then they create a satellite portfolio where they might put three or four themes in that satellite where they understand that this might have more tracking error to something like the S&P 500, it might be a little bit more volatile because these are concentrated positions, but also that this satellite is designed to be a long-term buy and hold piece of one's portfolio.
Rachel Warren: I think that's a really helpful and informative way to break down that style of investing. We're certainly dedicated to long-term investing here at The Motley Fool. Something I know as well that you and your team have written about and discussed often recently, is the resilience to certain types of sectors have particularly in a current inflationary environment, but also over the long term. One of the sectors you've identified is the infrastructure space. I'm curious in your view, what sectors within the broader infrastructure industry pose the most compelling opportunities as you see them now for long-term investors? Then what are some of the durable driving factors that are beyond the current inflationary environment?
Jay Jacobs: Absolutely. Infrastructure is one of the themes that we're most excited about right now, and it's for several reasons. We really look at infrastructure in two different ways. One is, who's enabling infrastructure? Who's building the infrastructure or rebuilding the infrastructure in the United States and around the world today? That can be construction engineering companies, that could be machinery companies, that can even be raw materials companies that produce things like cement and steel that got used in infrastructure. We just had last year the Infrastructure Investments and Jobs Act passed Congress, which was a $1.2 trillion bill to accelerate the reinvestment in US infrastructure. We believe those enablers that are building that infrastructure are going to be the big beneficiaries.
They're going to start seeing the cash flow from that congressional act to rebuild US infrastructure. We see them as immediate winners. Over the long term some of the other winners are going to be infrastructure asset owners. These could be people that operate airports, toll roads, highways, bridges, different pipelines, and electric companies, and water utilities that benefit from this reinvestment and infrastructure. Because previously these companies had to spend the money on it. They had to use their own capex to improve an electrical power line. Now the US government is going to pay for it. That's a good thing for these businesses and they're really going to get to benefit from the passage of this act and the improvement of infrastructure around the country.
Also, we believe a lot of those infrastructure asset owners are very well positioned in this inflationary environment because a lot of their contracts are tied to CPI or PPI, meaning the amount that they're able to charge for their service automatically adjust when inflation rises. They have a built-in layer of inflation protection, which is really enviable by many companies in this type of environment where they can just naturally start to raise prices due to their contracts. We believe infrastructure is really this dual-faceted theme with enablers and asset owners, that is also uniquely well-suited for this inflationary environment. Then over the long term just has incredible tailwinds because of this reinvestment and infrastructure which will take several years to be put into place.
Chris Hill: Coming up after the break, Maria Gallagher and Jason Moser return. They got a couple of stocks on their radar. So stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against. So don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here once again with Maria Gallagher and Jason Moser. Before we get to the stocks on our radar, we've got a question on the Motley Fool Money hotline. Dan, what do we have?
Tyler: Hey Fools, this is Tyler from LA, is Warner Brothers Discovery stock going loony? It's down 30 percent since becoming bigger and probably better. I know the market is concerned about the money that's being spent to producing content that the CEO, David Zaslav, seems to be making the right moves by trying to cut budgets and spend money wisely. Evaluation seems to be attractive because of the IP Warner Brothers Discovery has, but the stock is a falling knife at the moment. Thoughts on this. Thanks. Have a good one. Bye.
Chris Hill: Thank you Tyler in LA for a great question. Jason, we talk a lot about streaming video and entertainment. Warner Brothers Discovery is not a company we talk about as much, although parent company of HBO Max, we talk about that when we're talking Netflix and Disney Plus and all that thing. What do you think to Tyler's question? This is a stock that has been knocked down, but the CEO, David Zaslav, is not being shy about making moves.
Jason Moser: No, he's not. It's not his first rodeo either. Thanks for the question, Tyler. I think it's a really good one. We are seeing just such a massive shift here in the media landscape and the streaming landscape, the ways to go about doing it, distributing that content. I think that ultimately hit in on this a little bit, Warner is going to need to figure out ultimately what that strategy is for them. What strategy is going to work best for them. That is ultimately still a work in progress right now because this merger is still so new. We do need to give them some time, I think, to really decide. Brighten or articulate what that strategy is. Mergers like this come with a lot of cleaning up of old messes, investments that weren't panning out, reprioritizing of strategies. It's not like they are alone either. You look at streamers in the space, Disney's down close to 40 percent year-to-date, Netflix is down 70 percent year-to-date.
This is a very tough business where companies are spending a ton on content, but not yet realizing the profits from this, as this landscape continues to shift. But you made a really good point there in their IP. You've got these brands that just have to have done so well for so long and it will continue to keep on giving. Whether it's HBO, whether it's Food Network, HGTV, whatever it may be. They do have a lot of valuable IP there and I believe they'll be able to exploit it. I think they just need a little bit of time. I think the unknown here, in exactly what the strategy is, is probably what has the market on the sidelines, but the known in that valuable property, in the intellectual property that they have, I think it help offset that. This could very well be an opportunity.
Chris Hill: If you'd like to give us a call, The Motley Fool Money hotline number is 703-254-1445 ask a question about stocks. Tell us where you're from. Let us know if you're a Motley Fool member as well, 703-254-1445. Let's get to the stocks on our radar. Our man behind-the-glass, Dan Boyd is going to hit you with a question. Maria Gallagher, you're up first. What are you looking at this week?
Maria Gallagher: The stock on my radar is Paycom, ticker symbol PAYC. You might be familiar with this company. It does payroll and other human capital management services. But one reason I'm interested in it is what we've been talking about a lot is things like recessions, inflations, and what they do is they specialize in small and medium-sized businesses who will really show, I think, how the economy is really doing and how that evolves in the next couple of quarters. I think it's going to be really fascinating to hear their take on the current market environment and see how companies are spending their money with them.
Chris Hill: Dan, question about Paycom?
Dan Boyd: Absolutely Chris. Maria, payments software is a pretty saturated market. What really separates Paycom from the other players in the space?
Maria Gallagher: What they do, it's pretty interesting because they do focus on those small, medium businesses. I think they've really carved out a really good name for themselves in that niche and they are with you from recruitment to retirement. They help with your HR systems, they help with all your payroll. What you see as people go on the platform and then they keep spending more and they have really high retention, especially within that small, medium business. I think where they operate is really what differentiates them.
Chris Hill: Jason Moser, what are you looking at this week?
Jason Moser: Digging more into a company called Procore, ticker is PCOR. Procore is a provider of construction management software. They focus exclusively on construction and connecting the owners and the general contractors, especially contractors, architects, and engineers. Think [inaudible 00:38:34] industries, Chris. In order to collaborate really from any location, I think that really is what it's all about for them. They break out a four product categories: pre-construction, project management, resource management, and financial management. I think one potential advantage is, they're open application programming interfaces, there is APIs, and they have an application or app marketplace. This ultimately allows customers to integrate Procore products with their own internal systems. That could be ultimately an advantage but I'm looking more into that as I try to learn more about the company itself.
Chris Hill: Dan, question about Procore Technologies?
Dan Boyd: Not really a question, Chris, more of a comment. We could follow this one under things that make sense. Procore Technologies is housed in Carpinteria, California, which of course, Carpinteria is Spanish for carpentry. Got to love that.
Jason Moser: Yeah, I do love that. That's a great selling point there, Dan, thanks.
Chris Hill: Two very different businesses, Dan. You've got stock you want to add to your watch list?
Dan Boyd: Listen man, I said it, it just makes sense to me. I'm going to go Procore. Let's all visit Carpinteria, California, one day.
Chris Hill: Road trip. Jason Moser, Maria Gallagher, thanks so much for being here.
Maria Gallagher: Thanks for having us.
Jason Moser: Thank you.
Chris Hill: That's going to do it for this week's Motley Fool Money Radio Show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time.
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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Walt Disney. Dan Boyd has positions in Amazon and Walt Disney. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, and Walt Disney. Maria Gallagher has positions in Walt Disney. Rachel Warren has positions in Alphabet (A shares), Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Coinbase Global, Inc., DoorDash, Inc., Meta Platforms, Inc., Netflix, Paycom Software, Procore Technologies, Inc., Twitter, Upstart Holdings, Inc., and Walt Disney. The Motley Fool recommends Uber Technologies and Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Google looking to monetize the lock screen of your phone. In this podcast, Motley Fool senior analysts Maria Gallagher and Jason Moser discuss: The June jobs report, falling gas prices, and the shifting employment landscape. Motley Fool contributor Rachel Warren talks with Jay Jacobs, U.S. head of thematics and active equity ETFs at BlackRock, about the trends he and his team are watching in infrastructure, emerging markets, and healthcare. | Apple (NASDAQ: AAPL) and Google looking to monetize the lock screen of your phone. In this podcast, Motley Fool senior analysts Maria Gallagher and Jason Moser discuss: The June jobs report, falling gas prices, and the shifting employment landscape. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Coinbase Global, Inc., DoorDash, Inc., Meta Platforms, Inc., Netflix, Paycom Software, Procore Technologies, Inc., Twitter, Upstart Holdings, Inc., and Walt Disney. | Apple (NASDAQ: AAPL) and Google looking to monetize the lock screen of your phone. Motley Fool contributor Rachel Warren talks with Jay Jacobs, U.S. head of thematics and active equity ETFs at BlackRock, about the trends he and his team are watching in infrastructure, emerging markets, and healthcare. I'm Chris Hill and I am joined by Motley Fool Senior Analyst Jason Moser and Maria Gallagher. | Apple (NASDAQ: AAPL) and Google looking to monetize the lock screen of your phone. I don't know. Chris Hill: We were talking about this before the show, Maria. |
20279.0 | 2022-07-15 00:00:00 UTC | Taiwan weighs Foxconn fine for China chip investment -sources | AAPL | https://www.nasdaq.com/articles/taiwan-weighs-foxconn-fine-for-china-chip-investment-sources | nan | nan | By Jeanny Kao
TAIPEI, July 15 (Reuters) - Taiwan's government is considering fining tech giant Foxconn 2317.TW up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday.
Foxconn, the world's largest contract electronics maker, said this week it has become a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup via a 5.38 billion yuan ($797 million) investment by a subsidiary.
The investment comes as Taiwan turns a wary eye on China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology.
Foxconn did not seek prior approval from the Taiwan government before the investment was made and authorities believe it has violated a law governing the island's relations with China, a person familiar with the matter told Reuters.
Regulators are weighing whether to hand Foxconn the "maximum" fine possible, which is $T25 million, due to the large size of the Chinese investment, the person added,
Foxconn referred Reuters to an earlier filing on the stock exchange, saying it will deliver the documents to the Economy Ministry's Investment Commission in the near future.
A second source said Foxconn could be given a fine of between T$50,000 and T$20 million for investing without approval, adding that regulators will scrutinise the investment and deliver a decision after they receive the company's application.
"There's a chance that an approval will be given. If not, Hon Hai will have to withdraw the investment," the person said, referring to Foxconn's formal name, Hon Hai Precision Industry Co Ltd.
Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development." Those violating the law could be fined repeatedly until corrections are made.
Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, is keen to make auto chips in particular as it expands into the electric vehicle market. The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.
Originating as a branch of China's prestigious Tsinghua University, Tsinghua Unigroup emerged in the previous decade as a would-be domestic champion for China's laggard chip industry.
But the company fell into debt under former chairman Zhao Weiguo, prompting it to default on a number of bond payments in late 2020 end eventually face bankruptcy.
The conglomerate has yet to produce any global leaders in the semiconductor sector.
($1 = 29.9180 Taiwan dollars)
($1 = 6.7506 Chinese yuan renminbi)
(Reporting By Jeanny Kao; Additional reporting by Yimou Lee; Editing by Michael Perry and Lincoln Feast.)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, is keen to make auto chips in particular as it expands into the electric vehicle market. By Jeanny Kao TAIPEI, July 15 (Reuters) - Taiwan's government is considering fining tech giant Foxconn 2317.TW up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday. Foxconn, the world's largest contract electronics maker, said this week it has become a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup via a 5.38 billion yuan ($797 million) investment by a subsidiary. | Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, is keen to make auto chips in particular as it expands into the electric vehicle market. By Jeanny Kao TAIPEI, July 15 (Reuters) - Taiwan's government is considering fining tech giant Foxconn 2317.TW up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday. Regulators are weighing whether to hand Foxconn the "maximum" fine possible, which is $T25 million, due to the large size of the Chinese investment, the person added, Foxconn referred Reuters to an earlier filing on the stock exchange, saying it will deliver the documents to the Economy Ministry's Investment Commission in the near future. | Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, is keen to make auto chips in particular as it expands into the electric vehicle market. By Jeanny Kao TAIPEI, July 15 (Reuters) - Taiwan's government is considering fining tech giant Foxconn 2317.TW up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday. Foxconn did not seek prior approval from the Taiwan government before the investment was made and authorities believe it has violated a law governing the island's relations with China, a person familiar with the matter told Reuters. | Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, is keen to make auto chips in particular as it expands into the electric vehicle market. By Jeanny Kao TAIPEI, July 15 (Reuters) - Taiwan's government is considering fining tech giant Foxconn 2317.TW up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday. The investment comes as Taiwan turns a wary eye on China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology. |
20280.0 | 2022-07-15 00:00:00 UTC | Better Tech Stock: Apple vs. Microsoft | AAPL | https://www.nasdaq.com/articles/better-tech-stock%3A-apple-vs.-microsoft | nan | nan | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were once considered aging dinosaurs of the tech sector, but both companies were reborn under visionary leaders. Steve Jobs' return to Apple in 1997 led to the launch of innovative new products -- including the iMac, iPod, iPhone, and iPad -- which turned it into a high-growth company again. Apple's future looked murky after Jobs passed away in 2011, but it continued to grow under Tim Cook, who oversaw the expansion of its business with new devices like the Apple Watch and AirPods, as well as sticky subscription-based services like Apple Music and Apple TV+.
Satya Nadella took the helm as Microsoft's third CEO in 2014 and executed a "mobile first, cloud first" strategy to reduce its dependence on desktop software. Under Nadella, Microsoft converted most of its flagship software into subscription-based cloud services and cross-platform mobile apps, grew Azure into the second-largest cloud platform in the world, and strengthened its hardware business with new Surface devices and Xbox consoles.
Image source: Apple.
Over the past 10 years, Apple generated a total return of nearly 580% as Microsoft generated an even higher total return of more than 760%. Both of these blue-chip tech stocks are still solid long-term investments -- but is one of them a better buy in this brutal bear market?
The differences between Apple and Microsoft
Apple generates most of its revenue from hardware devices, but Microsoft generates most of its revenue from software and cloud-based services. In the first half of fiscal 2022 (which started last September), Apple generated 55% of its revenue from iPhones, 10% from Macs, 7% from iPads, and another 11% from its wearables, home, and accessories segment. The remaining 18% of its revenues came from its services segment, which houses its App Store, Apple Pay, and subscription-based services.
Microsoft splits its sprawling business into three main segments: productivity and business processes (32% of revenue in the first nine months of fiscal 2022, which started last July), which houses Office, Dynamics, and LinkedIn; intelligent cloud (37% of revenue), which handles Azure and its server products; and more personal computing (31% of revenue), which includes its Windows, Xbox, Surface, search, and advertising businesses.
Which company generates more consistent growth?
Apple's dependence on the iPhone makes it a more cyclical company than Microsoft. Apple's iPhone sales surged 39% in fiscal 2021 after it launched the iPhone 12, the company's first family of 5G devices, but it now faces much more challenging year-over-year comparisons with the iPhone 13. Chip shortages and supply chain disruptions are also exacerbating that slowdown.
However, Apple's Services segment is growing like a weed. It locked in 825 million paid subscriptions across all its services in the second quarter of 2022, representing an increase of 165 million over the past 12 months.
Wall Street expects Apple's revenue and earnings to grow 8% and 9%, respectively, this year. In 2023, they expect its revenue and earnings to rise 5% and 6%, respectively, but that doesn't fully factor in the potential launches of new augmented-reality devices or additional subscription services.
Microsoft's business is more diversified and less cyclical than Apple's but relies heavily on the continued growth of its entire cloud business -- which grew its revenue 32% year over year in the third quarter of fiscal 2022 and accounted for nearly half of Microsoft's top line.
Azure is that segment's core growth engine and should remain a compelling alternative to the market leader, Amazon Web Services (AWS), for companies (especially retailers) that don't want to feed Amazon's most profitable business.
Analysts expect Microsoft's revenue and earnings to grow 18% and 16%, respectively, in fiscal 2022. They expect that stable growth to continue in fiscal 2023 as its revenue rises 14% and earnings climb another 15%.
The valuations and verdict
Apple trades at 23 times forward earnings and pays a forward dividend yield of 0.6%. Microsoft has a forward price-to-earnings ratio of 25 and pays a slightly higher forward dividend yield of 1%.
Apple became a safe-haven stock as interest rates rose, since it's firmly profitable and sitting on $193 billion in cash and marketable securities, but it arguably became a bit overvalued relative to its near-term growth prospects. Microsoft also earned a safe-haven reputation, since it was sitting on $105 billion in cash, cash equivalents, and short-term investments in its latest quarter, but a lot of that cash has already been earmarked for its planned purchase of Activision Blizzard for $68.7 billion.
Nevertheless, Microsoft arguably faces fewer macro headwinds than Apple, it pays a higher dividend, and its stock looks more reasonably valued relative to its near-term growth. If I could only choose one of these stocks right now in this choppy market, I'd definitely stick with Microsoft.
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. Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were once considered aging dinosaurs of the tech sector, but both companies were reborn under visionary leaders. Steve Jobs' return to Apple in 1997 led to the launch of innovative new products -- including the iMac, iPod, iPhone, and iPad -- which turned it into a high-growth company again. Apple became a safe-haven stock as interest rates rose, since it's firmly profitable and sitting on $193 billion in cash and marketable securities, but it arguably became a bit overvalued relative to its near-term growth prospects. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were once considered aging dinosaurs of the tech sector, but both companies were reborn under visionary leaders. Over the past 10 years, Apple generated a total return of nearly 580% as Microsoft generated an even higher total return of more than 760%. The differences between Apple and Microsoft Apple generates most of its revenue from hardware devices, but Microsoft generates most of its revenue from software and cloud-based services. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were once considered aging dinosaurs of the tech sector, but both companies were reborn under visionary leaders. Apple's future looked murky after Jobs passed away in 2011, but it continued to grow under Tim Cook, who oversaw the expansion of its business with new devices like the Apple Watch and AirPods, as well as sticky subscription-based services like Apple Music and Apple TV+. The differences between Apple and Microsoft Apple generates most of its revenue from hardware devices, but Microsoft generates most of its revenue from software and cloud-based services. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were once considered aging dinosaurs of the tech sector, but both companies were reborn under visionary leaders. Analysts expect Microsoft's revenue and earnings to grow 18% and 16%, respectively, in fiscal 2022. Nevertheless, Microsoft arguably faces fewer macro headwinds than Apple, it pays a higher dividend, and its stock looks more reasonably valued relative to its near-term growth. |
20281.0 | 2022-07-14 00:00:00 UTC | 5 Stocks to Outrun the Housing Market | AAPL | https://www.nasdaq.com/articles/5-stocks-to-outrun-the-housing-market | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is excerpted from Tom Yeung’s Profit & Protection newsletter. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here.
CPI Hits 9.1%… And Other Bad News
On Tuesday, I wrote that exorbitant home prices are driving even relatively well-off professionals out of top markets.
No matter how successful a doctor, lawyer or programmer you become, it’s hard to make $450,000 per year — Fidelity Bank’s estimated buying price for the average apartment in New York’s Upper East Side.
Right on cue, the Bureau of Labor Statistics (BLS) released even more bad news:
Inflation hit 9.1% in the month of June.
And as shocking as the figure might be, it actually understates the problem. According to data from Zillow, the average cost to rent has risen 14.7% in the past 12 months. But because only one-third of Americans rent (and making some adjustments for homeowners), the BLS only recorded a 5.6% increase in real estate spending among all Americans.
But jumping into real estate today is also risky at best. Rising mortgage rates, slackening commodity prices and unaffordable prices point to prolonged stagnation in house values. Real estate prices cannot go to the moon unless wages do too.
Instead, investors need to buy companies that benefit from real estate markets without the pricing risk. And today, we will cover five of these fast-growing tech firms that are upending the traditional real estate market.
Source: Shutterstock / Unicode Vector
5 Stocks to Outrun the Housing Market
Earlier this month, Zillow revealed housing prices have risen 19.4% over the past year. Many homeowners are nervously asking themselves how they’ll afford a new house if they ever need to move.
Meanwhile, renters are in even worse shape. Wages have risen at just one-third the rate of rent increases. And Google’s 30 million results for the question “how much does a cardboard box cost to live in” yield very little helpful advice.
At first glance, homebuilder stocks seem like a natural winner. As I mentioned on Tuesday, companies like America’s largest home builder D.H. Horton (DHI) are earning 4x their operating income compared to five years ago.
If home prices are going up, shouldn’t homebuilder stocks too?
But such conclusions fall into the trap of “first-level thinking,” a term coined by Oaktree Capital co-founder Howard Marks.
First-level thinking is simplistic and superficial, and just about everyone can do it (a bad sign for anything involving an attempt at superiority). All the first-level thinker needs is an opinion about the future, as in “The outlook for the company is favorable, meaning the stock will go up.” Second-level thinking is deep, complex and convoluted.
That’s because homebuilding is a low-margin business with virtually no barriers to entry. Excess profits only materialize when home prices are rising, since most of the company’s assets are tied to land, partial builds and completed houses. It’s a business that hemorrhages value the moment home prices drop or stagnate.
How to Profit from Real Estate
Many foreign homebuilders have overcome these risks by pre-selling homes. Buyers put down a hefty deposit for an agreed-upon price, and homebuilders act more like contractors than buy-and-sell developers. These firms tend to be slow-growing, low-risk plays.
Meanwhile, American investors have an even better option:
High-growth tech firms upending the real estate market.
These superstar growth companies tend to be far less capital intensive than homebuilders, meaning that each dollar invested can return multiple back.
That’s the driving force behind my Perpetual Money Machine strategy. When companies avoid capital-intensive production — as is the case with Nvidia (NVDA) or Apple (AAPL) — they can turn $1,000 investments into millions. No homebuilder typically manages that feat.
Today, we’re going to look at five real estate plays upending the traditional world of real estate. And join me on Friday, when I reveal which firm makes it into the core Profit & Protection list.
eXp World Holdings (EXPI)
Growth: A | Value: A+ | Quality: B+ | Momentum: A+
Overall Score: A+
eXp World Holdings (EXPI) is a cloud-based real estate brokerage firm lowering costs for real estate agents nationwide. Revenues have grown from $500 million in 2018 to around $5.3 billion today, about the same rate that Amazon (AMZN) managed in its early days.
eXp provides clear benefits to real estate agents — the company’s online-only model means brokers can keep anywhere from 80% to 100% of their commissions, compared to a typical 70/30 split. And homebuyers also have some upside — the company’s cloud-based transaction processing reduces costs for all parties involved.
At its core, however, eXp has grown thanks to a revenue-share model that incentivizes real estate agents to recruit new talent. Much like Amway, Mary Kay and other direct-selling firms, eXp rewards existing agents with commission earned by those they’ve recruited. It’s a controversial practice to be sure, but one that’s worked before.
Many investors will chafe at investing in an alleged pyramid scheme. And indeed, the company’s “B+” quality rating reflects these concerns. So make sure you join me on Friday to see whether eXp’s rapid growth is enough to earn it a place in the Profit & Protection list, or if its internal risks are too much to bear.
Airbnb (ABNB)
Growth: A | Value: A | Quality: A+ | Momentum: B+
Overall Score: A
Homesharing site Airbnb (ABNB) has become a Covid-19 pandemic darling. Revenues rebounded far faster than at traditional hotel firms — rising from $3.3 billion in 2020 to $6 billion in 2021.
Analysts now expect Airbnb to double revenues again by 2024.
But such growth has failed to translate into momentum. Shares are down 45% since the start of the year, earning the company an average “B+” in its momentum score. The travel industry is cyclical at best.
Competition from Expedia (EXPE) and Booking Holdings (BKNG) is also starting to worry investors — both travel behemoths have unveiled plans to enter the vacation rental industry.
Yet Airbnb is one of the strongest companies in the real estate market, earning an “A+” for quality and “A” in growth and value. Its proven business model spins off cash with little investment required, making it a tempting play that any Profit & Protection reader should watch.
Redfin Corp (RDFN)
Growth: A | Value: A+ | Quality: C | Momentum: A+
Overall Score: A
Redfin (RDFN) is a fast-growing real estate company that covers brokerage, rentals, mortgage, title services and instant offers. It’s a diversified platform that handsomely rewards successful real estate agents.
Redfin’s investment draw is clear: the company is a foothold into the real estate market that avoids real estate pricing risks. Analysts expect the firm to grow another 30% this year and generate EBITDA profitability by next year despite a slowdown in real estate transactions.
But the company scores a poor “C” grade in quality. Gross margins declined from 26% in 2020 to 21% in 2021 and lost 6 cents for every dollar of revenues. High overhead costs have only exacerbated the issue.
But these factors have also pushed Redfin into deep value territory. Shares are down almost 80% for the year, pricing the firm at 0.37x price-to-forward-sales. By that metric, it’s the cheapest real estate play among the fast-growing tech names.
Zillow Group (ZG)
Growth: A | Value: B | Quality: B+ | Momentum: A
Overall Score: B+
In 2021, Zillow (ZG) found itself on the wrong side of real estate history after losing $880 million from its home-flipping business. It turns out there’s a reason why most tech firms like Amazon largely avoid sinking money into buying third-party products for resale.
Fast forward a year and Zillow’s management seems to have learned their lesson. The firm is winding down its iBuying program, with only another 1,280 homes to sell in its most recent earnings.
In its place, the firm has refocused itself on its Internet Media and Technology (IMT) segment — a lucrative core business that earned almost 30% net margins in 2021. Analysts now expect free cash flow to improve from $340 million in 2020 (the year before its iBuying program took off in earnest) to $1.1 billion by 2024.
Zillow’s momentum is also flagging a potential turnaround. Shares are trading at levels not seen since the depths of the 2020 Covid-19 pandemic.
Join me tomorrow to see whether Zillow’s renewed focus on returns is enough to land it on the core Profit & Protection buy list
Appfolio (APPF)
Growth: A | Value: B | Quality: B+ | Momentum: A
Overall Score: B+
Then we have Appfolio (APPF), a tech-based property management firm that helps property managers run their businesses. It’s a firm with the blue-chip real estate exposure of a Jones Lang Lasalle (JLL) or CBRE (CBRE) with the high returns of a tech-based company.
The odd combination has created an equally strange outcome. The company generated a 57% return on capital invested (ROIC) in 2020 before earning just 0.3% ROIC the following year. When you run a capital-light business in a cyclical industry, the small denominator of an ROIC formula causes some wild swings.
Yet Appfolio has a stunningly strong business. In 2019, the firm received the top value score in Gartner’s review of residential property management. And even as real estate markets wobble, Appfolio’s stable business in managing the properties should remain firm. Analysts expect 20% growth in 2023 and 27% in 2024, giving the firm a solid “A” grade.
Bonus Pick: Luke Lango’s #1 Real Estate Play
Finally, Luke Lango reveals the “Amazon of houses” in one of his latest presentations. The firm has managed to succeed where Zillow has failed — using superior buying strategies to build a massive real estate portfolio.
Analysts now expect EBITDA earnings to rise 10x by 2024.
And the best part? Shares trade for less than $6.
To get Luke’s pick for FREE, please click here.
The Hidden Risks of Real Estate
In 2008, the Case Shiller Index of home prices dropped 14%.
Ordinarily, a 14% fall in asset prices would cause little alarm. The Nasdaq Composite Index fell almost that much in April this year alone.
But real estate markets have a habit of taking on too much leverage. The average mortgage REIT (mREIT) has a total debt-to-equity ratio of 4.1x — three times higher than the average S&P 500 firm.
That makes mREITs prone to blowing up. The average mortgage REIT rose 50% between November 2020 and 2021 before giving up virtually all its gains over the following several months.
That’s why the Profit & Protection system didn’t flag a single one for investment. And as real estate markets continue to show cracks, investors too should continue focusing on the faster-moving tech firms that avoid such outsized risks.
P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at feedback@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.
The post 5 Stocks to Outrun the Housing Market 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. | When companies avoid capital-intensive production — as is the case with Nvidia (NVDA) or Apple (AAPL) — they can turn $1,000 investments into millions. No matter how successful a doctor, lawyer or programmer you become, it’s hard to make $450,000 per year — Fidelity Bank’s estimated buying price for the average apartment in New York’s Upper East Side. As I mentioned on Tuesday, companies like America’s largest home builder D.H. Horton (DHI) are earning 4x their operating income compared to five years ago. | When companies avoid capital-intensive production — as is the case with Nvidia (NVDA) or Apple (AAPL) — they can turn $1,000 investments into millions. eXp World Holdings (EXPI) Growth: A | Value: A+ | Quality: B+ | Momentum: A+ Overall Score: A+ eXp World Holdings (EXPI) is a cloud-based real estate brokerage firm lowering costs for real estate agents nationwide. Redfin Corp (RDFN) Growth: A | Value: A+ | Quality: C | Momentum: A+ Overall Score: A Redfin (RDFN) is a fast-growing real estate company that covers brokerage, rentals, mortgage, title services and instant offers. | When companies avoid capital-intensive production — as is the case with Nvidia (NVDA) or Apple (AAPL) — they can turn $1,000 investments into millions. eXp World Holdings (EXPI) Growth: A | Value: A+ | Quality: B+ | Momentum: A+ Overall Score: A+ eXp World Holdings (EXPI) is a cloud-based real estate brokerage firm lowering costs for real estate agents nationwide. Redfin’s investment draw is clear: the company is a foothold into the real estate market that avoids real estate pricing risks. | When companies avoid capital-intensive production — as is the case with Nvidia (NVDA) or Apple (AAPL) — they can turn $1,000 investments into millions. If home prices are going up, shouldn’t homebuilder stocks too? Today, we’re going to look at five real estate plays upending the traditional world of real estate. |
20282.0 | 2022-07-14 00:00:00 UTC | Chipmaker TSMC's shares jump after quarterly profit beats estimates | AAPL | https://www.nasdaq.com/articles/chipmaker-tsmcs-shares-jump-after-quarterly-profit-beats-estimates-0 | nan | nan | Adds analyst comments
TAIPEI, July 15 (Reuters) - TSMC 2330.TW shares rose over 3% on Friday outperforming the broader market .TWII, after the Taiwanese chipmaker announced forecast-beating second-quarter profit, with analysts buoyant on the firm's outlook despite some downside concern.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion).
It said it was "highly confident" about its long-term prospects, though also signalled cooling demand from consumer electronics customers who it expects to reduce chip stockpiles over the next few quarters into 2023.
The market has been wary of a possible chip glut due to slowing consumer demand and soaring inflation, especially after Micron Technology Inc MU.O last month said a chip shortage in some sectors was quickly turning into a glut.
TSMC's earnings are likely to ease some of those worries for now.
Analysts at J.P. Morgan said TSMC acknowledging the downturn was a "positive start", expecting the chipmaker's stock price to move up modestly in the near term.
"But confirmation of downturn from other semi companies in this earnings season is necessary for a definitive clearing event."
TSMC's shares are still down around 21% so far this year, in line with broader local market, as investors worry Taiwan's export-dependent economy will be hit by slowing consumer demand in China, the United States and Europe.
Morningstar analysts said they believed Qualcomm Inc QCOM.O and Nvidia Corp's NVDA.O increased allocation to TSMC would have cushioned the impact of most of the overall softened demand for the next 12 months.
"We note that the duo has contracted TSMC as their primary foundry (if not sole) for most of 2023's consumer products because of low production yields at Samsung" Electronics Co Ltd 005930.KS.
Taiwan's benchmark index was up around 0.7% on Friday morning.
($1 = 29.9410 Taiwan dollars)
(Reporting by Yimou Lee and Ben Blanchard; Editing by Jacqueline Wong and Christopher Cushing)
((yimou.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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). It said it was "highly confident" about its long-term prospects, though also signalled cooling demand from consumer electronics customers who it expects to reduce chip stockpiles over the next few quarters into 2023. Analysts at J.P. Morgan said TSMC acknowledging the downturn was a "positive start", expecting the chipmaker's stock price to move up modestly in the near term. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). Adds analyst comments TAIPEI, July 15 (Reuters) - TSMC 2330.TW shares rose over 3% on Friday outperforming the broader market .TWII, after the Taiwanese chipmaker announced forecast-beating second-quarter profit, with analysts buoyant on the firm's outlook despite some downside concern. The market has been wary of a possible chip glut due to slowing consumer demand and soaring inflation, especially after Micron Technology Inc MU.O last month said a chip shortage in some sectors was quickly turning into a glut. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). Adds analyst comments TAIPEI, July 15 (Reuters) - TSMC 2330.TW shares rose over 3% on Friday outperforming the broader market .TWII, after the Taiwanese chipmaker announced forecast-beating second-quarter profit, with analysts buoyant on the firm's outlook despite some downside concern. TSMC's shares are still down around 21% so far this year, in line with broader local market, as investors worry Taiwan's export-dependent economy will be hit by slowing consumer demand in China, the United States and Europe. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). Adds analyst comments TAIPEI, July 15 (Reuters) - TSMC 2330.TW shares rose over 3% on Friday outperforming the broader market .TWII, after the Taiwanese chipmaker announced forecast-beating second-quarter profit, with analysts buoyant on the firm's outlook despite some downside concern. TSMC's earnings are likely to ease some of those worries for now. |
20283.0 | 2022-07-14 00:00:00 UTC | 5 Semiconductor Stocks to Look at After the CHIPS Act Passes | AAPL | https://www.nasdaq.com/articles/5-semiconductor-stocks-to-look-at-after-the-chips-act-passes | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The CHIPS for America Act, meant to bring the semiconductor industry back to America, has become lost in partisan politics. Republican leaders who claim to support it are using it to seek concessions on other issues. Anyone interested in semiconductor stocks should pay close attention to these developments.
Stock in companies that support the funding are hitting the ground and aren’t being picked up. Reports that the present chip shortage is easing has increased opposition. Many oppose subsidizing an industry that appears, on the surface, to be highly profitable.
While I have many friends who question the need for the act, making semiconductors is a dirty business done by highly-paid people. Low-wage countries with lax environmental protections captured it decades before the origin of chips became a national security concern.
If we want to allay the national security concern, or avoid the industry moving to Europe, taxpayers must make an investment that will pay off in jobs, taxes and repaired supply chains.
There’s less urgency among voters for the semiconductor industry. The pressure to pass the bill is all coming from the industry, which is delaying construction of new facilities until the funding is secure.
7 Best Dow Stocks to Buy in July
If you think the CHIPS Act is necessary and likely to pass eventually, now would be a good time to buy the companies that most benefit from it.
INTC Intel $37.17
NVDA Nvidia $152.15
TSM Taiwan Semiconductor $81.24
MU Micron $58.96
AAPL Apple $145.77
Intel (INTC)
Source: Sundry Photography / Shutterstock.com
Intel (NASDAQ:INTC) isn’t exactly broke right now, but the economics of the industry mean its cash would be better deployed in Vietnam or Abu Dhabi if the U.S. government doesn’t help.
CEO Pat Gelsinger, a longtime Intel executive who returned from VMWare (NYSE:VMW) last year, saw Intel move offshore and wants to bring it back. But he has threatened to move production to Europe if he doesn’t get government cash.
Intel is desperate because it needs to make decisions now on where it will produce chips in 2025. By then it hopes to be making chips with circuit lines just 18 Angstroms, less than two nanometers apart.
While Moore’s Law gets the headlines, Intel is acting as it is thanks to Moore’s Second Law. That is, as circuit lines get closer the equipment to make them becomes proportionally more expensive. There’s also what I call Moore’s Third Law, the idea that as chips grow more complex their environmental footprint also grows.
In the past, Intel offset these costs by putting factories where labor cost less, or environmental regulations were ignored. For Intel, the CHIPS for America Act is necessary to offset those costs. Without it, Gelsinger argues, Intel is either overseas or uncompetitive.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
No company better represents the recent past of the semiconductor industry, and its future, than Nvidia (NASDAQ:NVDA).
Nvidia makes graphics processors. These were once thought of as “helper” chips that offloaded complex graphics calculations from the microprocessor, for things like rendering video games. They’re now at the heart of artificial intelligence and metaverse applications, the future of the industry.
Nvidia doesn’t manufacture chips. It designs them, then hires a fabrication plant or foundry to make them. In recent years that has been Taiwan Semiconductor (NYSE:TSM), first to master the extreme ultraviolet lithography (EUV) technology needed to render designs at 10 nm and less.
Nvidia’s co-founder and CEO, Jensen Huang, was also born in Taiwan, in the historical capital of Tainan, six years before Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su was born in the same city.
5 Best Stocks to Buy if You Have $100 to Spend
This brings up the industry’s problem. China claims Taiwan as its territory, and regularly threatens to take it by force. The semiconductor industry is now completely dependent on Taiwan for leadership as well as for manufacturing. If Taiwan were invaded today, the entire world economy would be threatened.
Taiwan Semiconductor (TSM)
Source: Sundry Photography / Shutterstock.com
An hour’s drive outside Taipei is Hsinchu Technology Park, the most important manufacturing center in the world.
This is where Taiwan Semiconductor has most of its fabrication plants, or “fabs.” This is where it mastered EUV process needed for making today’s most powerful microprocessors.
Taiwan Semi has mastered this technology. Samsung has, too. Intel says it has. Chinese semiconductor manufacturers have not. China finds making even 14 nm chips difficult without imported technology, which the U.S. is now trying to deny it.
Taiwan Semiconductor is now building plants in Arizona and promises to build more once the CHIPS for America Act passes. This would protect the global industry from China’s threats against Taiwan Semiconductor’s home, a possible landing point for Chinese troops in an invasion. If war came, analysts at the U.S. Army War College have suggested, the Taiwanese plants should be destroyed. This would take the global economy with it.
Meanwhile, two thirds of the world’s semiconductor foundry revenue goes to Taiwan.
Micron (MU)
Source: Charles Knowles / Shutterstock.com
Micron (NASDAQ:MU) makes something the rest of the U.S. industry, including Intel, have given up on.
Micron makes memory and storage chips. Two Korean companies dominate the memory market, but Micron still has a 23% share.
Micron is known for making chips at its hometown of Boise, Idaho, but it is a global supplier, with plants in Malaysia, Taiwan and even China. Micron plans to invest $150 billion over the next decade. CEO Sanjay Mehrotra says that, depending on the fate of the act, more or less of that money will go to the U.S.
7 Best Biotech Stocks to Buy in July 2022
Because memory chips are commodities, unlike microprocessors, their price and Micron’s profitability are very sensitive to supply and demand. This has made the stock highly volatile over many years. It traded for just $10 as recently as 2016, and for $97 as recently as January. It’s down 37% on the year as prices for memory have eased for the first time in years.
Apple (AAPL)
Source: Moab Republic / Shutterstock
The biggest beneficiary of the CHIPS for America Act is America’s most valuable company, Apple (NASDAQ:AAPL).
Apple has been seeking to control its supply chain for years. At the center of this are semiconductors, which it designs based on ARM Holdings designs. But Apple has no chip foundries of its own. Instead, it depends heavily on Samsung and Taiwan Semiconductor.
As Taiwan Semiconductor expands in the U.S., in other words, Apple secures its own supply chain. Apple chips are among those expected to be produced at Taiwan Semiconductor’s new Arizona plant.
Apple CEO Tim Cook has said supply constraints could cost Apple as much as $8 billion this quarter. That is one reason why Apple stock is down 18% so far in 2022. Apple’s new designs change the entire industry landscape and will let it unify its iPad, iPhone and Mac product lines.
But without new manufacturing capacity in the U.S., it may all be just vaporware.
On the date of publication, Dana Blankenhorn held long positions in AAPL, INTC, NVDA and TSM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 5 Semiconductor Stocks to Look at After the CHIPS Act Passes 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. | INTC Intel $37.17 NVDA Nvidia $152.15 TSM Taiwan Semiconductor $81.24 MU Micron $58.96 AAPL Apple $145.77 Intel (INTC) Source: Sundry Photography / Shutterstock.com Intel (NASDAQ:INTC) isn’t exactly broke right now, but the economics of the industry mean its cash would be better deployed in Vietnam or Abu Dhabi if the U.S. government doesn’t help. Apple (AAPL) Source: Moab Republic / Shutterstock The biggest beneficiary of the CHIPS for America Act is America’s most valuable company, Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, INTC, NVDA and TSM. | INTC Intel $37.17 NVDA Nvidia $152.15 TSM Taiwan Semiconductor $81.24 MU Micron $58.96 AAPL Apple $145.77 Intel (INTC) Source: Sundry Photography / Shutterstock.com Intel (NASDAQ:INTC) isn’t exactly broke right now, but the economics of the industry mean its cash would be better deployed in Vietnam or Abu Dhabi if the U.S. government doesn’t help. Apple (AAPL) Source: Moab Republic / Shutterstock The biggest beneficiary of the CHIPS for America Act is America’s most valuable company, Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, INTC, NVDA and TSM. | INTC Intel $37.17 NVDA Nvidia $152.15 TSM Taiwan Semiconductor $81.24 MU Micron $58.96 AAPL Apple $145.77 Intel (INTC) Source: Sundry Photography / Shutterstock.com Intel (NASDAQ:INTC) isn’t exactly broke right now, but the economics of the industry mean its cash would be better deployed in Vietnam or Abu Dhabi if the U.S. government doesn’t help. Apple (AAPL) Source: Moab Republic / Shutterstock The biggest beneficiary of the CHIPS for America Act is America’s most valuable company, Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, INTC, NVDA and TSM. | INTC Intel $37.17 NVDA Nvidia $152.15 TSM Taiwan Semiconductor $81.24 MU Micron $58.96 AAPL Apple $145.77 Intel (INTC) Source: Sundry Photography / Shutterstock.com Intel (NASDAQ:INTC) isn’t exactly broke right now, but the economics of the industry mean its cash would be better deployed in Vietnam or Abu Dhabi if the U.S. government doesn’t help. Apple (AAPL) Source: Moab Republic / Shutterstock The biggest beneficiary of the CHIPS for America Act is America’s most valuable company, Apple (NASDAQ:AAPL). On the date of publication, Dana Blankenhorn held long positions in AAPL, INTC, NVDA and TSM. |
20284.0 | 2022-07-14 00:00:00 UTC | Apple Stock: Intriguing Value Amid Market Storm | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-intriguing-value-amid-market-storm | nan | nan | In the classic disaster movie, The Towering Inferno, faulty engineering causes an electrical short which sets off a fire in the world's tallest building. Following which, there is initially a sense the accident can be contained, and the fire swiftly put out, but it turns out that was merely wishful thinking and after brief interludes of hope, more setbacks ensue until disaster finally unfolds.
This is an unintended parable for the current state of the economy, so says Monness analyst Brian White, who believes it will take a “deluge of extraordinary forces to put out this blaze and avoid further destruction.”
And as the economy goes up in smoke, the world’s most resilient companies won’t be able to withstand the heat. Even the biggest of them all – Apple (AAPL).
But let’s flashback to better times first. Maybe not for the general populace but definitely for the tech giant. During the pandemic, Apple enjoyed a “powerful tailwind from the work-from-home phenomenon, driving unprecedented demand for Macs and iPads.” Additionally, the lockdowns left scant options for outside entertainment and therefore consumers spent more of their budgets on other Apple products and services.
But while the reopening inevitably resulted in a reversal of these trends – which White’s model accounted for – other “sinister headwinds have since emerged, including a sharp downshift in the economy, disruptive inflationary pressures, and a precarious geopolitical environment.”
Accordingly, while White believes Apple’s portfolio has “never been stronger and its platform more ubiquitous,” it stands to suffer from these macro developments.
With this in mind, White has now slashed his 3QFY22 (June quarter) revenue outlook from $89.30 billion to $85.88 billion (a 5.5% year-over-year increase) and lowered the EPS projection from $1.32 to $1.24. For FY22, the revenue forecast has been pulled back to $397.52 billion from the prior $408.60 billion and the EPS estimate has been lowered from $6.44 to $6.20.
Along with the downward revisions, White cut his price target on Apple shares, from $199 to $174, suggesting shares have 17% upside potential in the year ahead. White’s Buy rating stays as is. (To watch White’s track record, click here)
The rest of the Street is optimistic about Apple, with its Strong Buy analyst consensus breaking down into 22 Buys and 6 Holds. At $183.05, the average price target brings the upside potential to 23%. (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. | Even the biggest of them all – Apple (AAPL). In the classic disaster movie, The Towering Inferno, faulty engineering causes an electrical short which sets off a fire in the world's tallest building. Following which, there is initially a sense the accident can be contained, and the fire swiftly put out, but it turns out that was merely wishful thinking and after brief interludes of hope, more setbacks ensue until disaster finally unfolds. | Even the biggest of them all – Apple (AAPL). But while the reopening inevitably resulted in a reversal of these trends – which White’s model accounted for – other “sinister headwinds have since emerged, including a sharp downshift in the economy, disruptive inflationary pressures, and a precarious geopolitical environment.” Accordingly, while White believes Apple’s portfolio has “never been stronger and its platform more ubiquitous,” it stands to suffer from these macro developments. Along with the downward revisions, White cut his price target on Apple shares, from $199 to $174, suggesting shares have 17% upside potential in the year ahead. | Even the biggest of them all – Apple (AAPL). But while the reopening inevitably resulted in a reversal of these trends – which White’s model accounted for – other “sinister headwinds have since emerged, including a sharp downshift in the economy, disruptive inflationary pressures, and a precarious geopolitical environment.” Accordingly, while White believes Apple’s portfolio has “never been stronger and its platform more ubiquitous,” it stands to suffer from these macro developments. (To watch White’s track record, click here) The rest of the Street is optimistic about Apple, with its Strong Buy analyst consensus breaking down into 22 Buys and 6 Holds. | Even the biggest of them all – Apple (AAPL). In the classic disaster movie, The Towering Inferno, faulty engineering causes an electrical short which sets off a fire in the world's tallest building. Following which, there is initially a sense the accident can be contained, and the fire swiftly put out, but it turns out that was merely wishful thinking and after brief interludes of hope, more setbacks ensue until disaster finally unfolds. |
20285.0 | 2022-07-14 00:00:00 UTC | Thursday's ETF with Unusual Volume: PRF | AAPL | https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-prf | nan | nan | The Invesco FTSE RAFI US 1000 ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.0 million shares traded versus three month average volume of about 217,000. Shares of PRF were down about 1.8% on the day.
Components of that ETF with the highest volume on Thursday were Advanced Micro Devices, trading off about 0.2% with over 47.4 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 38.7 million shares. Gamestop is the component faring the best Thursday, up by about 4% on the day, while Transocean is lagging other components of the Invesco FTSE RAFI US 1000 ETF, trading lower by about 10%.
VIDEO: Thursday's ETF with Unusual Volume: PRF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco FTSE RAFI US 1000 ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.0 million shares traded versus three month average volume of about 217,000. Components of that ETF with the highest volume on Thursday were Advanced Micro Devices, trading off about 0.2% with over 47.4 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 38.7 million shares. VIDEO: Thursday's ETF with Unusual Volume: PRF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco FTSE RAFI US 1000 ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.0 million shares traded versus three month average volume of about 217,000. Gamestop is the component faring the best Thursday, up by about 4% on the day, while Transocean is lagging other components of the Invesco FTSE RAFI US 1000 ETF, trading lower by about 10%. VIDEO: Thursday's ETF with Unusual Volume: PRF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco FTSE RAFI US 1000 ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.0 million shares traded versus three month average volume of about 217,000. Components of that ETF with the highest volume on Thursday were Advanced Micro Devices, trading off about 0.2% with over 47.4 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 38.7 million shares. Gamestop is the component faring the best Thursday, up by about 4% on the day, while Transocean is lagging other components of the Invesco FTSE RAFI US 1000 ETF, trading lower by about 10%. | The Invesco FTSE RAFI US 1000 ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.0 million shares traded versus three month average volume of about 217,000. Gamestop is the component faring the best Thursday, up by about 4% on the day, while Transocean is lagging other components of the Invesco FTSE RAFI US 1000 ETF, trading lower by about 10%. VIDEO: Thursday's ETF with Unusual Volume: PRF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20286.0 | 2022-07-14 00:00:00 UTC | Chipmaker TSMC's shares jump after quarterly profit beats estimates | AAPL | https://www.nasdaq.com/articles/chipmaker-tsmcs-shares-jump-after-quarterly-profit-beats-estimates | nan | nan | TAIPEI, July 15 (Reuters) - Shares in Taiwanese chip firm TSMC 2330.TW, TSM.Nrose more than 1% on Friday morning, the day after announcing a forecast-beating second quarter profit and saying it was "highly confident" about its long-term prospects.
That compared to the broader market .TWII which was flat.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion).
($1 = 29.9410 Taiwan dollars)
(Reporting by Yimou Lee and Ben BLanchard; Editing by Jacqueline Wong)
((yimou.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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). TAIPEI, July 15 (Reuters) - Shares in Taiwanese chip firm TSMC 2330.TW, TSM.Nrose more than 1% on Friday morning, the day after announcing a forecast-beating second quarter profit and saying it was "highly confident" about its long-term prospects. ($1 = 29.9410 Taiwan dollars) (Reporting by Yimou Lee and Ben BLanchard; Editing by Jacqueline Wong) ((yimou.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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). TAIPEI, July 15 (Reuters) - Shares in Taiwanese chip firm TSMC 2330.TW, TSM.Nrose more than 1% on Friday morning, the day after announcing a forecast-beating second quarter profit and saying it was "highly confident" about its long-term prospects. ($1 = 29.9410 Taiwan dollars) (Reporting by Yimou Lee and Ben BLanchard; Editing by Jacqueline Wong) ((yimou.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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). That compared to the broader market .TWII which was flat. ($1 = 29.9410 Taiwan dollars) (Reporting by Yimou Lee and Ben BLanchard; Editing by Jacqueline Wong) ((yimou.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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted a 76.4% leap in profit for the April-June period of 2022, to T$237.0 billion ($7.92 billion). TAIPEI, July 15 (Reuters) - Shares in Taiwanese chip firm TSMC 2330.TW, TSM.Nrose more than 1% on Friday morning, the day after announcing a forecast-beating second quarter profit and saying it was "highly confident" about its long-term prospects. That compared to the broader market .TWII which was flat. |
20287.0 | 2022-07-14 00:00:00 UTC | Buy Microsoft Stock Before the Price Rises | AAPL | https://www.nasdaq.com/articles/buy-microsoft-stock-before-the-price-rises | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s no time like the present to buy Microsoft (NASDAQ:MSFT) stock. Down nearly 25% on the year and currently trading right around $250 a share, MSFT stock is on sale and would make a worthy long-term addition to any portfolio.
Investors should keep in mind that, despite the recent pullback, Microsoft shares have gained 247% over the last five years and delivered a more than 700% return to shareholders in the past decade. With leading positions in key technology segments such as software, cloud computing and video games, Microsoft is the kind of rock solid technology investment that can carry investors through the ebbs and flows of any market.
Ticker Company Recent Price
MSFT Microsoft $252.91
MSFT StocAntitrust Probe
The latest news to impact MSFT stock are reports that England’s competition watchdog has opened an investigation into the company’s $68.7 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI). The British Competition and Markets Authority said its investigation will “consider whether the deal could harm competition and lead to worse outcomes for consumers.”
The regulator has set a Sept. 1 deadline for its initial decision on Microsoft’s proposed acquisition of Activision Blizzard. The British regulator is one of the first watchdog organizations in the world to probe the deal, which was announced in January of this year.
While some industry analysts have questioned how Microsoft’s purchase of Activision Blizzard will impact the $190 billion video game industry, the general view is that, despite any regulatory reviews, the deal is likely to be finalized sometime next year. This would give Microsoft control of popular video game franchises such as “Call of Duty” and “World of Warcraft.”
At least one prominent investor is betting that the deal succeeds. Warren Buffett’s holding company, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), has purchased more than 74 million shares of ATVI stock with plans to tender them for the agreed upon sale price of $95 a share once the acquisition is approved.
Attractive Valuation
Putting the Activision Blizzard purchase aside, there are plenty of other reasons for investors to be bullish on MSFT stock.
Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. Meta Platforms comes in second with a profit margin of 31.2%. While Microsoft’s stock trades at 27 times this year’s earnings, that valuation is not overly high considering that the company is guiding for 18.5% revenue growth this year and 14% next year, along with 15% earnings growth both this year and next.
The 7 Best Altcoins to Buy in July
Microsoft also has more than $100 billion of cash on hand and multiple business units that are growing at double digit year-over-year rates, including its Azure cloud computing and digital advertising units. The growth complements the continued strength of Microsoft’s flagship Windows operating system and related Office software, which continue to dominate the personal computer market with nearly 74% of the world’s desktop computers running on Microsoft products.
Increasingly, Microsoft is selling its Office software through a software-as-a-service (SaaS) model that requires customers to pay a subscription fee to access the software products from the cloud, providing the company with recurring and predictable revenue.
On top of everything else, Microsoft pays a quarterly dividend that it has steadily raised each year for more than a decade. MSFT stock’s dividend yield is currently 0.94%, which is good for a quarterly payment of 62 cents per share. Many of Microsoft’s peers, including Amazon and Alphabet, do not pay a dividend.
Among 37 analysts who cover MSFT stock, the median price target is $349.50, implying 38% upside over the next 12 months.
Buy MSFT Stock While You Can
The rout in technology stocks this year has been severe, with the Nasdaq index down nearly 30% since January. Many technology stocks are down 70% or more. While gut wrenching, the selloff has lowered the price of many leading companies and provided investors with some great deals if they can stomach short-term pain for long-term gains. Microsoft is one such stock.
The company continues to be one of the biggest and best run technology concerns in the world, and its stock has a track record of rewarding shareholders. As such, investors should add Microsoft to their portfolio while it remains cheap. MSFT stock is a strong buy.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Buy Microsoft Stock Before the Price Rises 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. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Investors should keep in mind that, despite the recent pullback, Microsoft shares have gained 247% over the last five years and delivered a more than 700% return to shareholders in the past decade. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Ticker Company Recent Price MSFT Microsoft $252.91 MSFT StocAntitrust Probe The latest news to impact MSFT stock are reports that England’s competition watchdog has opened an investigation into the company’s $68.7 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI). | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s no time like the present to buy Microsoft (NASDAQ:MSFT) stock. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Down nearly 25% on the year and currently trading right around $250 a share, MSFT stock is on sale and would make a worthy long-term addition to any portfolio. |
20288.0 | 2022-07-14 00:00:00 UTC | Netflix (NFLX) Partners With Microsoft for Its Ad-Supported Tier | AAPL | https://www.nasdaq.com/articles/netflix-nflx-partners-with-microsoft-for-its-ad-supported-tier | nan | nan | Netflix NFLX recently announced that it has selected Microsoft MSFT as its global advertising technology and sales partner. The streaming giant is set to introduce a new lower-priced ad-supported subscription plan apart from its existing ad-free basic, standard and premium plans.
Netflix has been suffering from stiff competition in the streaming space from the likes of Apple’s AAPL Apple TV+, Disney’s DIS Disney+, Amazon prime video, HBO Max, Disney+, Peacock, Paramount+ and TikTok.
Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions.
The low-priced ad-supported tier is likely to help Netflix attract new customers, particularly in price-sensitive regions like Asia-Pacific and Latin America. In the United States & Canada, as well as in Europe, where Netflix is losing subscribers, the low-priced ad-supported tier is expected to limit the slide.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Moreover, Microsoft’s global presence bodes well for Netflix’s ambition of retaining streaming domination.
Will Netflix’s Solid Content Portfolio Drive Share Price Recovery?
Netflix’s shares gained 1.21% to close at $176.56 on Jul 13 following the news of the partnership. Shares are down 70.7% year to date compared with the Zacks Consumer Discretionary sector’s decline of 35.5% over the same time frame.
Netflix’s focus on originals — both movies and TV shows — has been a major growth driver. Its popular original series, Stranger Things Season 4, has become the second series to hit a billion hours of viewing time after 2021's Korean survival-thriller Squid Game, which clocked in 1.65 billion hours in its first 28 days.
The company has been leveraging the talent of local producers in Asia lately, and some of its bets have turned into home runs, such as The White Tiger and Crash Landing on You. Netflix has renewed a raft of its Asian originals lately, including Korean hits like Squid Game, teen zombie horror All Of Us Are Dead, and D.P..
However, competition is increasing for Netflix, which currently has a Zacks Rank #4 (Sell). Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. This year, Apple TV+ has earned 52 Emmy nominations, with the second season of Ted Lasso getting 20 nominations overall.
Apple TV+ has reportedly submitted its bid for National Football League’s new Sunday Ticket partner. Disney and Amazon are other contenders.
Disney primarily dominates the live sports streaming space with its ESPN, which is home to several live sporting events like the F1 race, La Liga, Bundesliga, UEFA Champions League and the NBA. Disney+’s expanding footprint has been a growth factor.
Disney recently began offering Disney+, in 16 countries across the Middle East and North Africa. Given the breadth of content of Disney+, the streaming platform is expected to grab the second spot in the region, with a subscriber base of 6.5 million in the region by 2027, trailing only Netflix, which is likely to have a viewer base of 11 million, per Digital TV Research data.
Netflix’s diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content, is expected to remain the key catalyst. The ad-supported low-priced tier might just help it regain some of the lost market share in the near term.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): 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. | Netflix has been suffering from stiff competition in the streaming space from the likes of Apple’s AAPL Apple TV+, Disney’s DIS Disney+, Amazon prime video, HBO Max, Disney+, Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions. | Apple Inc. (AAPL): Free Stock Analysis Report Netflix has been suffering from stiff competition in the streaming space from the likes of Apple’s AAPL Apple TV+, Disney’s DIS Disney+, Amazon prime video, HBO Max, Disney+, Peacock, Paramount+ and TikTok. Its popular original series, Stranger Things Season 4, has become the second series to hit a billion hours of viewing time after 2021's Korean survival-thriller Squid Game, which clocked in 1.65 billion hours in its first 28 days. | Netflix has been suffering from stiff competition in the streaming space from the likes of Apple’s AAPL Apple TV+, Disney’s DIS Disney+, Amazon prime video, HBO Max, Disney+, Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Moreover, Microsoft’s global presence bodes well for Netflix’s ambition of retaining streaming domination. | Apple Inc. (AAPL): Free Stock Analysis Report Netflix has been suffering from stiff competition in the streaming space from the likes of Apple’s AAPL Apple TV+, Disney’s DIS Disney+, Amazon prime video, HBO Max, Disney+, Peacock, Paramount+ and TikTok. Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. |
20289.0 | 2022-07-14 00:00:00 UTC | 3 Semiconductor Stocks That Could Go Parabolic | AAPL | https://www.nasdaq.com/articles/3-semiconductor-stocks-that-could-go-parabolic | nan | nan | The semiconductor sector attracted a stampede of bulls last year as the ongoing chip shortage highlighted its secular growth potential. But this year, the bulls retreated amid concerns about sluggish PC sales, cooling economic growth, and a possible overproduction of chips.
Runaway inflation, rising interest rates, supply chain disruptions, the war in Ukraine, and other macro headwinds then exacerbated that pain and drove investors toward more conservative sectors. As a result, the Philadelphia Semiconductor Index lost about 35% of its value this year.
Image source: Getty Images.
However, that sell-off has also created some great buying opportunities for investors who can stomach the near-term volatility. Let's examine three unloved chip stocks that could go parabolic if the macroeconomic situation improves: Taiwan Semiconductor Manufacturing Company (NYSE: TSM) (more commonly known as TSMC), Broadcom (NASDAQ: AVGO), and Skyworks Solutions (NASDAQ: SWKS).
1. TSMC
TSMC is the world's largest and most advanced contract chipmaker. Its scale and early investments in ASML's extreme ultraviolet (EUV) lithography systems enabled it to pull ahead of its two closest rivals, Samsung and Intel, in the "process race" to create smaller, denser, and more power-efficient chips.
As a result, major chipmakers like AMD, Nvidia, Qualcomm, and Apple (NASDAQ: AAPL) all consistently outsource the production of their chips to TSMC. TSMC's stock has lost a third of its value this year as investors fretted over slowing PC sales, macro headwinds for other chip markets, and the rising R&D and production costs of the world's tiniest 3-nanometer and 2-nanometer chips.
However, analysts still expect TSMC's revenue to rise 33% this year and 14% in 2023. Its earnings per share are also forecast to increase 46% this year and grow another 9% in 2023 -- even as it boosts its capex to record levels to maintain its lead over Samsung and Intel. TSMC's business has always been cyclical, but its stock now trades at just 13 times forward earnings after its recent sell-off. Therefore, I believe that any positive news about the chip sector in this gloomy market could spark a fierce rally for TSMC.
2. Broadcom
Broadcom manufactures a wide range of chips for the data center, networking, software, storage, and industrial markets. Last year, it generated a fifth of its total revenue from Apple, which uses Broadcom's chips in its iPhones, iPads, and other hardware devices.
Broadcom generates about a quarter of its sales from its newer infrastructure software business, which emerged from its acquisitions of CA Technologies and Symantec's enterprise security business. That segment will grow even larger if it closes its planned takeover of Vmware, which was announced this May.
Broadcom benefited from robust sales of cloud, data center, and wireless chips last year, but that demand has been cooling off in a post-lockdown market. However, analysts still expect its revenue and earnings to grow 20% and 32%, respectively, this year.
In 2023, the company is expected to increase its revenue and earnings by 6% and 8%, respectively -- but that doesn't include any potential gains from Vmware. Based on those projections, Broadcom trades at just 13 times forward earnings while paying an attractive forward dividend yield of 3.4%.
Broadcom's stock price has tumbled about 30% this year, but its low valuation, high yield, and well-diversified business should limit its downside potential. Like TSMC, it will also likely pop on any positive catalysts for the chip sector.
3. Skyworks Solutions
Skyworks Solutions produces wireless chips for the mobile, automotive, home automation, wireless infrastructure, and industrial markets. Like Broadcom, it's also a major Apple supplier, generating a whopping 59% of its revenue from the tech giant in fiscal 2021 (which ended last October).
However, Skyworks has been gradually diversifying its business away from Apple by producing a wider range of chips for Android smartphones, wearables, smart home appliances, industrial Internet of Things (IoT) devices, and connected vehicles. Last year, it acquired Silicon Laboratories' infrastructure and automotive unit to accelerate that transformation.
Skyworks might struggle with slower sales of iPhones and other consumer electronics over the next few quarters, but it's still generating strong growth across the automotive, industrial, and infrastructure markets. It also expects to sell an increasing number of chips with every new wireless network standard. For example, it estimates that each 5G smartphone uses $25 worth of front-end chips, versus $18 per 4G device and $8 per 3G device.
That's why Wall Street still expects Skyworks' revenue and earnings to grow 8% and 6%, respectively, this year. In 2023, they project its revenue will rise another 6%, with 9% earnings growth. Based on those forecasts, Skyworks trades at just eight times forward earnings while paying a forward dividend yield of 2.4%. That single-digit multiple makes Skyworks a great turnaround candidate if investors finally warm up to semiconductor stocks again.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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 Taiwan Semiconductor Manufacturing 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
Leo Sun has positions in ASML Holding, Apple, and Qualcomm. The Motley Fool has positions in and recommends ASML Holding, Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom Ltd, Silicon Laboratories, Skyworks Solutions, and VMware 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. | As a result, major chipmakers like AMD, Nvidia, Qualcomm, and Apple (NASDAQ: AAPL) all consistently outsource the production of their chips to TSMC. Runaway inflation, rising interest rates, supply chain disruptions, the war in Ukraine, and other macro headwinds then exacerbated that pain and drove investors toward more conservative sectors. Its scale and early investments in ASML's extreme ultraviolet (EUV) lithography systems enabled it to pull ahead of its two closest rivals, Samsung and Intel, in the "process race" to create smaller, denser, and more power-efficient chips. | As a result, major chipmakers like AMD, Nvidia, Qualcomm, and Apple (NASDAQ: AAPL) all consistently outsource the production of their chips to TSMC. Skyworks Solutions Skyworks Solutions produces wireless chips for the mobile, automotive, home automation, wireless infrastructure, and industrial markets. The Motley Fool has positions in and recommends ASML Holding, Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. | As a result, major chipmakers like AMD, Nvidia, Qualcomm, and Apple (NASDAQ: AAPL) all consistently outsource the production of their chips to TSMC. Let's examine three unloved chip stocks that could go parabolic if the macroeconomic situation improves: Taiwan Semiconductor Manufacturing Company (NYSE: TSM) (more commonly known as TSMC), Broadcom (NASDAQ: AVGO), and Skyworks Solutions (NASDAQ: SWKS). TSMC's stock has lost a third of its value this year as investors fretted over slowing PC sales, macro headwinds for other chip markets, and the rising R&D and production costs of the world's tiniest 3-nanometer and 2-nanometer chips. | As a result, major chipmakers like AMD, Nvidia, Qualcomm, and Apple (NASDAQ: AAPL) all consistently outsource the production of their chips to TSMC. TSMC's stock has lost a third of its value this year as investors fretted over slowing PC sales, macro headwinds for other chip markets, and the rising R&D and production costs of the world's tiniest 3-nanometer and 2-nanometer chips. However, analysts still expect its revenue and earnings to grow 20% and 32%, respectively, this year. |
20290.0 | 2022-07-14 00:00:00 UTC | 2 Financials Companies Warren Buffett Loves | AAPL | https://www.nasdaq.com/articles/2-financials-companies-warren-buffett-loves | nan | nan | Warren Buffett keeps his investments simple for the most part. He's not a big fan of technology outside his stake in Apple, instead choosing to invest in solid businesses in proven, profitable industries.
This includes financials, one of the world's largest sectors at a global value of more than $20 trillion.
The following two financial stocks are both top five positions in Buffett's portfolio. Here is what they are and why he loves them so much.
1. A Buffett classic
Buffett first bought American Express (NYSE: AXP) back in the 1960s, making the credit card company one of his longest-tenured holdings. The company was embroiled in a "Salad Oil Scandal" that caused enormous losses for American Express and cratered its stock. Buffett took the opportunity to invest, and today it's one of his most successful purchases.
American Express has two fundamental target markets. The first is small and medium-sized businesses that use credit to fund their daily operations. These make up roughly half of the company's total billings. Its credit cards are also very popular with travelers; travel and entertainment are about a quarter of billings.
You can probably imagine that the pandemic was very tough on American Express because it virtually shut down small businesses and halted travel worldwide. You can see the impact on the top and bottom lines in the chart below, but American Express has already recovered, and its long-term growth looks to be back on track.
AXP Revenue (TTM) data by YCharts.
The company's lending does make it vulnerable to a recession and helps explain why the stock is trading near its lows. But American Express has been through multiple economic ups and downs. Spending $8.6 billion on share repurchases over the past year means that low prices let management buy more shares.
If concern about a recession does keep dragging down the shares, investors could be opportunistic just as Buffett was, buying shares on weakness. The company has $27 billion in cash and a strong A- credit rating from S&P, which means that American Express is financially ready for economic ups and downs.
2. A bank at the top of its game
The 2008-09 financial crisis strained the global banking system, tanked the economy, and roiled Wall Street. In 2011, shortly after the crisis, Buffett made his first investment in lending giant Bank of America (NYSE: BAC). It's one of the world's largest banks with a whopping $3.2 trillion in assets.
The bank was on shaky ground from the crisis, and Buffett came up with the idea to invest in Bank of America while taking a bath. The economy has been strong for years (until recent months), and the shares are down about 40% from their highs.
You can see below just how good business has been; revenue has averaged nearly 5% annual growth over the past decade, and earnings-per-share (EPS) has grown by 9% annually at the same time. Management has used profits for share repurchases, shrinking the share count by 25% during the past decade while paying a dividend that yields 2.7%.
BAC Revenue (TTM) data by YCharts.
Growing investor anxiety about a recession could be one of the factors putting selling pressure on Bank of America. It's fair to say that an economic slump would likely hurt demand for lending, but at the same time, interest rates are rising to combat inflation. Banks can make more money with higher interest rates because they can get higher yields on their new and floating-rate loans.
Since the financial crisis, the banking industry has also come a long way; regulators put in rules, including annual stress tests, to ensure that banks can withstand financial shocks. Bank of America's massive balance sheet and $31 billion in yearly profits earned it an investment-grade A- credit rating from S&P. Size can bring stability to the banking business, making Bank of America a stock that Buffett has relied on and you can too.
10 stocks we like better than American Express
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 American Express wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and S&P Global. 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. | You can probably imagine that the pandemic was very tough on American Express because it virtually shut down small businesses and halted travel worldwide. The company has $27 billion in cash and a strong A- credit rating from S&P, which means that American Express is financially ready for economic ups and downs. Bank of America's massive balance sheet and $31 billion in yearly profits earned it an investment-grade A- credit rating from S&P. | A Buffett classic Buffett first bought American Express (NYSE: AXP) back in the 1960s, making the credit card company one of his longest-tenured holdings. Spending $8.6 billion on share repurchases over the past year means that low prices let management buy more shares. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | A Buffett classic Buffett first bought American Express (NYSE: AXP) back in the 1960s, making the credit card company one of his longest-tenured holdings. Size can bring stability to the banking business, making Bank of America a stock that Buffett has relied on and you can too. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | A Buffett classic Buffett first bought American Express (NYSE: AXP) back in the 1960s, making the credit card company one of his longest-tenured holdings. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple and S&P Global. |
20291.0 | 2022-07-14 00:00:00 UTC | Why Long-Short ETFs are Beating the Market | AAPL | https://www.nasdaq.com/articles/why-long-short-etfs-are-beating-the-market | nan | nan | Stocks continue to struggle as inflation reached a new four-decade high in June, raising expectations that the Federal Reserve will hike rates aggressively and could send the economy into a recession.
In a long-short investment strategy, the fund goes long stocks that are expected to outperform the market, while taking short positions in stocks that are likely to underperform.
These strategies have the potential to outperform in both rising and falling markets. They also add diversification benefits to a portfolio and lower volatility due to low correlations with broader indexes.
The AGFiQ U.S. Market Neutral Anti-Beta Fund BTAL takes long positions in low beta stocks like Automatic Data Processing ADP, and short positions in high beta stocks like DocuSign DOCU.
The Leatherback Long/Short Alternative Yield ETF LBAY invests in securities like Exxon Mobil XOM that it believes will provide sustainable shareholder yield and takes short positions in stocks it believes will decline in price. Tesla TSLA is one of the short holdings.
The First Trust Long/Short Equity ETF FTLS has 80% to 100% long positions in stocks like Apple AAPL and Microsoft MSFT, offset by 0% to 50% short positions in other stocks.
To learn more, please watch the short video above.
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
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
First Trust LongShort Equity ETF (FTLS): ETF Research Reports
AGFiQ US Market Neutral AntiBeta ETF (BTAL): ETF Research Reports
DocuSign (DOCU): Free Stock Analysis Report
Leatherback LongShort Alternative Yield ETF (LBAY): 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. | The First Trust Long/Short Equity ETF FTLS has 80% to 100% long positions in stocks like Apple AAPL and Microsoft MSFT, offset by 0% to 50% short positions in other stocks. Apple Inc. (AAPL): Free Stock Analysis Report Stocks continue to struggle as inflation reached a new four-decade high in June, raising expectations that the Federal Reserve will hike rates aggressively and could send the economy into a recession. | The First Trust Long/Short Equity ETF FTLS has 80% to 100% long positions in stocks like Apple AAPL and Microsoft MSFT, offset by 0% to 50% short positions in other stocks. Apple Inc. (AAPL): Free Stock Analysis Report The AGFiQ U.S. Market Neutral Anti-Beta Fund BTAL takes long positions in low beta stocks like Automatic Data Processing ADP, and short positions in high beta stocks like DocuSign DOCU. | The First Trust Long/Short Equity ETF FTLS has 80% to 100% long positions in stocks like Apple AAPL and Microsoft MSFT, offset by 0% to 50% short positions in other stocks. Apple Inc. (AAPL): Free Stock Analysis Report In a long-short investment strategy, the fund goes long stocks that are expected to outperform the market, while taking short positions in stocks that are likely to underperform. | The First Trust Long/Short Equity ETF FTLS has 80% to 100% long positions in stocks like Apple AAPL and Microsoft MSFT, offset by 0% to 50% short positions in other stocks. Apple Inc. (AAPL): Free Stock Analysis Report Get it free >> |
20292.0 | 2022-07-14 00:00:00 UTC | 74% of This Warren Buffett-Controlled Portfolio Is Invested in 1 High-Growth Stock and 1 Ultra-Safe Asset | AAPL | https://www.nasdaq.com/articles/74-of-this-warren-buffett-controlled-portfolio-is-invested-in-1-high-growth-stock-and-1 | nan | nan | Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) are widely known as some of the greatest investors of all time, with a strong track record for beating the broader market. Buffett has also been known to say that he's not the biggest fan of diversification because he believes it's a protection against ignorance.
The team at Berkshire Hathaway certainly practices what Buffett preaches and keeps its nearly $324 billion equities portfolio heavily concentrated in just a handful of assets. In fact, roughly 74% Berkshire's portfolio is invested in one high-growth stock and one ultra-safe asset.
The high-growth stock
If you follow Berkshire and Buffett, then it will come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest stock in Berkshire's equities portfolio, currently accounting for more than 41%. Berkshire first bought Apple in 2016 and now owns over 911.3 million shares valued at more than $133.7 billion.
One of the reasons Buffett has gone all-in on Apple is because the company has created one of the strongest brands in the world, which, if you look through Berkshire's portfolio, is definitely one trait the Oracle of Omaha seems to really look for when evaluating stocks.
In fact, as legend has it, one of the main reasons Buffett first started looking more closely at Apple is after a member of Berkshire's board of directors lost his iPhone. "I felt like I lost a piece of my soul," David Gottesman supposedly said at the time.
Strong brands can carry companies through a variety of difficult economic situations. People are still likely to buy the iPhone, for instance, during high levels of inflation or a recession because the device plays such a critical role in their lives. So, during times of inflation like we're in now, Apple can pass on higher costs associated with running its business to its customers without too much pushback.
Apple also happens to be a cash cow, having generated more than $28 billion of operating cash flow and a profit surpassing $25 billion in its most recent quarter. The company has also repurchased more than $467 billion of stock over the last decade, something we also know Buffett -- or any investor, for that matter -- absolutely loves.
The ultra-safe asset
It should come as no surprise to Buffett fans that the asset I am referring to here is not a stock, but rather cold, hard cash. That's right -- almost 33% of Berkshire's portfolio is straight cash.
Under Buffett's leadership, Berkshire's equities portfolio keeps a minimum of $30 billion in cash and cash equivalents. At one point last year, that cash pile was up close to an astonishing $150 billion.
Now, a lot of people question this strategy. Why not put that cash to work, given earning a little something on this amount of money can go a long way? But Buffett has long maintained a large hoard of cash to prepare for economic shocks and investing opportunities. When the pandemic hit, I am sure Berkshire shareholders slept easier at night knowing that the company had heaps of cash on hand to stomach a range of adverse economic scenarios.
Having this amount of cash also allows Buffett and Berkshire to move quickly when they come across good investing opportunities. That might mean repurchasing shares of Berkshire, acquiring a company, reinvesting in the business, or investing in stocks. In the first three months of the year, Buffett and Berkshire put $51 billion of that cash to work.
10 stocks we like better than Berkshire Hathaway (B shares)
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Berkshire Hathaway (B shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2022
Bram Berkowitz 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. | The high-growth stock If you follow Berkshire and Buffett, then it will come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest stock in Berkshire's equities portfolio, currently accounting for more than 41%. One of the reasons Buffett has gone all-in on Apple is because the company has created one of the strongest brands in the world, which, if you look through Berkshire's portfolio, is definitely one trait the Oracle of Omaha seems to really look for when evaluating stocks. In fact, as legend has it, one of the main reasons Buffett first started looking more closely at Apple is after a member of Berkshire's board of directors lost his iPhone. | The high-growth stock If you follow Berkshire and Buffett, then it will come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest stock in Berkshire's equities portfolio, currently accounting for more than 41%. In fact, roughly 74% Berkshire's portfolio is invested in one high-growth stock and one ultra-safe asset. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). | The high-growth stock If you follow Berkshire and Buffett, then it will come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest stock in Berkshire's equities portfolio, currently accounting for more than 41%. Under Buffett's leadership, Berkshire's equities portfolio keeps a minimum of $30 billion in cash and cash equivalents. 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 high-growth stock If you follow Berkshire and Buffett, then it will come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest stock in Berkshire's equities portfolio, currently accounting for more than 41%. In fact, roughly 74% Berkshire's portfolio is invested in one high-growth stock and one ultra-safe asset. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Berkshire Hathaway (B shares) wasn't one of them! |
20293.0 | 2022-07-14 00:00:00 UTC | Why Streaming Won't Always Be a Loss for Amazon | AAPL | https://www.nasdaq.com/articles/why-streaming-wont-always-be-a-loss-for-amazon | nan | nan | Analysts have long suspected that Prime Video is a huge loss leader for Amazon (NASDAQ: AMZN). However, the company has greatly expanded its streaming business in the last few years. Here's why the company's recent ventures in the streaming market will combine to pay off in a big way.
Multiple stakes in film and TV
Amazon launched Prime Video, then Amazon Unbox, in September 2006 as a place where customers could download thousands of movies, but pivoted to streaming in 2011. The company has since sunk billions of dollars into Prime Video, spending $13 billion on movies, series, and music in 2021. Despite the streaming service's expense, Amazon has used it as an attractive addition to the company's Prime membership.
Amazon's streaming business has steadily grown to allow consumers to rent and buy content, add Amazon Channels, watch live sports, stream games, and more. For instance, Amazon launched its streamer Freevee, then IMDb Freedive, in 2019 to cash in on increasing demand for ad-supported streaming services. Few companies have diversified their footholds in the streaming industry like Amazon. The company has skillfully permeated almost every facet of the market, creating a services ecosystem that is only truly rivaled by Apple's growing services business.
Prime Video is not only home to original and licensed content, but Amazon Channels offers Prime members the unique ability to add on popular third-party channels for an additional fee. Subscribers can stream channels such as Showtime ($10.99), HBO ($14.99), Starz ($8.99), and several others. While Amazon has not reported exactly how much revenue it owes to Channels, analysts estimated the service generated $1.7 billion in 2018, more than double the previous year, and projected $3.6 billion in 2020.
Amazon has grown Prime Video into a one-stop app that members can customize and add to as they see fit. The app is no longer just a tool to attract new Prime members and add value to the subscription, but a clever way to encourage people to cut the cord and move exclusively to streaming -- through Amazon.
The power of ads
In May 2021, Amazon announced it had amassed 120 million viewers from video streaming ads on platforms such as Freevee, Twitch, and live sports. In addition to its original content and many streaming options, Amazon has substantially grown its video advertising business.
Free, ad-supported streamer Freevee has found its footing, landing on an inviting new name and reporting a viewership growth of 138% from 2020 to 2021. Additionally, the rival to Fox's Tubi and The Roku Channel plans to grow its content by 70% in 2022. Amazon has so far done this by striking a deal with NBCU for an exclusive window to stream films such as Fast & Furious 9 and Sing 2, as well as its launch of two music-themed channels from Fuse Media in June.
Amazon acquired Twitch in 2014 for an estimated $970 million. After reporting 45 million viewers in 2013, the site grew to 100 million per month in 2015. In 2022, Twitch now receives 140 million active users each month, making an estimated $2.6 billion in revenue in 2021, mostly from advertising. As of April, Amazon has considered offering incentives to Twitch streamers who run more ads and revamping the site's monetization structure to increase advertising profits.
Amazon signed a 10-year agreement with the National Football League in 2021 to exclusively broadcast 15 Thursday Night Football games annually in the U.S. The deal will kick off in 2023 on Prime Video and allow the company to run ads on one of 2020's top-rated weeknight primetime shows, reaching tens of millions of viewers through their Prime memberships.
What's next for Amazon's streaming business?
While Amazon's streaming expenses are hefty, the company's $13 billion content budget in 2021 is still significantly less than those of its competitors. Netflix's content spend in 2021 was $17 billion, while Disney plans to spend $33 billion in 2022, an $8 billion increase from 2021. Amazon has also adjusted its pricing to include content expenses, raising the price of its Prime membership from $119 to $139 a year in the U.S. It is positive that the company is regularly adjusting and updating its approach to streaming.
Along with Thursday Night Football in 2023, the company is gearing up to release the highly anticipated The Lord of the Rings: The Rings of Power in September. Prime Video is clearly expecting the show to attract significant viewing numbers, introducing a new communal watch party function to the site in early July. Amazon is massive, making it tedious to keep an eye on its multiple streaming ventures. However, taking a look at the company's soon-to-be-released second-quarter 2022 10-Q to note the net sales of its advertising services and its "Technology and Content" segment will be a great way to determine its streaming progress.
Find out why Amazon is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Amazon is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of June 2, 2022
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 Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The app is no longer just a tool to attract new Prime members and add value to the subscription, but a clever way to encourage people to cut the cord and move exclusively to streaming -- through Amazon. Amazon has so far done this by striking a deal with NBCU for an exclusive window to stream films such as Fast & Furious 9 and Sing 2, as well as its launch of two music-themed channels from Fuse Media in June. Prime Video is clearly expecting the show to attract significant viewing numbers, introducing a new communal watch party function to the site in early July. | Amazon's streaming business has steadily grown to allow consumers to rent and buy content, add Amazon Channels, watch live sports, stream games, and more. In addition to its original content and many streaming options, Amazon has substantially grown its video advertising business. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Multiple stakes in film and TV Amazon launched Prime Video, then Amazon Unbox, in September 2006 as a place where customers could download thousands of movies, but pivoted to streaming in 2011. Despite the streaming service's expense, Amazon has used it as an attractive addition to the company's Prime membership. Amazon's streaming business has steadily grown to allow consumers to rent and buy content, add Amazon Channels, watch live sports, stream games, and more. | Despite the streaming service's expense, Amazon has used it as an attractive addition to the company's Prime membership. In 2022, Twitch now receives 140 million active users each month, making an estimated $2.6 billion in revenue in 2021, mostly from advertising. The Motley Fool has positions in and recommends Amazon, Apple, and Netflix. |
20294.0 | 2022-07-14 00:00:00 UTC | Russia's M.Video starts used smartphone sales as foreign supplies dwindle | AAPL | https://www.nasdaq.com/articles/russias-m.video-starts-used-smartphone-sales-as-foreign-supplies-dwindle | nan | nan | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, July 14 (Reuters) - Russian consumer electronics retailer M.Video-Eldorado MVID.MM on Thursday said it had started selling discounted and used smartphones, offering Russian consumers cheaper alternatives as Western brands suspend shipments.
Apple AAPL.O paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special military operation.
M.Video said the move expanded its available range of devices and that it was offering "like new" Apple products.
Given limited supply to the Russian market, M.Video said discounted, used electronics that are fully functional had the potential to offer an effective alternative to consumers seeking a flagship device.
M.Video is following in the footsteps of mobile operator MTS MTSS.MM, which launched a similar venture in May.
On Wednesday, the retailer said it would more than halve its 2022 investment programme in year-on-year terms and was working on diversifying its supplier base.
(Reporting by Reuters; editing by David Evans)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special military operation. Given limited supply to the Russian market, M.Video said discounted, used electronics that are fully functional had the potential to offer an effective alternative to consumers seeking a flagship device. On Wednesday, the retailer said it would more than halve its 2022 investment programme in year-on-year terms and was working on diversifying its supplier base. | Apple AAPL.O paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special military operation. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 14 (Reuters) - Russian consumer electronics retailer M.Video-Eldorado MVID.MM on Thursday said it had started selling discounted and used smartphones, offering Russian consumers cheaper alternatives as Western brands suspend shipments. M.Video said the move expanded its available range of devices and that it was offering "like new" Apple products. | Apple AAPL.O paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special military operation. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 14 (Reuters) - Russian consumer electronics retailer M.Video-Eldorado MVID.MM on Thursday said it had started selling discounted and used smartphones, offering Russian consumers cheaper alternatives as Western brands suspend shipments. Given limited supply to the Russian market, M.Video said discounted, used electronics that are fully functional had the potential to offer an effective alternative to consumers seeking a flagship device. | Apple AAPL.O paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special military operation. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 14 (Reuters) - Russian consumer electronics retailer M.Video-Eldorado MVID.MM on Thursday said it had started selling discounted and used smartphones, offering Russian consumers cheaper alternatives as Western brands suspend shipments. M.Video is following in the footsteps of mobile operator MTS MTSS.MM, which launched a similar venture in May. |
20295.0 | 2022-07-14 00:00:00 UTC | After Being Crushed in 2022, Is It Safe to Buy This Crypto? | AAPL | https://www.nasdaq.com/articles/after-being-crushed-in-2022-is-it-safe-to-buy-this-crypto | nan | nan | The price of Ether (CRYPTO: ETH), the cryptocurrency of the Ethereum blockchain service, hit an all-time high of more than $4,800 last November. At the time, BOOX Research predicted that Ether's price could continue climbing to $7,500 by the end of 2022. Unfortunately, rising interest rates and other macro headwinds subsequently sparked a hasty retreat from riskier assets like cryptocurrencies, and Ether now trades at less than $1,100.
Ether remains the second most valuable cryptocurrency after Bitcoin (CRYPTO: BTC), but is it a compelling buy after its recent pullback? Let's review Ether's rise, its growth potential, and the upcoming challenges to decide.
Image source: Getty Images.
How did Ether become the second-largest cryptocurrency?
Ether was first mined in 2015, and it achieved parity with the U.S. dollar in its very first year. If you had bought 100 Ether tokens with $100 when that happened, your investment would be worth $110,000 today.
Ether gained a lot of momentum because the Ethereum blockchain supports decentralized "Web3" technologies like smart contracts, decentralized apps (dApps) that aren't tethered to centralized app stores or operating systems, and NFTs (non-fungible tokens). Some of these technologies can be used to secure financial, web browsing, gaming, advertising, cybersecurity, identity management, and supply chain services.
By comparison, Bitcoin's blockchain is only used to directly mine the cryptocurrency. Therefore, Bitcoin is often considered an asset, while Ether is seen as the leading cryptocurrency for a next-generation computing platform.
Ether also is a somewhat more environmentally friendly alternative to Bitcoin because it requires less energy to mine. Furthermore, its impending "Merge" upgrade (also known as Eth2) is expected to reduce its total mining energy consumption by about 99% when it rolls out as planned over the next few months.
The bulls vs. the bears
The bulls believe the Merge upgrade will enable Ethereum to scale up its blockchain network and support an expanding ecosystem of Web3 applications. Since Ether will be used as the default currency for those applications, its market value should eventually stabilize. If that happens, it could become a viable hedge against inflation like gold, silver, and other precious metals.
The bears believe that decentralized apps will remain a niche concept since most mainstream consumers will still download their apps from a centralized marketplace like Apple's App Store or Alphabet's Google Play. Tighter regulations, liquidity issues at cryptocurrency exchanges, and the implosions of smaller "altcoins" will also prevent new buyers from entering the market.
The bears will point out that other environmentally friendly blockchain-based cryptocurrencies like Solana (CRYPTO: SOL) and Avalanche (CRYPTO: AVAX) -- which also support smart contracts and other Web3 technologies -- haven't faded away yet. These competitors could continue to gain ground on Ethereum, especially if the long-awaited Merge upgrade is delayed.
Last but not least, the gloomiest bears will claim the entire crypto bull market was merely a mirage created by low interest rates, stimulus checks, and the temporary spike in speculative trading last year. As those tailwinds fade, a new "crypto winter" will likely begin, according to Coinbase's Chief Executive Officer Brian Armstrong, and probably won't end until the macro situation improves.
There's no reason to buy Ether right now
Ether's biggest catalyst is still months away from being realized, but interest rates will continue to climb for the foreseeable future. Even if the broader markets stabilize, bargain hunters will likely scoop up beaten-down growth stocks -- which are much easier to value -- than speculative cryptocurrencies. Even if investors turn their attention toward the crypto market again, I'd expect Bitcoin to attract more attention than Ether because it's still the top cryptocurrency.
Therefore, I still don't think it's safe to buy Ether -- or any cryptocurrencies -- as long as investors are shunning the market's more speculative investments.
10 stocks we like better than Ethereum
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 Ethereum 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet (A shares) and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Avalanche, Bitcoin, Coinbase Global, Inc., Ethereum, and Solana. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unfortunately, rising interest rates and other macro headwinds subsequently sparked a hasty retreat from riskier assets like cryptocurrencies, and Ether now trades at less than $1,100. Last but not least, the gloomiest bears will claim the entire crypto bull market was merely a mirage created by low interest rates, stimulus checks, and the temporary spike in speculative trading last year. As those tailwinds fade, a new "crypto winter" will likely begin, according to Coinbase's Chief Executive Officer Brian Armstrong, and probably won't end until the macro situation improves. | Ether gained a lot of momentum because the Ethereum blockchain supports decentralized "Web3" technologies like smart contracts, decentralized apps (dApps) that aren't tethered to centralized app stores or operating systems, and NFTs (non-fungible tokens). The bears will point out that other environmentally friendly blockchain-based cryptocurrencies like Solana (CRYPTO: SOL) and Avalanche (CRYPTO: AVAX) -- which also support smart contracts and other Web3 technologies -- haven't faded away yet. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Avalanche, Bitcoin, Coinbase Global, Inc., Ethereum, and Solana. | Ether gained a lot of momentum because the Ethereum blockchain supports decentralized "Web3" technologies like smart contracts, decentralized apps (dApps) that aren't tethered to centralized app stores or operating systems, and NFTs (non-fungible tokens). Even if investors turn their attention toward the crypto market again, I'd expect Bitcoin to attract more attention than Ether because it's still the top cryptocurrency. Therefore, I still don't think it's safe to buy Ether -- or any cryptocurrencies -- as long as investors are shunning the market's more speculative investments. | Unfortunately, rising interest rates and other macro headwinds subsequently sparked a hasty retreat from riskier assets like cryptocurrencies, and Ether now trades at less than $1,100. Therefore, I still don't think it's safe to buy Ether -- or any cryptocurrencies -- as long as investors are shunning the market's more speculative investments. That's right -- they think these 10 stocks are even better buys. |
20296.0 | 2022-07-14 00:00:00 UTC | Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-information-technology-index-etf-ftec-2 | nan | nan | Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $5.15 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.89%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 99.90% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.40% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA).
The top 10 holdings account for about 60.22% of total assets under management.
Performance and Risk
So far this year, FTEC has lost about -27.87%, and is down about -17.89% in the last one year (as of 07/14/2022). During this past 52-week period, the fund has traded between $93.52 and $137.67.
The ETF has a beta of 1.12 and standard deviation of 30.47% for the trailing three-year period, making it a medium risk choice in the space. With about 366 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTEC is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $38.38 billion in assets, Vanguard Information Technology ETF has $40.66 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.40% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $5.15 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.40% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.40% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.40% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013. |
20297.0 | 2022-07-14 00:00:00 UTC | Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-2 | nan | nan | Launched on 06/16/2006, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.31 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 17.80% of the portfolio. Consumer Staples and Information Technology round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.42% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 28.55% of total assets under management.
Performance and Risk
DLN 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.
The ETF has lost about -10.25% so far this year and is down about -1.16% in the last one year (as of 07/14/2022). In the past 52-week period, it has traded between $57.22 and $66.91.
The ETF has a beta of 0.90 and standard deviation of 22.95% for the trailing three-year period, making it a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DLN is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.56 billion in assets, Vanguard Value ETF has $92.75 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.42% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 06/16/2006, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.42% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.42% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. LargeCap Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.42% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 06/16/2006, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. |
20298.0 | 2022-07-14 00:00:00 UTC | Apple Stock This Earnings Season: Buy or Sell? | AAPL | https://www.nasdaq.com/articles/apple-stock-this-earnings-season%3A-buy-or-sell | nan | nan | Shares of Apple (NASDAQ: AAPL) have gained some momentum over the past month thanks to a small tech stock rally, but the iPhone maker will be facing a litmus test when it releases its fiscal 2022 third-quarter earnings report on July 28.
Apple stock is down 18% so far in 2022 in the wake of the broad market sell-off, so it trades at an attractive valuation right now. That might tempt investors to buy shares before it releases its quarterly results, as a strong showing could send the stock higher. But then, the global smartphone market hasn't been in the best shape this year, and that could hurt the company's biggest business.
So investors might be undecided about what to do with Apple stock this earnings season. Should they be buying in anticipation of more gains? Or will it be a good idea to sell this tech stock and cut any further losses? Let's find out.
Reasons to sell Apple stock
Global smartphone sales are declining this year. Counterpoint Research estimates that smartphone shipments were down 8% year over year in the first quarter of 2022 to 326 million units. The second quarter isn't looking good for smartphone sales, either, as shipments in May reportedly fell 10% year over year to 96 million units. According to Counterpoint, this was only the second time in nearly a decade that monthly shipments fell below 100 million units.
The smartphone market has been hit hard by headwinds such as surging inflation and weak consumer confidence, along with renewed COVID-19-induced lockdowns in China and geopolitical instability in Europe that are hurting sales. Not surprisingly, the 2022 outlook for smartphone sales doesn't look promising. Counterpoint estimates a 3% decline in shipments this year.
The headwinds mentioned above could weigh on Apple's iPhone sales this year. According to third-party estimates, the company is expected to keep iPhone production flat at 220 million units in 2022. The iPhone was its biggest source of revenue in the second quarter of fiscal 2022, accounting for 52% of its top line. So, a flat performance from the iPhone could hinder the company's ability to meet Wall Street's expectations.
Analysts are looking for $1.16 per share in earnings on revenue of $82.5 billion from Apple for the fiscal third quarter. Those numbers don't look inspiring as compared to the prior-year period's earnings of $1.30 per share and revenue of $81.4 billion. The decline in earnings amid a weak smartphone sales environment could strengthen the bear case and send Apple lower, which is why investors looking to cut their losses might consider selling the stock.
Reasons to buy Apple stock
Wall Street's expectations indicate that Apple's business is going to hit a speed bump in the fiscal third quarter. Moreover, the company hadn't provided any guidance citing the near-term uncertainty surrounding its business.
But then, Apple might turn in better-than-expected results on the back of healthy iPhone demand. According to Morgan Stanley, the company reportedly built 44.3 million iPhones in the quarter that ended in June. The investment bank has raised its iPhone build forecast by 14% for the June quarter over the past four months.
That doesn't seem surprising, as Apple has been outperforming the broader smartphone market. It increased its iPhone sales in the first quarter of the calendar year while the overall market declined, driven by the growing adoption of 5G smartphones.
Apple leads the 5G smartphone market and enjoys strong pricing power. So the iPhone could thrive despite the smartphone market's gloom. It is also worth noting that the company has a massive installed base of users who are in an upgrade window, which could set the company up for a strong second half. Foxconn, which is a key contractor that assembles iPhones, recently raised its guidance for the full year citing strong smartphone demand.
Meanwhile, the growth of the high-margin services business has played an important role in helping Apple crush consensus earnings estimates over the past four quarters. It expects the services business to grow in the double digits in the June quarter. That could give its margins and the bottom line a nice boost as the services business reported a gross margin of 72.6% in the fiscal second quarter, way higher than the company's overall gross margin of 43.7%.
In all, the company could spring a positive surprise when it releases its quarterly report later this month. A strong set of results and outlook can help Apple sustain its rally and inflate its valuation. That's why investors might consider buying the stock since it is trading at 24 times earnings right now, a discount to last year's earnings multiple of 31.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Apple (NASDAQ: AAPL) have gained some momentum over the past month thanks to a small tech stock rally, but the iPhone maker will be facing a litmus test when it releases its fiscal 2022 third-quarter earnings report on July 28. The smartphone market has been hit hard by headwinds such as surging inflation and weak consumer confidence, along with renewed COVID-19-induced lockdowns in China and geopolitical instability in Europe that are hurting sales. The decline in earnings amid a weak smartphone sales environment could strengthen the bear case and send Apple lower, which is why investors looking to cut their losses might consider selling the stock. | Shares of Apple (NASDAQ: AAPL) have gained some momentum over the past month thanks to a small tech stock rally, but the iPhone maker will be facing a litmus test when it releases its fiscal 2022 third-quarter earnings report on July 28. Reasons to sell Apple stock Global smartphone sales are declining this year. The second quarter isn't looking good for smartphone sales, either, as shipments in May reportedly fell 10% year over year to 96 million units. | Shares of Apple (NASDAQ: AAPL) have gained some momentum over the past month thanks to a small tech stock rally, but the iPhone maker will be facing a litmus test when it releases its fiscal 2022 third-quarter earnings report on July 28. The second quarter isn't looking good for smartphone sales, either, as shipments in May reportedly fell 10% year over year to 96 million units. Reasons to buy Apple stock Wall Street's expectations indicate that Apple's business is going to hit a speed bump in the fiscal third quarter. | Shares of Apple (NASDAQ: AAPL) have gained some momentum over the past month thanks to a small tech stock rally, but the iPhone maker will be facing a litmus test when it releases its fiscal 2022 third-quarter earnings report on July 28. But then, the global smartphone market hasn't been in the best shape this year, and that could hurt the company's biggest business. The second quarter isn't looking good for smartphone sales, either, as shipments in May reportedly fell 10% year over year to 96 million units. |
20299.0 | 2022-07-14 00:00:00 UTC | Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-1 | nan | nan | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
The fund is sponsored by Blackrock. It has amassed assets over $7.44 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 33.50% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.45% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 41.88% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has lost about -21.07% so far this year and is down about -12.33% in the last one year (as of 07/14/2022). In the past 52-week period, it has traded between $166.91 and $221.63.
The ETF has a beta of 0.99 and standard deviation of 24.21% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OEF is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $280.67 billion in assets, SPDR S&P 500 ETF has $342.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 100 ETF (OEF): 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. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.45% 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 S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000. | Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.45% 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 S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.45% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.45% 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 S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.