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20300.0 | 2022-07-14 00:00:00 UTC | Should You Invest With SpaceX in This Micro-Cap? | AAPL | https://www.nasdaq.com/articles/should-you-invest-with-spacex-in-this-micro-cap | nan | nan | Velo3D (NYSE: VLD) is a 3D printing company that manufactures high-end parts for spaceships and rocket engines among a few other things. The company is tiny, with a $350 million market cap, and growing quickly (more than 900% revenue growth in its most recent quarter).
Before you get too excited, the company had only $38 million in revenue during the past 12 months. So it's very, very early. In fact, Velo3D burned $37 million in cash in Q1, and it's down to $186 million. So like a lot of start-ups, Velo3D might die an early death (particularly if the economy lurches into a recession).
Nonetheless, I'm bullish on this little company, and I've started buying shares. So why do I want to own this tiny stock?
Image source: SpaceX.
SpaceX is a strategic investor
SpaceX -- maybe the most exciting private company out there right now -- once tried to acquire Velo3D. Chief Executive Officer Benny Buller rebuffed the overture -- the company wants to stay private. So Elon Musk and his team at SpaceX decided to become a strategic investor instead.
SpaceX uses Velo3D's Sapphire machines to create parts for its Raptor engines. SpaceX started off buying one Sapphire printer in 2018, making it Velo3D's first customer. That initial order rapidly increased to 22 orders by 2021. SpaceX even paid for future versions of the device that didn't exist at the time of the contract. So when Velo3D's next-generation printer, the Sapphire XC, first hit the market, SpaceX got them all.
That unit costs about $250,000. We don't know the specifics of the SpaceX contract with Velo3D, but the company definitely got a cheaper rate -- so much so that in Q1, Velo3D reported a gross margin of 0%, in large part because the eight machines that shipped that quarter all went to SpaceX (aka "the launch customer"). As Buller said on the Q1 conference call, "the pricing point for the launch customer was significantly lower, as they bought the system before there was a system."
Of course, SpaceX is a huge company. Founded by Elon Musk, the richest man in the world, SpaceX is privately valued at about $127 billion based on its most recent round of fundraising. So the money that it's invested in Velo3D and its 3D printers is relatively tiny.
Why was SpaceX interested in acquiring the company? The head of additive manufacturing (AM) at SpaceX opined that, "Velo3D is at least five years ahead of any competition."
A breakthrough technology
Companies like SpaceX are interested in AM devices (aka 3D printers). If you have a complex device made up of dozens of parts, it would certainly be a lot easier if you could reduce that part to one.
The problem with traditional AM solutions is that you often can't produce the required designs -- you have to redesign the part so that the printer can make it. But even worse, you have performance degradation over time. So you would have to add metal supports to the AM part to avoid breakage.
Velo3D offers support-free AM. You can reproduce legacy parts without the need for redesign, and they won't fall apart. Velo3D's machines create parts from nickel, titanium, aluminum, and copper. But the real breakthrough is that no supports are needed.
The company's first device, the Sapphire, is the basic printer. But what will really drive sales is the next-generation device, the Sapphire XC. That's the one SpaceX bought before it existed. The Sapphire XC is a larger machine designed to scale the mass production of parts. You can produce five times as many parts as the original Sapphire, at a much cheaper price point.
Expanding out the customer base
I'm a big fan of SpaceX and Elon Musk's vision for his company. Last year, SpaceX signed a $2.9 billion contract with NASA to put astronauts back on the moon by 2025. To my mind, SpaceX is a major customer win for Velo3D. And I see it as a validation of the technology.
But I also know that suppliers to companies like Apple often seem to get the short end of the stick. So while the SpaceX relationship is exciting, it might not be as rewarding as we investors might like.
On the other hand, Velo3D is dramatically increasing its customer list. Other customers include:
Lam Research
Lockheed Martin
Honeywell
Raytheon
Kratos
Honda
Schlumberger
Mitsubishi
Siemens
Jabil
ConocoPhillips
Management expects to add as many 24 new customers in 2022. Buller estimates that his company will have $89 million in sales in 2022 (an annual growth rate of 225%). Some customers are opting to lease the machines and pay a fee per usage.
Risky, but huge potential
Barry Sternlicht brought Velo3D public via a SPAC (special purpose acquisition company) merger last year. Sternlicht is the billionaire co-founder of Starwood Capital. He's highly respected in the industry and has been a notable critic of some of the wild deals in the SPAC world.
Velo3D is a risky investment and not for the faint of heart. The stock has been killed since the company came public.
VLD data by YCharts
It's now officially super cheap. There's a legitimate risk of a company like this going belly up. On the other hand, it looks to me like Velo3D might have solved the problems that have prevented mass adaption of AM. If that's the case, the stock will be a huge winner.
My suggestion: If you are buying, start off with a small initial investment, under 1% of assets.
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Taylor Carmichael has positions in Apple and Velo3D, Inc. The Motley Fool has positions in and recommends Apple and Lam Research. The Motley Fool recommends Lockheed Martin and Velo3D, Inc. 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. | Founded by Elon Musk, the richest man in the world, SpaceX is privately valued at about $127 billion based on its most recent round of fundraising. The problem with traditional AM solutions is that you often can't produce the required designs -- you have to redesign the part so that the printer can make it. Risky, but huge potential Barry Sternlicht brought Velo3D public via a SPAC (special purpose acquisition company) merger last year. | A breakthrough technology Companies like SpaceX are interested in AM devices (aka 3D printers). The Motley Fool has positions in and recommends Apple and Lam Research. The Motley Fool recommends Lockheed Martin and Velo3D, Inc. and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | SpaceX is a strategic investor SpaceX -- maybe the most exciting private company out there right now -- once tried to acquire Velo3D. We don't know the specifics of the SpaceX contract with Velo3D, but the company definitely got a cheaper rate -- so much so that in Q1, Velo3D reported a gross margin of 0%, in large part because the eight machines that shipped that quarter all went to SpaceX (aka "the launch customer"). A breakthrough technology Companies like SpaceX are interested in AM devices (aka 3D printers). | SpaceX uses Velo3D's Sapphire machines to create parts for its Raptor engines. SpaceX started off buying one Sapphire printer in 2018, making it Velo3D's first customer. A breakthrough technology Companies like SpaceX are interested in AM devices (aka 3D printers). |
20301.0 | 2022-07-14 00:00:00 UTC | Taiwan says Foxconn needs govt approval for any China chip firm investment | AAPL | https://www.nasdaq.com/articles/taiwan-says-foxconn-needs-govt-approval-for-any-china-chip-firm-investment-0 | nan | nan | Adds Qichacha data on Foxconn's ownership of Chinese entity, and Foxconn's response
TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday.
Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making.
The island's government has become increasingly cautious about China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.
Rio Lu, deputy executive secretary of Taiwan's Economy Ministry's Investment Commission, told Reuters that on Wednesday they had been in contact with Foxconn and "reminded them that the case needs to be reviewed before doing anything".
If Foxconn breaks the rules it can be fined T$25 million ($837,577), Lu said, adding her department has already reported this plan to Economy Minister Wang Mei-hua.
Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". It did not elaborate.
Foxconn has not formally confirmed any plan to invest in the Chinese group.
Records on Qichacha, a Chinese website that tracks business registration records, show that Foxconn controls 99% of a Chinese entity called Xingwei.
Xingwei controls a 48% stake in a different entity that itself holds a 20% stake in the vehicle that owns all of Tsinghua Unigroup, Qichacha data shows.
Foxconn declined to comment on the data. A spokesperson for Unigroup did not respond to a request for comment.
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.
Electronics manufacturing giant Foxconn is keen to make auto chips amid its foray 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.
($1 = 6.7175 Chinese yuan renminbi)
($1 = 29.8480 Taiwan dollars)
(Reporting by Jeanny Kao and Yimou Lee; Additional reporting by Josh Horwitz; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman)
((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. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". Rio Lu, deputy executive secretary of Taiwan's Economy Ministry's Investment Commission, told Reuters that on Wednesday they had been in contact with Foxconn and "reminded them that the case needs to be reviewed before doing anything". 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. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". Adds Qichacha data on Foxconn's ownership of Chinese entity, and Foxconn's response TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". Adds Qichacha data on Foxconn's ownership of Chinese entity, and Foxconn's response TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making. The island's government has become increasingly cautious about China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage. |
20302.0 | 2022-07-14 00:00:00 UTC | TSMC's Q2 profit up 76%, beats market estimates | AAPL | https://www.nasdaq.com/articles/tsmcs-q2-profit-up-76-beats-market-estimates-0 | nan | nan | TAIPEI, July 14 (Reuters) - Taiwanese chip maker TSMC 2330.TW posted a 76.3% rise in second-quarter net profit on Thursday, Reuters calculations showed, on sustained demand for semiconductors amid a continued global shortage.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for April-June rise to T$237.0 billion ($7.94 billion) from T$134.4 billion a year earlier.
That compared with the T$219.13 billion average of 19 analyst estimates compiled by Refinitiv.
($1 = 29.8600 Taiwan dollars)
(Reporting by Yimou Lee and Ben Blanchard; Editing by Christopher Cushing)
((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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for April-June rise to T$237.0 billion ($7.94 billion) from T$134.4 billion a year earlier. TAIPEI, July 14 (Reuters) - Taiwanese chip maker TSMC 2330.TW posted a 76.3% rise in second-quarter net profit on Thursday, Reuters calculations showed, on sustained demand for semiconductors amid a continued global shortage. That compared with the T$219.13 billion average of 19 analyst estimates compiled by Refinitiv. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for April-June rise to T$237.0 billion ($7.94 billion) from T$134.4 billion a year earlier. TAIPEI, July 14 (Reuters) - Taiwanese chip maker TSMC 2330.TW posted a 76.3% rise in second-quarter net profit on Thursday, Reuters calculations showed, on sustained demand for semiconductors amid a continued global shortage. ($1 = 29.8600 Taiwan dollars) (Reporting by Yimou Lee and Ben Blanchard; Editing by Christopher Cushing) ((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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for April-June rise to T$237.0 billion ($7.94 billion) from T$134.4 billion a year earlier. TAIPEI, July 14 (Reuters) - Taiwanese chip maker TSMC 2330.TW posted a 76.3% rise in second-quarter net profit on Thursday, Reuters calculations showed, on sustained demand for semiconductors amid a continued global shortage. ($1 = 29.8600 Taiwan dollars) (Reporting by Yimou Lee and Ben Blanchard; Editing by Christopher Cushing) ((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. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for April-June rise to T$237.0 billion ($7.94 billion) from T$134.4 billion a year earlier. TAIPEI, July 14 (Reuters) - Taiwanese chip maker TSMC 2330.TW posted a 76.3% rise in second-quarter net profit on Thursday, Reuters calculations showed, on sustained demand for semiconductors amid a continued global shortage. That compared with the T$219.13 billion average of 19 analyst estimates compiled by Refinitiv. |
20303.0 | 2022-07-14 00:00:00 UTC | Ericsson's quarterly core profit misses estimates on rising costs | AAPL | https://www.nasdaq.com/articles/ericssons-quarterly-core-profit-misses-estimates-on-rising-costs | nan | nan | Adds details on results, Iraq investigation
STOCKHOLM, July 14 (Reuters) - Sweden's Ericsson ERICb.ST, under the shadow of bribery investigations, on Thursday reported a rise in second-quarter core earnings but missed expectations as increased component and logistics costs hit margins.
Soaring inflation, a chip shortage and Russia's invasion of Ukraine has led to increased costs, resulting in gross margin falling to 42.1% from 43.4%. The results were also hit by patent disputes, including one with Apple AAPL.O, that decreased revenue by 0.9 billion crowns.
Ericsson's total quarterly revenue rose to 62.5 billion crowns from 54.9 billion, beating estimates of 61.45 billion crowns.
"The global supply chain situation remains challenging ... this results in cost increases which we work hard to mitigate as far as possible," Chief Executive Borje Ekholm said in a statement. "As contracts expire, we aim to adjust pricing."
The company is also battling the fallout of a bribery scandal in Iraq that led to the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) opening investigations against the company.
Ericsson said on Thursday it was engaging with the DOJ and the SEC in relation to the Iraq probe, and that the outcome of the matters could not be assessed at this point in time.
Despite the distractions, Ericsson was able to sell more 5G equipment as telecom operators race to upgrade their networks at a rapid clip, benefiting the company and its Nordic rival NokiaNOKIA.HE.
Ericsson's quarterly adjusted operating earnings rose to 7.3 billion Swedish crowns ($689.28 million) from 5.8 billion a year earlier, missing analysts' mean forecast of 8.01 billion, according to Refinitiv data.
($1 = 10.5908 Swedish crowns)
(Reporting by Supantha Mukherjee in Stockholm, editing by Anna Ringstrom)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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. | The results were also hit by patent disputes, including one with Apple AAPL.O, that decreased revenue by 0.9 billion crowns. Soaring inflation, a chip shortage and Russia's invasion of Ukraine has led to increased costs, resulting in gross margin falling to 42.1% from 43.4%. "The global supply chain situation remains challenging ... this results in cost increases which we work hard to mitigate as far as possible," Chief Executive Borje Ekholm said in a statement. | The results were also hit by patent disputes, including one with Apple AAPL.O, that decreased revenue by 0.9 billion crowns. Adds details on results, Iraq investigation STOCKHOLM, July 14 (Reuters) - Sweden's Ericsson ERICb.ST, under the shadow of bribery investigations, on Thursday reported a rise in second-quarter core earnings but missed expectations as increased component and logistics costs hit margins. Ericsson's total quarterly revenue rose to 62.5 billion crowns from 54.9 billion, beating estimates of 61.45 billion crowns. | The results were also hit by patent disputes, including one with Apple AAPL.O, that decreased revenue by 0.9 billion crowns. Adds details on results, Iraq investigation STOCKHOLM, July 14 (Reuters) - Sweden's Ericsson ERICb.ST, under the shadow of bribery investigations, on Thursday reported a rise in second-quarter core earnings but missed expectations as increased component and logistics costs hit margins. Ericsson's total quarterly revenue rose to 62.5 billion crowns from 54.9 billion, beating estimates of 61.45 billion crowns. | The results were also hit by patent disputes, including one with Apple AAPL.O, that decreased revenue by 0.9 billion crowns. Adds details on results, Iraq investigation STOCKHOLM, July 14 (Reuters) - Sweden's Ericsson ERICb.ST, under the shadow of bribery investigations, on Thursday reported a rise in second-quarter core earnings but missed expectations as increased component and logistics costs hit margins. The company is also battling the fallout of a bribery scandal in Iraq that led to the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) opening investigations against the company. |
20304.0 | 2022-07-13 00:00:00 UTC | Apple's (AAPL) TV+, Led by Ted Lasso, Gets 52 Emmy Nominations | AAPL | https://www.nasdaq.com/articles/apples-aapl-tv-led-by-ted-lasso-gets-52-emmy-nominations | nan | nan | Apple’s AAPL 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.
Apple TV+ won the Emmy Award nominations across 13 titles, including Schmigadoon!, The Morning Show, The Problem with Jon Stewart, Central Park, Pachinko, Foundation, Lisey’s Story, See, They Call Me Magic and Carpool Karaoke: The Series.
Apple TV+ won nominations in key categories, including Outstanding Drama Series (Severance), Outstanding Comedy Series (Ted Lasso), Outstanding Hosted Nonfiction Series or Special (The Problem with Jon Stewart), Lead Actress in a Drama Series, Lead Actor in a Drama Series and Lead Actor in a Comedy Series.
Apple TV+ Rides on Quality Content
Apple TV+ is benefiting from quality content with its strong portfolio of shows. The company has been expanding its genre base to attract viewers and win market share against Netflix NFLX, which enjoys the leading position in the streaming industry, as well as established players like Disney DIS and Amazon AMZN.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple TV+ has been signing deals with the likes of Maya Rudolph's production company, Animal Pictures, besides Scott Free Productions, Appian Way, Sikelia Productions and Green Door Pictures, to name a few, to build its content portfolio. Apple TV+ has also won exclusive rights to broadcast Major League Soccer (MLS) worldwide for 10 years, starting from 2023.
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.
Amazon signed a long-term deal with the National Football League that makes its streaming service — Prime Video — the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season.
What Awaits Apple in the Rest of 2022?
Apple has been struggling so far in 2022, primarily due to coronavirus-induced supply-chain disruptions, industry-wide silicon shortage, unfavorable forex and the ongoing Russia-Ukraine conflict.
Shares of the iPhone-maker have been down 16.3% year to date although it has managed to outperform the Zacks Computer & Technology sector’s decline of 24.5%.
The near-term outlook is not enthusiastic, given the headwinds. Apple did not provide revenue guidance for the third quarter of fiscal 2022. Apple expects COVID-induced supply chain disruptions and the industry-wide silicon shortage to hurt its top line by $4-$8 billion. Unfavorable forex is also expected to hurt revenues by 300 basis points (bps).
Moreover, the absence of revenues from Russia is expected to hurt the top line by 150 bps. Apple paused all sales in Russia during the fiscal second quarter (March quarter).
Nevertheless, the company’s expanding portfolio brightens its prospects. The Services portfolio, of which Apple TV+ is a part, has emerged as Apple’s new cash cow. This Zacks Rank #3 (Hold) company had more than 825 million paid subscribers across its Services portfolio at the end of fiscal second quarter. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple’s AAPL streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. Apple Inc. (AAPL): Free Stock Analysis Report Apple TV+ won the Emmy Award nominations across 13 titles, including Schmigadoon!, The Morning Show, The Problem with Jon Stewart, Central Park, Pachinko, Foundation, Lisey’s Story, See, They Call Me Magic and Carpool Karaoke: The Series. | Apple’s AAPL streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. Apple Inc. (AAPL): Free Stock Analysis Report Apple TV+ won nominations in key categories, including Outstanding Drama Series (Severance), Outstanding Comedy Series (Ted Lasso), Outstanding Hosted Nonfiction Series or Special (The Problem with Jon Stewart), Lead Actress in a Drama Series, Lead Actor in a Drama Series and Lead Actor in a Comedy Series. | Apple Inc. (AAPL): Free Stock Analysis Report Apple’s AAPL streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. Apple TV+ won nominations in key categories, including Outstanding Drama Series (Severance), Outstanding Comedy Series (Ted Lasso), Outstanding Hosted Nonfiction Series or Special (The Problem with Jon Stewart), Lead Actress in a Drama Series, Lead Actor in a Drama Series and Lead Actor in a Comedy Series. | Apple’s AAPL streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso. Apple Inc. (AAPL): Free Stock Analysis Report Amazon signed a long-term deal with the National Football League that makes its streaming service — Prime Video — the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season. |
20305.0 | 2022-07-13 00:00:00 UTC | Taiwan says Foxconn needs govt approval for any China chip firm investment | AAPL | https://www.nasdaq.com/articles/taiwan-says-foxconn-needs-govt-approval-for-any-china-chip-firm-investment | nan | nan | TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday.
Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making.
The island's government has become increasingly cautious about China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.
Rio Lu, deputy executive secretary of Taiwan's Economy Ministry's Investment Commission, told Reuters that on Wednesday they had been in contact with Foxconn and "reminded them that the case needs to be reviewed before doing anything".
If Foxconn breaks the rules it can be fined T$25 million ($837,577), Lu said, adding her department has already reported this plan to Economy Minister Wang Mei-hua.
Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". It did not elaborate.
Foxconn has not formally confirmed any plan to invest in the Chinese group.
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.
A spokesperson for Unigroup did not respond to a request for comment.
Electronics manufacturing giant Foxconn is keen to make auto chips amid its foray 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.
($1 = 6.7175 Chinese yuan renminbi)
($1 = 29.8480 Taiwan dollars)
(Reporting by Jeanny Kao and Yimou Lee; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman)
((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. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". Rio Lu, deputy executive secretary of Taiwan's Economy Ministry's Investment Commission, told Reuters that on Wednesday they had been in contact with Foxconn and "reminded them that the case needs to be reviewed before doing anything". 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. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn's China-listed unit Foxconn Industrial Internet Co Ltd 601138.SS plans to spend 9.8 billion yuan ($1.46 billion) for a stake in Unigroup, as part of Foxconn's plans to get more into chip-making. | Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc AAPL.O, said in a brief statement sent to Reuters late on Wednesday that it will handle the case "in accordance with the rules". TAIPEI, July 14 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. The island's government has become increasingly cautious about China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage. |
20306.0 | 2022-07-13 00:00:00 UTC | Buffett's Berkshire owns 19.2% of Occidental Petroleum after new purchases | AAPL | https://www.nasdaq.com/articles/buffetts-berkshire-owns-19.2-of-occidental-petroleum-after-new-purchases-0 | nan | nan | By Jonathan Stempel
July 13 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, said it has this week purchased another 4.3 million shares of Occidental Petroleum Corp OXY.N, giving it a 19.2% stake in the oil company.
In a U.S. Securities and Exchange Commission filing on Wednesday, Berkshire said it spent about $250 million on the additional shares, and now owns 179.4 million Occidental common shares worth about $10.4 billion.
The latest purchases put Berkshire closer to 20% ownership, a threshold that would let it record its proportionate share of Occidental's earnings with its own results, known as the equity method of accounting.
Analysts on average expect Occidental's net income to exceed $10 billion this year, according to Refinitiv I/B/E/S.
Berkshire uses the equity method for its 26.6% stake in Kraft Heinz Co KHC.O, the packaged food company it controls with Brazilian private equity firm 3G Capital.
Yet while Berkshire is by far Occidental's largest shareholder, it could contend that its accounting should remain unchanged because its stake is passive.
Berkshire also owns $10 billion of Occidental preferred stock that throws off $800 million of annual dividends, and has warrants to buy another 83.9 million common shares for $5 billion.
Occidental's share price has doubled this year, helped by rising oil prices following Russia's invasion of Ukraine.
Some analysts have speculated that Berkshire could buy all of the Houston-based company, which has been reducing debt since acquiring Anadarko Petroleum Corp for $35.7 billion in 2019.
Berkshire's preferred stock investment helped finance the Anadarko takeover.
In 2010, Berkshire bought the BNSF railroad for $26.5 billion after earlier accumulating a 22.6% stake.
Buffett's Omaha, Nebraska-based conglomerate also owns dozens of other businesses including the Geico car insurer and See's candies, and stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N.
(Reporting by Jonathan Stempel in New York; Editing by Jacqueline Wong and Leslie Adler)
((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. | Buffett's Omaha, Nebraska-based conglomerate also owns dozens of other businesses including the Geico car insurer and See's candies, and stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel July 13 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, said it has this week purchased another 4.3 million shares of Occidental Petroleum Corp OXY.N, giving it a 19.2% stake in the oil company. The latest purchases put Berkshire closer to 20% ownership, a threshold that would let it record its proportionate share of Occidental's earnings with its own results, known as the equity method of accounting. | Buffett's Omaha, Nebraska-based conglomerate also owns dozens of other businesses including the Geico car insurer and See's candies, and stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel July 13 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, said it has this week purchased another 4.3 million shares of Occidental Petroleum Corp OXY.N, giving it a 19.2% stake in the oil company. In a U.S. Securities and Exchange Commission filing on Wednesday, Berkshire said it spent about $250 million on the additional shares, and now owns 179.4 million Occidental common shares worth about $10.4 billion. | Buffett's Omaha, Nebraska-based conglomerate also owns dozens of other businesses including the Geico car insurer and See's candies, and stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel July 13 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, said it has this week purchased another 4.3 million shares of Occidental Petroleum Corp OXY.N, giving it a 19.2% stake in the oil company. In a U.S. Securities and Exchange Commission filing on Wednesday, Berkshire said it spent about $250 million on the additional shares, and now owns 179.4 million Occidental common shares worth about $10.4 billion. | Buffett's Omaha, Nebraska-based conglomerate also owns dozens of other businesses including the Geico car insurer and See's candies, and stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel July 13 (Reuters) - Berkshire Hathaway Inc BRKa.N, run by billionaire Warren Buffett, said it has this week purchased another 4.3 million shares of Occidental Petroleum Corp OXY.N, giving it a 19.2% stake in the oil company. The latest purchases put Berkshire closer to 20% ownership, a threshold that would let it record its proportionate share of Occidental's earnings with its own results, known as the equity method of accounting. |
20307.0 | 2022-07-13 00:00:00 UTC | After Hours Most Active for Jul 13, 2022 : IQ, CVX, IBN, NIO, CMCSA, AAPL, CBAY, ZIM, HPE, PPL, TLT, DCPH | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jul-13-2022-%3A-iq-cvx-ibn-nio-cmcsa-aapl-cbay-zim-hpe-ppl-tlt | nan | nan | The NASDAQ 100 After Hours Indicator is down -18.88 to 11,709.65. The total After hours volume is currently 73,117,081 shares traded.
The following are the most active stocks for the after hours session:
iQIYI, Inc. (IQ) is unchanged at $4.01, with 2,703,828 shares traded. IQ's current last sale is 53.47% of the target price of $7.5.
Chevron Corporation (CVX) is unchanged at $137.99, with 2,470,607 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $4.87. CVX's current last sale is 81.17% of the target price of $170.
ICICI Bank Limited (IBN) is unchanged at $18.74, with 2,274,339 shares traded. As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
NIO Inc. (NIO) is -0.03 at $21.06, with 2,090,634 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Comcast Corporation (CMCSA) is unchanged at $39.88, with 1,974,302 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $0.92. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Apple Inc. (AAPL) is -0.24 at $145.25, with 1,864,278 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
CymaBay Therapeutics Inc. (CBAY) is -0.06 at $3.37, with 1,844,513 shares traded. As reported by Zacks, the current mean recommendation for CBAY is in the "strong buy range".
ZIM Integrated Shipping Services Ltd. (ZIM) is +0.04 at $46.70, with 1,732,608 shares traded. ZIM's current last sale is 80.31% of the target price of $58.15.
Hewlett Packard Enterprise Company (HPE) is unchanged at $13.00, with 1,573,525 shares traded. HPE's current last sale is 72.22% of the target price of $18.
PPL Corporation (PPL) is unchanged at $27.06, with 1,362,685 shares traded. PPL's current last sale is 90.2% of the target price of $30.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.28 at $116.16, with 1,123,499 shares traded. This represents a 7.44% increase from its 52 Week Low.
Deciphera Pharmaceuticals, Inc. (DCPH) is -0.01 at $13.39, with 1,096,754 shares traded. DCPH's current last sale is 111.58% of the target price of $12.
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 -0.24 at $145.25, with 1,864,278 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. | Apple Inc. (AAPL) is -0.24 at $145.25, with 1,864,278 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. | Apple Inc. (AAPL) is -0.24 at $145.25, with 1,864,278 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. | Apple Inc. (AAPL) is -0.24 at $145.25, with 1,864,278 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -18.88 to 11,709.65. |
20308.0 | 2022-07-13 00:00:00 UTC | The One Thing Streaming Companies Need -- a Bundle | AAPL | https://www.nasdaq.com/articles/the-one-thing-streaming-companies-need-a-bundle | nan | nan | Disney+ from Disney (NYSE: DIS), Apple TV+ from Apple (NASDAQ: AAPL), Hulu, Paramount+ (NASDAQ: PARA), HBO Max from Warner Bros Discovery (NASDAQ: WBD), ESPN+, Peacock from Comcast (NASDAQ: CMCSA), YouTube TV from Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX). These are the streaming services I've subscribed to at one point or another in the last year, and it's become exhausting.
Yesterday, I unsubscribed from four of the streaming services, leaving the bare minimum for our family of four, which cut the cable cord nearly a decade ago. I'm sure I'll resubscribe to some in time, but I'm now in the habit of subscribing and unsubscribing from streaming services on the fly.
My experience can't be unique, as the streaming landscape has become more crowded. The challenge for investors is that there may not be 10 winners in streaming -- there may only be a few. And the content, business model, and strategy companies are building will matter in the long term.
Streaming's business problem
The issue with streaming is that it's still not a mature business model. With cable, there wasn't a lot of growth, but companies knew what they could expect from carriage fees and advertising. That allowed them to plan content costs that would make the business profitable.
Streaming companies are in growth mode, but their cash flow is negative as they emphasized building scale over profitability. Just look at how much debt Netflix has taken on over the last decade, with negative free cash flow in all but a few quarters during the pandemic. In 2022, can it turn this trend around with subscriber numbers on the decline?
NFLX Free Cash Flow data by YCharts.
Disney also expects to lose money as it builds content for Disney+ and seeks to grow its subscriber base. And these are the leaders. Late-comer services like Peacock must be burning a tremendous amount of cash.
We're now at a point where everyone is chasing growth, but very few will reach the scale needed to be profitable. Consolidation is one answer to the current financial challenge, but the simple answer may be a new bundle of streaming services for customers.
What we need is a bundle
There's an easy answer for the current predicament, and it's a bundle. Yes, the business model cable companies have used for decades is likely to be a great business model for streamers as well.
Content companies are trying to gather as much content as possible within their streaming services, but the reality is that no company can control all types of content. Not only would that be a monopoly, but it would also be prohibitively expensive. So, giving viewers an option to bundle multiple streaming services together will likely be a winning strategy.
The question is: Who builds the bundle?
I think it's clear Disney, Warner Bros Discovery, Paramount Global, Netflix, and other streamers themselves aren't likely the answer. They're pulling together content in order to have a service that would be part of the larger bundle.
A more natural bundle would come from platform providers such as Apple and Roku, who make TV operating systems and are already in millions of homes. Verizon (NYSE: VZ) is another possibility if it bundles streaming services with smartphone and home cellular service. And Verizon doesn't have a streaming service that would compete with other providers.
Notice that I left out Amazon (NASDAQ: AMZN). I'm not sure whether Amazon has an incentive to be part of someone else's bundle or has the ability to bundle expensive streaming services within its Amazon Prime package. So far, Amazon has used streaming as a way to get people into Prime, not as a stand-alone service. As big as it is, Amazon is in a tough strategic position if re-bundling happens.
The current state of the market is unsustainable
The media industry can't continue on its current path. Netflix is losing subscribers, Disney is losing money in search of more subscribers, and no one has found a good balance between growth and profits. Something's got to give.
I think the natural answer is a bundle that will make streaming more predictable and gives consumers an incentive to reduce churn overall, rather than to cancel a specific service from time to time, as I did this week. As it turns out, bundles may be good after all. It's now just a question of who builds a compelling bundle of streamers first.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Netflix, and Walt Disney. The Motley Fool recommends Comcast and Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Disney+ from Disney (NYSE: DIS), Apple TV+ from Apple (NASDAQ: AAPL), Hulu, Paramount+ (NASDAQ: PARA), HBO Max from Warner Bros Discovery (NASDAQ: WBD), ESPN+, Peacock from Comcast (NASDAQ: CMCSA), YouTube TV from Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX). Yesterday, I unsubscribed from four of the streaming services, leaving the bare minimum for our family of four, which cut the cable cord nearly a decade ago. I think it's clear Disney, Warner Bros Discovery, Paramount Global, Netflix, and other streamers themselves aren't likely the answer. | Disney+ from Disney (NYSE: DIS), Apple TV+ from Apple (NASDAQ: AAPL), Hulu, Paramount+ (NASDAQ: PARA), HBO Max from Warner Bros Discovery (NASDAQ: WBD), ESPN+, Peacock from Comcast (NASDAQ: CMCSA), YouTube TV from Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Netflix, and Walt Disney. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | Disney+ from Disney (NYSE: DIS), Apple TV+ from Apple (NASDAQ: AAPL), Hulu, Paramount+ (NASDAQ: PARA), HBO Max from Warner Bros Discovery (NASDAQ: WBD), ESPN+, Peacock from Comcast (NASDAQ: CMCSA), YouTube TV from Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX). I'm not sure whether Amazon has an incentive to be part of someone else's bundle or has the ability to bundle expensive streaming services within its Amazon Prime package. 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. | Disney+ from Disney (NYSE: DIS), Apple TV+ from Apple (NASDAQ: AAPL), Hulu, Paramount+ (NASDAQ: PARA), HBO Max from Warner Bros Discovery (NASDAQ: WBD), ESPN+, Peacock from Comcast (NASDAQ: CMCSA), YouTube TV from Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX). And the content, business model, and strategy companies are building will matter in the long term. Streaming companies are in growth mode, but their cash flow is negative as they emphasized building scale over profitability. |
20309.0 | 2022-07-13 00:00:00 UTC | Why Apple, Okta, and Nvidia Stocks Tumbled Today | AAPL | https://www.nasdaq.com/articles/why-apple-okta-and-nvidia-stocks-tumbled-today | nan | nan | What happened
A red-hot inflation report from the U.S. Bureau of Labor Statistics burned stock markets on Wednesday, sending the Dow Jones Industrial Average down 1.1% through 10 a.m. ET and the S&P 500 down 1%.
Tech stocks were hit hard early on, with shares of Apple (NASDAQ: AAPL) losing more than 2% and Nvidia (NASDAQ: NVDA) and Okta (NASDAQ: OKTA) falling more than twice that. The good news is that as the morning wore on, the damage lessened. As of 11 a.m. ET, Apple has pared its losses to just 0.3%, while both Nvidia and Okta are back in the green.
So what
What drove these stocks lower -- and why are they back on the rise already?
The first question is easy to answer: Investors reacted to reports that inflation jumped to 9.1% in June -- the highest inflation rate we've seen in 41 years -- by selling off growth stocks on worries that inflation will devalue their profits in future years. Exacerbating the problem, Apple, Nvidia, and Okta all suffered cuts to their price targets on Wall Street this morning.
Citigroup cut its price target on Apple to $175 per share, warning that supply chain snarls continue to hinder production, while on the demand side, "worsening consumer spending" will ding sales.
At Okta, it was Piper Sandler doing the downgrading, with a price target reduction to $130. Despite observing that it delivered "solid" results in its June earnings report, Piper worries that investors may be unwilling to pay up to own Okta shares in the face of a looming recession.
Last and least, Susquehanna Securities cut its price target on Nvidia by a steep 15%, to $220 per share, on the theory that weaker GPU prices will hurt profits at the semiconductor giant. Susquehanna also warned that chip inventories among Nvidia's customers appear higher than previously thought, which could limit demand for new chips, hurting sales in the short term.
Now what
But here's the good news: Despite each of these three tech stocks getting its price target cut, all three of these analysts continue to recommend buying the shares that they cut. For Apple, Citi maintains a buy rating; for Okta, Piper still says "overweight"; and, despite its concerns, Susquehanna says it remains "positive" on Nvidia as a long-term holding. And not to put too fine a point on it, but Apple at $145 a share still leaves the potential for a 20% profit if it hits Citi's price target; Okta would need to rise 33% to reach Piper's target of $130; and for Nvidia to go to $220, it would need to rise a staggering 44%!
So if you're wondering why these three tech stocks bounced right back after their early-morning sell-offs -- there's your reason right there.
It's also worth pointing out that two of the three stocks (Apple and Nvidia) remain profitable. Neither is particularly cheap, however, with Apple's 24 P/E ratio valuing it at a PEG ratio of more than 2.0 based on 11% long-term forecast earnings growth rates and Nvidia nearly as pricey at 42 times earnings and a 21% projected growth rate. They're still better bargains than Okta, however, which not only has no profits today but isn't expected to earn its first profit before 2028, according to forecasts collated by S&P Global Market Intelligence.
In short: If you're looking to follow Wall Street's recommendations and buy these stocks despite their lower expected profits and high valuations, stick with Apple or Nvidia and limit your risk.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nvidia, and Okta. 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. | Tech stocks were hit hard early on, with shares of Apple (NASDAQ: AAPL) losing more than 2% and Nvidia (NASDAQ: NVDA) and Okta (NASDAQ: OKTA) falling more than twice that. Citigroup cut its price target on Apple to $175 per share, warning that supply chain snarls continue to hinder production, while on the demand side, "worsening consumer spending" will ding sales. Despite observing that it delivered "solid" results in its June earnings report, Piper worries that investors may be unwilling to pay up to own Okta shares in the face of a looming recession. | Tech stocks were hit hard early on, with shares of Apple (NASDAQ: AAPL) losing more than 2% and Nvidia (NASDAQ: NVDA) and Okta (NASDAQ: OKTA) falling more than twice that. Despite observing that it delivered "solid" results in its June earnings report, Piper worries that investors may be unwilling to pay up to own Okta shares in the face of a looming recession. Neither is particularly cheap, however, with Apple's 24 P/E ratio valuing it at a PEG ratio of more than 2.0 based on 11% long-term forecast earnings growth rates and Nvidia nearly as pricey at 42 times earnings and a 21% projected growth rate. | Tech stocks were hit hard early on, with shares of Apple (NASDAQ: AAPL) losing more than 2% and Nvidia (NASDAQ: NVDA) and Okta (NASDAQ: OKTA) falling more than twice that. And not to put too fine a point on it, but Apple at $145 a share still leaves the potential for a 20% profit if it hits Citi's price target; Okta would need to rise 33% to reach Piper's target of $130; and for Nvidia to go to $220, it would need to rise a staggering 44%! In short: If you're looking to follow Wall Street's recommendations and buy these stocks despite their lower expected profits and high valuations, stick with Apple or Nvidia and limit your risk. | Tech stocks were hit hard early on, with shares of Apple (NASDAQ: AAPL) losing more than 2% and Nvidia (NASDAQ: NVDA) and Okta (NASDAQ: OKTA) falling more than twice that. Now what But here's the good news: Despite each of these three tech stocks getting its price target cut, all three of these analysts continue to recommend buying the shares that they cut. In short: If you're looking to follow Wall Street's recommendations and buy these stocks despite their lower expected profits and high valuations, stick with Apple or Nvidia and limit your risk. |
20310.0 | 2022-07-13 00:00:00 UTC | 2 Dividend-Paying Tech Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-right-now-2 | nan | nan | When you think of dividends, perhaps slow-moving industrial companies or real estate investment trusts (REITs) may come to mind. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them?
Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. These two companies have robust business models that have allowed them to see immense profitability and cash generation. These companies are using that cash to explore potentially lucrative spaces and are paying investors a dividend for their patience.
Here's why long-term investors should consider taking advantage of these great deals.
1. Apple
As one of the largest companies in the world, it's not all that surprising that Apple has enough cash flow to pay a dividend. The company has a dividend yield of 0.61%, which is small but represents over 14% of its net income. In the first six months (ended March 26, 2022) of its fiscal year, the company generated almost $60 billion in net income and $70 billion in free cash flow. The company uses this to buy back lots of stock and reinvest into its business; yet, there's still enough cash left over for this dividend.
What opportunities is Apple investing in? One of the most appealing areas Apple is exploring is augmented reality. The rumors are that Apple is developing virtual reality (VR) goggles and augmented reality (AR) glasses to come out in 2023 and 2024, respectively. Considering that Apple has been hiring employees in the AR/VR space, it makes sense that rumors are spreading.
The AR/VR market is expected to be worth over $450 billion by 2030, according to Allied Market Research, which could allow Apple to thrive given its unrivaled brand strength. Additionally, if these products connect with its pre-existing products, that could strengthen its robust ecosystem, making it easier for current Apple customers to adopt AR/VR spectacles.
Apple's primary concern is its size. Currently, it's worth $2.4 trillion, so for it to deliver market-beating returns over the next decade, the company would likely have to grow larger than $3 trillion -- breaking its own record for the biggest company ever by market capitalization. This is certainly possible, but beating this record by a large margin isn't something investors should expect.
Apple is, however, trading close to its lowest valuation since early 2020 at 24 times earnings. While this business might not deliver 1,000% returns over the next decade, it will likely provide steady gains, exposure to the emerging VR industry, and a nice dividend that will likely expand as the business continues to gush cash. For those reasons, you might want to ensure you have this technology staple in your portfolio.
2. Nvidia
Nvidia might not be the first stock to come to mind when thinking about dividends, but with a yield of 0.10%, it is a dividend payer. Additionally, this could get bigger in the future, considering the company only pays out 4% of its net income in its dividend.
Rather, most of its cash is getting funneled into capitalizing on the chip space. Nvidia is a leader in the gaming graphics processing unit (GPU) space with over 200 million gamers using its GeForce graphics cards. However, it also dominates other segments. The company has a 90% share in graphics for workstations in the professional visualization market, and 71% of the top 500 supercomputers rely on Nvidia's chips.
The company is also looking to gain prevalence in emerging segments like enterprise artificial intelligence and omniverse software. With all of these segments combined, Nvidia sees an industry worth $1 trillion. Therefore, it might make sense that most of its $9.5 billion in trailing 12-month net income is being spent here rather than on a dividend.
While the opportunity for Nvidia looks lucrative, it does not come without risk. The company faces stiff competition from companies like Intel and Advanced Micro Devices -- both of which also generate lots of cash. It's safe to say that this will be a fierce battle to gain share, but considering how big these segments are, it won't necessarily be a winner-take-all scenario.
The other risk to monitor is the company's valuation. At 42 times earnings, Nvidia isn't cheap, and investors might see some multiple compression ahead.
However, Nvidia looks too good to miss out on now. The company could rapidly expand over the long term given its massive potential. Additionally, as Nvidia gains share, it could decide to increase its dividend, making it even more attractive as a dividend play. Patient investors looking to see high growth and a rising dividend over the long term should consider adding Nvidia to their portfolio.
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Jamie Louko has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. The company has a 90% share in graphics for workstations in the professional visualization market, and 71% of the top 500 supercomputers rely on Nvidia's chips. It's safe to say that this will be a fierce battle to gain share, but considering how big these segments are, it won't necessarily be a winner-take-all scenario. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. These companies are using that cash to explore potentially lucrative spaces and are paying investors a dividend for their patience. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them? Apple As one of the largest companies in the world, it's not all that surprising that Apple has enough cash flow to pay a dividend. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them? The company uses this to buy back lots of stock and reinvest into its business; yet, there's still enough cash left over for this dividend. |
20311.0 | 2022-07-13 00:00:00 UTC | Where to Invest $5,000 for the Next 5 Years | AAPL | https://www.nasdaq.com/articles/where-to-invest-%245000-for-the-next-5-years-2 | nan | nan | Many people put money in the stock market to let it compound and grow for decades. But even a five-year time horizon can result in good returns. A shorter time in the market adds to the risks, however.
Since 2000, it has taken the S&P 500 index an average of about 2.5 years after a U.S. recession ends for it to reach pre-recession levels, according to a Motley Fool research report. An investor can help manage the timing risk through diversification and purchasing stocks at good historical valuations.
Here are two stocks that can be bought today to help give a $5,000 investment a better chance of a successful outcome in the next five years regardless of how the market swings.
1. Home Depot
Home Depot (NYSE: HD) has been a wildly successful investment over the last decade. Its total return, including dividends, has more than doubled that of the S&P 500. But more recently, it has outpaced the index to the downside. Year to date, Home Depot stock is down more than 30%. That has presented investors with an opportunity. Home Depot's price-to-earnings (P/E) ratio is at a level only seen once in the last 10 years.
HD PE Ratio data by YCharts.
The concern from investors that has hit the stock price is that the economic environment could cause the earnings portion of that ratio to fall. But Home Depot has been making investments to ensure that it can succeed in various types of markets. It announced a multi-year investment strategy called One Home Depot in 2017.
The $11 billion investment has helped build the company's online channels, and that paid off as more consumers than ever shop online. The company also acquired HD Supply, a supplier of maintenance, repair, and operations products, in an $8 billion deal announced in late 2020 to refocus on the professional contractor base. Various housing markets will attract more business from either consumers or professionals. Home Depot has both sides covered.
2. Berkshire Hathaway
There may not be a single stock investment that creates as much diversity in a portfolio as Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). It owns operating businesses in manufacturing and retail, an energy and utilities business, BNSF railroad, and insurance. It also holds large investments in a broad mix of companies that include several banks, Apple, Coca-Cola, as well as automakers.
But it's not just diversity that makes it a good place in which to invest right now. Like Home Depot, Berkshire is trading at a historically low valuation. Berkshire has spent more than $51 billion to repurchase about 9% of its own shares in 2020 and 2021. Buffett has said that price-to-book value is the metric he uses to gauge when share buybacks make good sense.
BRK.B Price to Book Value data by YCharts.
Its recent price-to-book value is nearly as low as its been over the past decade other than during the pandemic-induced plunge. At 1.2 times book value, the stock price is at the level at which Buffett has previously said he would tend to increase prioritizing share buybacks. That makes it a good time for investors to follow his advice and add diversity to a portfolio at the same time.
10 stocks we like better than Home Depot
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Howard Smith has positions in Apple, Berkshire Hathaway (B shares), and Home Depot. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Home Depot. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are two stocks that can be bought today to help give a $5,000 investment a better chance of a successful outcome in the next five years regardless of how the market swings. The company also acquired HD Supply, a supplier of maintenance, repair, and operations products, in an $8 billion deal announced in late 2020 to refocus on the professional contractor base. At 1.2 times book value, the stock price is at the level at which Buffett has previously said he would tend to increase prioritizing share buybacks. | Home Depot Home Depot (NYSE: HD) has been a wildly successful investment over the last decade. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Home Depot. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Home Depot Home Depot (NYSE: HD) has been a wildly successful investment over the last decade. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Howard Smith has positions in Apple, Berkshire Hathaway (B shares), and Home Depot. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Home Depot Home Depot (NYSE: HD) has been a wildly successful investment over the last decade. Year to date, Home Depot stock is down more than 30%. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Howard Smith has positions in Apple, Berkshire Hathaway (B shares), and Home Depot. |
20312.0 | 2022-07-13 00:00:00 UTC | PREVIEW-Apple hovers above competition even as smartphone market stumbles, sources say | AAPL | https://www.nasdaq.com/articles/preview-apple-hovers-above-competition-even-as-smartphone-market-stumbles-sources-say | nan | nan | By Yimou Lee and Stephen Nellis
July 13 (Reuters) - The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple Inc AAPL.O is expecting its upcoming iPhone 14 to do even better at launch.
Apple's slightly higher expectations for the forthcoming iPhone 14 underscore a growing belief among Wall Street analysts that the Cupertino, California company's sales are likely to hold up better than the broader smartphone industry if major economies enter a recession.
Apple, which reports its fiscal third quarter earnings on July 28, conveyed its expectations to suppliers in initial forecasts as it carries out trial production of the iPhone 14, sources with direct knowledge of the matter told Reuters.
With Apple sitting at the higher end of the market, analysts believe that inflation in core items like food and fuel have taken a lesser toll on its relatively affluent user base. That comes as industry watchers such as Fubon Securities Investment Services Co chairman Charles Hsiao believe demand for consumer electronics will slow overall this year and next.
An economic slowdown in China has already taken a huge bite out of the smartphone market, pulling global sales down 10% year over year to 96 million units in May, the most recent month for which full figures were available, according to Counterpoint Research. It's only the second time in nearly a decade that the monthly figure has slipped below 100 million handsets, the firm said.
But two iPhone supply chain sources with direct knowledge of the matter told Reuters that iPhone sales have continued to do well in July despite signs of cooling market demand for other smartphone makers.
"Others are starting to take a hit,” one of the sources said.
The second source said July shipments for the iPhone 13 from one factory were a third higher than July last year. That pattern was especially unusual because sales of current iPhone models tend to slow down in July and August as consumers await new models that Apple traditionally releases in September.
“Judging by shipment, sales of iPhone 13 are fairly good," the second source said.
The iPhone has continued to sell well late into its cycle in part because "China demand rebounded sharply after lockdowns ended and the iPhone was a beneficiary" of a June shopping holiday in China, Cowen analyst Krish Sankar wrote in a note to clients.
In keeping with its annual schedule, Apple has started trial production of the iPhone 13's successor with the goal of ramping up mass production in August so the devices can start shipping in the fall. The initial shipment forecasts Apple has given suppliers is “slightly higher” than that of iPhone 13 a year ago, the second source said.
“It’s slightly higher than last year. It’s good, but not explosively good," the second source said.
For the just-ended fiscal third quarter, some Wall Street analysts are bracing for a slight decline in iPhone 13 shipments even if volumes are higher at some individual factories. But analysts still expect the iPhone to fare better than rivals. Cowen, for example, expects Apple handset shipments to be down about 1% for the just-ended quarter, while overall handset shipments could be down as much as 13%.
The divergence between Apple and the Android market is rippling through Apple's supply chain.
“For Samsung’s display unit, a better-than-expected performance in Q2 is expected due to shipments for iPhones, which is the only smartphone with strong sales,” said Song Myung-sup, analyst at HI Investment & Securities.
Cowen held steady its "outperform" rating on shares of chipmaker Skyworks Solutions Inc SWKS.O, noting that it gets about 55% of its revenues from Apple for a radio chip in the iPhone. Skyworks rival Qorvo Inc QRVO.O, by contrast, gets 30% of its revenue from Apple and has greater exposure to the Android phone market. Cowen downgraded Qorvo to "market perform."
"Skyworks’ greater relative exposure to Apple in its mobile business likely insulates the company in the near term from significant impacts associated with ... downward demand revisions," Cowen analyst Matt Ramsay wrote in a note to clients.
PREVIEW-Samsung Q2 solid on server-chip demand, smartphones cloud outlook
Apple hikes Japan price of iPhone by nearly a fifth
FACTBOX-Here's everything Apple announced: MacBook Air, CarPlay updates, M2 chip
Apple's iPhone development schedule delayed by China lockdowns - Nikkei
Apple supplier Foxconn sees challenges ahead in China COVID curbs, inflation
(Reporting by Stephen Nellis in San Francisco; Ben Blanchard, Liang-sa Loh and Yi-Mou Lee in Taipei; and Joyce Lee in Seoul; editing by Kenneth Li and Nick Zieminski)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Yimou Lee and Stephen Nellis July 13 (Reuters) - The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple Inc AAPL.O is expecting its upcoming iPhone 14 to do even better at launch. Apple's slightly higher expectations for the forthcoming iPhone 14 underscore a growing belief among Wall Street analysts that the Cupertino, California company's sales are likely to hold up better than the broader smartphone industry if major economies enter a recession. Apple, which reports its fiscal third quarter earnings on July 28, conveyed its expectations to suppliers in initial forecasts as it carries out trial production of the iPhone 14, sources with direct knowledge of the matter told Reuters. | By Yimou Lee and Stephen Nellis July 13 (Reuters) - The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple Inc AAPL.O is expecting its upcoming iPhone 14 to do even better at launch. Apple, which reports its fiscal third quarter earnings on July 28, conveyed its expectations to suppliers in initial forecasts as it carries out trial production of the iPhone 14, sources with direct knowledge of the matter told Reuters. But two iPhone supply chain sources with direct knowledge of the matter told Reuters that iPhone sales have continued to do well in July despite signs of cooling market demand for other smartphone makers. | By Yimou Lee and Stephen Nellis July 13 (Reuters) - The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple Inc AAPL.O is expecting its upcoming iPhone 14 to do even better at launch. But two iPhone supply chain sources with direct knowledge of the matter told Reuters that iPhone sales have continued to do well in July despite signs of cooling market demand for other smartphone makers. PREVIEW-Samsung Q2 solid on server-chip demand, smartphones cloud outlook Apple hikes Japan price of iPhone by nearly a fifth FACTBOX-Here's everything Apple announced: MacBook Air, CarPlay updates, M2 chip Apple's iPhone development schedule delayed by China lockdowns - Nikkei Apple supplier Foxconn sees challenges ahead in China COVID curbs, inflation (Reporting by Stephen Nellis in San Francisco; Ben Blanchard, Liang-sa Loh and Yi-Mou Lee in Taipei; and Joyce Lee in Seoul; editing by Kenneth Li and Nick Zieminski) ((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Yimou Lee and Stephen Nellis July 13 (Reuters) - The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple Inc AAPL.O is expecting its upcoming iPhone 14 to do even better at launch. The second source said July shipments for the iPhone 13 from one factory were a third higher than July last year. Skyworks rival Qorvo Inc QRVO.O, by contrast, gets 30% of its revenue from Apple and has greater exposure to the Android phone market. |
20313.0 | 2022-07-13 00:00:00 UTC | Macro Headwinds to Hurt Apple’s Growth, Says Analyst | AAPL | https://www.nasdaq.com/articles/macro-headwinds-to-hurt-apples-growth-says-analyst | nan | nan | Apple (NASDAQ: AAPL), like most of its tech peers, witnessed a selloff in its stock. However, what stands out for Apple is the strong demand for its products and services. Now, Monness analyst Brian White, who maintains a Buy recommendation on AAPL stock, sees the growing list of macro headwinds to slow Apple’s growth.
Factors to Hurt Apple’s Growth
White stated that the demand for Apple’s products gained significantly from the COVID-led work-from-home mandates. Moreover, as consumers saved on outdoor and travel expenses due to the restrictions, this further fueled demand.
However, economic reopening, supply challenges, recession fears, geopolitical crisis, and inflationary pressure on consumers could slow Apple’s growth.
White lowered his Q3 revenue and full-year revenue and EPS estimates. As a result, the analyst cut Apple’s price target to $174 from $199.
Highlighting the upcoming iPhone cycle and the anticipated launch of iPhone 14 in September, White stated, “With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase.”
Though White reduced his price target and estimates, he believes that “Apple’s portfolio has never been stronger and its platform more ubiquitous.”
Including White, AAPL stock has received 22 Buy recommendations. Moreover, it has got six Hold recommendations for a Strong Buy rating consensus. Further, the average Apple price target of $183.05 implies 21.5% upside potential.
Bottom Line
The pressure on consumer spending and supply shortages could impact Apple’s Q3 performance. Management projected that supply constraints would affect its ability to meet demand, resulting in a revenue headwind of $4 billion to $8 billion in Q3. Further, uncertainty related to COVID in China, adverse currency movements, and geopolitical challenges in Europe will hurt its growth.
Barring near-term headwinds, strong demand for its products, new product launches, and Buy Now Pay Later offerings bode well for growth.
According to our data-driven stock score, Apple stock has an Outperform Smart Score of 9 out of 10.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Now, Monness analyst Brian White, who maintains a Buy recommendation on AAPL stock, sees the growing list of macro headwinds to slow Apple’s growth. Highlighting the upcoming iPhone cycle and the anticipated launch of iPhone 14 in September, White stated, “With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase.” Though White reduced his price target and estimates, he believes that “Apple’s portfolio has never been stronger and its platform more ubiquitous.” Including White, AAPL stock has received 22 Buy recommendations. Apple (NASDAQ: AAPL), like most of its tech peers, witnessed a selloff in its stock. | Apple (NASDAQ: AAPL), like most of its tech peers, witnessed a selloff in its stock. Now, Monness analyst Brian White, who maintains a Buy recommendation on AAPL stock, sees the growing list of macro headwinds to slow Apple’s growth. Highlighting the upcoming iPhone cycle and the anticipated launch of iPhone 14 in September, White stated, “With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase.” Though White reduced his price target and estimates, he believes that “Apple’s portfolio has never been stronger and its platform more ubiquitous.” Including White, AAPL stock has received 22 Buy recommendations. | Now, Monness analyst Brian White, who maintains a Buy recommendation on AAPL stock, sees the growing list of macro headwinds to slow Apple’s growth. Highlighting the upcoming iPhone cycle and the anticipated launch of iPhone 14 in September, White stated, “With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase.” Though White reduced his price target and estimates, he believes that “Apple’s portfolio has never been stronger and its platform more ubiquitous.” Including White, AAPL stock has received 22 Buy recommendations. Apple (NASDAQ: AAPL), like most of its tech peers, witnessed a selloff in its stock. | Now, Monness analyst Brian White, who maintains a Buy recommendation on AAPL stock, sees the growing list of macro headwinds to slow Apple’s growth. Apple (NASDAQ: AAPL), like most of its tech peers, witnessed a selloff in its stock. Highlighting the upcoming iPhone cycle and the anticipated launch of iPhone 14 in September, White stated, “With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase.” Though White reduced his price target and estimates, he believes that “Apple’s portfolio has never been stronger and its platform more ubiquitous.” Including White, AAPL stock has received 22 Buy recommendations. |
20314.0 | 2022-07-13 00:00:00 UTC | 5 Best Stocks to Buy if You Have $250 to Spend | AAPL | https://www.nasdaq.com/articles/5-best-stocks-to-buy-if-you-have-%24250-to-spend | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks are getting cheaper as the market selloff continues, with shares of many leading companies falling to distressed levels.
While U.S. markets posting their worst first half to any year since 1970 has been stressful, it has also presented an enormous opportunity for investors. With as little as $250, investors can now buy multiple shares of some of the best run and most dominant companies in the world – companies that have a long track record of delivering value to shareholders.
Six months ago, many of these stocks were out of reach to retail investors, with some costing thousands of dollars for a single share. But the current market carnage has significantly dropped the price of many stocks, enabling investors to get in on the cheap and ride the share prices to future returns when they recover and climb higher.
Here is a list of the five best stocks to buy now if you have as little as $250 to spend.
Ticker Company Recent Price
AAPL Apple $147.24
AMZN Amazon $110.00
F Ford Motor Co. $11.70
SBUX Starbucks $78.31
DIS Disney $94.91
Best Stocks for $250: Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. The stock is also 33% lower than where analysts think it should be trading right now. Among 39 professionals who cover Apple, the median price target is currently $185 per share. The lowest price forecast on the stock is $145. By any measure, Apple stock is on sale right now amid the market downturn.
5 Best Stocks to Buy if You Have $100 to Spend
And Apple stock is on this list of stocks for $250 because it a great long-term addition to any portfolio. Despite the success the company continues to have with sales of consumer products such as the iPhone, Mac computer and Apple Watch, the Cupertino, California-based company rarely sits still and is constantly pushing into new areas. Most recently, Apple has been moving into streaming and finance, announcing its intention to get into the buy now, pay later space. Apple also buys back more of its own stock than any other public company and pays a quarterly dividend that yields about 23 cents a share.
Amazon (AMZN)
Source: Frederic Legrand - COMEO / Shutterstock.com
Speaking of heavily discounted stocks, how about e-commerce giant Amazon (NASDAQ:AMZN)? Following a recent 20-for-1 stock split, the Seattle-based company’s share price is currently at $110, its most affordable level since the 2008-09 financial crisis. With $250, an investor can now buy two shares of the iconic online retailer. Before the stock split in early June, an investor would have needed more than $2,000 to buy a single share of the company. AMZN stock has also been pushed lower this year by the market selloff, down 36% since the start of January.
Analysts seem to agree that the selloff in AMZN stock has been overdone. The 44 analysts who cover Amazon have a median price target on the shares of $175, which is 60% higher than current levels. While Amazon is struggling with supply chain bottlenecks, wage inflation, and higher interest rates that are starting to slow consumer spending, all of those issues are short-term and will be resolved in due course. The company recently announced that it plans to hold two Prime Day sales events this year, which should give its sales and stock a boost.
Ford (F)
Source: JuliusKielaitis / Shutterstock.com
An investor seeking stocks for $250 could buy 22 shares of the Ford Motor Company (NYSE:F) based on its recent price of $11.32. Down 48% this year, F stock looks like an absolute steal, especially with a price-to-earnings (P/E) ratio of only 3.98. Savvy investors can gain exposure to Ford just as the Detroit-based automaker’s electric vehicle strategy is executed. Despite global supply chain constraints and difficulties sourcing needed parts, Ford is delivering on electric versions of its most popular vehicles, including the F-150 pick-up truck and Mustang muscle car, giving market leader Tesla (NASDAQ:TSLA) a run for its money in the process.
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Ford is fully committed to the electrification of its vehicle fleet, having allocated $30 billion to the creation and rollout of electric vehicles through 2025. The company has said that it wants half of all its sales to be electric vehicles by 2030. While Ford’s most recent quarterly results contained some red ink due to the company’s ill-fated investment in electric vehicle start-up Rivian (NASDAQ:RIVN), the underlying numbers were quite positive. Ford reported earnings per share (EPS) of 38 cents compared to 37 cents that Wall Street had expected. Revenue in the quarter came in at $32.1 billion, compared to $31.13 billion that was forecast. Long-term F stock will be just fine.
Starbucks (SBUX)
Source: Natee Meepian / Shutterstock.com
Shares of Starbucks (NASDAQ:SBUX) haven’t been the same since Howard Schultz returned to helm the retail coffee chain and promptly eliminated a $20 billion share repurchase program, saying the money would be better spent reinvested in the company’s operations. Year to date, SBUX stock is down 32% and trading just below $80 a share. However, despite the anger incited by the stock buyback program being cut, Starbucks has continued to perform admirably in a very difficult operating environment. The company’s most recent financial results showed it earned 59 cents per share, which met Wall Street expectations. Revenues of $7.64 billion beat forecasts for $7.60 billion.
Coming out of the global pandemic, when many of its retail outlets were forced to close, Starbucks this year has been dealing with renewed Covid-19 lockdowns in China on the international front, and a push to unionize its stores in the U.S. on the home front. So far, nearly a dozen Starbucks outlets in American have voted to unionize. Another 180 coffee shops have filed the paperwork needed to hold a union vote. However, that is still a small percentage of the more than 9,000 stores Starbucks operates in the U.S. And if there’s anyone who can help to successfully steer Starbucks through the current period of volatility, it is Schultze, who ran the company on two previous occasions.
Disney (DIS)
Source: chrisdorney / Shutterstock
The share price of the Walt Disney Co. (NYSE:DIS) has been absolutely clobbered this year, landing it on this list of best stocks for $250. DIS stock is down 40% year to date and was trading around $95 per share. The last time the stock was this low was in September 2016. Analysts are pounding the table and screaming that Disney stock is a buy at its current share price, especially with its theme parks now operating at full capacity for the first time since the pandemic began, and several of its movies racking up big grosses in theaters. While concerns persist that the growth at the Disney+ streaming service is slowing, those worries seem unfounded.
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Disney reported in May that subscriptions to its Disney+ platform totaled 137.7 million during its fiscal second quarter, which beat Wall Street forecasts of 135 million subscribers. This showed that the company’s streaming platform continues to grow and add new members. Plus, revenue in Disney’s parks and experiences unit more than doubled to $6.7 billion during fiscal Q2 compared to a year ago when the pandemic was still impacting the company’s operations. As Covid-19 retreats further, Disney is likely to continue outperforming and it is likely only a matter of time before its stock also recovers.
Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 5 Best Stocks to Buy if You Have $250 to Spend 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 AAPL Apple $147.24 AMZN Amazon $110.00 F Ford Motor Co. $11.70 SBUX Starbucks $78.31 DIS Disney $94.91 Best Stocks for $250: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. | Ticker Company Recent Price AAPL Apple $147.24 AMZN Amazon $110.00 F Ford Motor Co. $11.70 SBUX Starbucks $78.31 DIS Disney $94.91 Best Stocks for $250: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. | Ticker Company Recent Price AAPL Apple $147.24 AMZN Amazon $110.00 F Ford Motor Co. $11.70 SBUX Starbucks $78.31 DIS Disney $94.91 Best Stocks for $250: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. | Ticker Company Recent Price AAPL Apple $147.24 AMZN Amazon $110.00 F Ford Motor Co. $11.70 SBUX Starbucks $78.31 DIS Disney $94.91 Best Stocks for $250: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. |
20315.0 | 2022-07-13 00:00:00 UTC | Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-be-on-your-investing-radar-2 | nan | nan | Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $10.36 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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. Further, growth stocks have a higher level of volatility 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
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.57%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 53.50% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 58.78% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has lost about -29.34% so far this year and is down about -21.53% in the last one year (as of 07/13/2022). In the past 52-week period, it has traded between $175.67 and $264.33.
The ETF has a beta of 1.09 and standard deviation of 27.93% for the trailing three-year period, making it a medium risk choice in the space. With about 110 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap 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, MGK 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 $67.81 billion in assets, Invesco QQQ has $156.30 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.30% 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 $10.36 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard Mega Cap 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. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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. |
20316.0 | 2022-07-13 00:00:00 UTC | Should Vanguard Growth ETF (VUG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-2 | nan | nan | The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $67.81 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 find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.62%.
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.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.71% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has lost about -29.42% so far this year and is down about -22.08% in the last one year (as of 07/13/2022). In the past 52-week period, it has traded between $214.97 and $325.67.
The ETF has a beta of 1.09 and standard deviation of 27.41% for the trailing three-year period, making it a medium risk choice in the space. With about 267 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 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, VUG 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 iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $58.31 billion in assets, Invesco QQQ has $156.30 billion. IWF has an expense ratio of 0.19% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Growth ETF (VUG): 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
iShares Russell 1000 Growth ETF (IWF): 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 12.71% 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 $67.81 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 12.71% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.71% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.71% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market. |
20317.0 | 2022-07-13 00:00:00 UTC | S&P 500 Bear Market: Time to Buy These 3 Market-Beating Growth Stocks | AAPL | https://www.nasdaq.com/articles/sp-500-bear-market%3A-time-to-buy-these-3-market-beating-growth-stocks | nan | nan | This has been a frustrating year for investors, but companies that continue to grow revenue and profits are in the best position to reward shareholders with higher stock prices over time. Great businesses keep finding ways to grow, and three names are starting to look attractive.
Here's why it's time to buy shares of Electronic Arts (NASDAQ: EA), Apple (NASDAQ: AAPL), and Sonos (NASDAQ: SONO).
1. Electronic Arts
The video game industry is a great place to look for under-the-radar growth stocks. The industry is expected to grow about 50% by 2025 and reach $268 billion in value. Younger generations, including millennials, grew up on video games, and it's a hobby that continues to stick with many as they grow older. It's estimated that 3 billion people around the world play games in some form, even if it's an occasional mobile game.
With Microsoft in the process of acquiring leading game producer Activision Blizzard, investors are left with limited choices in gaming -- but Electronic Arts is a good one to consider. EA has a diversified roster of games across console, PC, and mobile. Over the last four quarters, the company generated $1.7 billion in free cash flow on $7 billion of revenue. That's a healthy free cash flow margin of 24%, which is on par with some of the most profitable companies in the world.
Recent acquisitions set EA up for a promising future. Earlier last year, the company scooped up Glu Mobile for $2.1 billion. And among other small deals EA completed last year, the $1.2 billion acquisition of U.K.-based Codemasters adds a stable of top racing games to EA's best-selling Need for Speed franchise.
EA is also investing its cash flow in new game development. It has announced six new titles in the works, with management expecting its popular EA Sports family of titles and new racing lineup to deliver significant growth starting in the current fiscal year ending in March 2023.
Investors can buy the stock at a modest price-to-earnings ratio of 17.4 based on this year's analyst estimates. EA has a three-decade-long history of delivering market-beating returns to shareholders and is worth buying on the dip.
2. Apple
Apple's unique approach to designing products, where it controls the hardware, software, and services, has continued to win over millions of customers. Whether you use an Apple product or not, it's a top stock worth owning for the long term. Apple's brand power has a tremendous pull on people, and that has turned the company into a profit machine. Over the last four quarters, Apple converted $386 billion of revenue into $105 billion of free cash flow, and it ended the most recent quarter with a net cash position on the balance sheet of $73 billion. This is clearly a business built to last.
All that cash funds an endless wave of investment in new products and features. The new line of Macs and iPads powered by Apple's M1 processors has been a huge success. Critics have raved about the improved speed and battery efficiency the new chips provide over the Intel chips that previously supplied Apple's computers.
It's no coincidence that Apple set a new revenue record for iPhone, Mac, and Wearables in the most recent quarter. The installed base of active devices continues to reach new highs after climbing to 1.8 billion at the start of 2022.
The stock is down 18% year-to-date, giving investors a window to establish a position in this iconic brand at an attractive valuation. At a forward price-to-earnings ratio of 23.7, the stock is not cheap, but Apple is a rock-solid investment that can still beat the return of the average stock over time.
3. Sonos
Technological advancements in wireless products are causing a spending surge on home audio equipment. The global home audio market is expected to accelerate at a compound annual rate of 10.8% through 2025, according to Technavio. And no brand is better positioned to capitalize than Sonos.
Sonos introduced the first multi-room wireless sound system in 2005, and has remained a leading brand. The stock soared at the start of the pandemic, when spending on home entertainment was accelerating. But during the bear market, the stock has fallen back to its initial public offering price in 2018. Nonetheless, the business has continued to grow, with revenue up 33% cumulatively over the last five years and free cash flow growing even faster.
Investing in Sonos is a smart way to invest in the growth of streaming music services and the adoption of smart home devices (e.g. voice assistants). The company differentiates its products in the marketplace with proprietary software that makes it easy to manage multiple speakers throughout the home while streaming content from leading music services. Its easy-to-use software interface is a key reason Sonos continues to win over customers.
Sonos has tremendous customer loyalty, leading its users to buy more products. And its products are already in 13 million homes worldwide, with existing households representing nearly half of new product registrations last year. The combination of low global household penetration with a high amount of repeat business is a great investment opportunity.
Sonos is the most undervalued stock featured here. Shares currently trade at 11 times expected earnings this year. If Sonos simply grows revenue in line with the home audio market over the next five years, investors can make a fantastic return on the stock at these price levels.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Intel, Microsoft, and Sonos Inc. The Motley Fool recommends Electronic Arts 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. | Here's why it's time to buy shares of Electronic Arts (NASDAQ: EA), Apple (NASDAQ: AAPL), and Sonos (NASDAQ: SONO). This has been a frustrating year for investors, but companies that continue to grow revenue and profits are in the best position to reward shareholders with higher stock prices over time. The company differentiates its products in the marketplace with proprietary software that makes it easy to manage multiple speakers throughout the home while streaming content from leading music services. | Here's why it's time to buy shares of Electronic Arts (NASDAQ: EA), Apple (NASDAQ: AAPL), and Sonos (NASDAQ: SONO). The Motley Fool has positions in and recommends Activision Blizzard, Apple, Intel, Microsoft, and Sonos Inc. The Motley Fool recommends Electronic Arts 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. | Here's why it's time to buy shares of Electronic Arts (NASDAQ: EA), Apple (NASDAQ: AAPL), and Sonos (NASDAQ: SONO). Over the last four quarters, Apple converted $386 billion of revenue into $105 billion of free cash flow, and it ended the most recent quarter with a net cash position on the balance sheet of $73 billion. If Sonos simply grows revenue in line with the home audio market over the next five years, investors can make a fantastic return on the stock at these price levels. | Here's why it's time to buy shares of Electronic Arts (NASDAQ: EA), Apple (NASDAQ: AAPL), and Sonos (NASDAQ: SONO). Sonos has tremendous customer loyalty, leading its users to buy more products. If Sonos simply grows revenue in line with the home audio market over the next five years, investors can make a fantastic return on the stock at these price levels. |
20318.0 | 2022-07-13 00:00:00 UTC | Stay Focused on the $180 Price Target for Apple Stock | AAPL | https://www.nasdaq.com/articles/stay-focused-on-the-%24180-price-target-for-apple-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) could be gearing up for a major product release/refresh next year. As a result, a prominent analyst recently issued an ambitious price objective for AAPL stock.
In a time when technology components are in short supply, it’s challenging for Apple to meet its customers’ fast-changing demands. Regardless of supply-chain bottlenecks, shoppers always seem to want the latest and greatest products.
At the same time, security is a major priority in the 2020s. Fortunately, Apple’s competitive moat remains wide as the company continues to offer consumer electronics with robust features but also a strong focus on security.
Ticker Company Recent Price
AAPL Apple $145.95
What’s Happening With AAPL Stock?
After a bruising first half of the year, AAPL stock might just be on the comeback trail. $180 has been a stubborn resistance level throughout 2022 so far. (Keep that number in mind, as it will come up again soon).
The silver lining here is that Apple’s trailing 12-month price-to-earnings ratio is 23.24x, which is quite reasonable. Furthermore, while some other technology companies don’t offer a dividend at all, Apple rewards its loyal shareholders with a 0.64% forward annual dividend yield.
In other words, AAPL stock is hard to resist in the $140s, or even in the $150s. And don’t forget what made Apple such a popular company in the first place: its products. The company’s bread and butter is the iPhone, and one Wall Street analyst is preparing for a big reveal next year.
7 Bank Stocks to Buy on the Dip
The iPhone 14 is due to be released in September. However, Loop Capital Markets analyst John Donovan isn’t expecting anything special with that release, except for a possible addition of emergency satellite communications connectivity. Primarily, Donovan is looking forward to next year’s iPhone 15 release.
“It is becoming clearer to us that the focus is already shifting to a redesigned iPhone 15,” Donovan explained. Moreover, all indicators “point to Apple targeting the iPhone 15 as the savior so to speak.” With that in mind, the analyst has assigned a $180 price target and a “buy” rating to AAPL stock.
Security in Focus
Along with potential iPhone upgrades, there has also been talk of a revamping of Apple’s smartwatch. Reportedly, the new smartwatch design could feature a large display, a bigger battery and “rugged metal casing.” Additionally, Apple has recently announced an updated 13-inch MacBook Pro, powered by the new M2 chip.
Just as importantly, however, Apple is clearly taking security measures seriously. As evidence of this, Apple is combating spyware attacks with a new “Lockdown Mode.”
This protective feature is coming this fall and should be available for iOS 16, iPadOS 16 and macOS Ventura. Lockdown Mode is designed to continuously detect and fend off sophisticated cyberattacks.
In some instances, Lockdown Mode will limit certain functionalities on Apple devices. This is intended to reduce the “attack surface” that could be exploited by hackers. Apple also assured that it will “continue to strengthen Lockdown Mode and add new protections to it over time.”
What You Can Do Now
Time and again, Apple is solidifying its competitive moat though top-of-the-line products and services. These are not only rich in powerful features, but provide security against cyber-threats.
Meanwhile, AAPL stock is trading at a reasonable valuation multiple and has the potential to revisit $180. Therefore, now is a good time to consider starting or adding to your Apple share position.
On the date of publication, David Moadel 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 Stay Focused on the $180 Price Target for Apple Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) could be gearing up for a major product release/refresh next year. As a result, a prominent analyst recently issued an ambitious price objective for AAPL stock. Ticker Company Recent Price AAPL Apple $145.95 What’s Happening With AAPL Stock? | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) could be gearing up for a major product release/refresh next year. Ticker Company Recent Price AAPL Apple $145.95 What’s Happening With AAPL Stock? As a result, a prominent analyst recently issued an ambitious price objective for AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) could be gearing up for a major product release/refresh next year. Moreover, all indicators “point to Apple targeting the iPhone 15 as the savior so to speak.” With that in mind, the analyst has assigned a $180 price target and a “buy” rating to AAPL stock. As a result, a prominent analyst recently issued an ambitious price objective for AAPL stock. | Moreover, all indicators “point to Apple targeting the iPhone 15 as the savior so to speak.” With that in mind, the analyst has assigned a $180 price target and a “buy” rating to AAPL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) could be gearing up for a major product release/refresh next year. As a result, a prominent analyst recently issued an ambitious price objective for AAPL stock. |
20319.0 | 2022-07-13 00:00:00 UTC | New Tsinghua Unigroup chairman promises fresh start for Chinese chip company | AAPL | https://www.nasdaq.com/articles/new-tsinghua-unigroup-chairman-promises-fresh-start-for-chinese-chip-company | nan | nan | SHANGHAI, July 13 (Reuters) - The new chairman of embattled Chinese chip conglomerate Tsinghua Unigroup promised a "new start" for the company in an open letter to staff published on Wednesday.
In his first public comments since formally taking over Unigroup on Monday, Unigroup Chairman Li Bin wrote the company would begin its new era under his leadership by paying back its creditors and reducing its debt ratio.
After that, Li wrote, the company will "go into battle" by studying foreign and domestic competition.
Li criticised management under its previous owner, Zhao Weiguo, who drove the company into debt while building a conglomerate.
"The companies in the group are fighting each other and there is no resource sharing, collaborative management or synergies," Li wrote.
"While our scale is already large, our business achievements and quality levels are uneven."
Tsinghua Unigroup said in a market filing late on Monday that it had completed a restructuring plan that officially placed it under the ownership of a vehicle controlled by Wise Road Capital, Jianguang Asset Management, and a number of state-affiliated funds.
Li controls both Jianguang and Wise Road Capital.
Wise Road was behind a failed $1.4 billion acquisition of U.S.-listed chipmaker Magnachip, which fell apart due to regulatory scrutiny.
Wise Road also negotiated the sale of Britain's Newport Wafer Fab to a Chinese buyer in 2021. In May, the British government ordered a national security review into the deal.
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, 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. However, in recent years, two divisions have made promising advances.
Smartphone processor maker Unisoc has gained market share after Huawei's Hisilicon chip division collapsed due to U.S. Sanctions.
Memory chip maker Yangtze Memory Technologies Co Ltd (YMTC) may also supply NAND flash to Apple Inc AAPL.O, Bloomberg reported. Neither company has confirmed the reports.
(Reporting by Josh Horwitz; Editing by Stephen Coates)
((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Memory chip maker Yangtze Memory Technologies Co Ltd (YMTC) may also supply NAND flash to Apple Inc AAPL.O, Bloomberg reported. SHANGHAI, July 13 (Reuters) - The new chairman of embattled Chinese chip conglomerate Tsinghua Unigroup promised a "new start" for the company in an open letter to staff published on Wednesday. Tsinghua Unigroup said in a market filing late on Monday that it had completed a restructuring plan that officially placed it under the ownership of a vehicle controlled by Wise Road Capital, Jianguang Asset Management, and a number of state-affiliated funds. | Memory chip maker Yangtze Memory Technologies Co Ltd (YMTC) may also supply NAND flash to Apple Inc AAPL.O, Bloomberg reported. SHANGHAI, July 13 (Reuters) - The new chairman of embattled Chinese chip conglomerate Tsinghua Unigroup promised a "new start" for the company in an open letter to staff published on Wednesday. In his first public comments since formally taking over Unigroup on Monday, Unigroup Chairman Li Bin wrote the company would begin its new era under his leadership by paying back its creditors and reducing its debt ratio. | Memory chip maker Yangtze Memory Technologies Co Ltd (YMTC) may also supply NAND flash to Apple Inc AAPL.O, Bloomberg reported. SHANGHAI, July 13 (Reuters) - The new chairman of embattled Chinese chip conglomerate Tsinghua Unigroup promised a "new start" for the company in an open letter to staff published on Wednesday. In his first public comments since formally taking over Unigroup on Monday, Unigroup Chairman Li Bin wrote the company would begin its new era under his leadership by paying back its creditors and reducing its debt ratio. | Memory chip maker Yangtze Memory Technologies Co Ltd (YMTC) may also supply NAND flash to Apple Inc AAPL.O, Bloomberg reported. Li criticised management under its previous owner, Zhao Weiguo, who drove the company into debt while building a conglomerate. "The companies in the group are fighting each other and there is no resource sharing, collaborative management or synergies," Li wrote. |
20320.0 | 2022-07-13 00:00:00 UTC | Zacks Investment Ideas feature highlights: Apple, Occidental Petroleum and HP | AAPL | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-occidental-petroleum-and-hp | nan | nan | For Immediate Release
Chicago, IL – July 13, 2022 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Occidental Petroleum OXY and HP HPQ.
INVESTMENT IDEAS #1
Mimic Warren Buffett's 2022 Strategy with These 3 Stocks
Warren Buffett, also known as the Oracle of Omaha, is a common name that comes to mind when thinking of the financial world. He's one of the most widely-followed individuals in the realm, and for a good reason – he's reaped stellar returns in the market.
Buffett is a philanthropist and businessman. He's the CEO of Berkshire Hathaway, a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and many others.
Investors are always looking to see his next move.
He's been on the offensive throughout 2022, undoubtedly recognizing value in areas, and that's what we're here to look at today.
Three stocks that he's bought in 2022 include Apple, Occidental Petroleum and HP. The chart below illustrates the year-to-date price action of all three companies' shares while blending in the S&P 500.
Let's examine each company a little closer to see if they fit your investing style as well.
Apple
Apple, the creator of the legendary iPhone, has taken the mobile landscape to great heights. Buffett states that he loves the tech titan because of its customers' brand loyalty; consumers are likely to trade in old Apple products for new ones.
Up more than 325% over the last five years, Apple shares have easily crushed the general market's performance.
Apple is known for consistent quarterly results – over its last 20 quarters, the iPhone creator has impressively exceeded both top and bottom-line estimates 19 times. In its latest quarter, the company electrified the market and reported EPS of $1.52, penciling in a respectable 6% beat in the face of adverse business conditions.
Apple's forward P/E ratio currently resides at 23.8X, slightly above its five-year median value of 20.6X but nowhere near highs of 41.5X in 2020. Additionally, shares trade at a 12% premium relative to its Zacks Sector.
While the forward earnings multiple is on the higher side, shares actually trade at their cheapest level since early 2020. AAPL has a Value Style Score of a C.
For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Additionally, annual revenue is forecasted to climb to a mighty $394 billion, reflecting a respectable 8% uptick year-over-year.
Occidental Petroleum
Based in Texas, Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. Buffett has been buying OXY stock aggressively, signaling a substantial bet on the energy sector.
Occidental Petroleum shares struggled primarily through 2019 and the better part of 2020, stuck in a deep downtrend. The stock bottomed near November 2020, and since then, investors have enjoyed a parabolic run.
The company has recently found some consistency within its quarterly reports, exceeding both top and bottom-line estimates in its last three quarters. In its latest quarter, OXY surpassed the Zacks Consensus EPS Estimate of $1.97 handily by nearly 8% and reported quarterly EPS of $2.12.
OXY's forward price-to-sales ratio currently resides at 1.5X, a bit pricey compared to its Zacks Sector average of 0.7X. However, the value is below its five-year median of 1.6X and a fraction of its 4.5X high in 2018.
The company sports a Style Score of an A for Value.
Now, here's where things get interesting. The company has undoubtedly benefited from the surge in energy costs, and bottom and top-line estimates reflect that.
For the current fiscal year (FY22), the $10.53 Zacks Consensus Estimate pencils in a strong triple-digit growth in earnings of more than 310% year-over-year. The top-line growth is also remarkable – the $37 billion revenue estimate for FY22 notches a 40% uptick in revenue from the previous year.
HP
HP is a leading provider of personal computing and other access devices to consumers globally. The purchase looks like a classic Buffett value play.
Over the last five years, HP shares have soared a triple-digit 102%, outperforming the S&P 500 by a wide margin.
HP has shown impressive consistency in its quarterly reports, exceeding bottom-line expectations in 13 consecutive quarters dating back to 2019. Additionally, the company has exceeded quarterly revenue estimates in eight of its last ten quarters.
The PC giant has a beautifully low 7.3X forward earnings multiple, well below its five-year median of 9.2X and well below highs of 13.4X in 2017. In addition, shares trade at a staggering 66% discount relative to its Zacks Sector.
HP boasts a Style Score of an A for Value.
For the current fiscal year (FY22), the EPS estimate of $4.31 represents a strong double-digit growth in earnings of 14% year-over-year. The top-line also looks to remain strong, with the $66 billion revenue estimate reflecting a 4% expansion within the top-line year-over-year.
Bottom Line
It's no secret why the Oracle of Omaha has gathered such a large audience in the financial world. He's reaped immense returns in the market, causing investors to mimic his holdings.
In a quick change of events, Buffett has been on the offensive throughout 2022, and the three stocks above are all ones he's purchased.
For those looking to invest like Buffett has in 2022, these three companies would be a great place to start.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – July 13, 2022 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Occidental Petroleum OXY and HP HPQ. AAPL has a Value Style Score of a C. For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Apple Inc. (AAPL): Free Stock Analysis Report | For Immediate Release Chicago, IL – July 13, 2022 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Occidental Petroleum OXY and HP HPQ. AAPL has a Value Style Score of a C. For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Apple Inc. (AAPL): Free Stock Analysis Report | For Immediate Release Chicago, IL – July 13, 2022 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Occidental Petroleum OXY and HP HPQ. AAPL has a Value Style Score of a C. For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Apple Inc. (AAPL): Free Stock Analysis Report | For Immediate Release Chicago, IL – July 13, 2022 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Occidental Petroleum OXY and HP HPQ. AAPL has a Value Style Score of a C. For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Apple Inc. (AAPL): Free Stock Analysis Report |
20321.0 | 2022-07-12 00:00:00 UTC | The Trade Desk's Deal With Disney May Boost Both Stocks | AAPL | https://www.nasdaq.com/articles/the-trade-desks-deal-with-disney-may-boost-both-stocks | nan | nan | Supply chain issues and high inflation have hit the ad industry hard. Snap (NYSE: SNAP) recently warned investors that it would miss revenue projections in the second quarter, and Meta Platforms (NASDAQ: META) has significantly reduced hiring plans in preparation for what CEO Mark Zuckerberg said "might be one of the worst downturns we've seen in recent history."
However, The Trade Desk (NASDAQ: TTD) and Walt Disney (NYSE: DIS) recently finalized a partnership that will allow advertisers to more effectively automate targeted campaigns across Disney-owned web properties. That bodes well for the broader industry, and it could turbocharge growth for both companies in the long run.
Here's what you should know.
The impetus behind the partnership
Advertisers have traditionally relied on snippets of code known as third-party cookies to collect consumer data for ad targeting. But Apple (NASDAQ: AAPL) has already eliminated third-party cookies from its Safari browser, and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google plans to do the same with its Chrome browser by late 2023, effectively killing the technology that advertisers use to personalize campaigns. To make matters worse, Apple also changed its iOS privacy policies last year, requiring mobile users to opt in to tracking rather than giving them the option to opt out.
Collectively, that news has been a source of anxiety for many ad-based businesses. But The Trade Desk took charge and spearheaded the creation of Unified ID 2.0 (UID2), a new identity framework built on encrypted email addresses and phone numbers. While cookies were limited to web browsers, UID2 works across browsers, mobile apps, and connected TV (CTV) platforms. Better yet, the project has gained traction with a significant number of publishers, supply side platforms, and data providers.
The deal between Walt Disney and The Trade Desk builds on that foundation, integrating Disney's first-party data (i.e. information the company collected directly from users) with data captured by the UID2 framework. That means, through The Trade Desk, ad buyers can match their own data with Disney's to automate targeted campaigns across Disney-owned platforms. That includes the ad-supported tier of Disney+ set to launch later this year.
The potential impact of the partnership
Broadly speaking, this partnership has positive implications for the digital ad industry as a whole. It demonstrates that content publishers like Walt Disney can partner with ad tech companies like The Trade Desk to overcome challenges imposed by Apple and Alphabet. Going forward, investors should expect to see similar deals as advertisers work to cookie-proof their businesses.
This partnership should also be a tailwind for both Walt Disney and The Trade Desk. Ad targeting makes ad inventory more valuable for publishers, simply because advertisers are willing to pay more when they have data regarding the audience, as that data makes ad campaigns more effective. Disney+ currently operates at a loss, but this partnership could enhance Walt Disney's ability to monetize the streaming service once an ad-supported tier goes live later this year. Ultimately, that could accelerate the time to profitability for Disney+.
Similarly, The Trade Desk cites CTV advertising as one of its three largest growth opportunities, and there is a good reason for that. Total television ad spend will surpass $340 billion by 2026, according to IMARC Group. As streaming continues to displace traditional viewing options, more of that $340 billion should find its way to CTV platforms.
As the largest independent demand side platform, The Trade Desk was already well-positioned to benefit from that trend. But its deal with Disney could accelerate the shift of ad dollars to CTV, and it could incentivize more advertisers to utilize its platform.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in The Trade Desk and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But Apple (NASDAQ: AAPL) has already eliminated third-party cookies from its Safari browser, and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google plans to do the same with its Chrome browser by late 2023, effectively killing the technology that advertisers use to personalize campaigns. However, The Trade Desk (NASDAQ: TTD) and Walt Disney (NYSE: DIS) recently finalized a partnership that will allow advertisers to more effectively automate targeted campaigns across Disney-owned web properties. But The Trade Desk took charge and spearheaded the creation of Unified ID 2.0 (UID2), a new identity framework built on encrypted email addresses and phone numbers. | But Apple (NASDAQ: AAPL) has already eliminated third-party cookies from its Safari browser, and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google plans to do the same with its Chrome browser by late 2023, effectively killing the technology that advertisers use to personalize campaigns. However, The Trade Desk (NASDAQ: TTD) and Walt Disney (NYSE: DIS) recently finalized a partnership that will allow advertisers to more effectively automate targeted campaigns across Disney-owned web properties. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., The Trade Desk, and Walt Disney. | But Apple (NASDAQ: AAPL) has already eliminated third-party cookies from its Safari browser, and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google plans to do the same with its Chrome browser by late 2023, effectively killing the technology that advertisers use to personalize campaigns. The deal between Walt Disney and The Trade Desk builds on that foundation, integrating Disney's first-party data (i.e. information the company collected directly from users) with data captured by the UID2 framework. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., The Trade Desk, and Walt Disney. | But Apple (NASDAQ: AAPL) has already eliminated third-party cookies from its Safari browser, and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google plans to do the same with its Chrome browser by late 2023, effectively killing the technology that advertisers use to personalize campaigns. This partnership should also be a tailwind for both Walt Disney and The Trade Desk. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
20322.0 | 2022-07-12 00:00:00 UTC | Don’t Let Near-Term Issues Cloud Your View on Apple Stock | AAPL | https://www.nasdaq.com/articles/dont-let-near-term-issues-cloud-your-view-on-apple-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It goes without saying that sentiment has shifted in a big way with shares in Apple (NASDAQ:AAPL). In the exact same way it has shifted for the other FAANG stocks. Like with the other FAANG names, AAPL stock has taken a dive so far in 2022. Since January, it’s down nearly 20%.
The rout in tech stocks has, of course, been a big reason for this. With rising interest rates, and rising recession fears, the market has gone from very bullish, to very bearish, on growth/tech stocks. If that’s not bad enough, the tech giant has had to contend with many company-specific headwinds.
However, don’t assume that the party’s over for this stock. Things could remain difficult in the near-term. It may take time for sentiment to improve. Still, as it finds itself out of favor, now may be the time to buy.
Ticker Company Recent Price
AAPL Apple $146.80
AAPL Stock: Today’s Issues Do Not Permanently Change the Story
It’s not only been the end of the pandemic-era runaway bull market that’s put pressure on Apple shares. Many negative developments have also had an impact. For example, the production pauses caused by the spring pandemic outbreak in China.
Also, the uncertainty as to whether the company can release its latest big product (the iPhone 14) on schedule (this September), or if due to production/supply chain issues, will have to delay its release. As I mentioned last month, when I last wrote about AAPL stock, labor issues have also weighed on shares.
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Workers at one of its retail stores successfully unionized. Some may see this as the start of a unionization wave among Apple store workers – and a subsequent surge in its retail labor costs. Add in the aforementioned rising concerns about a recession atop these issues, and it’s easy to see why the market has lost confidence in this winning company staying a winner.
However, is the market completely on the mark when it comes to its current view? Not necessarily. It’s possible they’re making mountains out of molehills. Apple may be experiencing challenges right now, but it’s premature to say the story has permanently changed.
Apple’s Current Hiccups Will Pass
Investors may not necessarily believe it’s “game over” for AAPL stock, yet they may believe its days of stellar performance may be behind it. That is, from here, it’ll experience lower rates of growth, and more gradual rates of share price appreciation.
Again, I wouldn’t jump to that conclusion so quickly. This isn’t the first time Apple has been in the doldrums. After several banner years (2020, 2021), things could be temporarily slowing down, but that doesn’t mean it will not pick up once again.
Today’s issues? These are hiccups, not long-term issues. They will pass in time. Production will get back up to speed. The company will proceed with anticipated product launches like the iPhone 14. More importantly, things could continue to hum along with one of its main areas of growth: its Services division.
Its Services unit, which includes platforms like the App Store and Apple Pay, not only could help deliver growth. It’s also a much higher margin business than its main hardware unit. Atop its existing products/platforms remaining strong in the years ahead, key long-term catalysts for the stock remain in play. Even as excitement for either one has calmed down in recent months.
The Verdict on AAPL Stock
When I mentioned Apple’s key long-term catalysts, I’m of course talking about two things. First, its exposure to the metaverse, with its plans to move into AR/VR (augmented reality/virtual realty) headsets.
Second, its continued development of a fully autonomous electric car. Either of these pending projects could be what enables the company to “level up” once again. Much like how it was able to parlay its success in the early 2000s with the iPod into even greater success with the iPhone.
Right now, Apple shares earn a “B” rating in my Portfolio Grader. Even as investors are overreacting to negative developments, that’s not to say sentiment is just about to swing back to positive.
The market could continue to have a cautious view on shares. Fortunately, if you’re looking to enter a buy-and-hold position in AAPL stock, this works to your advantage, by providing a favorable entry point.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
The post Don’t Let Near-Term Issues Cloud Your View on Apple Stock 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. | Apple’s Current Hiccups Will Pass Investors may not necessarily believe it’s “game over” for AAPL stock, yet they may believe its days of stellar performance may be behind it. Fortunately, if you’re looking to enter a buy-and-hold position in AAPL stock, this works to your advantage, by providing a favorable entry point. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It goes without saying that sentiment has shifted in a big way with shares in Apple (NASDAQ:AAPL). | Ticker Company Recent Price AAPL Apple $146.80 AAPL Stock: Today’s Issues Do Not Permanently Change the Story It’s not only been the end of the pandemic-era runaway bull market that’s put pressure on Apple shares. As I mentioned last month, when I last wrote about AAPL stock, labor issues have also weighed on shares. The Verdict on AAPL Stock When I mentioned Apple’s key long-term catalysts, I’m of course talking about two things. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It goes without saying that sentiment has shifted in a big way with shares in Apple (NASDAQ:AAPL). Ticker Company Recent Price AAPL Apple $146.80 AAPL Stock: Today’s Issues Do Not Permanently Change the Story It’s not only been the end of the pandemic-era runaway bull market that’s put pressure on Apple shares. The Verdict on AAPL Stock When I mentioned Apple’s key long-term catalysts, I’m of course talking about two things. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It goes without saying that sentiment has shifted in a big way with shares in Apple (NASDAQ:AAPL). Ticker Company Recent Price AAPL Apple $146.80 AAPL Stock: Today’s Issues Do Not Permanently Change the Story It’s not only been the end of the pandemic-era runaway bull market that’s put pressure on Apple shares. As I mentioned last month, when I last wrote about AAPL stock, labor issues have also weighed on shares. |
20323.0 | 2022-07-12 00:00:00 UTC | Why Apple Stock Is Down 17% So Far This Year | AAPL | https://www.nasdaq.com/articles/why-apple-stock-is-down-17-so-far-this-year | nan | nan | What happened
Apple's (NASDAQ: AAPL) stock, like most other technology stocks, has taken investors on a roller-coaster ride this year. While the company's share price was volatile in the first few months of 2022, a significant downward trend began after the company reported second-quarter results in late April.
The stock hasn't recovered since. Year to date, Apple is down 17%, according to data provided by S&P Global Market Intelligence. This is mostly because investors are concerned that Apple won't escape the effects of supply chain shortages and a potentially slowing economy.
So what
Investors fell into a pessimistic mode in late April after Apple released its second-quarter financial results. Apple beat analysts' consensus estimates for both top and bottom lines, but investors latched on to comments made by the company's management.
Image source: Apple.
On the company'searnings call CEO Tim Cook said that Apple was "not immune" to supply chain problems caused by COVID-19, chip shortages, and the war in Ukraine.
Apple's chief financial officer, Luca Maestri, spoke more specifically about the company's supply chain problems and said they could hurt Apple's sales in the third quarter by as much as $8 billion.
"Supply constraints caused by COVID-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products. We expect these constraints to be in the range of $4 billion to $8 billion, which is substantially larger than what we experienced during the March quarter," Maestri said.
Clearly, investors didn't want to hear that Apple's sales could be affected to this degree and sent the stock on a downward path.
Now what
Apple investors will want to keep a close eye on the company's third-quarter results, which will be released on July 28. The results should shed some light on how bad supply chain difficulties have become for Apple and if the company has experienced any pullback in consumer demand.
With inflation still at its highest level in nearly 40 years and the Federal Reserve focused on hiking the federal funds rate in order to bring it back down, it's likely that Apple investors could experience some more short-term volatility from the stock as the market reacts to a potential economic slowdown.
But long-term investors should also consider that while temporary supply constraints could affect the company, Apple still has the potential to be a great investment. First off, the company still generates tons of cash -- $28 billion in operating cash flow in the recent quarter -- which will help it weather any potential economic slowdown better than other companies.
And while Apple's stock isn't necessarily cheap right now, its shares trading at 23 times the company's forward earnings, the recent stock sell-off does give investors an opportunity to add some shares of this immensely profitable company at a relative discount.
Lastly, Apple continues to both add value to shareholders through buybacks and invest in new products. The company added $90 billion to its share repurchase program in the most recent quarter and could enter a new product segment within the next year.
With Apple's shares down this year -- and the company still in a very strong financial position -- investors may want to consider snatching up some shares of Apple right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Apple's (NASDAQ: AAPL) stock, like most other technology stocks, has taken investors on a roller-coaster ride this year. Apple beat analysts' consensus estimates for both top and bottom lines, but investors latched on to comments made by the company's management. On the company'searnings call CEO Tim Cook said that Apple was "not immune" to supply chain problems caused by COVID-19, chip shortages, and the war in Ukraine. | What happened Apple's (NASDAQ: AAPL) stock, like most other technology stocks, has taken investors on a roller-coaster ride this year. So what Investors fell into a pessimistic mode in late April after Apple released its second-quarter financial results. Apple's chief financial officer, Luca Maestri, spoke more specifically about the company's supply chain problems and said they could hurt Apple's sales in the third quarter by as much as $8 billion. | What happened Apple's (NASDAQ: AAPL) stock, like most other technology stocks, has taken investors on a roller-coaster ride this year. Apple's chief financial officer, Luca Maestri, spoke more specifically about the company's supply chain problems and said they could hurt Apple's sales in the third quarter by as much as $8 billion. And while Apple's stock isn't necessarily cheap right now, its shares trading at 23 times the company's forward earnings, the recent stock sell-off does give investors an opportunity to add some shares of this immensely profitable company at a relative discount. | What happened Apple's (NASDAQ: AAPL) stock, like most other technology stocks, has taken investors on a roller-coaster ride this year. But long-term investors should also consider that while temporary supply constraints could affect the company, Apple still has the potential to be a great investment. With Apple's shares down this year -- and the company still in a very strong financial position -- investors may want to consider snatching up some shares of Apple right now. |
20324.0 | 2022-07-12 00:00:00 UTC | Mimic Warren Buffett's 2022 Strategy With These 3 Stocks | AAPL | https://www.nasdaq.com/articles/mimic-warren-buffetts-2022-strategy-with-these-3-stocks | nan | nan | Warren Buffett, also known as the Oracle of Omaha, is a common name that comes to mind when thinking of the financial world. He’s one of the most widely-followed individuals in the realm, and for a good reason – he’s reaped stellar returns in the market.
Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway, a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and many others.
Investors are always looking to see his next move.
He’s been on the offensive throughout 2022, undoubtedly recognizing value in areas, and that’s what we’re here to look at today.
Three stocks that he’s bought in 2022 include Apple AAPL, Occidental Petroleum OXY, and HP HPQ. The chart below illustrates the year-to-date price action of all three companies’ shares while blending in the S&P 500.
Image Source: Zacks Investment Research
Let’s examine each company a little closer to see if they fit your investing style as well.
Apple
Apple AAPL, the creator of the legendary iPhone, has taken the mobile landscape to great heights. Buffett states that he loves the tech titan because of its customers’ brand loyalty; consumers are likely to trade in old Apple products for new ones.
Up more than 325% over the last five years, Apple shares have easily crushed the general market’s performance.
Image Source: Zacks Investment Research
Apple is known for consistent quarterly results – over its last 20 quarters, the iPhone creator has impressively exceeded both top and bottom-line estimates 19 times. In its latest quarter, the company electrified the market and reported EPS of $1.52, penciling in a respectable 6% beat in the face of adverse business conditions.
Apple’s forward P/E ratio currently resides at 23.8X, slightly above its five-year median value of 20.6X but nowhere near highs of 41.5X in 2020. Additionally, shares trade at a 12% premium relative to its Zacks Sector.
While the forward earnings multiple is on the higher side, shares actually trade at their cheapest level since early 2020. AAPL has a Value Style Score of a C.
Image Source: Zacks Investment Research
For the current fiscal year (FY22), the $6.10 EPS estimate pencils in a notable 9% expansion in the bottom-line year-over-year. Additionally, annual revenue is forecasted to climb to a mighty $394 billion, reflecting a respectable 8% uptick year-over-year.
Image Source: Zacks Investment Research
Occidental Petroleum
Based in Texas, Occidental Petroleum OXY is an integrated oil and gas company with significant exploration and production exposure. Buffett has been buying OXY stock aggressively, signaling a substantial bet on the energy sector.
Occidental Petroleum shares struggled primarily through 2019 and the better part of 2020, stuck in a deep downtrend. The stock bottomed near November 2020, and since then, investors have enjoyed a parabolic run.
Image Source: Zacks Investment Research
The company has recently found some consistency within its quarterly reports, exceeding both top and bottom-line estimates in its last three quarters. In its latest quarter, OXY surpassed the Zacks Consensus EPS Estimate of $1.97 handily by nearly 8% and reported quarterly EPS of $2.12.
OXY’s forward price-to-sales ratio currently resides at 1.5X, a bit pricey compared to its Zacks Sector average of 0.7X. However, the value is below its five-year median of 1.6X and a fraction of its 4.5X high in 2018.
The company sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Now, here’s where things get interesting. The company has undoubtedly benefited from the surge in energy costs, and bottom and top-line estimates reflect that.
For the current fiscal year (FY22), the $10.53 Zacks Consensus Estimate pencils in a strong triple-digit growth in earnings of more than 310% year-over-year. The top-line growth is also remarkable – the $37 billion revenue estimate for FY22 notches a 40% uptick in revenue from the previous year.
Image Source: Zacks Investment Research
HP
HP HPQ is a leading provider of personal computing and other access devices to consumers globally. The purchase looks like a classic Buffett value play.
Over the last five years, HP shares have soared a triple-digit 102%, outperforming the S&P 500 by a wide margin.
Image Source: Zacks Investment Research
HP has shown impressive consistency in its quarterly reports, exceeding bottom-line expectations in 13 consecutive quarters dating back to 2019. Additionally, the company has exceeded quarterly revenue estimates in eight of its last ten quarters.
The PC giant has a beautifully low 7.3X forward earnings multiple, well below its five-year median of 9.2X and well below highs of 13.4X in 2017. In addition, shares trade at a staggering 66% discount relative to its Zacks Sector.
HP boasts a Style Score of an A for Value.
Image Source: Zacks Investment Research
For the current fiscal year (FY22), the EPS estimate of $4.31 represents a strong double-digit growth in earnings of 14% year-over-year. The top-line also looks to remain strong, with the $66 billion revenue estimate reflecting a 4% expansion within the top-line year-over-year.
Image Source: Zacks Investment Research
Bottom Line
It’s no secret why the Oracle of Omaha has gathered such a large audience in the financial world. He’s reaped immense returns in the market, causing investors to mimic his holdings.
In a quick change of events, Buffett has been on the offensive throughout 2022, and the three stocks above are all ones he’s purchased.
For those looking to invest like Buffett has in 2022, these three companies would be a great place to start.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three stocks that he’s bought in 2022 include Apple AAPL, Occidental Petroleum OXY, and HP HPQ. Apple Apple AAPL, the creator of the legendary iPhone, has taken the mobile landscape to great heights. AAPL has a Value Style Score of a C. | Three stocks that he’s bought in 2022 include Apple AAPL, Occidental Petroleum OXY, and HP HPQ. Apple Apple AAPL, the creator of the legendary iPhone, has taken the mobile landscape to great heights. AAPL has a Value Style Score of a C. | Three stocks that he’s bought in 2022 include Apple AAPL, Occidental Petroleum OXY, and HP HPQ. Apple Apple AAPL, the creator of the legendary iPhone, has taken the mobile landscape to great heights. AAPL has a Value Style Score of a C. | Three stocks that he’s bought in 2022 include Apple AAPL, Occidental Petroleum OXY, and HP HPQ. Apple Apple AAPL, the creator of the legendary iPhone, has taken the mobile landscape to great heights. AAPL has a Value Style Score of a C. |
20325.0 | 2022-07-12 00:00:00 UTC | Disney (DIS) to Stream BTS' Exclusive Docuseries Next Year | AAPL | https://www.nasdaq.com/articles/disney-dis-to-stream-bts-exclusive-docuseries-next-year | nan | nan | Disney DIS recently announced a deal to bring a documentary series and a concert featuring the electrifying, mega-popular K-Pop band BTS to DIS’ streaming services.
The projects originate from a multi-year global content collaboration between BTS’s studio Hybe and The Walt Disney Asia Pacific to bring out the best talent from the Korean music and entertainment industry.
The agreement includes the worldwide distribution of five content titles from Hybe, including BTS: Permission to Dance On Stage — La (BTS’ concert in 4K), In The Soop: Friendcation (variety show starring BTS’ V, Park Hyung Sik, Choi Woo Shik, Park Seo Joon and Peakboy) and BTS Monuments: Beyond The Star (BTS’ docuseries).
BTS: Permission to Dance On Stage — LA is a 4K concert film featuring BTS’ live performance at Los Angeles’ Sofi Stadium in November 2021. The show marked the band’s first public appearance in two years since the pandemic outbreak. The act included their latest hit songs like Butter and Permission to Dance.
The travel show titled In the Soop: Friendcation will include V from BTS alongside Park Seo-jun from Itaewon Class, Parasite star Choi Woo-shik Choi, Park Hyung-sik and Peakboy. The program features five friends on a surprise trip, enjoying a variety of leisure and fun activities. No air date has been revealed so far.
An original documentary series called BTS Monuments: Beyond the Star that follows the nine-year journey of the band will also be aired on the streaming service. A pre-recorded clip features the band’s footage and music over the past nine years and the bandmates’ daily lives, thoughts and plans as they plan to embark on ‘BTS’ second chapter’. The documentary will be available exclusively on Disney’s streaming platform in 2023.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney Enjoys Growing Popularity of International Content
Disney+ emerged as a key driver for Disney in recent times. International expansion in the Nordics, Latin America and other Asian territories as well as a robust content portfolio helped Disney+ garner a solid subscriber base within a short span of time.
In 2021, Disney+ doubled local content with 20 new local APAC content titles, which included 18 originals, in collaboration with content creators from Malaysia, Indonesia, Japan, South Korea, Greater China, Australia and New Zealand.
This was part of this presently Zacks Rank #3 (Hold) player’s ambition to greenlight more than 50 APAC originals by 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This comes amid acute competition from the likes of Apple- AAPL owned Apple TV+, Comcast’s CMCSA Peacock and Netflix NFLX.
Netflix has also been pumping money into original Asian language content for a while and touting the global success of its Korean and Japanese shows in particular.
Money Heist: Korea — Joint Economic Area is received well by Netflix users with 49 million hours viewed. Following the launch of the series, Spanish drama Intimacy, Korean drama Alchemy of Souls, Japanese anime series Bastard!! — Heavy Metal, Dark Fantasy and Polish drama Queen have also been gaining popularity on the streaming platform.
Squid Game star Hoyeon will soon make her Apple TV+ debut with Disclaimer. Apple is steadily expanding its genre base to attract varied viewers, evident from its foray into the live sports streaming space. Apple TV+ won exclusive 10-year rights to broadcast Major League Soccer (MLS) worldwide, starting 2023.
Comcast focuses on expanding Peacock’s streaming content portfolio and roped in shows like The Office from Netflix. Moreover, original content from the likes of WWE and the NFL is expected to aid subscriber growth for Peacock’s premium service.
Disney+’s profitability is expected to dented by higher investments in content, which will flare up programming and production costs in the Media and Entertainment Distribution segment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This comes amid acute competition from the likes of Apple- AAPL owned Apple TV+, Comcast’s CMCSA Peacock and Netflix NFLX. Apple Inc. (AAPL): Free Stock Analysis Report The projects originate from a multi-year global content collaboration between BTS’s studio Hybe and The Walt Disney Asia Pacific to bring out the best talent from the Korean music and entertainment industry. | This comes amid acute competition from the likes of Apple- AAPL owned Apple TV+, Comcast’s CMCSA Peacock and Netflix NFLX. Apple Inc. (AAPL): Free Stock Analysis Report The agreement includes the worldwide distribution of five content titles from Hybe, including BTS: Permission to Dance On Stage — La (BTS’ concert in 4K), In The Soop: Friendcation (variety show starring BTS’ V, Park Hyung Sik, Choi Woo Shik, Park Seo Joon and Peakboy) and BTS Monuments: Beyond The Star (BTS’ docuseries). | This comes amid acute competition from the likes of Apple- AAPL owned Apple TV+, Comcast’s CMCSA Peacock and Netflix NFLX. Apple Inc. (AAPL): Free Stock Analysis Report The agreement includes the worldwide distribution of five content titles from Hybe, including BTS: Permission to Dance On Stage — La (BTS’ concert in 4K), In The Soop: Friendcation (variety show starring BTS’ V, Park Hyung Sik, Choi Woo Shik, Park Seo Joon and Peakboy) and BTS Monuments: Beyond The Star (BTS’ docuseries). | This comes amid acute competition from the likes of Apple- AAPL owned Apple TV+, Comcast’s CMCSA Peacock and Netflix NFLX. Apple Inc. (AAPL): Free Stock Analysis Report An original documentary series called BTS Monuments: Beyond the Star that follows the nine-year journey of the band will also be aired on the streaming service. |
20326.0 | 2022-07-12 00:00:00 UTC | 7 Tech Stocks Trading at a Terrific Discount Right Now | AAPL | https://www.nasdaq.com/articles/7-tech-stocks-trading-at-a-terrific-discount-right-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When the equities sector started to unravel as soaring inflation and the conflict in eastern Europe took its toll on investor sentiment, the technology sector was one of the hardest hit. Since these enterprises are largely geared toward maximizing growth, when opportunities for economic expansion are limited, the segment tends to suffer. However, the bearishness may have gone overboard, thus bolstering tech stocks trading at a discount.
One main reason to consider picking up deflated shares is that innovation always moves forward. With digitalization becoming an even more ingrained reality than in the past, it’s a likely bet that tech stocks focused on wider connectivity will eventually recover. However, investors can enjoy the greatest rewards by getting in early before the wave.
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Second, some platforms are so deeply integrated into society that they’ve essentially become indispensable. As well, broader labor force developments such as the gig economy will likely ensure that tech stocks — despite their current volatility — maintain their relevance. Therefore, those that can handle some choppy waters should get ready to do some digging in the discount bin.
Ticker Company Price
AAPL Apple $
PYPL PayPal $
ADBE Adobe $
SQ Block $
NVDA Nvidia $
SE Sea Limited $
META Meta $
Tech Stocks to Watch: Apple (AAPL)
Source: View Apart / Shutterstock.com
Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. One of the first items that households cut from their budgets during an economic downturn are discretionary products; that is, products that are nice to have but not essential. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness.
True, not everyone needs a new iPhone or iPad. Indeed, it would be foolish to make such outlandish purchases if you recently got the pink slip from your employer. However, Apple is proving integral not necessarily for its products but for its ecosystem.
Essentially, Apple is superior to any other competing ecosystem — say from Microsoft (NASDAQ:MSFT) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) — because it has the entire stack covered. Transitioning between devices is a snap because everything is connected to a cohesive whole. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount.
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
Following the extremely volatility of the March doldrums of 2020, shares of PayPal (NASDAQ:PYPL) quickly skyrocketed to record valuations. Part of the reason is the digital payment processor and business software solution firm facilitated contactless transactions, a much-needed attribute when fears of the coronavirus pandemic were at their zenith.
Nowadays, though, those fears have significantly subsided. Moreover, PYPL and other tech stocks came under pressure from macroeconomic threats. With dramatically rising inflation cutting into the purchasing power of the dollar, households were basically getting taxed on their real earnings. Naturally, such a dynamic would have negative implications for the business community.
As well, competitive threats from Amazon (NASDAQ:AMZN) have weighed on PYPL. Though sales are up in the first quarter of 2022, net income has decelerated, raising concerns among investors.
7 Blue-Chip Stocks to Buy After Last Month's Massive Beating
Nevertheless, thanks to PayPal’s brand power, it offers relevance for the burgeoning gig economy, which experts believe will grow to $455 billion by the end of 2023 in terms of gross transactions.
Tech Stocks to Watch: Adobe (ADBE)
Source: Tattoboo / Shutterstock
A popular software company, Adobe (NASDAQ:ADBE) specializes in products geared toward content creation, covering graphics, photography, illustration, animation, video and print. Its flagship product arguably is Photoshop, an image-editing software.
After meandering a bit during the spring doldrums of 2020, Adobe found itself flying to the stratosphere. As with PayPal, Adobe’s products — such as Acrobat Reader — lent themselves to contactless transactions, fortuitously benefitting ADBE stock. Unfortunately, the narrative shifted this year, with shares plunging 31% on a year-to-date basis.
Still, Wall Street might not be acting rational here. In its latest quarter ending May 31, 2022, Adobe rang up $4.39 billion in sales, up over 14% against the year-ago level. The company also posted net income of $1.18 billion, up 5.5% on a year-over-year basis.
Further, Adobe features significant strengths in its balance sheet while also beating out several companies in its industry for profitability metrics. Lastly, against a basket of valuation tools, ADBE is considered significantly undervalued, making it one of the tech stocks to buy on discount.
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
Although one of the most innovative firms thanks to its payment platforms and administrative applications that leveled the playing field for small businesses against their larger rivals, Block (NYSE:SQ) — which formerly went by the name Square — has suffered a reverse of fortunes. Since the start of the year, SQ has tumbled, hemorrhaging 59% of market value.
While most commerce-centric tech stocks to buy are hurting from rising inflation along with competitive threats, Block has an even bigger challenge. Prior to the sector meltdown, the financial technology (or fintech) giant made waves when it embraced cryptocurrencies. While such a move may have been shrewd during the industry’s upswing, when cryptos are plummeting — as they did recently — it becomes another story altogether.
7 Best OTC Stocks to Buy Now for July 2022
Still, for the long run, SQ is one of the tech stocks to buy on discount. Along with its core payment processor business, Block’s acquisition of buy-now, pay-later platform Afterpay could be significant as we head into a possible recession and consumers look to stretch their dollars.
Tech Stocks to Watch: Nvidia (NVDA)
Source: Shutterstock
Speaking of tech stocks and cryptos, it’s difficult to ignore the current malaise impacting Nvidia (NASDAQ:NVDA). Perhaps best known for making graphics processing units or GPUs, Nvidia has branched out to several innovative fields. But this business diversity hasn’t helped the company avoid market volatility this year. Since January’s opener, NVDA is down about 47%, a staggeringly negative reversal.
However, it’s not too hard to see why many investors panicked out of the tech giant. Crypto miners use Nvidia GPUs – often in stacked rigs – to perform their data transaction operations. However, with the market capitalization of virtual currencies sinking, the risk-reward profile for crypto mining is no longer favorable.
However, our own Louis Navellier remains optimistic about NVDA, giving it a solid “B” rating in his Portfolio Grader. As he pointed out in June of this year, “demand remains strong with its data center segment. Last quarter, this segment saw year-over-year revenue growth of 83%. In fact, it had higher quarterly revenue from its data segment ($3.75 billion) than from its gaming segment ($3.62 billion).”
Sea Ltd. (SE)
Source: Muh.Imron / Shutterstock.com
At this point, I’ve become a broken record when it comes to Sea Ltd (NYSE:SE). A tech conglomerate headquartered in Singapore, Sea offers intriguing opportunities in food deliveries, digital payments and fintech and online game development and publishing. All these sectors have burgeoned to varying degrees in the U.S. so the logical assumption is that they would blossom in Sea’s core Southeast Asia market.
Unfortunately, the equities market doesn’t see it that away. On a YTD basis, SE has tanked more than 65% of value, making it one of the worst performers among the formerly popular tech stocks to buy. Fundamentally, investors are likely looking at earnings viability. While Sea posted revenue growth of 64% for Q1 2022, its net loss of $580 million expanded noticeably from the net loss of $423 million in Q1 2021.
The 6 Best Retirement Stocks for Investors Over 50
Naturally, in a possible recessionary storm, companies that lose money don’t attract much attention. However, in the longer run, Southeast Asia’s internet economy could hit $1 trillion by 2030, according to a Reuters report.
Tech Stocks to Watch: Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
A controversial idea among tech stocks to buy on discount, Meta Platforms (NASDAQ:META) recently completed its full corporate transformation, not only changing its name from Facebook but also the ticker symbol (which of course is now META, not FB). However, this rebranding didn’t impress shareholders, with META stock tumbling almost 50% YTD.
It’s a rough first half of the year for a company that is not accustomed to sustained bearishness. While there was the Cambridge Analytica scandal that hit in 2018 – along with the Covid-19 pandemic later in 2020 – these headwinds were relatively short and muted. At the moment, we have a trailing 52-week peak-to-trough profile of around $382 and roughly $156.
In other words, META is getting pretty darn close to the lows seen during the spring doldrums of 2020. For those that felt they missed the boat, this could be a risky contrarian opportunity. While Meta has its controversies, it also has Facebook, with its multi-billion userbase and a wide breadth of demographics that’s unusual for youth-centric social media networks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Tech Stocks Trading at a Terrific Discount Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. |
20327.0 | 2022-07-12 00:00:00 UTC | After Hours Most Active for Jul 12, 2022 : ADTN, F, CSCO, AAPL, UBER, QQQ, T, VZ, PBF, TQQQ, CNP, APA | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jul-12-2022-%3A-adtn-f-csco-aapl-uber-qqq-t-vz-pbf-tqqq-cnp-apa | nan | nan | The NASDAQ 100 After Hours Indicator is down -.18 to 11,744.81. The total After hours volume is currently 73,707,560 shares traded.
The following are the most active stocks for the after hours session:
ADTRAN Holdings, Inc. (ADTN) is unchanged at $19.85, with 4,333,348 shares traded. As reported by Zacks, the current mean recommendation for ADTN is in the "buy range".
Ford Motor Company (F) is -0.01 at $11.55, with 2,283,964 shares traded. F's current last sale is 67.94% of the target price of $17.
Cisco Systems, Inc. (CSCO) is unchanged at $42.86, with 1,456,224 shares traded. CSCO's current last sale is 82.42% of the target price of $52.
Apple Inc. (AAPL) is -0.06 at $145.80, with 1,452,211 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Uber Technologies, Inc. (UBER) is unchanged at $21.57, with 1,368,788 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.23 at $286.01, with 1,304,313 shares traded. This represents a 6.21% increase from its 52 Week Low.
AT&T Inc. (T) is +0.01 at $20.61, with 1,269,376 shares traded. T's current last sale is 85.88% of the target price of $24.
Verizon Communications Inc. (VZ) is unchanged at $50.78, with 1,257,804 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.33. VZ's current last sale is 89.09% of the target price of $57.
PBF Energy Inc. (PBF) is +0.08 at $27.91, with 1,185,397 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $5.57. PBF's current last sale is 90.03% of the target price of $31.
ProShares UltraPro QQQ (TQQQ) is -0.07 at $25.28, with 1,110,213 shares traded. This represents a 18.57% increase from its 52 Week Low.
CenterPoint Energy, Inc. (CNP) is unchanged at $29.44, with 1,104,834 shares traded. As reported by Zacks, the current mean recommendation for CNP is in the "buy range".
APA Corporation (APA) is unchanged at $32.43, with 1,080,867 shares traded. As reported by Zacks, the current mean recommendation for APA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is -0.06 at $145.80, with 1,452,211 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for ADTN is in the "buy range". | Apple Inc. (AAPL) is -0.06 at $145.80, with 1,452,211 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for ADTN is in the "buy range". | Apple Inc. (AAPL) is -0.06 at $145.80, with 1,452,211 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.01 at $20.61, with 1,269,376 shares traded. | Apple Inc. (AAPL) is -0.06 at $145.80, with 1,452,211 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -.18 to 11,744.81. |
20328.0 | 2022-07-12 00:00:00 UTC | Apple has ended consulting deal with former designer Jony Ive -NY Times | AAPL | https://www.nasdaq.com/articles/apple-has-ended-consulting-deal-with-former-designer-jony-ive-ny-times | nan | nan | By Stephen Nellis
July 12 (Reuters) - Apple Inc AAPL.O has ended a consulting deal with former design chief Jony Ive, the New York Times reported on Tuesday.
Citing sources, the newspaper reported that Ive's contract had come up for renewal and the parties agreed not to extend it. Ive, who left Apple in 2019, was a close confidant of the late Chief Executive Steve Jobs and spearheaded design work on the company's candy-colored Mac computers and the iPhone.
Apple declined to comment on the report.
After departing Apple, Ive remained a consultant for Apple and also formed a company called LoveFrom. Among other clients, LoveFrom is working with Exor, the owner of Ferrari, under a multiyear agreement to "explore a range of creative projects with Exor in the business of luxury."
(Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and Jonathan Oatis)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis July 12 (Reuters) - Apple Inc AAPL.O has ended a consulting deal with former design chief Jony Ive, the New York Times reported on Tuesday. Citing sources, the newspaper reported that Ive's contract had come up for renewal and the parties agreed not to extend it. Ive, who left Apple in 2019, was a close confidant of the late Chief Executive Steve Jobs and spearheaded design work on the company's candy-colored Mac computers and the iPhone. | By Stephen Nellis July 12 (Reuters) - Apple Inc AAPL.O has ended a consulting deal with former design chief Jony Ive, the New York Times reported on Tuesday. After departing Apple, Ive remained a consultant for Apple and also formed a company called LoveFrom. (Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and Jonathan Oatis) ((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis July 12 (Reuters) - Apple Inc AAPL.O has ended a consulting deal with former design chief Jony Ive, the New York Times reported on Tuesday. Ive, who left Apple in 2019, was a close confidant of the late Chief Executive Steve Jobs and spearheaded design work on the company's candy-colored Mac computers and the iPhone. After departing Apple, Ive remained a consultant for Apple and also formed a company called LoveFrom. | By Stephen Nellis July 12 (Reuters) - Apple Inc AAPL.O has ended a consulting deal with former design chief Jony Ive, the New York Times reported on Tuesday. Citing sources, the newspaper reported that Ive's contract had come up for renewal and the parties agreed not to extend it. Ive, who left Apple in 2019, was a close confidant of the late Chief Executive Steve Jobs and spearheaded design work on the company's candy-colored Mac computers and the iPhone. |
20329.0 | 2022-07-12 00:00:00 UTC | TSM Q2 Preview: Double-Digit Earnings Growth in Store? | AAPL | https://www.nasdaq.com/articles/tsm-q2-preview%3A-double-digit-earnings-growth-in-store | nan | nan | Semiconductors, also called microchips, are a highlight of technology – they exist in almost every aspect of our lives. From freezers to computers, they allow the devices we rely on daily to work smoothly and efficiently.
Now that the music has seemingly been shut off in 2022, the fun for semiconductor companies has halted. We’ve seen deep double-digit valuation slashes across most of the industry year-to-date. The chart below illustrates the year-to-date performance of SOXX, the iShares Semiconductor ETF.
Image Source: Zacks Investment Research
As we can see, it’s undoubtedly been a brutal stretch for semiconductor companies.
Taiwan Semiconductor Manufacturing TSM, the world’s largest circuit foundry, is on deck to report quarterly results this week. TSM is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
There will be many eyes on this quarterly report, as TSM is responsible for supplying many of the microchips globally to a list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD.
Let’s dig a little deeper to see how the company stands heading into the quarterly report; TSM reports before the opening bell on Thursday.
Share Performance & Valuation
Year-to-date, TSM shares have tumbled, decreasing nearly 34% in value and extensively underperforming the S&P 500.
Image Source: Zacks Investment Research
Upon widening the timeframe to encompass the last year, we can see that TSM shares were on an uptrend throughout the majority of 2021 but broke off near the beginning of 2022.
Image Source: Zacks Investment Research
TSM sports an enticing 13.4X forward earnings multiple, well below its five-year median value of 19.9X and a fraction of its 34.9X high in 2021. Additionally, shares trade at an attractive 22% discount relative to the S&P 500.
Image Source: Zacks Investment Research
Quarterly Performance & Share Reactions
TSM has consistently reported quarterly EPS above expectations, exceeding bottom-line forecasts in nine of its last ten quarters. The average EPS surprise over the previous four quarters is a respectable 4.2%, and in its latest quarter, TSM beat bottom-line estimates by a notable 7%.
Top-line results have been mixed; the company has exceeded quarterly revenue estimates four times over its last eight quarters.
Additionally, the market has had mixed reactions to EPS beats; shares have moved upwards three times over its last six bottom-line beats.
Growth Estimates
Top and bottom-line estimates indicate a strong quarter from the company. For the quarter, TSM is forecasted to generate $18.7 billion in revenue, registering a robust double-digit growth in revenue of 41% from the year-ago quarter.
The bottom-line also appears to be in incredible shape, with the $1.47 Zacks Consensus EPS Estimate reflecting a stellar 60% increase in quarterly earnings year-over-year. Additionally, the Consensus Estimate Trend for the quarter has retraced marginally over the last 60 days.
Image Source: Zacks Investment Research
TSM sports a Style Score of an A for Growth.
Bottom Line
The quarterly report will be watched like a hawk, and for a good reason – TSM supplies chips to many of the tech titans in the market.
The poor share performance is undoubtedly disheartening, but I believe it’s presented investors with an opportunity to buy shares at a discount. Additionally, the company has solid valuation levels, and quarterly growth is forecasted to be substantial.
For these reasons, I’m optimistic heading into the company’s quarterly report.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There will be many eyes on this quarterly report, as TSM is responsible for supplying many of the microchips globally to a list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Upon widening the timeframe to encompass the last year, we can see that TSM shares were on an uptrend throughout the majority of 2021 but broke off near the beginning of 2022. | There will be many eyes on this quarterly report, as TSM is responsible for supplying many of the microchips globally to a list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Quarterly Performance & Share Reactions TSM has consistently reported quarterly EPS above expectations, exceeding bottom-line forecasts in nine of its last ten quarters. | There will be many eyes on this quarterly report, as TSM is responsible for supplying many of the microchips globally to a list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Quarterly Performance & Share Reactions TSM has consistently reported quarterly EPS above expectations, exceeding bottom-line forecasts in nine of its last ten quarters. | There will be many eyes on this quarterly report, as TSM is responsible for supplying many of the microchips globally to a list of companies, including Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Quarterly Performance & Share Reactions TSM has consistently reported quarterly EPS above expectations, exceeding bottom-line forecasts in nine of its last ten quarters. |
20330.0 | 2022-07-12 00:00:00 UTC | Russia fines Apple and Zoom for alleged data storage violation | AAPL | https://www.nasdaq.com/articles/russia-fines-apple-and-zoom-for-alleged-data-storage-violation | nan | nan | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine
Adds other fines, changes sourcing
MOSCOW, July 12 (Reuters) - U.S. tech giant Apple AAPL.Oand Zoom Video Communications ZM.O were fined on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory.
Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24.
Apple was fined 2 million roubles ($34,000), the court in Moscow's Tagansky district said, with Zoom and Ookla, which runs the internet performance tool Speedtest, fined 1 million roubles each. Alphabet's GOOGL.O Google was ordered to pay 60,000 roubles for a different offence relating to data.
Apple, Zoom, Ookla and Google did not immediately respond to requests for comment. ($1 = 59.0000 roubles)
(Reporting by Reuters; Editing by Kevin Liffey)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine Adds other fines, changes sourcing MOSCOW, July 12 (Reuters) - U.S. tech giant Apple AAPL.Oand Zoom Video Communications ZM.O were fined on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. Alphabet's GOOGL.O Google was ordered to pay 60,000 roubles for a different offence relating to data. | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine Adds other fines, changes sourcing MOSCOW, July 12 (Reuters) - U.S. tech giant Apple AAPL.Oand Zoom Video Communications ZM.O were fined on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory. Apple was fined 2 million roubles ($34,000), the court in Moscow's Tagansky district said, with Zoom and Ookla, which runs the internet performance tool Speedtest, fined 1 million roubles each. Apple, Zoom, Ookla and Google did not immediately respond to requests for comment. | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine Adds other fines, changes sourcing MOSCOW, July 12 (Reuters) - U.S. tech giant Apple AAPL.Oand Zoom Video Communications ZM.O were fined on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory. Apple was fined 2 million roubles ($34,000), the court in Moscow's Tagansky district said, with Zoom and Ookla, which runs the internet performance tool Speedtest, fined 1 million roubles each. ($1 = 59.0000 roubles) (Reporting by Reuters; Editing by Kevin Liffey) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine Adds other fines, changes sourcing MOSCOW, July 12 (Reuters) - U.S. tech giant Apple AAPL.Oand Zoom Video Communications ZM.O were fined on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. Apple was fined 2 million roubles ($34,000), the court in Moscow's Tagansky district said, with Zoom and Ookla, which runs the internet performance tool Speedtest, fined 1 million roubles each. |
20331.0 | 2022-07-12 00:00:00 UTC | 'Succession,' 'Ted Lasso' lead nominations for TV's Emmy awards | AAPL | https://www.nasdaq.com/articles/succession-ted-lasso-lead-nominations-for-tvs-emmy-awards | nan | nan | By Lisa Richwine
LOS ANGELES, July 12 (Reuters) - HBO <WBD.N> drama "Succession," the story of a conniving media mogul and his family, topped the list of Emmy nominees announced on Tuesday with 25 nods including one for best drama series.
Rivals for best drama include Netflix Inc's NFLX.O Korean series "Squid Game," the first non-English language show to be nominated for an Emmy. Netflix's sci-fi hit "Stranger Things" and HBO's "Euphoria," about high school students navigating the world, also were nominated.
"Ted Lasso" from Apple TV+ AAPL.O nabbed 20 nominations and will defend its title as last year's best comedy. It will face off against "Hacks," "Only Murders in the Building" and "The Marvelous Mrs. Maisel," among others.
Winners of the Emmys, the highest honors in television, will be announced at a ceremony on Sept. 12.
Frank Scherma, chairman and CEO of the Television Academy, said the group received a record number of submissions this year, a sign that production was thriving after extended shutdowns during the COVID-19 pandemic.
HBO and HBO Max received 140 nominations overall. Netflix scored 105 nods.
Fourteen of the nominations for "Succession" came in acting categories. Brian Cox, who stars as patriarch Logan Roy, will compete for best actor against Jeremy Strong, who plays his troubled son Kendall.
"Ted Lasso" co-creator and star Jason Sudeikis was nominated for best comedy actor alongside Steve Martin and Martin Short for Hulu's "Only Murders in the Building."
(Reporting by Lisa Richwine, Editing by Franklin Paul and Deepa Babington)
((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. | "Ted Lasso" from Apple TV+ AAPL.O nabbed 20 nominations and will defend its title as last year's best comedy. Rivals for best drama include Netflix Inc's NFLX.O Korean series "Squid Game," the first non-English language show to be nominated for an Emmy. Frank Scherma, chairman and CEO of the Television Academy, said the group received a record number of submissions this year, a sign that production was thriving after extended shutdowns during the COVID-19 pandemic. | "Ted Lasso" from Apple TV+ AAPL.O nabbed 20 nominations and will defend its title as last year's best comedy. By Lisa Richwine LOS ANGELES, July 12 (Reuters) - HBO <WBD.N> drama "Succession," the story of a conniving media mogul and his family, topped the list of Emmy nominees announced on Tuesday with 25 nods including one for best drama series. Rivals for best drama include Netflix Inc's NFLX.O Korean series "Squid Game," the first non-English language show to be nominated for an Emmy. | "Ted Lasso" from Apple TV+ AAPL.O nabbed 20 nominations and will defend its title as last year's best comedy. By Lisa Richwine LOS ANGELES, July 12 (Reuters) - HBO <WBD.N> drama "Succession," the story of a conniving media mogul and his family, topped the list of Emmy nominees announced on Tuesday with 25 nods including one for best drama series. Rivals for best drama include Netflix Inc's NFLX.O Korean series "Squid Game," the first non-English language show to be nominated for an Emmy. | "Ted Lasso" from Apple TV+ AAPL.O nabbed 20 nominations and will defend its title as last year's best comedy. By Lisa Richwine LOS ANGELES, July 12 (Reuters) - HBO <WBD.N> drama "Succession," the story of a conniving media mogul and his family, topped the list of Emmy nominees announced on Tuesday with 25 nods including one for best drama series. Rivals for best drama include Netflix Inc's NFLX.O Korean series "Squid Game," the first non-English language show to be nominated for an Emmy. |
20332.0 | 2022-07-12 00:00:00 UTC | Russia fines Apple over alleged data storage violation - Ifax | AAPL | https://www.nasdaq.com/articles/russia-fines-apple-over-alleged-data-storage-violation-ifax | nan | nan | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, July 12 (Reuters) - A Moscow court fined U.S. tech giant Apple AAPL.O 2 million roubles ($33,900) on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory, the Interfax news agency reported.
Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24.
Apple did not immediately respond to a request for comment.
($1 = 59.0000 roubles)
(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. | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 12 (Reuters) - A Moscow court fined U.S. tech giant Apple AAPL.O 2 million roubles ($33,900) on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory, the Interfax news agency reported. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. ($1 = 59.0000 roubles) (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. | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 12 (Reuters) - A Moscow court fined U.S. tech giant Apple AAPL.O 2 million roubles ($33,900) on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory, the Interfax news agency reported. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. ($1 = 59.0000 roubles) (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. | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 12 (Reuters) - A Moscow court fined U.S. tech giant Apple AAPL.O 2 million roubles ($33,900) on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory, the Interfax news agency reported. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. ($1 = 59.0000 roubles) (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. | This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, July 12 (Reuters) - A Moscow court fined U.S. tech giant Apple AAPL.O 2 million roubles ($33,900) on Tuesday for allegedly refusing to store the data of Russian citizens on Russian territory, the Interfax news agency reported. Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on battle since Russia sent its armed forces into Ukraine on Feb. 24. Apple did not immediately respond to a request for comment. |
20333.0 | 2022-07-12 00:00:00 UTC | Carl Pei's Nothing launches maiden smartphone | AAPL | https://www.nasdaq.com/articles/carl-peis-nothing-launches-maiden-smartphone | nan | nan | STOCKHOLM, July 12 (Reuters) - Swedish tech entrepreneur Carl Pei launched the first smartphone from his new company Nothing on Tuesday, hoping to crack a fiercely competitive market with new features.
Pei co-founded smartphone maker OnePlus in 2013 and made it a rival to Apple AAPL.O and Samsung 005930.KS by offering premium features at half the price, and becoming the top seller in several countries including India.
After leaving OnePlus in 2020, he founded Nothing last year with backing from the likes of Tony Fadell, designer of Apple's iPod, Twitch co-founder Kevin Lin and Reddit CEO Steve Huffman.
London-based Nothing says its smartphone offers 18 hours of use with every charge, and two days on standby, and that it can reach 50% power in just 30 minutes of charging. It says the phone also has an array of remote features including being able to unlock the doors of a Tesla car.
The phone is priced from 399 pounds ($470), with the company saying it is cheaper than premium phones with similar features and that there are over 200,000 pre-orders for it.
OnePlus used an invite-only strategy for selling smartphones that created high demand by keeping customers in a constant state of anticipation.
Following a similar strategy, Nothing held an auction in June for an initial 100 of the new phones, fetching bids of over $3,000, it said.
IDC's research director Navkendar Singh said Nothing will compete against phones from Samsung, Xiaomi 1810.HK, Oppo and Vivo but competition will be intense.
Gartner has revised down its forecast for global mobile phone sales this year to a decline of 7.1% from growth of 2.2%.
"The smartphone market is frighteningly competitive and is dominated by Apple and Samsung who have incredible resources," said Ben Wood, chief analyst at CCS Insight.
"Add in the current macroeconomic situation and cost of living pressure and it means being successful will be a huge challenge."
(1 pound = $1.18)
(Reporting by Supantha Mukherjee in Stockholm, Yuvraj Malik in Bengaluru and Paul Sandle in London; Editing by Susan Fenton)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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. | Pei co-founded smartphone maker OnePlus in 2013 and made it a rival to Apple AAPL.O and Samsung 005930.KS by offering premium features at half the price, and becoming the top seller in several countries including India. STOCKHOLM, July 12 (Reuters) - Swedish tech entrepreneur Carl Pei launched the first smartphone from his new company Nothing on Tuesday, hoping to crack a fiercely competitive market with new features. After leaving OnePlus in 2020, he founded Nothing last year with backing from the likes of Tony Fadell, designer of Apple's iPod, Twitch co-founder Kevin Lin and Reddit CEO Steve Huffman. | Pei co-founded smartphone maker OnePlus in 2013 and made it a rival to Apple AAPL.O and Samsung 005930.KS by offering premium features at half the price, and becoming the top seller in several countries including India. London-based Nothing says its smartphone offers 18 hours of use with every charge, and two days on standby, and that it can reach 50% power in just 30 minutes of charging. The phone is priced from 399 pounds ($470), with the company saying it is cheaper than premium phones with similar features and that there are over 200,000 pre-orders for it. | Pei co-founded smartphone maker OnePlus in 2013 and made it a rival to Apple AAPL.O and Samsung 005930.KS by offering premium features at half the price, and becoming the top seller in several countries including India. STOCKHOLM, July 12 (Reuters) - Swedish tech entrepreneur Carl Pei launched the first smartphone from his new company Nothing on Tuesday, hoping to crack a fiercely competitive market with new features. The phone is priced from 399 pounds ($470), with the company saying it is cheaper than premium phones with similar features and that there are over 200,000 pre-orders for it. | Pei co-founded smartphone maker OnePlus in 2013 and made it a rival to Apple AAPL.O and Samsung 005930.KS by offering premium features at half the price, and becoming the top seller in several countries including India. STOCKHOLM, July 12 (Reuters) - Swedish tech entrepreneur Carl Pei launched the first smartphone from his new company Nothing on Tuesday, hoping to crack a fiercely competitive market with new features. After leaving OnePlus in 2020, he founded Nothing last year with backing from the likes of Tony Fadell, designer of Apple's iPod, Twitch co-founder Kevin Lin and Reddit CEO Steve Huffman. |
20334.0 | 2022-07-12 00:00:00 UTC | Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-core-dividend-growth-etf-dgro-a-strong-etf-right-now-1 | nan | nan | The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $22.14 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. Before fees and expenses, DGRO seeks to match the performance of the Morningstar US Dividend Growth Index.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
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.
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 2.17%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 19.90% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.85% of total assets, followed by Procter & Gamble (PG) and Apple Inc (AAPL).
The top 10 holdings account for about 24.83% of total assets under management.
Performance and Risk
The ETF has lost about -12.67% and is down about -3.81% so far this year and in the past one year (as of 07/12/2022), respectively. DGRO has traded between $45.84 and $56.06 during this last 52-week period.
DGRO has a beta of 0.91 and standard deviation of 23.64% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 422 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core Dividend Growth 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.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks S&P 500 DividendAristocrats Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. ProShares S&P 500 Dividend Aristocrats ETF has $9.69 billion in assets, Vanguard Dividend Appreciation ETF has $60.33 billion. NOBL has an expense ratio of 0.35% and VIG charges 0.06%.
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.
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iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Procter & Gamble Company The (PG): Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.85% of total assets, followed by Procter & Gamble (PG) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. | Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.85% of total assets, followed by Procter & Gamble (PG) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.85% of total assets, followed by Procter & Gamble (PG) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks S&P 500 DividendAristocrats Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.85% of total assets, followed by Procter & Gamble (PG) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. |
20335.0 | 2022-07-12 00:00:00 UTC | Should Invesco S&P 500 Revenue ETF (RWL) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-invesco-sp-500-revenue-etf-rwl-be-on-your-investing-radar-2 | nan | nan | The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $1.34 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 find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
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 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.62%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 22.20% of the portfolio. Consumer Staples and Financials round out the top three.
Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.25% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 24.02% of total assets under management.
Performance and Risk
RWL seeks to match the performance of the OFI Revenue Weighted Large Cap Index before fees and expenses. The S&P 500 Revenue-Weighted Index is constructed by using a rules-based methodology that re-weights the constituent securities of the S&P 500 Index according to the revenue earned by the companies in the parent index- subject to a maximum 5% per company weighting.
The ETF has lost about -11.28% so far this year and is down about -3.01% in the last one year (as of 07/12/2022). In the past 52-week period, it has traded between $68.34 and $82.04.
The ETF has a beta of 0.99 and standard deviation of 23.33% for the trailing three-year period, making it a medium risk choice in the space. With about 504 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Revenue 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, RWL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $51.28 billion in assets, Vanguard Value ETF has $93.86 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Walmart Inc. (WMT): 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. | Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.25% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. | Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.25% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report 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. | Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.25% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco S&P 500 Revenue 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, Walmart Inc (WMT) accounts for about 4.25% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The Invesco S&P 500 Revenue ETF (RWL) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market. |
20336.0 | 2022-07-12 00:00:00 UTC | 2 Dividend-Paying Tech Stocks to Buy in July | AAPL | https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-in-july | nan | nan | If 2022 is doing anything, it's teaching investors the stock market can also fall as well as rise.
The Dow Jones Industrial Average is down 13% year to date, putting it in official correction territory.
The broad market S&P 500 index is off 19%, but had dipped below the 20% threshold to be considered in a bear market.
The tech-heavy Nasdaq 100 is languishing 27% below where it started the year, and was down as much as 31% last month.
While it's tempting to cash in your chips and run for the exits when the stock market looks like it's collapsing, history shows that severe corrections and bear markets are the best times to put your money to work.
Every single major downturn has been followed by a bull market. It's the adage of buy cheap, sell dear at work and is how you can generate transformational wealth for yourself and your family. But when everything looks cheap, how do you know what to buy?
Image source: Getty Images.
I'd argue dividend stocks are your friend in this situation (and most other situations, too, for that matter).
By definition, dividend stocks are profitable companies that are sharing their excess income with you. Sure, a business can have a rough patch and report losses occasionally. But by and large, companies paying dividends are proven businesses and often have been through numerous market cycles while their payouts endured.
According to a study by JPMorgan Chase's J.P. Morgan Asset Management, over a 40-year period between 1972 and 2012, dividend stocks returned an average of 9.5% annually, compared to just 1.6% for those that didn't pay dividends.
And considering the period of rampant inflation and rising interest rates we're in, dividends can help offset the debilitating effects those regressive conditions can inflict on portfolios. Tech stocks aren't often thought of as a place to look for dividends, but the pair of dividend payers below are among the best you can buy in July.
1. Apple
Apple's (NASDAQ: AAPL) dividend turned 10 years old this month, and while the quarterly payout of 92 cents per share is not the most overly generous (it currently yields 0.6% annually), it is an indication of a company committed to sharing its phenomenal success with investors.
It's not the first time the consumer electronics giant has paid a dividend; back in the 1990s, it paid (and then suspended) its dividend. But Apple today isn't the same company it was back then.
Nowadays, it has its finger on the pulse of consumer demand, with Morgan Stanley analyst Katy Huberty telling investors Apple's new product lineup is a picture of a company's "innovation engine at full throttle." From the iPhone 14 due out later this year to a new Macbook Pro, a refreshed iPad, and its Mac computer selling more than ever before, Apple remains at the pinnacle of its game.
It has over $50 billion in cash, equivalents, and short-term investments, and with a payout ratio of 14.3%, the dividend is not only safe, but also has plenty of room to grow.
2. Broadcom
Shares of Broadcom (NASDAQ: AVGO) are down sharply this year as the chipmaker battles concerns over supply chain disruptions to chip supplies and the potential for a recession to put a damper on consumer demand. Yet as the premier provider of wireless chips for smartphones, it should benefit from the ongoing upgrade cycle.
Right now Broadcom's business tilts heavily in favor of the semiconductor market, but its recent $61 billion bid for VMware (NYSE: VMW) would put its enterprise-class business infrastructure and data center operations on an equal footing. The buyout is certainly going to get close regulatory scrutiny, especially in Europe, but could provide a significant boost to future growth and its bottom line if approved.
Even if antitrust fears kill the deal, Broadcom is still on solid footing in the space as more companies continue to transition their data to the cloud. And its overall business isn't slowing down.
It ended 2021 with $14.9 billion in its backlog, with contracts extending nearly three years into the future, representing some $5.2 billion in annual recurring revenue. That makes its generous annual dividend of $16.40 per share, which yields 3.2%, one that investors can count on for years to come.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Broadcom Ltd and VMware and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple's (NASDAQ: AAPL) dividend turned 10 years old this month, and while the quarterly payout of 92 cents per share is not the most overly generous (it currently yields 0.6% annually), it is an indication of a company committed to sharing its phenomenal success with investors. And considering the period of rampant inflation and rising interest rates we're in, dividends can help offset the debilitating effects those regressive conditions can inflict on portfolios. Nowadays, it has its finger on the pulse of consumer demand, with Morgan Stanley analyst Katy Huberty telling investors Apple's new product lineup is a picture of a company's "innovation engine at full throttle." | Apple Apple's (NASDAQ: AAPL) dividend turned 10 years old this month, and while the quarterly payout of 92 cents per share is not the most overly generous (it currently yields 0.6% annually), it is an indication of a company committed to sharing its phenomenal success with investors. According to a study by JPMorgan Chase's J.P. Morgan Asset Management, over a 40-year period between 1972 and 2012, dividend stocks returned an average of 9.5% annually, compared to just 1.6% for those that didn't pay dividends. See the 10 stocks *Stock Advisor returns as of June 2, 2022 | Apple Apple's (NASDAQ: AAPL) dividend turned 10 years old this month, and while the quarterly payout of 92 cents per share is not the most overly generous (it currently yields 0.6% annually), it is an indication of a company committed to sharing its phenomenal success with investors. According to a study by JPMorgan Chase's J.P. Morgan Asset Management, over a 40-year period between 1972 and 2012, dividend stocks returned an average of 9.5% annually, compared to just 1.6% for those that didn't pay dividends. Tech stocks aren't often thought of as a place to look for dividends, but the pair of dividend payers below are among the best you can buy in July. | Apple Apple's (NASDAQ: AAPL) dividend turned 10 years old this month, and while the quarterly payout of 92 cents per share is not the most overly generous (it currently yields 0.6% annually), it is an indication of a company committed to sharing its phenomenal success with investors. And its overall business isn't slowing down. That's right -- they think these 10 stocks are even better buys. |
20337.0 | 2022-07-12 00:00:00 UTC | Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-2 | nan | nan | The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $6.16 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.28%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.11%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 21.50% of the portfolio. Consumer Staples and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.09% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT).
DGRW's top 10 holdings account for about 36.22% of its total assets under management.
Performance and Risk
The ETF has lost about -11.07% so far this year and is down about -2.26% in the last one year (as of 07/12/2022). In the past 52-week period, it has traded between $55.42 and $66.20.
DGRW has a beta of 0.89 and standard deviation of 21.97% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.14 billion in assets, Vanguard Dividend Appreciation ETF has $60.33 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.09% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.09% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. Quality Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.09% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 5.09% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. |
20338.0 | 2022-07-12 00:00:00 UTC | US STOCKS-Recession fears to weigh on S&P 500, Dow at open | AAPL | https://www.nasdaq.com/articles/us-stocks-recession-fears-to-weigh-on-sp-500-dow-at-open | nan | nan | By Amruta Khandekar
July 12 (Reuters) - The S&P 500 and Dow were on course to open lower on Tuesday, with investors fretting about the health of the global economy as central banks around the world moving aggressively to tamp down inflation.
Traders are awaiting inflation data on Wednesday that is expected to show U.S. consumer prices rose 8.8% in June from a year earlier, marking a fresh four-decade high and adding more pressure on the Federal Reserve to act on soaring prices.
Analysts are also tempering their profit estimates as the earnings season kicks off in earnest this week, with reports from JPMorgan Chase & Co JPM.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N, among others.
"When you're faced with as many inputs as we're going to see this week, with inflation reports, and the kickoff of second-quarter reporting season, it's not unusual for investors to take a risk off attitude," said Art Hogan, chief market strategist at B. Riley.
"If, in fact, (earnings) estimates for the second half don't go down and actually go up a little bit, that's going to shed some of the concern that we're slamming on the brakes and the economy is getting into a recession."
Overall S&P 500 earnings are expected to rise 5.7% in the second quarter, compared with the earlier forecast of 6.8%, according to recent IBES data from Refinitiv.
A stronger-than-expected jobs report last week cemented expectations for a second straight 75-basis-point rate hike later this month.
Several Fed speakers are scheduled to speak this week and their comments will be parsed for any change in the Fed's hawkish stance on inflation.
Exacerbating worries of slowing global growth, several cities in China are adopting fresh COVID-19 curbs from this week to rein in new infections after finding a highly transmissible Omicron subvariant.
All three benchmark indexes ended lower on Monday, after posting solid gains last week, with market leading growth stocks dragging down the Nasdaq. .IXIC.
At 08:29 a.m. ET, Dow e-minis 1YMcv1 were down 213 points, or 0.68% and S&P 500 e-minis EScv1 fell 18 points, or 0.47%
Nasdaq 100 e-minis NQcv1 were up 0.5 points, as megacap stocks such as Alphabet Inc GOOGL.O and Apple AAPL.O gained ground.
PepsiCo Inc PEP.O raised its full-year revenue forecast, helped by sustained demand for its sodas and snacks, sending the company's shares up 1.2% in premarket trading.
Lordstown Motors Corp RIDE.O rose 3.5% after the electric-vehicle startup named Edward Hightower as its chief executive officer.
Gap Inc GPS.N slid 7.3% after the clothing retailer said its CEO would step down and that its margins would stay under pressure in the second quarter as costs spiral.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Anil D'Silva)
((Amruta.Khandekar@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. | ET, Dow e-minis 1YMcv1 were down 213 points, or 0.68% and S&P 500 e-minis EScv1 fell 18 points, or 0.47% Nasdaq 100 e-minis NQcv1 were up 0.5 points, as megacap stocks such as Alphabet Inc GOOGL.O and Apple AAPL.O gained ground. By Amruta Khandekar July 12 (Reuters) - The S&P 500 and Dow were on course to open lower on Tuesday, with investors fretting about the health of the global economy as central banks around the world moving aggressively to tamp down inflation. Exacerbating worries of slowing global growth, several cities in China are adopting fresh COVID-19 curbs from this week to rein in new infections after finding a highly transmissible Omicron subvariant. | ET, Dow e-minis 1YMcv1 were down 213 points, or 0.68% and S&P 500 e-minis EScv1 fell 18 points, or 0.47% Nasdaq 100 e-minis NQcv1 were up 0.5 points, as megacap stocks such as Alphabet Inc GOOGL.O and Apple AAPL.O gained ground. "When you're faced with as many inputs as we're going to see this week, with inflation reports, and the kickoff of second-quarter reporting season, it's not unusual for investors to take a risk off attitude," said Art Hogan, chief market strategist at B. Riley. All three benchmark indexes ended lower on Monday, after posting solid gains last week, with market leading growth stocks dragging down the Nasdaq. | ET, Dow e-minis 1YMcv1 were down 213 points, or 0.68% and S&P 500 e-minis EScv1 fell 18 points, or 0.47% Nasdaq 100 e-minis NQcv1 were up 0.5 points, as megacap stocks such as Alphabet Inc GOOGL.O and Apple AAPL.O gained ground. Traders are awaiting inflation data on Wednesday that is expected to show U.S. consumer prices rose 8.8% in June from a year earlier, marking a fresh four-decade high and adding more pressure on the Federal Reserve to act on soaring prices. "When you're faced with as many inputs as we're going to see this week, with inflation reports, and the kickoff of second-quarter reporting season, it's not unusual for investors to take a risk off attitude," said Art Hogan, chief market strategist at B. Riley. | ET, Dow e-minis 1YMcv1 were down 213 points, or 0.68% and S&P 500 e-minis EScv1 fell 18 points, or 0.47% Nasdaq 100 e-minis NQcv1 were up 0.5 points, as megacap stocks such as Alphabet Inc GOOGL.O and Apple AAPL.O gained ground. By Amruta Khandekar July 12 (Reuters) - The S&P 500 and Dow were on course to open lower on Tuesday, with investors fretting about the health of the global economy as central banks around the world moving aggressively to tamp down inflation. Traders are awaiting inflation data on Wednesday that is expected to show U.S. consumer prices rose 8.8% in June from a year earlier, marking a fresh four-decade high and adding more pressure on the Federal Reserve to act on soaring prices. |
20339.0 | 2022-07-12 00:00:00 UTC | Apple Earnings: Will Supply Shortages Hurt Sales? | AAPL | https://www.nasdaq.com/articles/apple-earnings%3A-will-supply-shortages-hurt-sales | nan | nan | One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. But the question is about the extent of the damage. Apple has experienced significant supply chain challenges for a while now -- and management said on Apple's fiscal second-quarterearnings callthat shortages would have a "substantially" worse impact in fiscal Q3 than the prior quarter. It's possible, however, that the negative impacts on Apple's business from the supply chain proved to be worse or more moderate than anticipated.
Whatever the case, we'll have a better idea of how Apple is faring later this month. The company is scheduled to report its fiscal third-quarter results on July 28.
What to expect
To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's lastearnings call On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. But he did provide some "directional insights" based on recent trends at the time of the call. Specifically, Maestri said he expected supply chain disruptions to negatively impact revenue by $4 billion to $8 billion. Additionally, the CFO said Apple anticipated softer demand in China due to COVID-related disruptions. A pause in Apple's sales in Russia is also expected to have a slightly negative impact on the quarter.
On a positive note, management said it anticipated a double-digit year-over-year growth rate from its services segment during fiscal Q3. Though Maestri said he expected the growth rate to be slower than the 17% growth the segment saw in fiscal Q2.
Given this background, the consensus analyst forecast is for Apple to report fiscal third-quarter revenue of $82.5 billion, up just 1% year over year. Of course, investors should note that this would be solid growth in light of both the anticipated supply chain challenges and an extremely tough year-ago comparison; revenue soared 36% year over year in the year-ago period.
It's a wild-card quarter
While analysts' consensus forecast gives us a specific revenue number to consider in our context, investors shouldn't make the mistake of going into the quarter with a false sense of confidence about what the quarter could look like. These are unprecedented times with unusual challenges. It's extremely difficult to forecast where Apple's sales could fall for the quarter. Indeed, the highest analyst estimate is about $10 billion above the lowest projection for the period.
Further, investors would be wise to refrain from judging Apple's entire business based on whatever revenue figure the company reports in fiscal Q3. A better approach to analysis when the report comes out would be to consider the number and then listen to theearnings callfor context to see what the impact was from supply shortages. This will help investors get a better idea of how demand is actually faring.
Mark your calendar and stay tuned. Apple's earnings report will be released after market close on Thursday, July 28.
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Daniel Sparks has positions in Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. What to expect To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's lastearnings call On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. Further, investors would be wise to refrain from judging Apple's entire business based on whatever revenue figure the company reports in fiscal Q3. | One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. What to expect To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's lastearnings call On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. Specifically, Maestri said he expected supply chain disruptions to negatively impact revenue by $4 billion to $8 billion. | One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. Apple has experienced significant supply chain challenges for a while now -- and management said on Apple's fiscal second-quarterearnings callthat shortages would have a "substantially" worse impact in fiscal Q3 than the prior quarter. What to expect To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's lastearnings call On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. | One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. What to expect To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's lastearnings call On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. Specifically, Maestri said he expected supply chain disruptions to negatively impact revenue by $4 billion to $8 billion. |
20340.0 | 2022-07-12 00:00:00 UTC | Supply Woes, Weak Demand Cause Deepest Decline in PC Shipments | AAPL | https://www.nasdaq.com/articles/supply-woes-weak-demand-cause-deepest-decline-in-pc-shipments | nan | nan | The decline seen in personal computer (PC) shipments in first-quarter 2022 after two consecutive years of strong year-over-year growth, accelerated in the second quarter, according to the latest data compiled by two market research firms, namely the International Data Corporation (“IDC”) and Gartner.
Per the preliminary data released by Gartner, PC shipments in the June quarter plunged 12.6% year over year to 72 million units. The independent research firm claims the decline to be the sharpest in nine years for the PC industry.
Per the data compiled by IDC, PC sales were down 15.3% year over year to 71.3 million units during the June quarter. This year-over-year decrease was higher than the previous quarter’s decline rate of 5.1% and also the worst drop in many years.
Computer - Mini computers Industry 5YR % Return
Computer - Mini computers Industry 5YR % Return
What Induced Softness in PC Shipments?
Although the firms reported different figures, both share a similar opinion that the year-over-year decline was mainly due to weakening consumer demand for PCs, lockdowns in China, supply-chain issues, logistics and geopolitical challenges.
In 2020 and 2021, PC manufacturers had benefited from increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated the use of PC systems, be it for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the recent back-to-back two quarters of declining PC shipments depict an end of demand boom for the industry. The two market research firms observed that consumers became cautious about their spending due to inflationary pressures and fears of a possible recession.
IDC also pointed out that supply-chain and logistics disruptions further deteriorated in the second quarter due to lockdowns in China and macroeconomic headwinds. Gartner too has a somewhat similar view and stated that the supply-chain challenges continued but logistics disruption was the major factor behind delivery delays.
The drastic decline in PC shipments was also due to a steep downturn in Chromebook demand as the reopening of schools and colleges across the majority parts of the world weakens the necessity for education on PCs.
Additionally, Gartner pointed out that several PC manufacturers’ decision to halt business operations in Russia due to the war on Ukraine had severely affected PC shipment volumes in the quarter. Per the market research firm, PC deliveries in Russia usually contribute to 5-10% of the total EMEA PC volume.
Vendor-Wise PC Shipments
Both IDC and Gartner revealed almost similar declines in vendors’ shipments, except for discrepancy over Apple’s AAPL performance. Per the data compiled by IDC, Apple’s PC shipments fell 22.5%, while according to Gartner, its deliveries increased 9.3% in the second quarter.
Moreover, with a market share of 6.7% per IDC, Apple shared the fifth spot among the top vendors with Asustek Computer, which registered a 4.6% year-over-year dip in PC deliveries and has a market share of 6.6%. IDC declares a statistical tie if the shipment market share difference between the companies is 0.1% or less.
According to Gartner, Apple stood third with a market share of 8.8%, while Asustek Computer held the sixth place with a market share of 6.5% and witnessed a 4.3% slip in second-quarter deliveries.
Nonetheless, the two firms agreed on the first three spots, with Lenovo LNVGY continuing to hold the top spot followed by HP Inc. HPQ and Dell Technologies DELL. Per IDC, Lenovo, HP and Dell market shares in the second quarter were 24.6%, 18.9% and 18.5%, respectively, while all three registered a year-over-year decline of 12.1%, 27.6% and 5.3% each in deliveries. Acer Group’s shipment decreased 19.2%, and consequently, it held the fourth position on the top-vendor list with a market share of 6.9%, according to IDC.
Per data compiled by Gartner, Lenovo, HP and Dell shipments declined 12.5%, 27.5% and 5.2%, respectively, in the second quarter. Their respective market share was 24.8%, 18.8% and 18.5%. Acer found the fifth spot with a market share of 7.1%, while the company recorded a shipment decline of 18.7% in the quarter.
Among the leading vendors, Dell currently sports a Zacks Rank #1 (Strong Buy), while Apple, HP and Lenovo carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Vendor-Wise PC Shipments Both IDC and Gartner revealed almost similar declines in vendors’ shipments, except for discrepancy over Apple’s AAPL performance. Apple Inc. (AAPL): Free Stock Analysis Report Although the firms reported different figures, both share a similar opinion that the year-over-year decline was mainly due to weakening consumer demand for PCs, lockdowns in China, supply-chain issues, logistics and geopolitical challenges. | Vendor-Wise PC Shipments Both IDC and Gartner revealed almost similar declines in vendors’ shipments, except for discrepancy over Apple’s AAPL performance. Apple Inc. (AAPL): Free Stock Analysis Report Computer - Mini computers Industry 5YR % Return Computer - Mini computers Industry 5YR % Return What Induced Softness in PC Shipments? | Vendor-Wise PC Shipments Both IDC and Gartner revealed almost similar declines in vendors’ shipments, except for discrepancy over Apple’s AAPL performance. Apple Inc. (AAPL): Free Stock Analysis Report The decline seen in personal computer (PC) shipments in first-quarter 2022 after two consecutive years of strong year-over-year growth, accelerated in the second quarter, according to the latest data compiled by two market research firms, namely the International Data Corporation (“IDC”) and Gartner. | Vendor-Wise PC Shipments Both IDC and Gartner revealed almost similar declines in vendors’ shipments, except for discrepancy over Apple’s AAPL performance. Apple Inc. (AAPL): Free Stock Analysis Report Although the firms reported different figures, both share a similar opinion that the year-over-year decline was mainly due to weakening consumer demand for PCs, lockdowns in China, supply-chain issues, logistics and geopolitical challenges. |
20341.0 | 2022-07-12 00:00:00 UTC | 1 FAANG Stock to Buy on the Dip and 1 to Avoid | AAPL | https://www.nasdaq.com/articles/1-faang-stock-to-buy-on-the-dip-and-1-to-avoid | nan | nan | The S&P 500 jumped 110% over the past decade, but all five FAANG stocks generated even bigger returns. Apple and Amazon (NASDAQ: AMZN) led the way with gains of 660% and 560%, respectively. Alphabet finished in the middle of the pack, up 328%. And Netflix (NASDAQ: NFLX) and Meta Platforms brought up the tail, climbing 250% and 169%, respectively.
All five companies are still a force to be reckoned with, but that doesn't mean all five will beat the market over the next decade. With that in mind, here is one FAANG stock to buy now and one to avoid.
The case for Amazon
Supply chain issues and rising costs have hit Amazon hard. Management estimated that inflationary pressures added $2 billion in incremental costs during the most recent quarter, and excess fulfillment capacity added another $2 billion. To add, high inflation was also a headwind to discretionary consumer spending. As a result, revenue rose just 14% over the past year, and Amazon generated negative free cash flow (FCF) of $24.6 billion.
Those results are far from ideal, but investors have overreacted to short-term problems. Inflation will normalize in time, and Amazon has a plan for its excess fulfillment capacity. Buy with Prime is a new service that gives third-party merchants access to Amazon's fulfillment services, extending the benefits of the Prime membership program (like fast, free checkout) beyond the Amazon marketplace.
More broadly, Amazon has an ironclad lead in two growing industries: e-commerce and cloud computing. Amazon operates the world's most-visited online marketplace, which will power nearly 40% of online retail sales in the U.S. this year, according to eMarketer. And global e-commerce sales are expected to grow at 11% annually to reach $7.4 trillion by 2025, meaning Amazon's retail business still has plenty of room to run.
Additionally, research company Gartner once again recognized Amazon Web Services (AWS) as the top cloud platform last year, citing its status as the industry's innovation leader. To put its leadership in context, AWS held 33% market share in cloud infrastructure services in the first quarter, more than Microsoft and Alphabet combined.
That bodes well for the future. AWS' operating margin typically clocks in around 30%, making it far more profitable than Amazon's retail business. Better yet, AWS is also growing more quickly and that trend is likely to continue as the broader cloud computing market is expected to grow 16% per year to reach $1.6 trillion by 2030. To that end, AWS should supercharge Amazon's profitability in the years ahead.
Currently, the stock is 38% off its high, trading at 2.5 times sales, near its cheapest valuation in the last five years. That looks like a bargain, and it's why this FAANG stock is a screaming buy.
The case against Netflix
Streaming pioneer Netflix has revolutionized entertainment, providing viewers with a more convenient alternative to traditional television. Netflix has further distinguished itself with original content. Binge-worthy titles like Stranger Things and Squid Games have captivated audiences around the world, and Netflix currently owns seven of the top 10 original series, according to Nielsen.
Thanks to that competitive edge, the company wields a certain amount of pricing power. The average monthly membership cost $11.77 in the last quarter, up 2% from the prior year. But no company has unlimited pricing power, so subscriber growth is still an essential part of the equation. Unfortunately, Netflix lost 200,000 subscribers in the first quarter, marking its first loss in more than a decade. Worse, the company expects to lose another 2 million subscribers in the second quarter.
Not surprisingly, Netflix has posted somewhat lackluster financial results over the past year. Revenue rose just 15% and the company generated negative FCF of $27 million, down from positive FCF of $2.5 billion in the prior year.
To its credit, Netflix is not sitting still. CEO Reed Hastings discussed the possibility of a cheaper, ad-supported tier during the last earnings call. In fact, Netflix told its employees an ad-supported service could launch as soon as this year, according to The New York Times. That could certainly reenergize subscriber growth, but I'd like to see some evidence before buying the stock.
As a point of clarification, I'm not suggesting current shareholders should sell. Netflix is a great company with a strong position in the growing streaming industry, and shares may eventually rebound from their 73% plunge. But at the current time, I think investors should hold off on starting (or adding to) a position in this stock.
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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. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. The Motley Fool recommends Gartner 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. | And global e-commerce sales are expected to grow at 11% annually to reach $7.4 trillion by 2025, meaning Amazon's retail business still has plenty of room to run. Additionally, research company Gartner once again recognized Amazon Web Services (AWS) as the top cloud platform last year, citing its status as the industry's innovation leader. Binge-worthy titles like Stranger Things and Squid Games have captivated audiences around the world, and Netflix currently owns seven of the top 10 original series, according to Nielsen. | As a result, revenue rose just 14% over the past year, and Amazon generated negative free cash flow (FCF) of $24.6 billion. Revenue rose just 15% and the company generated negative FCF of $27 million, down from positive FCF of $2.5 billion in the prior year. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. | Buy with Prime is a new service that gives third-party merchants access to Amazon's fulfillment services, extending the benefits of the Prime membership program (like fast, free checkout) beyond the Amazon marketplace. Additionally, research company Gartner once again recognized Amazon Web Services (AWS) as the top cloud platform last year, citing its status as the industry's innovation leader. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. | That could certainly reenergize subscriber growth, but I'd like to see some evidence before buying the stock. But at the current time, I think investors should hold off on starting (or adding to) a position in this stock. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. |
20342.0 | 2022-07-12 00:00:00 UTC | Why the U.K. Inquiry Into the Microsoft-Activision Blizzard Deal Didn't Disturb Investors | AAPL | https://www.nasdaq.com/articles/why-the-u.k.-inquiry-into-the-microsoft-activision-blizzard-deal-didnt-disturb-investors | nan | nan | In this podcast, Motley Fool senior analyst Bill Mann discusses:
A U.K. regulatory authority opening an inquiry into Microsoft's deal to buy Activision Blizzard.
Amazon's deal to take a small stake in GrubHub.
The prospect for more companies (e.g., Salesforce and Atlassian) to take stakes in smaller software companies.
Motley Fool analyst Deidre Woollard talks with Jacob Goldstein -- host of the podcast What's Your Problem -- to talk about his recent interview with Redfin CEO Glenn Kelman, the 3% commission model, and more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on July 6, 2022.
Chris Hill: Two tech giants are in the headlines, but only one of them is causing ripples in the stock market. Motley Fool money starts now.
I'm Chris Hill, joining me today Motley Fool Senior Analyst, Bill Mann. Thanks for being here.
Bill Mann: How are you, Chris?
Chris Hill: I'm doing well. We're going to start with the CMA, which is not the Country Music Awards.
Bill Mann: That's good because I don't have much to say about that.
Chris Hill: This is the Competition and Markets Authority, which is the regulatory agency in the UK, which has officially opened an investigation into Microsoft's proposed acquisition of Activision Blizzard. They say the initial decision will be issued by September 1st. Microsoft's General Counsel said pretty much everything you would expect, we're going to fully cooperate. We're going to answer their questions. We're confident that the deal is going to go through. Is this a big deal or is this just the anticipated cost of doing business?
Bill Mann: Basically, what's happening is that the European competition authority is worried about Activision joining the platform of the Xbox. In truth, it will have a pretty big impact on the gaming industry, which is a $190 billion industry. It is nothing. Gaming is one of the areas in technology in which Europe and European companies have been very strong. There are a lot of great companies out of Scandinavia. There's Ubisoft in France. There are all gaming companies. This is a big concern for them. You know who's not really reacted very strongly is the stock market.
Chris Hill: I was going to say shares of Microsoft are basically flat.
Bill Mann: Shares of Activision are basically flat. The deal is a cash deal, which means that when the deal goes through, Activision shareholders will get $95 a share. The last time I looked, they were trading at about $78.25. If I do my math tells me is substantially lower than 95. All along, the market has assumed that there would be antitrust issues, and that there was something on the range of an 18 percent chance that the deal would not go through as structured. This is something that everyone expected. The Federal Trade Commission in the US has said they're looking into the deal also and trying to see what the implications are. I'm not saying that this is a nothing burger because it very much, these are the entities that could cause the deal to collapse. But it was 100 percent expected. The reason why I say this is that the market's reaction is telling us that this is true.
Chris Hill: When you're talking about the chance that the deal collapses, is that how we should be thinking about this in a binary way, either the deal goes through or does it, or is there also an option where Microsoft has to make some concessions through the market?
Bill Mann: Yeah. But again, it's a smart question. But if you think about the entity that is impacted the most as far as the market is concerned, it's the Activision share price. They haven't deal for $95 a share, which is what they will get if the deal goes through. Now, it is possible that the deal could be renegotiated if one or more of these authorities with competent jurisdiction, caused them to do so. But that's not active as you Norridge shareholders problems, that's a Microsoft problem. The more important gauge to look at is what the Activision shares are trading at. They haven't moved today on this news. I think that's a pretty important indicator that the people who know have expected activity on both sides of the Atlantic in terms of an anti-competitive investigation.
Chris Hill: Last thing and then we'll move on. Do you anticipate some stock movement on or about September 1st, if the CMA comes out and says we've looked into this, we're satisfied? As far as we're concerned, this deal can go forward. Or they could come out and say, no, we don't like this at all. In that case, do you expect some stock movement?
Bill Mann: Probably. I don't know if you know this Chris. But there has been a pretty volatile stock market year. I don't know if you've paid attention.
Chris Hill: I noticed.
Bill Mann: You've noticed.
Chris Hill: I picked up on that. [laughs]
Bill Mann: Things have been said in your general vicinity that would lead you to believe that that's the case. All of Activision's competitors have seen their share prices come down quite a bit since this deal was announced earlier this year. If it looks like the deal isn't going to go through or is going to take much longer, that also matters in an inflationary environment. Because you would rather have your money today rather than a year from now. I think the stock could go down quite a bit. I suspect what's going to happen by September 1st is that the CMA is going to come out and say, we would allow this deal under the following circumstances. The question to me is not them trying to block the deal, it's that the circumstances would be such that it would no longer make the deal palatable to Microsoft to go ahead and consummate.
Chris Hill: Let's move on to Amazon, which is taking a small stake in Grubhub as part of a deal that will give Prime members food delivery perks as part of their subscription. We are seeing some stock movement with this story shares of Grubhub's parent company, Just Eat Takeaway of 15 percent. On the flip side, Grubhub competitor DoorDash shares down nearly 10 percent.
Bill Mann: It does not like the deal. [laughs]
Chris Hill: DoorDash is not in favor of a tech behemoth taking a stake in one of their competitors. By the way, that's the nightmare that we've talked about for as long as we've been doing this show in any number of industries. It's like, what if insert name of large company, Amazon or Apple or Microsoft, in some cases [Meta's] Facebook. What if this big company decides to enter this space?
Bill Mann: You know how one of the more famous Jeff Bezos quotes is, "Your margin is my opportunity." I think maybe in the time of Andy Jassy, it may be, your loss-making is my opportunity. Because this has been a struggling segment. Maybe there are very low barriers to entry to food delivery. There are thousands of competitors. There are a couple of big ones. But there are regional ones all around the world. There's Grab in Southeast Asia, there's Meituan in China. Are those DEMICON in Japan, there are hundreds and thousands of these. It is a incredibly competitive market. For Amazon, who actually had an Amazon food delivery business up until about three years ago and got rid of it to come back and put this under the framework of Prime. That has to be terrifying to all of these competitors. You see it in DoorDash, but it goes across the board.
Chris Hill: This is interesting to me as an Amazon shareholder because it seems like the way this deal is structured, Amazon will have the opportunity to take a bigger stake. Right now, just two percent of Grubhub. But this seems like something that is worth watching, and at some point, let's say 6,12 months from now, we'll probably get some indication from Amazon as to how they think this is going. Because either they're going to invest more money or they're going to wash their hands off this, aren't they?
Bill Mann: Yeah, and I think this is a really interesting time for companies and JET is one of them, Just Eat Takeaway, I should say, which probably should just go straight acronyms. You have a number of smaller companies and not just in this segment, but also in the software segment, in a lot of other segments that have seen their share prices come down a lot, and you have these cash rich suitors out there, and I would say that Amazon is the top of the list, but you've got Salesforce.com, you've got it last year, and you've gotten Microsoft that are looking at a lot of these businesses thing.
We can pick these up on the cheap so this deal to me in some ways, I don't want to overstate that this is a lifeline to Just Eat Takeaway or to Grubhub. But this is a deal that is being done somewhat under duress for them. They're getting two percent for a de minimis amount of money, and in agreement. They have the rights to get another 13 percent also, for not a huge amount of money, basically the asset value of the company. This is a sign of just how distressed this market is and how much value Amazon can bring to it, and most importantly, that Amazon would be able to wipe its hands if it's not going well and walk away without losing very much at all.
Chris Hill: I hadn't really thought of this before, but you and I talked recently about the environment that we're in, and you just touched on this. The prospect for more acquisitions coming in the second half of 2022, in part because so many companies have had their valuations knocked down, and larger companies can pick them up on the cheap. I hadn't really thought about this move, which is a prelude in some ways, which is, hey, we're not going to buy Grubhub outright, but we're going to take a stake in it and see what we see. It's possible that we see more of this activity as well where it's like we're not buying this software company outright, we are going to take a stake in it though at a lovely valuation as far as we're concerned.
Bill Mann: To me, Chris, I think looking at the share price, responsive DoorDash, and it's only down 10 percent, I would think that you would look at the type of deal that has been struck between Amazon and Just Eat Takeaway and say that that is a dampening indictment on the entire industry and its economic capacity as stand-alone companies.
Chris Hill: Bill Mann, always great talking to you. Thanks for being here.
Bill Mann: Thanks, Chris.
Chris Hill: Redfin is not doing so hot. Shares of the real estate tech company are down 75 percent year-to-date. But despite the stock performance, the business can still tell us a lot about the future of home buying. Deidre Woollard caught up with Jacob Goldstein, host of the podcast, What's Your Problem to talk real estate, the three percent commission model, in his interview with Redfin CEO Glenn Kelman.
Deidre Woollard: I used to work with brokerages and I used to spend a lot of time helping real estate agents position themselves against Redfin and the lower commissions and it wasn't easy. Real estate, just one of those last commission businesses left standing. Do you think the three percent commission is going to continue on?
Jacob Goldstein: In a sense and with respect to all of the work that real estate agents do, it's amazing to me that it has persisted for as long as it has. I think part of it is when people are buying a house up against the price of a house, they forget just how much money three percent is. Or they forget just how big of a difference three percent versus two percent is. It can be tens of thousands of dollars that you're talking about, and so I don't know what's going to happen. I'm surprised that there has not been more change and more innovation in the fee structure for real estate agents. What do you think?
Deidre Woollard: Yeah, I have seen a lot of disruptors come and go, and there's something about the commission business that is just unassailable. I don't know if that's the strength of the National Association of Realtors as a lobbying organization or what, but it just seems to have. It's faced its challenges and Redfin is certainly one of them, but it seems to still be in place.
Jacob Goldstein: The thing weirdly that I think of when I think about it is a wedding. It's this one other instance in your life that it's like pretty much a one-off, maybe you buy a few houses in your life, but it's this weird thing, you're uncomfortable. You don't want to screw it up. It's really expensive. There are all these costs, and you just got a deal like oh, I guess I got to write another thousand dollar check for this thing I don't understand. I do think some of the persistence of what seemed like me frankly to be high fees come from that. That it's not a thing people do very often. It's very scary, and you don't want to mess it up as a consumer.
Deidre Woollard: Yeah, I think the emotion is a big part of it, which is one of the reasons I think it's interesting that iBuying has taken off because it really takes a little bit of that process out of it. Zillow jumped out of iBuying just about as fast as they jumped dumped in. Redfin and I think Glenn Kelman has always been more cautious about it, and one of the things that in your interview with Glenn was, I loved this, that he said that they won't sell to institutional investors. I think that's interesting because as Zillow has sold off their homes, that's one of the things that they've been doing a lot. But is that the right move when there are so many institutional investors that will snap up those homes?
Jacob Goldstein: Glenn Kelman's idea is look, we're buying from people who live in the house, and then we're going to turn around and sell to people who are going to live in the house. We're not creating a shortage. We're not taking supply away from people who want to buy a home and live in it, which seems admirable. It seems like it might get harder to do right now, right this moment when suddenly mortgage rates shot up really fast, demand is going down really fast. Redfin, as of their last quarterly report owned, I think, over $200 million worth of houses, so it'll be interesting to see if they can stick to that in what seems like a really difficult moment.
Deidre Woollard: Yeah, a lot will depend on the market going forward. Glenn Kelman also shared what the funding landscape used to look like for his business on your show, we're going to play a clip of that now.
Glenn Kelman: I was talking to somebody I think representing money on the Middle East, and he said, "Well, we'd have you do some paperwork, and then we'd give you this money, and we wouldn't really need an interest rate. We wouldn't really need an ownership stake in the company." I said, well, why are you giving us this money? He said, "I don't know." I said, well, it's probably not even worth the paper cuts all the diligence you'd have to do, we don't need it. Then he said, "We really wouldn't need to do any diligence either.' I said, OK, this is getting seriously weird. Now, regardless of whether I'm going to take the money, I just want to understand what the heck is going on. Can you please just level with me? That's when he said, "I've got a problem. I'm sitting on this pile of money, I have to deploy it." That was the word that you used. Many sovereign states who have the same issue, they want to put the money into the US because that's considered a safe market, they want to put it into tech because that's sexy and I'm just trying to give you money. It was like he wanted to be relieved of a burden, and then I needed to relieve some of that burden. The reason it's important for iBuying this, but for the longest time, you never could get into the business of being a principal, where you actually own the car on the house that you were selling because it's so capital intensive. Maybe five or ten years ago, Tech just surmounted that huge obstacle.
Deidre Woollard: Why is this a story that you think about all the time?
Jacob Goldstein: I think it's not just about iBuying or even just about real estate. For me, this story explains so much about what has happened much more broadly in the American economy, in particular in technology over the last many years now, maybe not quite a decade, but coming up on a decade, this tsunami of capital that just came in. I mean, if you think of SoftBank is maybe another example, this mega venture capital fund that took what people used to do in 10X or a 100X, and was just throwing billions and billions of dollars at start-ups basically. In many ways, I think defined this economic era that we have been living through and that might be changing right now. Glenn first told me the story a couple of years ago and I've thought of it and thought of it and now it's like, is that era over? Is that era we were living through done now? I don't know yet.
Deidre Woollard: I love that you've referenced SoftBank there because I think that's an interesting example of the way a narrative has changed, that the narrative for SoftBank used to be, this is just genius decision after genius decision. Now the narrative is like, look at that, they flew too high, they put too much into many places in too many bets. Narrative shift really fast and the housing narrative is shifting really fast. I've been watching existing home sales numbers pending home sales numbers just came up recently, they're down, and there's a lot of talk about a housing bubble or a housing crash, I don't see a bubble, I don't see a crash, but I can tell that Glenn Kelman is preparing for that bumpy whether. How concerned should we be as investors and as homeowners?
Jacob Goldstein: I just bought a house last year for more money than I thought I'd ever spend on anything in my life. I plan to live here for a while. I was able to put a significant amount of money down. I plan to live here for many years, and so for those reasons, I'm not acutely worried, and I do think there are some comfort to be had in the fact that there are a lot of homebuyers like me. One of the things I asked Glenn in our interview on the show was, is this 2008? I'm old enough to remember that and we get scared about the housing market, and I go to the extreme, I be like, is everything going to blow up? He said very clearly, no, because most of the people buying houses now a, have equity lending standards that have remained much tighter than they were going into that blow-up in 2008, and it's largely homeowners who are living in the houses. I'm not afraid of a 2008-style blow-up, but it seems very reasonable that home prices could fall. They've gone up so much, I mean, a wild amount in the last two years. For home prices to go down a little bit now would seem unsurprising to me. I mean, what do you think?
Deidre Woollard: It has been a run-up really, since the end of the great financial crisis in 2011. Now, I believe the NRO numbers, it's about 120 months, something like that. It's been a long run. I think it's interesting too in your interview, Glenn also explains one significant way that the housing market has changed since his parents' generation?
Glenn Kelman: Now I think the housing market has more characteristics in common with the stock market. Part of that is because there's so much institutional activity in the housing market. Part of it is because there are also these platforms that provide much faster liquidity, much faster price discovery. When we have a problem selling a house, we don't wait two months to come to grips with it, we mark it down right away and everyone else on that block is disappointed that we move so quickly. But apart we're trying to stay ahead of them.
Deidre Woollard: What do you think this move toward a faster housing market means for homeowners?
Jacob Goldstein: Well, that's an interesting question. There's that moment when he talks about they're going to turn around and sell houses fast. That again was a striking thing to go back to the financial crisis. It took a while and people were holding onto their houses and it was a less liquid market. I do think if home prices are more like the stock market, it's scary in that, that sounds more volatile. I don't particularly want the housing market to be more volatile. On the other hand, price discovery is good. It's useful when buyers and sellers find the market-clearing price quickly. It provides everybody else on the block information, even if it's information they don't want that their house is worth less than they thought, and so at some level, more liquidity in a market is useful. It just means you get the bad news faster than you otherwise would sometimes.
Deidre Woollard: Last question for you, which is, we've got so many disruptors, we've got the online brokerages, I wonder if it has fundamentally changed how people buy and sell. To me, it still seems like the same experience. What do you think?
Jacob Goldstein: It seems like there are pockets where it's changing more. I know Phoenix is a very popular city for iBuying. I think the housing stock is easier for algorithms to price there, I think that's a piece of it, and I think there are places where you're starting to see a change. It seems likely, and this is just an intuition, but I do feel younger people, as they get old enough to buy houses, I feel like surely they'll be ready to try something new. Maybe I'm wrong. Maybe people say that every five years or something, but I do feel like people who do everything on their phone would be comfortable buying a house on their phone in a way that somebody who is 50 or 60 would not be. I'll be really interested to see what happens in four years, five years.
Deidre Woollard: Me too. Well, Jacob, thank you so much for your time. A reminder that the complete interview Glenn Kelman is on the podcast, What's Your Problem? Thank you.
Jacob Goldstein: Thank you. [laughs]
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. 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. Bill Mann has positions in Atlassian. Chris Hill has positions in Activision Blizzard, Amazon, Apple, Atlassian, and Microsoft. Deidre Woollard has positions in Apple, Meta Platforms, Inc., Microsoft, Redfin, and Zillow Group (A shares). The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Atlassian, DoorDash, Inc., Grab Holdings Limited, Meta Platforms, Inc., Microsoft, Redfin, Salesforce, Inc., SoftBank Group Corp., Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Just Eat Takeaway.com N.V., Softbank Group, and Ubisoft Entertainment and recommends the following options: long March 2023 $120 calls on Apple, short August 2022 $13 calls on Redfin, 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 this podcast, Motley Fool senior analyst Bill Mann discusses: A U.K. regulatory authority opening an inquiry into Microsoft's deal to buy Activision Blizzard. Deidre Woollard caught up with Jacob Goldstein, host of the podcast, What's Your Problem to talk real estate, the three percent commission model, in his interview with Redfin CEO Glenn Kelman. Deidre Woollard: I used to work with brokerages and I used to spend a lot of time helping real estate agents position themselves against Redfin and the lower commissions and it wasn't easy. | Motley Fool analyst Deidre Woollard talks with Jacob Goldstein -- host of the podcast What's Your Problem -- to talk about his recent interview with Redfin CEO Glenn Kelman, the 3% commission model, and more. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Atlassian, DoorDash, Inc., Grab Holdings Limited, Meta Platforms, Inc., Microsoft, Redfin, Salesforce, Inc., SoftBank Group Corp., Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Just Eat Takeaway.com N.V., Softbank Group, and Ubisoft Entertainment and recommends the following options: long March 2023 $120 calls on Apple, short August 2022 $13 calls on Redfin, and short March 2023 $130 calls on Apple. | Bill Mann: To me, Chris, I think looking at the share price, responsive DoorDash, and it's only down 10 percent, I would think that you would look at the type of deal that has been struck between Amazon and Just Eat Takeaway and say that that is a dampening indictment on the entire industry and its economic capacity as stand-alone companies. I've been watching existing home sales numbers pending home sales numbers just came up recently, they're down, and there's a lot of talk about a housing bubble or a housing crash, I don't see a bubble, I don't see a crash, but I can tell that Glenn Kelman is preparing for that bumpy whether. [laughs] 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. | Motley Fool analyst Deidre Woollard talks with Jacob Goldstein -- host of the podcast What's Your Problem -- to talk about his recent interview with Redfin CEO Glenn Kelman, the 3% commission model, and more. They haven't deal for $95 a share, which is what they will get if the deal goes through. I don't know if you know this Chris. |
20343.0 | 2022-07-12 00:00:00 UTC | Secret Recession Indicator Points to a Massive Stock Market Rebound | AAPL | https://www.nasdaq.com/articles/secret-recession-indicator-points-to-a-massive-stock-market-rebound | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Source: VectorMine / Shutterstock
Everyone’s talking about the U.S. economy falling into a recession. But believe it or not, it may already be in one. And oddly enough, that may be the best reason ever to buy stocks today.
Follow me here…
A recession is technically defined as back-to-back quarters of negative GDP growth. First-quarter GDP was negative. Sure, it was negative due to an odd trade imbalance. But it was still negative.
The Atlanta Fed’s real-time GDPNow model is forecasting for second-quarter GDP to fall 1.2%. That would mark two consecutive quarters of negative GDP growth for the U.S. economy. If true, then the U.S. economy technically entered a recession back in January.
Spooky, yes. But for investors, that realization actually screams opportunity.
Wall Street is at a point in this selloff cycle where, historically, the recession is already priced in. Typically, what comes next is a big stock rally where the entire market tends to roar 15- to 25%.
So, forget all the recession talk. That will scare the average investor. Indeed, average investors are running away from the market. But smart investors – those who sold back in December 2021 – are now returning to the market. And they’re already preparing for a big rebound.
In short, it’s time to buy the dip.
Here’s a deeper look.
The Famous Recession Buy Indicator
One of the financial world’s best-kept secrets is a largely unknown contrarian market indicator called the “Recession Buy Indicator.”
The Recession Buy Indicator was developed by renowned economist Norman Fosback in the 1970s. The theory broadly states that the best time to buy stocks in a recession-driven selloff is about seven months in. That’s around the time everyone starts realizing the economy is in rough shape and may already be in a recession.
The thinking is that because the stock market is a discounting mechanism, stocks drop well before a recession becomes obvious. And they rebound well before an economic recovery becomes obvious. Per Fosback’s research, this “inflection point” tends to happen about halfway through a recession. That’s usually around month seven since the average recession is about 14 months long.
The theory is more than just talk. It’s backed by 150 years of data.
Since 1870, stocks have produced ~2X returns every time the Recession Buy Indicator is triggered — seven months after the economy entered a recession.
Average three-month returns? Over 4%, versus 2% for three-month windows. Average six-month returns? About 6%, versus ~3% for all time periods. Average 12-month returns? Around 15%, versus ~8% for all time periods.
It’s Time to Buy Now
The evidence is clear. The Recession Buy Indicator works. Typically, you want to buy stocks seven months into a recession, once the world starts thinking the economy is actually in a recession.
And according to the data, that’s exactly where we are today.
It looks like the U.S. economy entered a recession in January. It’s July now — month seven. Meanwhile, over the past few weeks, every major financial media outlet has been writing about how the U.S. economy may be in a recession.
The Recession Buy Indicator is flashing right now.
Historically, that means we’re in the midst of a great buying opportunity. And stocks should power meaningfully higher over the next 12 months.
That’s bullish.
But it’s far from the only bullish indicator flashing right now.
Analyst Price Targets Imply 25%-Plus Returns
While stocks have crashed over the past eight months, Wall Street analysts have remained resolutely optimistic.
In other words, stock prices have dropped a lot in 2022. But stock price targets haven’t dropped by much. The result? A huge gap between stock prices and price targets, implying massive upside potential in equities.
This is a rare occurrence that is exceptionally bullish.
Specifically, the analyst consensus price targets for various stock market indices — the S&P 500, Dow Jones, Nasdaq, and Russell 2000 — are all 20%-plus above current index levels. Such a large gap has only occurred four times since 2000. Three of the 4 times, stocks rallied over the next 12 months. The average gain? An impressive 25%!
In other words, analysts are rarely as bullish on stocks as they are right now. When they have been this bullish before, stocks popped an average of 25% over the next 12 months.
Coupled with the Recession Buy Indicator, this data constitutes a pretty compelling “buy the dip now” thesis.
The Final Word on the Recession Buy Indicator
Stocks have been crushed this year. Consequently, lots of investors are running away from the markets to hide from the damage. But there’s a growing mountain of evidence that suggests the worst of the market selloff over. And a massive market rebound is on the horizon.
So, don’t run away from the markets. Run toward them. Buy the dip in stocks positioned to lead a massive second-half rebound.
One such stock is a tiny, $3 technology stock that I think may be the single most compelling 12-month investment opportunity in the market today.
The world’s largest company — Apple (AAPL) — is reportedly set to announce a brand-new product in the coming months.
No. I’m not talking about another iPhone, Apple Watch or iPad. I’m talking about an entirely new product that could be bigger than all those products combined.
And per my analysis, the company behind this $3 tech stock is positioned to secure a partnership with Apple. It will supply a critical piece of technology to make this new product work.
Quick market tip: Apple supplier stocks don’t trade for $3. Just look at Skyworks (SWKS) stock. That’s a major iPhone parts supplier. Its stock is trading for $100. But at one point in time, it was trading for $3, too.
The tiny potential Apple supplier stock I’m talking about could easily trade for $100 in the near future. And it’s just $3 today.
This is a stock you simply must hear about right now.
Fortunately, it is also a stock I want to tell you all about.
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 Secret Recession Indicator Points to a Massive Stock Market Rebound 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. | The world’s largest company — Apple (AAPL) — is reportedly set to announce a brand-new product in the coming months. Specifically, the analyst consensus price targets for various stock market indices — the S&P 500, Dow Jones, Nasdaq, and Russell 2000 — are all 20%-plus above current index levels. The post Secret Recession Indicator Points to a Massive Stock Market Rebound appeared first on InvestorPlace. | The world’s largest company — Apple (AAPL) — is reportedly set to announce a brand-new product in the coming months. The Famous Recession Buy Indicator One of the financial world’s best-kept secrets is a largely unknown contrarian market indicator called the “Recession Buy Indicator.” The Recession Buy Indicator was developed by renowned economist Norman Fosback in the 1970s. A huge gap between stock prices and price targets, implying massive upside potential in equities. | The world’s largest company — Apple (AAPL) — is reportedly set to announce a brand-new product in the coming months. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: VectorMine / Shutterstock Everyone’s talking about the U.S. economy falling into a recession. The Famous Recession Buy Indicator One of the financial world’s best-kept secrets is a largely unknown contrarian market indicator called the “Recession Buy Indicator.” The Recession Buy Indicator was developed by renowned economist Norman Fosback in the 1970s. | The world’s largest company — Apple (AAPL) — is reportedly set to announce a brand-new product in the coming months. Since 1870, stocks have produced ~2X returns every time the Recession Buy Indicator is triggered — seven months after the economy entered a recession. Typically, you want to buy stocks seven months into a recession, once the world starts thinking the economy is actually in a recession. |
20344.0 | 2022-07-11 00:00:00 UTC | Meta Platforms (META) Introduces New Account & Profile for VR | AAPL | https://www.nasdaq.com/articles/meta-platforms-meta-introduces-new-account-profile-for-vr | nan | nan | Meta Platforms META will now require users to create a Meta account and Meta Horizon profile to log into their virtual reality (VR) headsets instead of a Facebook account (beginning August 2022) or an Oculus account (beginning Jan 1, 2023).
The new Meta account and Meta Horizon profile promise better privacy controls. For instance, teenagers (ages between 13 and 17) will have their Meta Horizon profiles set to private by default. Meta is offering three privacy control options to users — Open to Everyone, Friends and Family, and Solo.
VR headsets are essential for accessing metaverse, a space that has become the company’s key focus in recent times due to the huge growth opportunities it presents. Meta is expected to spend more than $10 billion over the next 10 years to build the metaverse.
The metaverse market, globally, is expected to reach $800 billion by 2024, per a Bloomberg report. According to a latest report from Fortune Business Insights, the global metaverse market is expected to witness a CAGR of 47.6% between 2022 and 2029, reaching from an estimated $100.27 billion in 2022 to $1,527.55 billion by 2029.
Meta has been a frontrunner in grabbing this opportunity, given its experience in developing devices like the Quest headset. Meta is also set to release the higher-end headset — Project Cambria — later this year, which is anticipated to help it retain the leading position in the Augmented Reality/VR device space.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Additionally, Meta is anticipated to launch a digital clothing store where users can purchase designer outfits for their avatars in the metaverse. Brands like Balenciaga, Prada and Thom Browne will be initially available for purchase.
What Awaits the Meta Stock in 2022?
Meta is having a terrible 2022, primarily attributable to engagement-related headwinds as well as changes made by Apple AAPL in its iOS that have made ad targeting difficult. Intensifying competition for ad dollars and user engagement from the likes of SNAP SNAP, Twitter TWTR and TikTok have been other headwinds.
Shares of this social-networking giant are down 49.2% year to date, underperforming the Zacks Computer & Technology sector, which has dropped 27.5% over the same time frame. Snap shares are down 68.2% while Twitter’s has declined 14.9%.
The ongoing Russia-Ukraine war has hurt advertisers’ budgets. Rising inflation, as well as slowing economy, is expected to trigger budget cuts. This doesn’t bode well for Meta and its ad-revenue-dependent peers like Twitter and Snap.
Nevertheless, Snap is benefiting from improving user engagement, particularly in the 13-34-year-old demography, which is expanding its advertiser base. Snap is also providing competition to Meta in the metaverse. Snap has collaborated with Vogue to feature a virtual try-on experience of select pieces from Balenciaga, Dior and Gucci, which will be available for Snapchatters globally.
Meta expects engagement headwinds and ad-targeting difficulty due to Apple’s iOS changes to hurt advertising revenue growth throughout 2022. This Zacks Rank #4 (Sell) company’s second-quarter guidance also reflects macroeconomic and forex concerns.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meta is having a terrible 2022, primarily attributable to engagement-related headwinds as well as changes made by Apple AAPL in its iOS that have made ad targeting difficult. Apple Inc. (AAPL): Free Stock Analysis Report VR headsets are essential for accessing metaverse, a space that has become the company’s key focus in recent times due to the huge growth opportunities it presents. | Apple Inc. (AAPL): Free Stock Analysis Report Meta is having a terrible 2022, primarily attributable to engagement-related headwinds as well as changes made by Apple AAPL in its iOS that have made ad targeting difficult. Twitter, Inc. (TWTR): Free Stock Analysis Report | Meta is having a terrible 2022, primarily attributable to engagement-related headwinds as well as changes made by Apple AAPL in its iOS that have made ad targeting difficult. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META will now require users to create a Meta account and Meta Horizon profile to log into their virtual reality (VR) headsets instead of a Facebook account (beginning August 2022) or an Oculus account (beginning Jan 1, 2023). | Meta is having a terrible 2022, primarily attributable to engagement-related headwinds as well as changes made by Apple AAPL in its iOS that have made ad targeting difficult. Apple Inc. (AAPL): Free Stock Analysis Report 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. |
20345.0 | 2022-07-11 00:00:00 UTC | Is Snap Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-snap-stock-a-buy-now-1 | nan | nan | Snap's (NYSE: SNAP) Snapchat is a popular social media app that intends to make the camera more fun. The stock is down considerably off its highs as it grapples with headwinds slowing revenue growth.
Still, despite the struggles, Snap is increasing revenue and daily active users briskly. With that backdrop, it's understandable that investors are curious whether Snap stock is a buy right now. To answer that question, let's consider its prospects and weigh them against its valuation to decide.
Snap is growing rapidly, but the expansion is at risk
Like other social media apps, Snapchat is free to join and use. The company makes money by showing advertisements to users browsing the platform. In that regard, it has done an excellent job, growing revenue from $59 million to $4.1 billion between 2015 and 2021.
Snap boasts 332 million daily active users, representing an increase of 13 million from the previous quarter. User growth is critical because advertisers pay to influence people's purchasing decisions. The more people to potentially affect, the more marketers are willing to pay.
Snap has yet to consistently achieve profits on the bottom line as it invests in features to attract users and tools to optimize advertising capabilities. That said, Snap has lowered operating losses from a peak of $3.5 billion in 2017 to $702 million in 2021.
SNAP Revenue (Quarterly YoY Growth) data by YCharts.
Snap's brisk pace of revenue growth may be slowed in the near term as it adjusts to privacy policy changes implemented by Apple that make it harder to collect user data. That information has been critical in its ability to sell targeted ads. Marketers prefer precision ads because it reduces wasteful spending.
Snap's stock is too expensive to buy now
SNAP Price to Free Cash Flow data by YCharts.
Snap is the most expensive among its peer group of social media companies, including Meta Platforms (NASDAQ: META) and Pinterest (NYSE: PINS). Snap trades at a price-to-sales ratio of 5.4 while Pinterest sells for 5.2 and Meta for 4.1. The price differential is magnified when you look at the price-to-free-cash-flow metric, where Snap is more than five times pricier than Pinterest and nearly 10 times that of Meta (see chart above).
Admittedly, Snap is growing the top line faster than its rivals, but arguably not enough to justify the premium to its peers. Therefore, given the social media industry's headwinds from privacy policy changes and Snap's expensive valuation, the stock is not a good buy right now.
10 stocks we like better than Snap Inc.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., 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. | Snap has yet to consistently achieve profits on the bottom line as it invests in features to attract users and tools to optimize advertising capabilities. Snap's brisk pace of revenue growth may be slowed in the near term as it adjusts to privacy policy changes implemented by Apple that make it harder to collect user data. Therefore, given the social media industry's headwinds from privacy policy changes and Snap's expensive valuation, the stock is not a good buy right now. | Still, despite the struggles, Snap is increasing revenue and daily active users briskly. Snap is the most expensive among its peer group of social media companies, including Meta Platforms (NASDAQ: META) and Pinterest (NYSE: PINS). Therefore, given the social media industry's headwinds from privacy policy changes and Snap's expensive valuation, the stock is not a good buy right now. | Snap's stock is too expensive to buy now SNAP Price to Free Cash Flow data by YCharts. Therefore, given the social media industry's headwinds from privacy policy changes and Snap's expensive valuation, the stock is not a good buy right now. 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. | Therefore, given the social media industry's headwinds from privacy policy changes and Snap's expensive valuation, the stock is not a good buy right now. 10 stocks we like better than Snap Inc. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., and Pinterest. |
20346.0 | 2022-07-11 00:00:00 UTC | US STOCKS-Wall Street lower as focus shifts to earnings | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-lower-as-focus-shifts-to-earnings | nan | nan | By Amruta Khandekar
July 11 (Reuters) - U.S. stock indexes fell on Monday, with the earnings season set to kick off in earnest this week amid concerns of weaker corporate profit due to the impact of surging inflation.
Jitters about the spread of COVID-19 in Macau hammered shares of casino operators as the gambling hub shut all its casinos for the first time in more than two years.
Las Vegas Sands CorpLVS.N, Wynn Resorts Ltd WYNN.O and Melco Resorts & Entertainment Ltd MLCO.O were down between 9.6% and 13% and drove a 1.4% fall in the S&P 1500 Hotels Restaurant and Leisure index .SPCOMHRL.
Wall Street has been trying to steady itself after reeling from the impact of a brutal selloff in the first half of the year. However, traders are fearing that another rout may be around the corner if company results fall short of expectations this month.
JPMorgan Chase & Co JPM.N, Citigroup Inc C.N, Morgan Stanley MS.N and Wells Fargo & CoWFC.N are set to report their earnings this week and may give an insight into how corporate America is coping with inflation and rate hikes.
The S&P 500 banks index .SPXBK was down 1.1% on worries that an increase in loan loss reserves and a decline in M&A activity could hurt second-quarter profits at big U.S. banks.
"There's some nervousness about where we are heading into earnings," said Keith Buchanan, senior portfolio manager at GLOBALT Investments in Atlanta.
"The question that markets are grappling with is could we already be in a recession? And this earnings season should help give us more understanding as to what the second half of this year and what 2023 would look like in terms of a recession or no recession."
Focus will also be on U.S. consumer prices data later this week to gauge the state of inflation and how aggressively the Federal Reserve could respond.
The market is largely pricing in a 75-basis-point rate increase later in July, although concerns about the pace of future hikes have grown after a stronger-than-expected jobs report on Friday.
At 12:34 p.m. ET, the Dow Jones Industrial Average .DJI was down 114.49 points, or 0.37%, at 31,223.66 and the S&P 500 .SPX was down 39.89 points, or 1.02%, at 3,859.49.
The Nasdaq Composite .IXIC was down 225.61 points, or 1.94%, at 11,409.70 as sharp declines in heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O put it on course to snap its five-day winning streak.
Shares of Twitter Inc TWTR.N fell 8.6% after Elon Musk said on Friday he was terminating his deal to buy the social media company.
Declining issues outnumbered advancers for a 3.01-to-1 ratio on the NYSE and a 3.34-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 30 new lows, while the Nasdaq recorded 16 new highs and 85 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
((Amruta.Khandekar@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 Nasdaq Composite .IXIC was down 225.61 points, or 1.94%, at 11,409.70 as sharp declines in heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O put it on course to snap its five-day winning streak. By Amruta Khandekar July 11 (Reuters) - U.S. stock indexes fell on Monday, with the earnings season set to kick off in earnest this week amid concerns of weaker corporate profit due to the impact of surging inflation. JPMorgan Chase & Co JPM.N, Citigroup Inc C.N, Morgan Stanley MS.N and Wells Fargo & CoWFC.N are set to report their earnings this week and may give an insight into how corporate America is coping with inflation and rate hikes. | The Nasdaq Composite .IXIC was down 225.61 points, or 1.94%, at 11,409.70 as sharp declines in heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O put it on course to snap its five-day winning streak. By Amruta Khandekar July 11 (Reuters) - U.S. stock indexes fell on Monday, with the earnings season set to kick off in earnest this week amid concerns of weaker corporate profit due to the impact of surging inflation. The market is largely pricing in a 75-basis-point rate increase later in July, although concerns about the pace of future hikes have grown after a stronger-than-expected jobs report on Friday. | The Nasdaq Composite .IXIC was down 225.61 points, or 1.94%, at 11,409.70 as sharp declines in heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O put it on course to snap its five-day winning streak. By Amruta Khandekar July 11 (Reuters) - U.S. stock indexes fell on Monday, with the earnings season set to kick off in earnest this week amid concerns of weaker corporate profit due to the impact of surging inflation. JPMorgan Chase & Co JPM.N, Citigroup Inc C.N, Morgan Stanley MS.N and Wells Fargo & CoWFC.N are set to report their earnings this week and may give an insight into how corporate America is coping with inflation and rate hikes. | The Nasdaq Composite .IXIC was down 225.61 points, or 1.94%, at 11,409.70 as sharp declines in heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O put it on course to snap its five-day winning streak. Jitters about the spread of COVID-19 in Macau hammered shares of casino operators as the gambling hub shut all its casinos for the first time in more than two years. JPMorgan Chase & Co JPM.N, Citigroup Inc C.N, Morgan Stanley MS.N and Wells Fargo & CoWFC.N are set to report their earnings this week and may give an insight into how corporate America is coping with inflation and rate hikes. |
20347.0 | 2022-07-11 00:00:00 UTC | The Road to Better Tech Is Strewn With Losers… Here’s How to Find the Next Winner | AAPL | https://www.nasdaq.com/articles/the-road-to-better-tech-is-strewn-with-losers...-heres-how-to-find-the-next-winner | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We spoke a lot about hyperscalability last week. As you may recall, hyerpscalability is the capacity of a business to massively grow revenues while minimally growing the costs associated with producing those revenues — and the most successful companies have harnessed the magic of hyperscalability.
In fact, it’s how legendary Whitney Tilson, dubbed “The Prophet” by CNBC for accurately predicting many major market moves, and I have found many big winners over the years.
However, there is a downside to hyperscalability. The truth is, while it can be great for group of employees, executives and shareholders, it can also be devastating to others.
So, today, I am sharing an article by Whitney, where he discusses how some have become “victims” of hyperscalability — and how to make sure that you’re not one of them.
Simple read the article below for full details.
As technology evolves, the victims always pile up…
Take camera and film maker Kodak, for instance.
The company traces its roots all the way back to the 1880s. Kodak mastered the “razor and blades” business model… it would sell inexpensive cameras (the razor) and then make large profits from its film sales (blades).
For decades, Kodak had a bulletproof global franchise… until digital cameras came along, which put Kodak’s business in peril.
Ironically, it was a 24-year-old Kodak engineer named Steven Sasson who developed the first digital camera in 1975 using leftover parts from around Kodak’s factories. Sasson’s prototype was the size of a toaster and took 23 seconds to take a black-and-white photo. As he later told the New York Times…
But it was filmless photography, so management’s reaction was, “That’s cute — but don’t tell anyone about it.”
Every digital camera that was sold took away from a film camera and we knew how much money we made on film. That was the argument. Of course, the problem is pretty soon you won’t be able to sell film — and that was my position.
Sony (NYSE:SONY), Nikon, Fujifilm, Panasonic, Olympus, and more eventually went all-in on digital photography… leaving the stubborn Kodak in the dust.
Bill Miller at Legg Mason’s Value Trust — one of the most famous and successful value investors ever — got sucked into the value trap that was Kodak’s stock. Long after the advent of digital cameras, Miller made a massive bet on Kodak around the start of the 21st century.
Miller wasn’t a fool… obviously, he could see the shift toward digital cameras. But he believed it would happen slowly, which would allow Kodak to continue to earn big profits for many more years. Plus, he thought the company could successfully compete in the new arena.
He couldn’t have been more wrong…
Consumers rapidly switched to digital photography and stopped buying film. And Kodak failed to compete effectively in the new world.
Kodak’s business declined precipitously, and in 2012 the company filed for bankruptcy protection.
But just as digital cameras all but killed off film, another disruptive technology has made digital cameras a relic of the past…
I’m talking about smartphones.
When Apple (NASDAQ:AAPL) introduced the first iPhone in 2007, it had a small 3.5-inch screen and a low-resolution, two-megapixel camera…
It was met with heavy skepticism from Apple’s competitors. Executives across the tech industry didn’t think the iPhone would be a serious player.
As then-Palm CEO Ed Colligan, whose company focused on personal digital assistants, said…
We’ve learned and struggled for a few years here figuring out how to make a decent phone… PC guys are not going to just figure this out. They’re not going to just walk in.
Anssi Vanjoki, the former chief strategy officer at Nokia, also wrote off the iPhone, saying…
Even with the Mac, Apple attracted a lot of attention at first, but they have remained a niche manufacturer. That will be their role in mobile phones as well.
Steve Ballmer, who was the CEO of Microsoft (NASDAQ:MSFT) at the time, famously dismissed the iPhone, saying…
That is the most expensive phone in the world. And it doesn’t appeal to business customers because it doesn’t have a keyboard. Which makes it not a very good e-mail machine.
BlackBerry’s (NYSE:BB) co-CEO at the time, Jim Balsillie, shared the sentiment…
It’s kind of one more entrant into an already very busy space with lots of choice for consumers… But in terms of a sort of a sea-change for BlackBerry, I would think that’s overstating it.
But over the next 15 years, Apple sold more than 2.2 billion iPhones, becoming not only the bestselling smartphone but the bestselling consumer product of all time. The latest model, the iPhone 13, features a 12-megapixel camera and the ability to record high-resolution video in 4K.
Within a handful of years, people essentially stopped buying digital cameras altogether…
Kodak is a classic example of a business that was made obsolete by technology…
This has affected more than just Kodak and cameras, of course. Smartphones killed off a whole host of products, including pay phones, pagers, GPS devices, and alarm clocks.
The Internet made fax machines, phone books, and most print media obsolete. It led to the birth of streaming, which killed DVDs and is trying to do the same to cable TV… It also led to the cloud, which did away with flash drives and CD storage.
Think about the dozens of businesses that retail giant Amazon (NASDAQ:AMZN) has wiped out, including big names like toy store Toys “R” Us, bookseller Barnes & Noble, and electronics retailer Circuit City.
But even as recently as a few years ago, executives at brick-and-mortar retailers were skeptical about Amazon. As Foot Locker (NYSE:FL) CEO Richard Johnson said in a 2017 earnings call…
We do not believe our vendors selling product directly on Amazon is an imminent threat. There is no indication that any of our vendors intend to sell premium athletic product, $100-plus sneakers that we offer, directly via that sort of distribution channel.
At the time, Foot Locker’s market cap exceeded $10 billion. Today, it’s worth just $2.4 billion.
Disruptive travel company Airbnb (NASDAQ:ABNB) is taking a chunk out of the hotel business. It was founded just 14 years ago but its market cap sits at $60 billion, far bigger than its three biggest competitors. It sports higher margins and revenues than its peers, despite employing far fewer workers. Take a look…
The list goes on and on…
Streaming giant Netflix (NASDAQ:NFLX) has delivered a crushing blow to movie theaters
Music streaming company Spotify (NYSE:SPOT) is disrupting radio
Zillow (NASDAQ:Z) and Redfin (NASDAQ:RDFN) are disrupting the archaic realtor business model
Expedia (NASDAQ:EXPE) and Tripadvisor (NASDAQ:TRIP) made travel agents obsolete
Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) have squeezed taxis
As technology evolves, the victims always pile up.
The good news is that you can flip this on its head to find the likely winners of the next decade…
As billions of dollars flood into the Internet of Things, financial technology (“fintech”), artificial intelligence (“AI”), the metaverse, the blockchain, electric and self-driving cars, big data, genome sequencing, etc., we’ll see plenty of winners and losers.
And when it comes to the winners, an upcoming event will give you the chance to make 5 to 10 times your money through a huge turning point in the market that most people will never see coming.
It could cause some of the best-known companies to crash or go bankrupt… while others could see their stocks go on to rise 10,000%. Learn more here.
The post The Road to Better Tech Is Strewn With Losers… Here’s How to Find the Next Winner 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 Apple (NASDAQ:AAPL) introduced the first iPhone in 2007, it had a small 3.5-inch screen and a low-resolution, two-megapixel camera… It was met with heavy skepticism from Apple’s competitors. In fact, it’s how legendary Whitney Tilson, dubbed “The Prophet” by CNBC for accurately predicting many major market moves, and I have found many big winners over the years. Anssi Vanjoki, the former chief strategy officer at Nokia, also wrote off the iPhone, saying… Even with the Mac, Apple attracted a lot of attention at first, but they have remained a niche manufacturer. | When Apple (NASDAQ:AAPL) introduced the first iPhone in 2007, it had a small 3.5-inch screen and a low-resolution, two-megapixel camera… It was met with heavy skepticism from Apple’s competitors. But just as digital cameras all but killed off film, another disruptive technology has made digital cameras a relic of the past… I’m talking about smartphones. Within a handful of years, people essentially stopped buying digital cameras altogether… Kodak is a classic example of a business that was made obsolete by technology… This has affected more than just Kodak and cameras, of course. | When Apple (NASDAQ:AAPL) introduced the first iPhone in 2007, it had a small 3.5-inch screen and a low-resolution, two-megapixel camera… It was met with heavy skepticism from Apple’s competitors. But just as digital cameras all but killed off film, another disruptive technology has made digital cameras a relic of the past… I’m talking about smartphones. Within a handful of years, people essentially stopped buying digital cameras altogether… Kodak is a classic example of a business that was made obsolete by technology… This has affected more than just Kodak and cameras, of course. | When Apple (NASDAQ:AAPL) introduced the first iPhone in 2007, it had a small 3.5-inch screen and a low-resolution, two-megapixel camera… It was met with heavy skepticism from Apple’s competitors. So, today, I am sharing an article by Whitney, where he discusses how some have become “victims” of hyperscalability — and how to make sure that you’re not one of them. But just as digital cameras all but killed off film, another disruptive technology has made digital cameras a relic of the past… I’m talking about smartphones. |
20348.0 | 2022-07-11 00:00:00 UTC | Klarna helps investors to buy now, cry later | AAPL | https://www.nasdaq.com/articles/klarna-helps-investors-to-buy-now-cry-later | nan | nan | Reuters
Reuters
(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
LONDON (Reuters Breakingviews) - Klarna is putting a positive spin on its shareholders’ misery. The private buy-now-pay-later group on Monday confirmed https://www.klarna.com/international/regulatory-news/klarna-closes-major-financing-round-during-worst-stock-downturn-in-50-years it has raised $800 million in new funding, valuing it at $6.7 billion. That’s an 85% decline for investors who valued the Swedish company at $45.6 billion in June last year https://www.klarna.com/international/press/klarna-secures-additional-funding-as-consumers-demand-smarter-alternatives-to-shop-bank-pay, including Japan’s SoftBank Group.
Klarna can blame the flighty market, which is now penalising cash-guzzling technology stocks. The latest valuation is equivalent to just under 5 times 2022 sales, if first-quarter revenue https://www.klarna.com/assets/sites/15/2022/05/23151554/Klarna-Bank-AB-First-Quarter-Results-2022.pdf of $352 million is annualised. That’s in line with the average of listed players Affirm and Zip, according to Refinitiv data. Michael Moritz, partner of long-standing investor Sequoia, bemoaned investors “suddenly voting in the opposite manner to the way they voted for the past few years”.
But Chief Executive Sebastian Siemiatkowski struck an optimistic tone. He argues Klarna shareholders are still up some 219% from 2018’s valuation, beating rivals like PayPal and Jack Dorsey’s Block. Still, the outlook is much less certain than in 2018, with a global recession looming and competition from groups like Apple heating up. Klarna’s losses hit 2.6 billion Swedish crowns ($242 million) in the first three months of 2022, compared to a gain of 97 million crowns https://reports.klarna.com/investor-relations/2017/interim_financial_statements_Q1_2017.pdf ($9 million) at the same period in 2017. Despite Siemiatkowski’s spin, the sharp valuation decline points to deeper problems for Klarna and its peers. (By Karen Kwok)
Follow @Breakingviews https://twitter.com/Breakingviews on Twitter
Capital Calls - More concise insights on global finance:
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PMI’s Swedish Match deal could go into extra time
Grubhub-Amazon deal reheats a half-baked idea
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Taxing EU bank windfalls is job for governments
(Editing by Neil Unmack and Oliver Taslic)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The private buy-now-pay-later group on Monday confirmed https://www.klarna.com/international/regulatory-news/klarna-closes-major-financing-round-during-worst-stock-downturn-in-50-years it has raised $800 million in new funding, valuing it at $6.7 billion. That’s an 85% decline for investors who valued the Swedish company at $45.6 billion in June last year https://www.klarna.com/international/press/klarna-secures-additional-funding-as-consumers-demand-smarter-alternatives-to-shop-bank-pay, including Japan’s SoftBank Group. (By Karen Kwok) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Hong Kong brain drain gathers pace with Alder exit PMI’s Swedish Match deal could go into extra time Grubhub-Amazon deal reheats a half-baked idea Lower China tariffs means more Wall Street crumbs Taxing EU bank windfalls is job for governments (Editing by Neil Unmack and Oliver Taslic) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | LONDON (Reuters Breakingviews) - Klarna is putting a positive spin on its shareholders’ misery. That’s an 85% decline for investors who valued the Swedish company at $45.6 billion in June last year https://www.klarna.com/international/press/klarna-secures-additional-funding-as-consumers-demand-smarter-alternatives-to-shop-bank-pay, including Japan’s SoftBank Group. Klarna’s losses hit 2.6 billion Swedish crowns ($242 million) in the first three months of 2022, compared to a gain of 97 million crowns https://reports.klarna.com/investor-relations/2017/interim_financial_statements_Q1_2017.pdf ($9 million) at the same period in 2017. | That’s an 85% decline for investors who valued the Swedish company at $45.6 billion in June last year https://www.klarna.com/international/press/klarna-secures-additional-funding-as-consumers-demand-smarter-alternatives-to-shop-bank-pay, including Japan’s SoftBank Group. Klarna’s losses hit 2.6 billion Swedish crowns ($242 million) in the first three months of 2022, compared to a gain of 97 million crowns https://reports.klarna.com/investor-relations/2017/interim_financial_statements_Q1_2017.pdf ($9 million) at the same period in 2017. (By Karen Kwok) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Hong Kong brain drain gathers pace with Alder exit PMI’s Swedish Match deal could go into extra time Grubhub-Amazon deal reheats a half-baked idea Lower China tariffs means more Wall Street crumbs Taxing EU bank windfalls is job for governments (Editing by Neil Unmack and Oliver Taslic) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | LONDON (Reuters Breakingviews) - Klarna is putting a positive spin on its shareholders’ misery. That’s an 85% decline for investors who valued the Swedish company at $45.6 billion in June last year https://www.klarna.com/international/press/klarna-secures-additional-funding-as-consumers-demand-smarter-alternatives-to-shop-bank-pay, including Japan’s SoftBank Group. Klarna’s losses hit 2.6 billion Swedish crowns ($242 million) in the first three months of 2022, compared to a gain of 97 million crowns https://reports.klarna.com/investor-relations/2017/interim_financial_statements_Q1_2017.pdf ($9 million) at the same period in 2017. |
20349.0 | 2022-07-11 00:00:00 UTC | Shopify (SHOP) Completes Deliverr Acquisition for $2.1B | AAPL | https://www.nasdaq.com/articles/shopify-shop-completes-deliverr-acquisition-for-%242.1b | nan | nan | Shopify SHOP recently announced that it has completed the acquisition of Deliverr. The total purchase price for the buyout amounted to $2.1 billion, including $1.7 billion paid in net cash and $0.4 billion in Shopify Class A Subordinate Voting Shares.
Deliverr’s key management decided to take a significant portion of their stockholder consideration as Shopify Class A Subordinate Voting Shares, which will be subject to certain conditions.
Deliverr, which was founded in 2017, offers a hassle-free logistics network that currently delivers more than a million orders per month for thousands of merchants across the United States.
The recent acquisition of Deliver is in sync with Shopify’s strategy to allocate investments toward simplifying fulfillment for merchants and solving supply chain issues faced worldwide.
Shopify Inc. Price and Consensus
Shopify Inc. price-consensus-chart | Shopify Inc. Quote
Will the Acquisition Aid Shopify’s Growth?
Shopify’s e-commerce business boomed during the COVID-19-induced pandemic as global brands and small stores set up online platforms to sell products due to retail markets closing down.
However, once the economy opened and retail stores started winning back their lost customers, Shopify lost its momentum. Inflation and possible signs of recession have aggravated the current market scenario, which in turn slowed down growth in the e-commerce market.
As a result, investors are currently wary of the future growth of the company. Shopify’s stock plunged 78.1% compared with the Zacks Internet Services industry’s decline of 18.4% in the year-to-date period.
To counter this, Shopify has been investing heavily in mergers and acquisitions and building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google.
The Twitter sales channel allows merchants to connect with consumers directly from their Twitter profiles. Shopify noted that it is the first time a commerce platform has partnered with a social media company.
The recent integration with Apple enables shoppers to use Apple smartphones against the terminal to pay for goods. While this may not be a new feature in retail but Apple’s recent Pay Later installments added a whole new dimension to retail marketing.
Shopify’s Google feature syncs local inventory data with the Shopify platform to let customers know when a particular product is in stock.
However, these efforts are not enough to attract new customers to the platform. Due to the current tense geopolitical situation and macro-economic environment, there have been shipping delays globally and increased supply chain constraints, which have been hampering merchants’ capabilities to fulfill orders.
The recent acquisition of Deliverr is the largest in Shopify’s history and will help the company address the supply chain constraint by creating an end-to-end logistics platform to fulfill supply requirements as per demand for millions of merchants.
Deliverr will help Shopify’s logistics and fulfillment capabilities to level up. By combining Deliverr with Shopify Fulfillment Network (SFN), the company will power its newest offering Shop Promise, where consumers can enjoy two-day or next-day delivery options with their choice of merchants.
Although the short-term growth prospects look bleak for the company under the current market scenario, the recent acquisition will help it generate new revenue sources in the long haul, thus impacting revenue growth positively. This will impact shareholders' wealth positively.
Shopify currently carries a Zacks Rank #3 (Hold). 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.
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Apple Inc. (AAPL): Free Stock Analysis Report
Twitter, Inc. (TWTR): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Shopify Inc. (SHOP): 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. | To counter this, Shopify has been investing heavily in mergers and acquisitions and building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Shopify’s e-commerce business boomed during the COVID-19-induced pandemic as global brands and small stores set up online platforms to sell products due to retail markets closing down. | To counter this, Shopify has been investing heavily in mergers and acquisitions and building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report | To counter this, Shopify has been investing heavily in mergers and acquisitions and building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Shopify Inc. Price and Consensus Shopify Inc. price-consensus-chart | Shopify Inc. Quote Will the Acquisition Aid Shopify’s Growth? | To counter this, Shopify has been investing heavily in mergers and acquisitions and building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s AAPL iPhone tap-to-pay feature and Alphabet’s GOOGL local inventory integration with Google. Apple Inc. (AAPL): Free Stock Analysis Report Shopify SHOP recently announced that it has completed the acquisition of Deliverr. |
20350.0 | 2022-07-11 00:00:00 UTC | Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know | AAPL | https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-0 | nan | nan | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +7.2%, compared to the Zacks S&P 500 composite's -5.1% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 0.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.14 per share for the current quarter, representing a year-over-year change of -12.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.9%.
For the current fiscal year, the consensus earnings estimate of $6.10 points to a change of +8.7% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $6.60 indicates a change of +8.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $82.25 billion for the current quarter points to a year-over-year change of +1%. The $393.68 billion and $416.88 billion estimates for the current and next fiscal years indicate changes of +7.6% and +5.9%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $97.28 billion in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $1.52 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $94.54 billion, the reported revenues represent a surprise of +2.9%. The EPS surprise was +6.29%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks 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
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report For the next fiscal year, the consensus earnings estimate of $6.60 indicates a change of +8.2% from what Apple is expected to report a year ago. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report And if earnings estimates go up for a company, the fair value for its stock goes up. |
20351.0 | 2022-07-11 00:00:00 UTC | Could Investing in Redfin Help Make You a Millionaire? | AAPL | https://www.nasdaq.com/articles/could-investing-in-redfin-help-make-you-a-millionaire | nan | nan | Getting to millionaire status by investing in the stock market is easier than many investors think. Consistently investing in the broader S&P 500 index over 20 to 30 years could get you to $1 million alone. But investing strategically in select high-growth stocks can expedite the time to reach $1 million.
Redfin (NASDAQ: RDFN) is a stock that, for many, fits the bill of being a millionaire-making stock. It has major growth potential through innovative technologies in the rather outdated real estate industry. But does it have what it takes to grow over the long haul and truly reach millionaire status? Let's take a deeper look to find out.
Reshaping the real estate industry
True innovators -- that is, companies reshaping how people consume a product or service -- take time to grow. Think of the internet: Something so intimately entwined in our world today took decades to go mainstream. Apple is one of the most popular stocks today and was publicly traded for 26 years before shares started to soar. Tesla's vision for the future of electric vehicles could take years for the masses to buy into. Redfin is no different.
Redfin's real estate software and technology platform is reshaping how renters, buyers, and sellers interact with the real estate market. Its iBuying program, called RedfinNow, and its Redfin Agent program offer an easier, less expensive way for people to sell or list their homes. And its end-to-end real estate services -- which allow customers to better understand the value of their home, find an agent, shop for homes, get a mortgage, or look for rental properties -- are how it's innovating change in the real estate market.
In 2021, it helped transact roughly 1.17% of all real estate transactions, leaving a lot of room for market share growth. But there's no guarantee it will get there, at least not profitably. Like many tech companies, Redfin's vision requires a lot of capital, and the company isn't profitable yet. Since its initial public offering (IPO), it's been losing money like crazy, and concern is growing over whether its vision can be profitable over the long haul.
Can Redfin get there?
For Redfin to help investors become millionaires, the stock must first become profitable and then gain notable market share. That means generating enough fees from its real estate services (title, mortgage, and agent services, for instance) and earning a larger profit from its iBuying business while also growing its users on a large scale -- which may or may not happen.
The real estate market is showing signs of cooling. Slower sales and lower prices would mean less income for Redfin and put its backlog of homes from its iBuying business in a tough spot. Not good news in the short term.
Long term, however, I do see Redfin continuing to gain popularity, becoming a more widespread solution for buying and selling real estate. However, it won't be easy. It has to compete with Zillow, which offers similar all-in-one solutions. So, Redfin will need to further define how it sets itself apart from others to win market share over the long term.
It does have one thing going for it
Buying when values are low leaves it the best possible scenario for earning more down the road. Right now, its stock price is near its lowest level since its IPO and down 90% from recent highs. Although, if a recession comes and the market cools as anticipated, there is a chance the stock could sink further before growing again.
Given its rock-bottom pricing today, I think it's a fairly affordable investment for risk-averse investors wanting some exposure if the stock goes on to make millions. But keep in mind that $1 million is rarely made with a single investment but rather a diversified portfolio invested in key stocks. Redfin certainly could help you become a millionaire if its vision becomes a reality, but it shouldn't be the only stock you're invested in.
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Liz Brumer-Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Redfin, Tesla, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short August 2022 $13 calls on Redfin, 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. | Since its initial public offering (IPO), it's been losing money like crazy, and concern is growing over whether its vision can be profitable over the long haul. Slower sales and lower prices would mean less income for Redfin and put its backlog of homes from its iBuying business in a tough spot. Given its rock-bottom pricing today, I think it's a fairly affordable investment for risk-averse investors wanting some exposure if the stock goes on to make millions. | That means generating enough fees from its real estate services (title, mortgage, and agent services, for instance) and earning a larger profit from its iBuying business while also growing its users on a large scale -- which may or may not happen. The Motley Fool has positions in and recommends Apple, Redfin, Tesla, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short August 2022 $13 calls on Redfin, and short March 2023 $130 calls on Apple. | Redfin's real estate software and technology platform is reshaping how renters, buyers, and sellers interact with the real estate market. And its end-to-end real estate services -- which allow customers to better understand the value of their home, find an agent, shop for homes, get a mortgage, or look for rental properties -- are how it's innovating change in the real estate market. For Redfin to help investors become millionaires, the stock must first become profitable and then gain notable market share. | And its end-to-end real estate services -- which allow customers to better understand the value of their home, find an agent, shop for homes, get a mortgage, or look for rental properties -- are how it's innovating change in the real estate market. Long term, however, I do see Redfin continuing to gain popularity, becoming a more widespread solution for buying and selling real estate. That's right -- they think these 10 stocks are even better buys. |
20352.0 | 2022-07-11 00:00:00 UTC | 2 Growth Stocks to Set You Up Through the Market Downturn and Beyond | AAPL | https://www.nasdaq.com/articles/2-growth-stocks-to-set-you-up-through-the-market-downturn-and-beyond | nan | nan | The stock market officially entered a bear market last month, defined as a 20% decline from a recent high. Currently, the S&P 500 has dropped by 19.6% since the start of 2022.
That makes this a good opportunity to evaluate growth stocks that may have fallen along with the overall market. You'll want to make sure that the companies still have solid prospects. Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster.
Image source: Getty Images.
Costco
Costco continues to grow revenue and profitability by offering a wide range of products to its members at low unit prices. In its fiscal third quarter ended on May 8, same-store sales (excluding changes in gasoline prices and foreign currency translations) increased by 7.9%.
The big-box retailer's value proposition has garnered a loyal membership, who pay an annual fee. With renewal rates hovering around 90% for years, this indicates that they don't seem to mind paying. Costco also continues to attract new members. It had 64.4 million paid members at the end of the latest fiscal quarter, 6.3% higher than a year ago -- and far higher than the 47.6 million it had at the end of fiscal 2016.
There's also room to expand, with Costco historically opening 20 to 30 new warehouses per year. For the first three quarters of this fiscal year, it opened 14 additional locations, ending the period with 830 warehouses. And it planned to open another 10 in the final three months of this fiscal year.
Loyal customers, attracted by Costco's high-quality goods and services offered at a low price, have led to steadily increasing profits. Despite facing cost pressures like many other retailers, including raising wages for employees, its third-quarter operating profit grew by 7.7% to $1.8 billion.
With the stock price down by about 13% this year, the shares trade at a price-to-earnings (P/E) ratio of 39, down from a 49 multiple in early January.
Apple
Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. It also has a faithful following that has driven top-line increases. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion.
Its iPhones, accounting for more than half of Apple's sales, continue to see high demand. Second-quarter shipments grew by 8% despite the industry's 11% contraction, allowing Apple's market share to increase from 15% to 18%.
This bodes well for the next version of the phone. While a firm date hasn't been established, based on its past track record, Apple seems poised to release the iPhone 14 in the latter part of this year.
It's not merely releasing popular products without an eye on the bottom line. The company continues to increase profitability. Apple's second-quarter operating income was $30 billion, a 9% increase from a year ago.
Apple's shares have fallen by 18% since the start of 2022. This has caused its P/E multiple to drop to 23 from over 30 during this span.
It's rare for companies with strong prospects to see their stock prices drop. However, that's what has happened with Costco and Apple. This provides a good opportunity to pick up shares in these two growth companies at a discount to where they were selling just a few months ago.
10 stocks we like better than Costco Wholesale
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Loyal customers, attracted by Costco's high-quality goods and services offered at a low price, have led to steadily increasing profits. Despite facing cost pressures like many other retailers, including raising wages for employees, its third-quarter operating profit grew by 7.7% to $1.8 billion. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. It had 64.4 million paid members at the end of the latest fiscal quarter, 6.3% higher than a year ago -- and far higher than the 47.6 million it had at the end of fiscal 2016. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Apple Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. 10 stocks we like better than Costco Wholesale When our award-winning analyst team has a stock tip, it can pay to listen. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Apple Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion. |
20353.0 | 2022-07-11 00:00:00 UTC | Sum Up The Parts: FCTR Could Be Worth $34 | AAPL | https://www.nasdaq.com/articles/sum-up-the-parts%3A-fctr-could-be-worth-%2434-0 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Lunt U.S. Factor Rotation ETF (Symbol: FCTR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $34.03 per unit.
With FCTR trading at a recent price near $27.50 per unit, that means that analysts see 23.75% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FCTR's underlying holdings with notable upside to their analyst target prices are STERIS plc (Symbol: STE), Healthpeak Properties Inc (Symbol: PEAK), and Apple Inc (Symbol: AAPL). Although STE has traded at a recent price of $209.40/share, the average analyst target is 28.46% higher at $269.00/share. Similarly, PEAK has 28.11% upside from the recent share price of $26.22 if the average analyst target price of $33.59/share is reached, and analysts on average are expecting AAPL to reach a target price of $183.27/share, which is 24.64% above the recent price of $147.04. Below is a twelve month price history chart comparing the stock performance of STE, PEAK, and AAPL:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Lunt U.S. Factor Rotation ETF FCTR $27.50 $34.03 23.75%
STERIS plc STE $209.40 $269.00 28.46%
Healthpeak Properties Inc PEAK $26.22 $33.59 28.11%
Apple Inc AAPL $147.04 $183.27 24.64%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factor Rotation ETF FCTR $27.50 $34.03 23.75% STERIS plc STE $209.40 $269.00 28.46% Healthpeak Properties Inc PEAK $26.22 $33.59 28.11% Apple Inc AAPL $147.04 $183.27 24.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FCTR's underlying holdings with notable upside to their analyst target prices are STERIS plc (Symbol: STE), Healthpeak Properties Inc (Symbol: PEAK), and Apple Inc (Symbol: AAPL). Similarly, PEAK has 28.11% upside from the recent share price of $26.22 if the average analyst target price of $33.59/share is reached, and analysts on average are expecting AAPL to reach a target price of $183.27/share, which is 24.64% above the recent price of $147.04. | Three of FCTR's underlying holdings with notable upside to their analyst target prices are STERIS plc (Symbol: STE), Healthpeak Properties Inc (Symbol: PEAK), and Apple Inc (Symbol: AAPL). Similarly, PEAK has 28.11% upside from the recent share price of $26.22 if the average analyst target price of $33.59/share is reached, and analysts on average are expecting AAPL to reach a target price of $183.27/share, which is 24.64% above the recent price of $147.04. Factor Rotation ETF FCTR $27.50 $34.03 23.75% STERIS plc STE $209.40 $269.00 28.46% Healthpeak Properties Inc PEAK $26.22 $33.59 28.11% Apple Inc AAPL $147.04 $183.27 24.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, PEAK has 28.11% upside from the recent share price of $26.22 if the average analyst target price of $33.59/share is reached, and analysts on average are expecting AAPL to reach a target price of $183.27/share, which is 24.64% above the recent price of $147.04. Three of FCTR's underlying holdings with notable upside to their analyst target prices are STERIS plc (Symbol: STE), Healthpeak Properties Inc (Symbol: PEAK), and Apple Inc (Symbol: AAPL). Below is a twelve month price history chart comparing the stock performance of STE, PEAK, and AAPL: Below is a summary table of the current analyst target prices discussed above: | Factor Rotation ETF FCTR $27.50 $34.03 23.75% STERIS plc STE $209.40 $269.00 28.46% Healthpeak Properties Inc PEAK $26.22 $33.59 28.11% Apple Inc AAPL $147.04 $183.27 24.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FCTR's underlying holdings with notable upside to their analyst target prices are STERIS plc (Symbol: STE), Healthpeak Properties Inc (Symbol: PEAK), and Apple Inc (Symbol: AAPL). Similarly, PEAK has 28.11% upside from the recent share price of $26.22 if the average analyst target price of $33.59/share is reached, and analysts on average are expecting AAPL to reach a target price of $183.27/share, which is 24.64% above the recent price of $147.04. |
20354.0 | 2022-07-11 00:00:00 UTC | Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-2 | nan | nan | Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $5.68 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, PRF seeks to match the performance of the FTSE RAFI US 1000 Index.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, making it on par with most peer products in the space.
PRF's 12-month trailing dividend yield is 2%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PRF, it has heaviest allocation in the Financials sector --about 18.40% of the portfolio --while Healthcare and Information Technology round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.58% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Berkshire Hathaway Inc (BRK/B).
The top 10 holdings account for about 17.42% of total assets under management.
Performance and Risk
Year-to-date, the Invesco FTSE RAFI US 1000 ETF has lost about -12% so far, and is down about -3.22% over the last 12 months (as of 07/11/2022). PRF has traded between $145.08 and $175.48 in this past 52-week period.
The fund has a beta of 1.01 and standard deviation of 24.71% for the trailing three-year period, which makes PRF a medium risk choice in this particular space. With about 991 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
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 $51.70 billion in assets, Vanguard Value ETF has $94.39 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.58% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Berkshire Hathaway Inc (BRK/B). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.58% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Berkshire Hathaway Inc (BRK/B). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.58% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Berkshire Hathaway Inc (BRK/B). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | Apple Inc. (AAPL): Free Stock Analysis Report Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.58% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Berkshire Hathaway Inc (BRK/B). Making its debut on 12/19/2005, smart beta exchange traded fund Invesco FTSE RAFI US 1000 ETF (PRF) provides investors broad exposure to the Style Box - Large Cap Value category of the market. |
20355.0 | 2022-07-11 00:00:00 UTC | 7 Best Dow Stocks to Buy in July | AAPL | https://www.nasdaq.com/articles/7-best-dow-stocks-to-buy-in-july | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although the best Dow stocks to buy in July won’t titillate investors, they offer a dependable canvas for jittery folks to park their money. Given the wild ride that the equities sector has suffered — the worst first-half performance since 1970 to be precise — many folks already have had enough excitement. Instead, they’re seeking solid return potential to finish out the rest of the year.
For that, the best Dow stocks to buy present an intriguing upside pathway. Unlike the S&P 500, the Dow Jones Industrial Average doesn’t have concrete rules for inclusion. Per its methodology, a security is added “only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.” Despite this ambiguity, you have to be special to be part of the Dow 30.
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Obviously, the best Dow stocks to buy are titans of industry. Taken as a whole, the index features a market capitalization of nearly $10 trillion. For context, if the Dow 30 was its own country, it would rank as the world’s third-largest economy. Therefore, putting your money to work here will help provide at least some peace of mind.
Ticker Company Recent Price
AXP American Express $141.76
AAPL Apple $147.04
CVX Chevron $142.77
KO Coca-Cola $63.14
HD Home Depot $286.47
VZ Verizon $50.49
American Express (AXP)
As far as credit card issuers are concerned, American Express (NYSE:AXP) is adding unwanted PR to the broader challenges it faces as households and businesses struggle against soaring inflation. Having been accused of going “woke” among conservative social critics, the issue came to a head when a former (celebrated) employee accused the financial institution of reverse discrimination.
Admittedly, it’s a messy issue because the underlying political discourse has turned vitriolic. With both Republicans and Democrats gearing up for a bruising battle in the upcoming midterm elections, this matter is not something American Express wanted to deal with.
Nevertheless, the company makes a case for one of the best Dow stocks to buy in July due to its generally affluent cardholder base. For instance, holders of Amex Platinum cards command an average net worth of $4.3 million and have a household income of $474,000.
Put another way, AXP stock may enjoy economic insulation should things turn sour.
Apple (AAPL)
If you’ve been paying modest attention to the business news cycle, you’ll know that a growing number of experts are sounding the alarm about a possible global recession. Along with Russia’s invasion of Ukraine and its subsequent energy supply chain disruptions, the coronavirus pandemic likely did a number on China’s economy. Therefore, we’re entering into uncharted territory.
Usually, you wouldn’t consider a consumer technology firm as one of the best Dow stocks to buy under this circumstance. However, Apple (NASDAQ:AAPL) is a different animal from its peers. Leveraging one of the world’s most powerful brands, Apple products continue to ring the cash register. Indeed, merely discussing rumors about its upcoming device launches has become a full-time job for many writers.
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Therefore, AAPL may also enjoy economic insulation should we encounter a downturn. Another factor to point out is that Apple’s ecosystem has become ingrained into the mainstream consciousness, thus driving sales even under difficult circumstances.
Caterpillar (CAT)
The world’s leading manufacturer of construction and mining equipment, Caterpillar (NYSE:CAT) might come off as a strange idea for best Dow stocks to buy this month. With many analysts predicting that economic activity will slow due in part to a crippling inflation rate, Caterpillar appears like a liability. Indeed, CAT stock is down almost 14% on a year-to-date basis, providing little encouragement.
However, if you’re willing to absorb some near-term volatility, CAT could be one of the surprising ideas to emerge among the best Dow stocks to buy. That’s because the war in Ukraine has forced western powers and U.S. allies to rethink their energy dependencies. Russia is no longer a credible and dependable partner, so it’s important to plan out alternative energy flows.
Well, hydrocarbons are still incredibly relevant due to their high energy density. Further, the U.S. has vast riches of natural resources and key commodities. Despite the environmental concerns, it’s possible that the existential threat from Russia will be enough to overcome objections. Therefore, keep close tabs on CAT stock.
Chevron (CVX)
Speaking of hydrocarbons, Chevron (NYSE:CVX) is the only oil and natural gas company left among the best Dow stocks to buy. Following a devastating year for the entire sector, Chevron’s main rival Exxon Mobil (NYSE:XOM) got the boot from the Dow 30 in August 2020. Still, because of sudden spikes in relevancy, CVX is doing very well as the lone hydrocarbon representative in the index.
Up around 20% YTD, Chevron is basically the polar opposite of the major equity indices. With the pivot to electric vehicles still many years away — largely due to financial reasons as a new EV will set back households $60,000 — the fossil fuel industry should enjoy a significant upside pathway. Further, supply chain issues are also impacting EVs, meaning that combustion cars are still chugging along.
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To be fair, CVX did lose 17% over the trailing month since the July 1 session. A combination of higher interest rates and increased supply from the Strategic Petroleum Reserve didn’t help. However, these are small issues compared to the broader narrative.
Coca-Cola (KO)
Ahead of potential economic turmoil, Coca-Cola (NYSE:KO) offers a generally reliable narrative among the best Dow stocks to buy. Historically, analysts have pegged KO stock as recession proof. While no investment is completely immune to fundamental headwinds, during the Great Recession, market experts focused on the beverage maker for its strong earnings and cash position.
While its balance sheet could enjoy some improvement, it’s still solid given the circumstances. However, Coca-Cola lives up to its billing as a recession-resistant idea, featuring some of the strongest profitability metrics in the business. For instance, its net margin of nearly 26% is well above the industry median of 5%.
For me, Coca-Cola really benefits from the cheap thrills thesis. Not surprisingly, economic downturns represent huge problems for stress, which can lead to mental health concerns. While absolutely not healthy, a little pick-me-up from a (cheap) can of Coke can help detract workers from their troubles.
Home Depot (HD)
Admittedly, Home Depot (NYSE:HD) is a tricky narrative when it comes to the best Dow stocks to buy. Mainly, shares are incredibly volatile. Since the opening round of 2022, HD stock has tanked around 30% and I must say it’s not too surprising. Although the home sale boom provided robust downwind benefits for Home Depot, rising interest rates are starting to impact homebuyer sentiment.
On the other hand, the reason why interest rates are rising — to address the inflation rate — can also help HD stock. With purchasing power declining, the inflationary environment is taking a bite out of real household earnings. Therefore, the concept of do-it-yourself (DIY) isn’t just a nice thing to learn during quarantine: Arguably, it’s now a financial necessity.
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Therefore, it’s possible that down the line, revenue for Home Depot will increase as more people learn to take care of their own business rather than hiring tradespeople to perform relatively basic repairs. Still, it’s a tricky narrative like I said, so exercise some caution here.
Verizon Communications (VZ)
In some ways, you can consider Verizon (NYSE:VZ) as a core utility firm. True, the company doesn’t provide absolutely essential services such as water and power. However, in the connected economic ecosystem that we all live in, it’s going to be extraordinarily difficult to survive without telecommunications firms like Verizon. Therefore, out of sheer necessity, VZ is one of the best Dow stocks to buy.
On average, Americans spend nearly three hours on their phones each day. By the time the calendar turns the page on 2022, the average person in this country will spend nearly a month and a half on their mobile device. For members of Generation Z, this age cohort spends on average four hours and 15 minutes daily on their smartphones.
The point is that we have become a society completely addicted to our digital devices, which cynically serves the interest of wireless carriers like Verizon. Plus, that 5% dividend yield is awfully enticing.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Best Dow Stocks to Buy in July 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. | Apple (AAPL) If you’ve been paying modest attention to the business news cycle, you’ll know that a growing number of experts are sounding the alarm about a possible global recession. Ticker Company Recent Price AXP American Express $141.76 AAPL Apple $147.04 CVX Chevron $142.77 KO Coca-Cola $63.14 HD Home Depot $286.47 VZ Verizon $50.49 American Express (AXP) As far as credit card issuers are concerned, American Express (NYSE:AXP) is adding unwanted PR to the broader challenges it faces as households and businesses struggle against soaring inflation. However, Apple (NASDAQ:AAPL) is a different animal from its peers. | Ticker Company Recent Price AXP American Express $141.76 AAPL Apple $147.04 CVX Chevron $142.77 KO Coca-Cola $63.14 HD Home Depot $286.47 VZ Verizon $50.49 American Express (AXP) As far as credit card issuers are concerned, American Express (NYSE:AXP) is adding unwanted PR to the broader challenges it faces as households and businesses struggle against soaring inflation. Apple (AAPL) If you’ve been paying modest attention to the business news cycle, you’ll know that a growing number of experts are sounding the alarm about a possible global recession. However, Apple (NASDAQ:AAPL) is a different animal from its peers. | Ticker Company Recent Price AXP American Express $141.76 AAPL Apple $147.04 CVX Chevron $142.77 KO Coca-Cola $63.14 HD Home Depot $286.47 VZ Verizon $50.49 American Express (AXP) As far as credit card issuers are concerned, American Express (NYSE:AXP) is adding unwanted PR to the broader challenges it faces as households and businesses struggle against soaring inflation. Apple (AAPL) If you’ve been paying modest attention to the business news cycle, you’ll know that a growing number of experts are sounding the alarm about a possible global recession. However, Apple (NASDAQ:AAPL) is a different animal from its peers. | Ticker Company Recent Price AXP American Express $141.76 AAPL Apple $147.04 CVX Chevron $142.77 KO Coca-Cola $63.14 HD Home Depot $286.47 VZ Verizon $50.49 American Express (AXP) As far as credit card issuers are concerned, American Express (NYSE:AXP) is adding unwanted PR to the broader challenges it faces as households and businesses struggle against soaring inflation. Apple (AAPL) If you’ve been paying modest attention to the business news cycle, you’ll know that a growing number of experts are sounding the alarm about a possible global recession. However, Apple (NASDAQ:AAPL) is a different animal from its peers. |
20356.0 | 2022-07-09 00:00:00 UTC | Down 26%, Is the Nasdaq Ready to Recover in the Last Half of 2022? | AAPL | https://www.nasdaq.com/articles/down-26-is-the-nasdaq-ready-to-recover-in-the-last-half-of-2022 | nan | nan | For investors in high-growth companies, the first half of 2022 has felt like a roller coaster than only goes down.
In fact, the Nasdaq Composite Index recorded its worst first half of any year on record.
As the market heads into the back nine of 2022, the question on all our minds is "will it get any better?" There are countless factors that will go into determining if the next six months will be a story of recovery or simply more pain for the Nasdaq and market at large.
Image source: Getty Images.
Why the Nasdaq has been crushed so far
In an effort to keep this article brief, I'll provide a list of reasons the market as a whole (but especially the Nasdaq) has gotten pummeled so far in 2022:
We are still in a global pandemic.
The war between Russia and Ukraine has created unprecedented uncertainty and fear.
Inflation has risen to the highest level in over 40 years (with little signs of cooling off).
Interest rates are on the rise.
Gross domestic product (GDP) is slowing, indicating a looming recession (if we aren't already in one).
These macroeconomic factors caused the market, which is largely driven by sentiment in the near term, to flee risky stocks (i.e. growth stocks) for the more stable blue chips.
Things have gotten even worse as consumer sentiment has weakened, which further suggests we are headed toward a recession. The Conference Board recently reported the Consumer Confidence Index fell to the lowest levels since February 2021.
Its safe to say the near-term economic outlook is not sunshine and rainbows.
Reasons to be optimistic
Even with all the gloom, there still reasons to be excited for the future of stocks -- even growth stocks.
First, we know the stock market is a forward-looking machine. This means a lot of the negativity is priced in at current levels. While things can always get worse, if even one of the bleak macroeconomic factors starts to turn around, the market could begin to take off.
Second, while inflation has usually resulted in lower prices for equities, Warren Buffett famously stated in his 2008 New York Times opinion piece, "Buy American. I am": "[I]n the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank."
Buffett is referring to one of the hottest inflationary periods in the late 1970s and early 1980s:
YEAR
YOY INFLATION RATE
FEDERAL FUNDS RATE
1977
6.7%
6.5%
1978
9%
10%
1979
13.3%
12%
1980
12.5%
18%
1981
8.9%
12%
Data source: Bureau of Labor Statistics and Federal Reserve Bank of New York
Looking at the numbers above, one would assume the stock market tanked over that period. But not exactly:
^SPX data by YCharts
There are certainly countless differences between the last extended period of high inflation and the current environment, but it goes to show the market doesn't always behave the way you expect.
It's constantly looking forward, so if the gloom starts to clear even slightly, the second half of the year could be better than these first six months.
The Nasdaq is poised to outperform
Whenever the market does begin to recover (and it will at some point), history suggests the Nasdaq will go up faster than the S&P 500:
^IXIC data by YCharts
Even with rising interest rates, the Nasdaq is heavily weighted to big tech names that are not dependent on taking on debt to fund their operations and further their growth. Young, unprofitable start-ups are in a very vulnerable position, but the Amazon (NASDAQ: AMZN)s and Apple (NASDAQ: AAPL)s of the world will continue their dominance and grow their bottom lines.
While there is more ground to make up for growth stocks, investors who get in at current prices could enjoy healthy gains over the next several years, assuming they have the stomach to weather the near-term economic uncertainty.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Young, unprofitable start-ups are in a very vulnerable position, but the Amazon (NASDAQ: AMZN)s and Apple (NASDAQ: AAPL)s of the world will continue their dominance and grow their bottom lines. Second, while inflation has usually resulted in lower prices for equities, Warren Buffett famously stated in his 2008 New York Times opinion piece, "Buy American. But not exactly: ^SPX data by YCharts There are certainly countless differences between the last extended period of high inflation and the current environment, but it goes to show the market doesn't always behave the way you expect. | Young, unprofitable start-ups are in a very vulnerable position, but the Amazon (NASDAQ: AMZN)s and Apple (NASDAQ: AAPL)s of the world will continue their dominance and grow their bottom lines. The Nasdaq is poised to outperform Whenever the market does begin to recover (and it will at some point), history suggests the Nasdaq will go up faster than the S&P 500: ^IXIC data by YCharts Even with rising interest rates, the Nasdaq is heavily weighted to big tech names that are not dependent on taking on debt to fund their operations and further their growth. The Motley Fool has positions in and recommends Amazon and Apple. | Young, unprofitable start-ups are in a very vulnerable position, but the Amazon (NASDAQ: AMZN)s and Apple (NASDAQ: AAPL)s of the world will continue their dominance and grow their bottom lines. These macroeconomic factors caused the market, which is largely driven by sentiment in the near term, to flee risky stocks (i.e. growth stocks) for the more stable blue chips. The Nasdaq is poised to outperform Whenever the market does begin to recover (and it will at some point), history suggests the Nasdaq will go up faster than the S&P 500: ^IXIC data by YCharts Even with rising interest rates, the Nasdaq is heavily weighted to big tech names that are not dependent on taking on debt to fund their operations and further their growth. | Young, unprofitable start-ups are in a very vulnerable position, but the Amazon (NASDAQ: AMZN)s and Apple (NASDAQ: AAPL)s of the world will continue their dominance and grow their bottom lines. I am": "[I]n the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank." * They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! |
20357.0 | 2022-07-09 00:00:00 UTC | Why Are Billionaire Investors Pouring Into This Tiny Tech Stock? | AAPL | https://www.nasdaq.com/articles/why-are-billionaire-investors-pouring-into-this-tiny-tech-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When billionaire investors buy stocks, I pay attention. After all, those billionaire investors became billionaires for one reason: They’re good at investing. They know how to turn a mega profit by buying stocks. So, if they’re all buying a particular stock at a certain time, it’s probably smart to buy that stock, too. And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution.
Source: whiteMocca / Shutterstock
Specifically, over the past two weeks, one well-to-do investor bought more than 60 million shares of this tiny stock. And another manager of a multi-billion-dollar fund scooped up nearly 4 million shares. This follows a big move from just a few months ago by a different multi-hundred-billion-dollar fund. It bought about 50 million shares of the company at the time.
The so-called “smart money” has spoken. They love this tech stock.
Why? Because, quite frankly, it could be the next Microsoft (MSFT).
Seriously — this is an early-stage company founded by some of the smartest people on the planet. And its groundbreaking technology could fundamentally reshape society over the next few years.
It may be the most promising tech startup in the world today. And, yet, virtually no one is talking about it…
Except, of course, for the billionaire investors buying it.
Today, it’s your turn to learn about the groundbreaking industry behind it and why it could be the next big “home-run” investment.
The Computing Revolution Changed the World over the Past 50 Years
The world has changed a lot over the past 40 years. And most of those changes have revolved around one important innovation: the computer.
Back in the 1980s, the world was astounded by this profound innovation. Theoretically, you could program them to do any task. In time, these computers became more powerful, and their underlying code became more robust. And humans started to use them for everything from working, to communicating, to playing.
And so, the Computing Revolution went mainstream.
It’s no coincidence that all of today’s trillion-dollar companies are, in some way, computing companies.
Microsoft makes computers. So does Apple (AAPL). Meta (META) builds applications for use on computers, as does Alphabet (GOOG, GOOGL). Nvidia (NVDA) makes chips for computers. Intel (INTC) does, too. Unsurprisingly, those stocks have all turned their early investors into millionaires.
In short, the computer changed our lives profoundly over the past 40 years. The computing companies pioneering those changes have become the world’s most powerful businesses. And their shareholders have become the world’s wealthiest people.
But why am I telling you all this?
Because today, we face another technological revolution that could be as big as the computing revolution – if not bigger.
The Computing Revolution 2.0
In many ways, the new technological revolution I’m talking about is the Computing Revolution 2.0.
That’s because it’s basically the computing revolution of the past 40 years but applied to living things instead.
I’m talking about rewriting the code of life through an emerging technology field called Synthetic Biology. It’s a much bigger undertaking than rewriting the code of machines.
I know. It sounds crazy. But scientifically speaking, it’s entirely plausible. Moreover, it’s happening right now as you read this.
Recall Biology 101. Structurally speaking, a cell is just like a computer. It’s a very powerful machine that runs on “digital code.” The only difference is that a computer’s code is in ones and zeros. And a cell’s “code” is in Gs, Cs, As, and Ts — the four nucleobases in DNA’s nucleic acid.
Source: Shutterstock
So, in theory, we can manipulate the code of life by changing the nucleobases’ order. And it’s just like manipulating computer code by changing the order of ones and zeros in the codebase.
Therefore, we can “code” living things much in the same way we can “code” inanimate objects, like phones and computers.
That’s what synthetic biology is all about: programming cells how we program computers — by changing the DNA code inside them.
If you’re reading that and thinking it sounds like a profound undertaking, you’re not wrong. It is a profound undertaking — with profound economic implications.
World-Changing Potential
I probably don’t need to state this, but I will just to be abundantly clear. The emerging field of synthetic biology has world-changing potential.
Over the past 50 years, we figured out how to manipulate the code of inanimate objects. Look how much that changed the world. Now we’re figuring out how to manipulate life’s code.
If you thought the computing revolution changed the world, you haven’t seen anything yet…
Synthetic biology allows us to manipulate crops’ code so that they’re pest-resistant or plants’ code so that they’re weather-tolerant. We can manipulate the code of cancer patients to get rid of their cancer. And we can manipulate yeast’s code to produce better-tasting beer.
Indeed, synthetic biology may actually be the solution to the myriad problems the world is facing today!
For example, take soaring gas prices. They’re a byproduct of American and European reliance on Russian oil. Such reliance could be solved by synthetic biology. We could employ it to manipulate the code of oil and natural gas to make it far more effective and plentiful. And with these next-gen fossil fuels, we could entirely eliminate our reliance on foreign oil and gas.
Or how about those soaring grocery prices? That, too, is a byproduct of American and European reliance on Russian wheat. Yet again, synthetic biology could solve that problem. We could employ advanced synbio techniques to improve domestic wheat yields and boost domestic production. Then we’d make enough wheat stateside to not need any imports from Russia. Problem solved!
The list goes on and on. Synthetic biology won’t just change the world. It has the potential to solve most of the world’s current problems!
As I said earlier, the opportunity in this emerging industry is both enormous and urgent.
And at the center of this fast-moving, multi-trillion-dollar technological revolution is one penny stock with gigantic potential.
Why Now for This Tech Stock?
Before I tell you about that stock, let me first state that synthetic biology is not a new concept.
But for years, it has been just that – a concept – and nothing more.
That’s because rewriting the code of life, as you can imagine, is quite complex. The human body is a wonder. It’s infinitely more complex than a computer. Each human has a different “code.” And each living specimen — plant, crop, fish — has a different “code” than humans do.
Source: Shutterstock
To read all those different codes, you need to employ advanced DNA sequencing methods. And they’re among the most complex in the world. Then, to rewrite those codes, you need to use DNA synthesis or printing. And that’s so complex that it makes sequencing look like child’s play.
In short, the universe of synthetic biology is magnitudes more infinite and complex than that of classical computing. So, while we’ve made huge advancements in programming computers over the past 40 years, we’ve made little progress programming cells…
Until now.
Recent advancements in artificial intelligence have sped up the DNA sequencing process. And innovations in classical computing technologies have improved the accuracy of DNA synthesis and printing. This combination has enabled synthetic biology to work in the real world.
Right now, as you read this, food companies are leveraging synthetic biology to create pest-resistant crops. Beer companies are using it to create higher-yielding yeast. And biotech companies are using synbio to make new vaccines and medicines.
So begins the Synthetic Biology Revolution — the biggest technological paradigm shift since the advent of the computer.
The Final Word on a Tiny Tech Stock
At the center of this revolution is one of the most promising tech startups in the world today.
It’s a company that was founded by the world’s most pioneering experts in this field. And it’s backed by some of the biggest and most successful venture capital firms of all time.
The company has developed unique and groundbreaking technology that deals directly with the AI mechanisms that power this whole revolution.
Frankly, its tech is unrivaled. And it’s using it to change the world today via a multitude of partnerships with big food and pharma companies.
This company, folks, is the “next big thing.” It’s the Microsoft of the Synthetic Biology Revolution.
A mere $10,000 investment in Microsoft in its early days would be worth millions of dollars today.
And I believe that a $10,000 investment in this tech stock today could be worth millions of dollars in the future.
Mark my words. This is a stock you need to hear about today.
Fortunately, it’s one I also want to tell you about today.
So, to hear more about the explosive tech stock that billionaires are buying – and the world-changing revolution that it’s pioneering – click here.
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 Why Are Billionaire Investors Pouring Into This Tiny Tech Stock? 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. | So does Apple (AAPL). And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution. Source: whiteMocca / Shutterstock Specifically, over the past two weeks, one well-to-do investor bought more than 60 million shares of this tiny stock. | So does Apple (AAPL). And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution. I’m talking about rewriting the code of life through an emerging technology field called Synthetic Biology. | So does Apple (AAPL). The Computing Revolution Changed the World over the Past 50 Years The world has changed a lot over the past 40 years. The Computing Revolution 2.0 In many ways, the new technological revolution I’m talking about is the Computing Revolution 2.0. | So does Apple (AAPL). The Computing Revolution Changed the World over the Past 50 Years The world has changed a lot over the past 40 years. That’s what synthetic biology is all about: programming cells how we program computers — by changing the DNA code inside them. |
20358.0 | 2022-07-09 00:00:00 UTC | META Stock: Highly Attractive, but Not Because of the Metaverse | AAPL | https://www.nasdaq.com/articles/meta-stock%3A-highly-attractive-but-not-because-of-the-metaverse | nan | nan | Shares of Meta Platforms (META) have settled into the $150-170 range in recent weeks. Though the metaverse as we know it may arrive sooner than we think, questions linger as to whether Meta will even be a major player once the virtual and augmented worlds of tomorrow arrive.
Indeed, Zuckerberg's ambitious comments about the metaverse and the billions to be made are encouraging. However, the company has more than its fair share of critics, as it loses money on VR hardware and software projects. Currently, Meta is a leader in the headset race, but that could change once Apple (AAPL) unveils its premium mixed-reality headset.
Although Meta is covering bases at the high- and low-end of the VR markets, with its Oculus Quest and Pro tiers, Apple could leapfrog over Meta in terms of headset dominance.
If it can repeat the success it had with the iPhone, then Meta's VR ambitions could come crashing down almost as hard as its stock has over the past few months. Nonetheless, I am bullish on META stock because of its low valuation and social-media dominance.
Also worth noting, META stock scores a 7 out of 10 Smart Score rating on TipRanks. This is on the high end of "neutral," indicating that the stock may perform slightly better than the market, going forward.
Meta is a Great Buy, but Not for the Metaverse
Given competitive risks and the firm's tarnished reputation, I'd argue that the days of Meta's VR market dominance could be numbered. It's not just Apple that's joining the VR race. Many other big tech players want a slice of the pie. In any case, it's Apple that poses the greatest risk to Meta as the next frontier of hardware rolls out over the next decade.
Although I'm no fan of Meta's VR strategy and ability to stave off rivals, I do think META stock is a Buy for its robust social-media business.
Zuckerberg recently issued a dire warning about a recession. Ad sales could take a hit, even as user engagement recovers. Still, it's hard to pass up on the stock, with a mere 4x sales and 12.7x trailing earnings multiple. That's cheap, even if Meta finds itself on the receiving end of technological disruption.
Meta is More than Capable of Firing Back at TikTok
Meta's Family of Apps business is an intriguing cash cow that may have many years left of growth in the tank. Though Facebook's negative daily active user (DAU) trend signals the beginning of the end, I'd argue that Meta has more than enough tools to engineer another leg of growth, even amid rising competitive pressures from TikTok.
TikTok is an incredibly popular platform among younger consumers. However, it doesn't have a unique product that a deep-pocketed rival like Meta can't replicate or even improve upon. Reels is Meta's answer to TikTok, and thus far, it's been an underwhelming response.
As the company invests heavily in AI-driven algorithms, I think more content will originate on Reels. As I noted in a prior piece, Instagram users are embracing Reels. Over time, the platform will get more content, and the content will likely be better catered to users.
Further, Meta may get a solid boost should the federal government decide to take action to make firms like Apple ban the Chinese-owned TikTok app from its App Store. U.S. communications regulators would love for TikTok to be taken off app stores. However, it may prove difficult to push the tech titans to ban TikTok due to the potential for data spying.
Thus far, Apple has yet to consider removing the app. TikTok noted it has never provided any U.S. data to Chinese regulators.
In due time, though, there's a non-zero possibility that TikTok will go the way of Flappy Bird in America. Such a move would greatly boost Meta and its growing Reels platform.
Even without help from the government, Meta's Reels seems like a worthy competitor that's able to leverage users on its other social-media apps.
Wall Street's Take on META Stock
Turning to Wall Street, META stock comes in as a Moderate Buy. Out of 38 analyst ratings, there are 29 Buys, eight Holds, and one Sell rating.
The average Meta price target is $269.19, implying upside potential of 57.5%. Analyst price targets range from a low of $180.00 per share to a high of $466.00 per share.
The Bottom Line on Meta Platforms
Meta Platforms is likely a great deal for those seeking solid earnings growth over the long run. Between TikTok and Reels, I'm a bigger fan of Reels, especially as regulators set their sights on TikTok.
If Meta wasn't pouring billions into the metaverse, I'd be an even bigger fan of the stock here. Metaverse NFTs and other digital goods are no longer enough to get investors excited about the stock; they want to see progress regarding Meta's Family of Apps. In due time, I do think investors will get what they want.
Though I'm unenthused by Meta's VR push, it's hard to deny the power of its Family of Apps, which, I believe, has staying power.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Currently, Meta is a leader in the headset race, but that could change once Apple (AAPL) unveils its premium mixed-reality headset. If it can repeat the success it had with the iPhone, then Meta's VR ambitions could come crashing down almost as hard as its stock has over the past few months. Though Facebook's negative daily active user (DAU) trend signals the beginning of the end, I'd argue that Meta has more than enough tools to engineer another leg of growth, even amid rising competitive pressures from TikTok. | Currently, Meta is a leader in the headset race, but that could change once Apple (AAPL) unveils its premium mixed-reality headset. Meta is More than Capable of Firing Back at TikTok Meta's Family of Apps business is an intriguing cash cow that may have many years left of growth in the tank. Further, Meta may get a solid boost should the federal government decide to take action to make firms like Apple ban the Chinese-owned TikTok app from its App Store. | Currently, Meta is a leader in the headset race, but that could change once Apple (AAPL) unveils its premium mixed-reality headset. Although I'm no fan of Meta's VR strategy and ability to stave off rivals, I do think META stock is a Buy for its robust social-media business. Meta is More than Capable of Firing Back at TikTok Meta's Family of Apps business is an intriguing cash cow that may have many years left of growth in the tank. | Currently, Meta is a leader in the headset race, but that could change once Apple (AAPL) unveils its premium mixed-reality headset. However, it may prove difficult to push the tech titans to ban TikTok due to the potential for data spying. Analyst price targets range from a low of $180.00 per share to a high of $466.00 per share. |
20359.0 | 2022-07-08 00:00:00 UTC | PREVIEW-Investors anxious about a recession look to U.S. companies for guidance | AAPL | https://www.nasdaq.com/articles/preview-investors-anxious-about-a-recession-look-to-u.s.-companies-for-guidance-0 | nan | nan | By Caroline Valetkevitch
NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs.
Concerns over a possible recession have already driven a sharp selloff in stocks that resulted in the S&P 500's .SPX steepest percentage drop in the first-half of a year since 1970.
But earnings forecasts for the year have largely held up. That has raised questions among some investors about whether current earnings projections reflect those concerns and can remain strong enough to support the market.
Investors have been trying to to figure out whether an aggressive interest rate hike cycle by the U.S. Federal Reserve to tame inflation could tip the economy into recession.
With recession talk having increased in the market, upcoming corporate results and outlooks "are going to be the key catalyst going forward," said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.
Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday.
For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.7% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.4% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of Friday.
Those forecasts, however, are somewhat distorted by the energy sector, whose earnings are forecast to have jumped by more than 230% in the second quarter following a rally in oil prices. Without energy companies, second-quarter profits are expected to have declined 3% from a year ago, based on Refinitiv data.
"While companies may be able to deliver a decent second quarter, the outlooks are likely to be overall very conservative," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Last week, Fed Chair Jerome Powell told a European Central Bank conference that "there is a risk" the U.S. central bank could slow the economy more than needed to control inflation.
Commodity and other costs have been rising, and companies have been grappling with how much of those price increases can be passed on to consumers or absorbed.
Among companies that have already reported, Micron Technology Inc MU.O recently projected a fall in current-quarter revenue, sparking concerns about demand in the chip industry.
Nike Inc NKE.N forecast quarterly revenue below estimates as it expects to discount more.
Technology and growth stocks, whose valuations rely more heavily on future cash flows, have been among the hardest hit by concerns over rising rates.
Meta Platforms META.O Chief Executive Mark Zuckerberg recently told employees to brace for a deep economic downturn. Its shares fell 27% in the second quarter.
Apple AAPL.O, whose shares slid about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26.
While higher energy prices are expected to be a drag on airlines and other transportation companies as well as some industrial firms, they are a positive for energy names. Chevron CVX.N is due to report on July 29.
Goldman Sachs' brokerage recently trimmed its estimates for someconsumer-exposed companies including Apple, citing demand concerns.
Valuations have fallen with the market's selloff. The S&P 500's forward 12-month price-to-earnings ratio was at 16.2 as of Friday versus 22.1 at the end of December and was in line with its long-term average of about 16, Refinitiv data showed.
While the drop has made valuations seem more attractive to some investors, others worry about what's in store for earnings forecasts.
Market sentiment already has become more bearish and multiples have come down, said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Company. "The next shoe to drop typically is a revision lower in terms of earnings estimates by the sell side."
S&P 500 quarterly earningshttps://tmsnrt.rs/3bJkNGK
Expected S&P 500 Q2 earnings by sectorhttps://tmsnrt.rs/3IwabHt
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Deepa Babington)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O, whose shares slid about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. By Caroline Valetkevitch NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs. Investors have been trying to to figure out whether an aggressive interest rate hike cycle by the U.S. Federal Reserve to tame inflation could tip the economy into recession. | Apple AAPL.O, whose shares slid about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday. For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.7% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.4% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of Friday. | Apple AAPL.O, whose shares slid about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. By Caroline Valetkevitch NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs. For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.7% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.4% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of Friday. | Apple AAPL.O, whose shares slid about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday. Among companies that have already reported, Micron Technology Inc MU.O recently projected a fall in current-quarter revenue, sparking concerns about demand in the chip industry. |
20360.0 | 2022-07-08 00:00:00 UTC | Friday's ETF with Unusual Volume: FCTR | AAPL | https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-fctr | nan | nan | The First Trust Lunt U.S. Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 295,000 shares traded versus three month average volume of about 108,000. Shares of FCTR were down about 0.1% on the day.
Components of that ETF with the highest volume on Friday were Apple, trading up about 0.5% with over 62.9 million shares changing hands so far this session, and Bank of America, down about 0.2% on volume of over 30.9 million shares. Centene is the component faring the best Friday, higher by about 3.2% on the day, while Freeport-mcmoran is lagging other components of the First Trust Lunt U.S. Factor Rotation ETF, trading lower by about 4.2%.
VIDEO: Friday's ETF with Unusual Volume: FCTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 295,000 shares traded versus three month average volume of about 108,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.5% with over 62.9 million shares changing hands so far this session, and Bank of America, down about 0.2% on volume of over 30.9 million shares. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 295,000 shares traded versus three month average volume of about 108,000. Factor Rotation ETF, trading lower by about 4.2%. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 295,000 shares traded versus three month average volume of about 108,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.5% with over 62.9 million shares changing hands so far this session, and Bank of America, down about 0.2% on volume of over 30.9 million shares. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 295,000 shares traded versus three month average volume of about 108,000. Shares of FCTR were down about 0.1% on the day. Centene is the component faring the best Friday, higher by about 3.2% on the day, while Freeport-mcmoran is lagging other components of the First Trust Lunt U.S. |
20361.0 | 2022-07-08 00:00:00 UTC | The Dow Fell 46 Points, But These 3 Stocks Eked Out Gains | AAPL | https://www.nasdaq.com/articles/the-dow-fell-46-points-but-these-3-stocks-eked-out-gains | nan | nan | The Dow Jones Industrial Average fell 46 points on an up-and-down day for the broader index after a surprisingly strong jobs report seemed to confuse investors about the current state of the economy.
This morning the U.S. Bureau of Labor Statistics reported that nonfarm payrolls added 372,000 jobs in June, exceeding estimates of just 250,000. Unemployment remained at a rock-solid 3.6%, the same as it was in May, suggesting the job market remains very strong.
"The strong 372,000 gain in non-farm payrolls in June appears to make a mockery of claims the economy is heading into, let alone already in, a recession," said Andrew Hunter, a senior economist at Capital Economics.
Image source: Getty Images.
The news is the latest wrinkle in the market's economic outlook, which seems to change weekly and get more confusing by the day. While one would think a strong jobs market is good news, it could also suggest that inflation is still moving higher, so it's another thing for investors to grapple with as they try to think about the future. While the Dow fell, several stocks managed to escape the day with gains.
Sector agnostic
No sector, in particular, seemed to stand out or perform poorly today. The healthcare insurance company UnitedHealth Group (NYSE: UNH) continued to find itself at the top of the Dow. The stock finished just under 1% higher and is up more than 6% over the past month, which compares favorably to the Dow, which is down close to 3% since early June.
Nothing specific seems to be driving UnitedHealth higher today, but insurance stocks have fared well this year. Insurance typically doesn't get scrapped from the consumer's budget even when times get tough, and so insurers are able to pass higher costs from inflation onto their customers.
The second-best finisher in the Dow was the credit card and payments company American Express (NYSE: AXP), which finished the day about half a percent higher.
In this case, I think American Express is a clear beneficiary of the strong jobs report today because it suggests the consumer could be in better shape than people thought. This would be great for American Express, which benefits when consumers are spending and paying off their debt.
That's why banks like some inflation but not so much inflation that it would knock the economy into a recession, which could slow spending and lead to a spike in loan defaults.
The consumer tech giant Apple (NASDAQ: AAPL) was the third-highest finisher in the Dow, with shares ending the day nearly half a percentage point higher. I didn't see anything specific driving Apple higher today.
Are any of these stocks buys?
If there is one stock among this group I might look at today, it would be banks like American Express. As I mentioned above, banks are going to benefit a lot from rising interest rates. They haven't seen this kind of rapidly rising-rate environment since the Great Recession.
But it will be even more beneficial if the consumer can stay strong and the economy can avoid a severe recession because then banks can also find loan growth. The banking sector as a whole has taken a hit. American Express is down close to 16% in 2022. Now could be the right time to buy in.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends UnitedHealth Group 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. | The consumer tech giant Apple (NASDAQ: AAPL) was the third-highest finisher in the Dow, with shares ending the day nearly half a percentage point higher. The Dow Jones Industrial Average fell 46 points on an up-and-down day for the broader index after a surprisingly strong jobs report seemed to confuse investors about the current state of the economy. "The strong 372,000 gain in non-farm payrolls in June appears to make a mockery of claims the economy is heading into, let alone already in, a recession," said Andrew Hunter, a senior economist at Capital Economics. | The consumer tech giant Apple (NASDAQ: AAPL) was the third-highest finisher in the Dow, with shares ending the day nearly half a percentage point higher. The second-best finisher in the Dow was the credit card and payments company American Express (NYSE: AXP), which finished the day about half a percent higher. I didn't see anything specific driving Apple higher today. | The consumer tech giant Apple (NASDAQ: AAPL) was the third-highest finisher in the Dow, with shares ending the day nearly half a percentage point higher. If there is one stock among this group I might look at today, it would be banks like American Express. 10 stocks we like better than American Express When our award-winning analyst team has a stock tip, it can pay to listen. | The consumer tech giant Apple (NASDAQ: AAPL) was the third-highest finisher in the Dow, with shares ending the day nearly half a percentage point higher. In this case, I think American Express is a clear beneficiary of the strong jobs report today because it suggests the consumer could be in better shape than people thought. If there is one stock among this group I might look at today, it would be banks like American Express. |
20362.0 | 2022-07-08 00:00:00 UTC | Apple Should Beat June Quarter Expectations but Guide for September Could Disappoint, Says Analyst | AAPL | https://www.nasdaq.com/articles/apple-should-beat-june-quarter-expectations-but-guide-for-september-could-disappoint-says | nan | nan | It’s that time again. Wall Street’s quarterly earnings show is getting underway and before the month is out, Apple (AAPL) is expected deliver its fiscal third quarter report (June quarter, scheduled for July 28).
While investor concerns mostly center on the effect of high inflation and iPhone demand, Evercore’s Amit Daryanani believes that despite data points skewing to the negative - these include weak Chinese smartphone data (-9%), App Store growth slowing down to ~4%, and companies such as Micron noting “weakness” in smartphone/PC demand - AAPL has provided a conservative enough guide which will allow for another beat (although possibly a more modest one compared to prior ones) in the June quarter.
The Street is looking for ~1.4% growth, a display Daryanani believes should not be difficult to meet. While Apple did not give revenue guidance for the quarter, the company did suggest the quarter’s growth rate would have mirrored the March quarter (+9%), if not for several headwinds including an FX hit to the tune of 300bps, 150bps from Russia, and $4-$8 billion in supply constraints.
However, the analyst notes that Apple has “tended to overestimate supply headwinds over the past few quarters,” and therefore believes it is possible the supply and FX issues are “less severe than Apple assumed.”
That said, all eyes will be on the September quarter guide and here Daryanani is not quite so confident. Due to the “challenging f/x environment and evolving macro situation,” Daryanani thinks there’s potential for the September quarter guide to “qualitatively be below current expectations.”
As such, while the analyst has made no changes to the June quarter forecast, the September quarter estimates are lowered to revenue/EPS of $88 billion/$1.28, respectively. Both are below Street expectations, which stand at $90.3 billion/$1.32.
“Net/net,” Daryanani summed up, “we are relatively neutral this quarter as we think Apple is contending with numerous headwinds, but these risks should be adequately understood and reflected in expectations.”
To this end, Daryanani maintains an Outperform (i.e., Buy) rating along with a $180 price target. The implication for investors? Upside of 22% from current levels. (To watch Daryanani’s track record, click here)
28 analysts have posted AAPL reviews during the past 3 months, which break down as 22 to 6 in favor of Buys over Holds, and all coalesce to a Strong Buy consensus view. Given the average price target clocks in at $185.05, the shares are expected to appreciate ~26% over the next 12 months. (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. | While investor concerns mostly center on the effect of high inflation and iPhone demand, Evercore’s Amit Daryanani believes that despite data points skewing to the negative - these include weak Chinese smartphone data (-9%), App Store growth slowing down to ~4%, and companies such as Micron noting “weakness” in smartphone/PC demand - AAPL has provided a conservative enough guide which will allow for another beat (although possibly a more modest one compared to prior ones) in the June quarter. Wall Street’s quarterly earnings show is getting underway and before the month is out, Apple (AAPL) is expected deliver its fiscal third quarter report (June quarter, scheduled for July 28). (To watch Daryanani’s track record, click here) 28 analysts have posted AAPL reviews during the past 3 months, which break down as 22 to 6 in favor of Buys over Holds, and all coalesce to a Strong Buy consensus view. | While investor concerns mostly center on the effect of high inflation and iPhone demand, Evercore’s Amit Daryanani believes that despite data points skewing to the negative - these include weak Chinese smartphone data (-9%), App Store growth slowing down to ~4%, and companies such as Micron noting “weakness” in smartphone/PC demand - AAPL has provided a conservative enough guide which will allow for another beat (although possibly a more modest one compared to prior ones) in the June quarter. Wall Street’s quarterly earnings show is getting underway and before the month is out, Apple (AAPL) is expected deliver its fiscal third quarter report (June quarter, scheduled for July 28). (To watch Daryanani’s track record, click here) 28 analysts have posted AAPL reviews during the past 3 months, which break down as 22 to 6 in favor of Buys over Holds, and all coalesce to a Strong Buy consensus view. | Wall Street’s quarterly earnings show is getting underway and before the month is out, Apple (AAPL) is expected deliver its fiscal third quarter report (June quarter, scheduled for July 28). While investor concerns mostly center on the effect of high inflation and iPhone demand, Evercore’s Amit Daryanani believes that despite data points skewing to the negative - these include weak Chinese smartphone data (-9%), App Store growth slowing down to ~4%, and companies such as Micron noting “weakness” in smartphone/PC demand - AAPL has provided a conservative enough guide which will allow for another beat (although possibly a more modest one compared to prior ones) in the June quarter. (To watch Daryanani’s track record, click here) 28 analysts have posted AAPL reviews during the past 3 months, which break down as 22 to 6 in favor of Buys over Holds, and all coalesce to a Strong Buy consensus view. | Wall Street’s quarterly earnings show is getting underway and before the month is out, Apple (AAPL) is expected deliver its fiscal third quarter report (June quarter, scheduled for July 28). While investor concerns mostly center on the effect of high inflation and iPhone demand, Evercore’s Amit Daryanani believes that despite data points skewing to the negative - these include weak Chinese smartphone data (-9%), App Store growth slowing down to ~4%, and companies such as Micron noting “weakness” in smartphone/PC demand - AAPL has provided a conservative enough guide which will allow for another beat (although possibly a more modest one compared to prior ones) in the June quarter. (To watch Daryanani’s track record, click here) 28 analysts have posted AAPL reviews during the past 3 months, which break down as 22 to 6 in favor of Buys over Holds, and all coalesce to a Strong Buy consensus view. |
20363.0 | 2022-07-08 00:00:00 UTC | PREVIEW-Investors anxious about a recession look to U.S. companies for guidance | AAPL | https://www.nasdaq.com/articles/preview-investors-anxious-about-a-recession-look-to-u.s.-companies-for-guidance | nan | nan | By Caroline Valetkevitch
NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs.
Concerns over a possible recession have already driven a sharp selloff in stocks that resulted in the S&P 500's .SPX steepest percentage drop in the first-half of a year since 1970, while earnings forecasts for the year have largely held up.
That has raised questions among some investors about whether current earnings projections reflect those concerns and can remain strong enough to support the market.
"While companies may be able to deliver a decent second quarter, the outlooks are likely to be overall very conservative," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday.
For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.6% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.5% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of July 1.
Those forecasts, however, are somewhat distorted by the energy sector, whose earnings are forecast to have jumped by more than 220% in the second quarter following a rally in oil prices. Without energy companies, second-quarter profits are expected to have declined 2.4% from a year ago, based on Refinitiv data.
Investors have been worried that an aggressive interest rate hike cycle by the U.S. Federal Reserve to tame inflation could tip the economy into recession.
Last week, Fed Chair Jerome Powell told a European Central Bank conference that "there is a risk" the U.S. central bank could slow the economy more than needed to control inflation.
Commodity and other costs have been rising, and companies have been grappling with how much of those price increases can be passed on to consumers or absorbed.
Among companies that have already reported, Micron Technology Inc MU.O recently projected a fall in current-quarter revenue, sparking concerns about demand in the chip industry.
Nike Inc NKE.N forecast quarterly revenue below estimates as it expects to discount more.
Technology and growth stocks, whose valuations rely more heavily on future cash flows, have been among the hardest hit by concerns over rising rates.
Meta Platforms META.O Chief Executive Mark Zuckerberg recently told employees to brace for a deep economic downturn. Its shares fell 27% in the second quarter.
Apple AAPL.O, whose shares fell about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26.
While higher energy prices are expected to be a drag on airlines and other transportation companies as well as some industrial firms, they are a positive for energy names. Chevron CVX.N is due to report on July 29.
Goldman Sachs' brokerage recently trimmed its estimates for companies including Apple, citing demand concerns.
Valuations have fallen with the market's selloff. The S&P 500's forward 12-month price-to-earnings ratio was at 16.1 as of July 1 versus 22.1 at the end of December and was in line with its long-term average of about 16, Refinitiv data showed.
While the drop has made valuations seem more attractive to some investors, others worry about what's in store for earnings forecasts.
Multiples have come down, said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Company, and "the next shoe to drop typically is a revision lower in terms of earnings estimates by the sell side."
S&P 500 quarterly earningshttps://tmsnrt.rs/3bxnVoS
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Deepa Babington)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O, whose shares fell about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. By Caroline Valetkevitch NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs. "While companies may be able to deliver a decent second quarter, the outlooks are likely to be overall very conservative," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. | Apple AAPL.O, whose shares fell about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday. For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.6% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.5% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of July 1. | Apple AAPL.O, whose shares fell about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. By Caroline Valetkevitch NEW YORK, July 8 (Reuters) - As U.S. companies open their books on the second quarter in the coming weeks, investors increasingly worried about a recession will be anxious to hear what executives say about how demand is holding up in the face of higher costs. For the second quarter, analysts expect overall S&P 500 earnings to have increased 5.6% over the year-ago period, compared to growth of 6.8% expected at the start of April, while they see earnings for all of 2022 growing by 9.5% versus 8.8% expected on April 1, according to IBES data from Refinitiv as of July 1. | Apple AAPL.O, whose shares fell about 22% in the second quarter, is due to report results July 28, while results for Alphabet GOOGL.O, whose shares also dropped 22% last quarter, are expected July 26. Earnings from some of Wall Street's biggest banks will unofficially start off the earnings period when they report next week, with results from JPMorgan Chase JPM.N due Thursday. Among companies that have already reported, Micron Technology Inc MU.O recently projected a fall in current-quarter revenue, sparking concerns about demand in the chip industry. |
20364.0 | 2022-07-08 00:00:00 UTC | Netflix (NFLX) Adds Spatial Audio to Select Movies and Shows | AAPL | https://www.nasdaq.com/articles/netflix-nflx-adds-spatial-audio-to-select-movies-and-shows | nan | nan | Netflix NFLX has announced that it will begin rolling out the spatial audio feature to all devices globally, in an attempt to enhance the user listening experience for select original titles.
The popular streaming service has partnered with German audio brand, Sennheiser, to bring the feature to all Netflix users, irrespective of device and streaming plan. The new feature will work without the use of any extra accessories or equipment and will be particularly noticeable to those who use headphones.
While the platform already supports 4K, HDR, Dolby Atmos and Netflix Calibrated Mode for a great viewing experience, the spatial audio support will give viewers a cinematic experience at home.
Netflix has made it even easier to find movies and TV shows that do support the new audio feature. Users can simply search for “spatial audio” in the search bar and select a show or film that supports the same from the search results.
Popular Netflix original show Stranger Things, is one of the first shows to be supported by spatial audio. Other supported content includes Red Notice, The Witcher, Raising Dion, Castlevania, Interceptor, Lock & Key and The Haunting of Bly Manor.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix Joins Other Streamers Offering Spatial Audio Support
This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In October, last year, Amazon’s music streaming service, Amazon Music, made its music compatible in spatial audio available on multiple devices for Unlimited tier subscribers.
Disney+ subscribers using Apple devices such as Apple TV, iPad, or iPhone can enhance the listening experience through spatial audio while watching action films and TV shows like Avengers: Endgame, The Mandalorian Mulan, Onward and Star Wars: The Force Awakens, among others.
Netflix added support for Apple's spatial audio in August 2021. Apple's system works only with AirPods Pro, AirPods Max and AirPods 3 on Apple TV 4K, Mac, iPad and iPhone. Netflix will continue to use Apple's system on Apple devices.
However, the Netflix implementation will not support the head-tracking aspect, which gives the sound output a sense of direction, noticeable when you move your head around. Furthermore, if a user is watching Netflix content on an iPhone, iPad or Apple TV, spatial audio will only be available if the sound quality is set to “High” or “Auto.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report Netflix NFLX has announced that it will begin rolling out the spatial audio feature to all devices globally, in an attempt to enhance the user listening experience for select original titles. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report In October, last year, Amazon’s music streaming service, Amazon Music, made its music compatible in spatial audio available on multiple devices for Unlimited tier subscribers. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report While the platform already supports 4K, HDR, Dolby Atmos and Netflix Calibrated Mode for a great viewing experience, the spatial audio support will give viewers a cinematic experience at home. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report 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. |
20365.0 | 2022-07-07 00:00:00 UTC | Why Snap Stock Is Up 14.7% This Week | AAPL | https://www.nasdaq.com/articles/why-snap-stock-is-up-14.7-this-week | nan | nan | What happened
Shares of Snap Inc. (NYSE: SNAP) popped as much as 14.8% this week, according to data from S&P Global Market Intelligence. The camera, messaging, and social media company got an analyst upgrade, potentially good news from a competitor, and rode the positive broad market performance this week. As of this writing, shares of the stock are up 14.7% since last Friday's close.
So what
There was minimal official news out of Snap this week, but investors still got some positive indicators that may have caused people to buy shares. First, JMP Securities put out a buy rating and a $42 price target on the stock. Shares currently trade at $15, so this would be some tremendous upside for the company if JMP Securities is correct.
Second, there has been more heat on social media and video competitor Tik-Tok. The Federal Communications Commission (FCC) wrote an open letter to Apple and Google (which control the mobile app stores) asking the Chinese-based app to be removed because of privacy violations, among other things. If TikTok gets taken off the app stores or is even banned in the United States, that would likely benefit Snap's business with one less social company out there competing for people's attention.
Lastly, Snap has benefited from the broad rise in stock prices this week. Over the last five trading days, the Nasdaq 100 Index is up almost 4%. While a lot less than the 15% gain Snap's shares got, it definitely had an impact on the company's share price this week.
Now what
Analyst upgrades or not, investors should be evaluating whether Snap stock is a buy based on how much cash they think the company will generate in the future. Over the last 12 months, it has generated $4.4 billion in revenue and just over $200 million in free cash flow. Given Snap's market cap of $25 billion right now, investors need to expect tons of future revenue growth combined with healthy cash generation.
Management is coming out with unique products, like the latest Snapchat+ subscription for power users. The service is $3.99 per month and could help increase revenue generation from its core user base. If you are going to buy the stock, you need to believe these new products will help revenue grow at a high rate for many years and translate into billions a year in free cash flow.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The camera, messaging, and social media company got an analyst upgrade, potentially good news from a competitor, and rode the positive broad market performance this week. If TikTok gets taken off the app stores or is even banned in the United States, that would likely benefit Snap's business with one less social company out there competing for people's attention. Given Snap's market cap of $25 billion right now, investors need to expect tons of future revenue growth combined with healthy cash generation. | The camera, messaging, and social media company got an analyst upgrade, potentially good news from a competitor, and rode the positive broad market performance this week. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Now what Analyst upgrades or not, investors should be evaluating whether Snap stock is a buy based on how much cash they think the company will generate in the future. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. | While a lot less than the 15% gain Snap's shares got, it definitely had an impact on the company's share price this week. Now what Analyst upgrades or not, investors should be evaluating whether Snap stock is a buy based on how much cash they think the company will generate in the future. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. |
20366.0 | 2022-07-07 00:00:00 UTC | Alphabet (GOOGL) Boosts Google Photos With Pop-Up UI Update | AAPL | https://www.nasdaq.com/articles/alphabet-googl-boosts-google-photos-with-pop-up-ui-update | nan | nan | Alphabet’s GOOGL division Google is consistently adding innovative features to its photo-sharing and storage-providing app, Google Photos.
Reportedly, Google updated Google Photos with a pop-up user interface (UI), which enables users to share photos and videos directly from the photo-sharing app’s library.
The updated UI shows options like Share, Add to, Delete, Order Photo, Move to Archive, Move to Locked Folder when one or multiple photos and videos are selected.
With the revamped UI, users can access more options without clicking through the image. They can send images or videos to specific contacts, add pictures or videos to an album and see its location by swiping the pop-up further upward.
On the back of this updated UI, Google focuses on providing an enhanced experience to the users of Google Photos. This is expected to boost the app’s adoption in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google Photos Initiatives
Apart from the recent capability, Google introduced a set of Real Tone filters in Google Photos to let users show their skin in its actual shade.
Google also introduced a feature to Google Photos for Android and iOS users. With this capability, users can delete media in albums and view date and location while browsing.
Reportedly, Google is adding a snippet feature to Google Photos to highlight the prominent portions of the uploading video content.
All these endeavors will continue to help Google drive momentum among the Android 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 24.9% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 31.2%.
Competitive Threat
However, Alphabet faces intense competitive pressure from other technology giants like Microsoft MSFT and Apple AAPL, which are witnessing solid momentum among customers on the back of their photo-sharing and storage services.
Microsoft has lost 23.6% in the year-to-date period. MSFT’s Microsoft OneDrive lets users easily store and share photos, videos, documents and more from any device.
Security-conscious users can access Microsoft OneDrive’s subfolder Vault, which provides an end-to-end encryption for important files. MSFT customers using the free OneDrive plan can store 5 files in the vault, whereas premium customers can keep unlimited files.
Apple, which has lost 20.3% in the same timeframe, offers its photo management application, Apple Photos, which is affordable, feature-rich and highly secure. Apple Photos has a Shared Albums option, which lets users share photos and videos with selective people.
Further, Apple Photos is integrated with iCloud, offering a seamless cloud storage backup and syncing solution across iOS, macOS, and iPadOS.
Thus, Microsoft and Apple’s growing efforts in enriching their photo management applications pose a threat to Alphabet’s market position.
Zacks Rank & Stock to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider Aspen Technology AZPN, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aspen technology has returned 25.7% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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The 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 other technology giants like Microsoft MSFT and Apple AAPL, which are witnessing solid momentum among customers on the back of their photo-sharing and storage services. Apple Inc. (AAPL): Free Stock Analysis Report MSFT’s Microsoft OneDrive lets users easily store and share photos, videos, documents and more from any device. | Competitive Threat However, Alphabet faces intense competitive pressure from other technology giants like Microsoft MSFT and Apple AAPL, which are witnessing solid momentum among customers on the back of their photo-sharing and storage services. Apple Inc. (AAPL): Free Stock Analysis Report Reportedly, Google updated Google Photos with a pop-up user interface (UI), which enables users to share photos and videos directly from the photo-sharing app’s library. | Competitive Threat However, Alphabet faces intense competitive pressure from other technology giants like Microsoft MSFT and Apple AAPL, which are witnessing solid momentum among customers on the back of their photo-sharing and storage services. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet’s GOOGL division Google is consistently adding innovative features to its photo-sharing and storage-providing app, Google Photos. | Competitive Threat However, Alphabet faces intense competitive pressure from other technology giants like Microsoft MSFT and Apple AAPL, which are witnessing solid momentum among customers on the back of their photo-sharing and storage services. Apple Inc. (AAPL): Free Stock Analysis Report Google also introduced a feature to Google Photos for Android and iOS users. |
20367.0 | 2022-07-07 00:00:00 UTC | 3 Proven Stocks Investors Should Buy Amid a Market Rebound | AAPL | https://www.nasdaq.com/articles/3-proven-stocks-investors-should-buy-amid-a-market-rebound | nan | nan | The last few days of price action within the market is very promising. Investors have undoubtedly welcomed the green with open arms, as the first half of the year has been anything but kind to portfolios.
Today, the market looks to record another solid day, with all major indexes heading for another close in the green. If the price action remains strong, it’ll be the S&P 500’s third weekly close in the green out of the last ten.
With some buyers finally arriving, bears will be forced back into hibernation. After all, they’ve had more than enough fun in the first half of 2022.
Of course, the bottom could still not be in, but we’re still well above 2022 lows – a major positive.
It’s critical that investors have high-quality stocks in their portfolios amid a rebounding market. A few market leaders that will help lead a rebound include Microsoft MSFT, Apple AAPL, and Adobe ADBE.
The five-year chart below shows just how well these companies have performed over the years, and there’s no glaring reason why they can’t continue this stellar long-term performance for some time.
Image Source: Zacks Investment Research
Now, for the ugly. The chart below illustrates the year-to-date share performance of all three companies.
Image Source: Zacks Investment Research
Clearly, it’s been a rough stretch. However, this market downturn has presented us with buying opportunities not seen in some time – something any long-term investor is surely celebrating.
Let’s get into why owning these stocks would be beneficial amid a market turnaround.
Adobe
Adobe ADBE is an American multinational computer software company headquartered in California.
Adobe’s forward earnings multiple sits on the pricey side at 34.9X but is well below its five-year median value of 45.6X and is nowhere near 2020 highs of 66.3X. Additionally, the value is the lowest we’ve seen since early 2019.
Image Source: Zacks Investment Research
The company has reported strong quarterly results consistently, exceeding bottom-line estimates in 14 consecutive quarters dating back to 2018. In Adobe’s latest quarter, the company beat the Zacks Consensus EPS Estimate by 1.5% and reported quarterly EPS of $3.35.
In addition to strong quarterly results, growth estimates for the top and bottom-line display the company’s successful business operations.
For FY22, the Zacks Consensus EPS Estimate resides at $13.51, resulting in a strong 8% growth in earnings year-over-year. Furthermore, in FY23, earnings are expected to tack on an additional double-digit 16%.
Image Source: Zacks Investment Research
Additionally, ADBE is forecasted to rake in $17.7 billion in revenue in the current fiscal year, which reflects a double-digit 12% expansion in the top-line year-over-year. Looking ahead, the FY23 revenue estimate of $20 billion represents an additional 14% growth in revenue.
Image Source: Zacks Investment Research
Apple
We’re all familiar with Apple AAPL, the tech titan that has taken the mobile phone landscape to new heights.
Apple’s current forward earnings multiple resides at 23.4X, nowhere near 2020 highs of 41.5X and modestly above its five-year median value of 20.5X. Furthermore, it’s the lowest we’ve seen the value since the early months of 2020.
Image Source: Zacks Investment Research
EPS beats have become the norm for the tech titan, exceeding bottom-line estimates in 19 of its last 20 quarterly reports. In the most recent quarter, the company surpassed the $1.43 Zacks Consensus Estimate by a notable 6.3% in the face of adverse business conditions.
The Zacks Consensus EPS Estimate for FY22 resides at $6.10, reflecting a nearly 9% expansion in the bottom-line year-over-year. In addition, earnings are expected to grow an additional 8% in FY23.
Image Source: Zacks Investment Research
Revenue estimates reflect an expanding top-line for the current and next fiscal year. For the current fiscal year, revenue is forecasted to be a mighty $393 billion – notching a 7.6% growth in revenue year-over-year. The $417 billion estimate for the next fiscal year reflects a 6% growth in revenue year-over-year.
Image Source: Zacks Investment Research
Microsoft
Microsoft MSFT is one of the largest broad-based technology providers in the world.
MSFT sports relatively enticing valuation metrics. Its 25.2X forward earnings multiple resides on the pricey side, but it is well below its five-year median of 28.4X and well below its 2021 high of 37.5X. Shares trade at their cheapest level since early 2020.
Image Source: Zacks Investment Research
Microsoft has been on a scorching-hot earnings streak, exceeding bottom-line estimates in 24 consecutive quarters. In its latest quarterly release, the tech giant surpassed the Zacks Consensus EPS Estimate by a sizable 5.8%.
Looking at growth estimates, the $9.28 EPS estimate for the current fiscal year represents a strong double-digit 18% growth in earnings year-over-year. In addition, earnings are forecasted to grow a further 13% in the next fiscal year.
Image Source: Zacks Investment Research
Annual revenue is estimated to come in at $198 billion in FY22, penciling in an 18% expansion in the top-line year-over-year. Pivoting to the next fiscal year, the $225 billion revenue estimate displays a 14% increase year-over-year.
Image Source: Zacks Investment Research
Bottom Line
The market will rebound eventually, and the recent streak of green over the last several days is promising. However, nobody knows where the market heads next, but we do know this – indexes are nicely above 2022 lows.
In the sea of red that has been 2022, we’ll take any green we can get.
These three proven long-time winners will continue to cruise along once the market shapes back up, allowing investors to reap a multitude of gains.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few market leaders that will help lead a rebound include Microsoft MSFT, Apple AAPL, and Adobe ADBE. Image Source: Zacks Investment Research Apple We’re all familiar with Apple AAPL, the tech titan that has taken the mobile phone landscape to new heights. Apple Inc. (AAPL): Free Stock Analysis Report | A few market leaders that will help lead a rebound include Microsoft MSFT, Apple AAPL, and Adobe ADBE. Image Source: Zacks Investment Research Apple We’re all familiar with Apple AAPL, the tech titan that has taken the mobile phone landscape to new heights. Apple Inc. (AAPL): Free Stock Analysis Report | A few market leaders that will help lead a rebound include Microsoft MSFT, Apple AAPL, and Adobe ADBE. Image Source: Zacks Investment Research Apple We’re all familiar with Apple AAPL, the tech titan that has taken the mobile phone landscape to new heights. Apple Inc. (AAPL): Free Stock Analysis Report | A few market leaders that will help lead a rebound include Microsoft MSFT, Apple AAPL, and Adobe ADBE. Image Source: Zacks Investment Research Apple We’re all familiar with Apple AAPL, the tech titan that has taken the mobile phone landscape to new heights. Apple Inc. (AAPL): Free Stock Analysis Report |
20368.0 | 2022-07-07 00:00:00 UTC | Berkshire Hathaway owns 18.7% of Occidental after new 12 mln share purchase | AAPL | https://www.nasdaq.com/articles/berkshire-hathaway-owns-18.7-of-occidental-after-new-12-mln-share-purchase | nan | nan | By Arunima Kumar and Jonathan Stempel
July 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Thursday it bought another 12 million shares of Occidental Petroleum Corp OXY.N this week, giving it an 18.7% stake in the oil company.
The purchases were made on Tuesday and Wednesday and cost about $698 million, Berkshire said in a U.S. Securities and Exchange Commission filing.
Buffett's company had also purchased 9.9 million Occidental shares last week.
It is by far the largest shareholder of Houston-based Occidental, owning 175.4 million shares worth $10.8 billion.
Berkshire also owns $10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for $5 billion, or $59.62 each. That is slightly below the shares' Thursday closing price of $61.47.
Occidental's share price has more than doubled this year, helped by Berkshire's purchases as well as rising oil prices following Russia's invasion of Ukraine.
Berkshire's growing stake has prompted market speculation that Buffett's company might eventually buy all of Occidental.
If the stake reached 20%, Berkshire could consider an accounting change that would let it record its proportionate share of Occidental's earnings with its own results.
Berkshire uses the equity method of accounting for its 26.6% stake in Kraft Heinz Co KHC.O, the packaged food company.
Buffett's Omaha, Nebraska-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N.
Occidental has been reducing debt since purchasing Anadarko Petroleum Corp for $35.7 billion in 2019. Berkshire's preferred stock investment helped finance that takeover.
Berkshire's share price has fallen 7% this year, compared with an 18% decline in the Standard & Poor's 500 .SPX.
(Reporting by Arunima Kumar in Bengaluru and Jonathan Stempel in New York Editing by Shailesh Kuber and Matthew Lewis)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Buffett's Omaha, Nebraska-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Arunima Kumar and Jonathan Stempel July 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Thursday it bought another 12 million shares of Occidental Petroleum Corp OXY.N this week, giving it an 18.7% stake in the oil company. Berkshire's growing stake has prompted market speculation that Buffett's company might eventually buy all of Occidental. | Buffett's Omaha, Nebraska-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Arunima Kumar and Jonathan Stempel July 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Thursday it bought another 12 million shares of Occidental Petroleum Corp OXY.N this week, giving it an 18.7% stake in the oil company. Buffett's company had also purchased 9.9 million Occidental shares last week. | Buffett's Omaha, Nebraska-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Arunima Kumar and Jonathan Stempel July 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Thursday it bought another 12 million shares of Occidental Petroleum Corp OXY.N this week, giving it an 18.7% stake in the oil company. Berkshire also owns $10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for $5 billion, or $59.62 each. | Buffett's Omaha, Nebraska-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc AAPL.O and Bank of America Corp BAC.N. By Arunima Kumar and Jonathan Stempel July 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Thursday it bought another 12 million shares of Occidental Petroleum Corp OXY.N this week, giving it an 18.7% stake in the oil company. Buffett's company had also purchased 9.9 million Occidental shares last week. |
20369.0 | 2022-07-07 00:00:00 UTC | Stock Market Review: 2022 So Far | AAPL | https://www.nasdaq.com/articles/stock-market-review%3A-2022-so-far | nan | nan | In this podcast, Motley Fool senior analysts Ron Gross and Jason Moser discuss:
Investing headlines from the first half of 2022.
Early front-runners for "CEO of the Year."
Three stocks poised to rise.
And we're dipping into the vault for one of our favorite conversations, recorded in 2019 in front of a live audience, with best-selling author David Epstein who discusses Tiger Woods, predictors of success in the business world, and other takeaways from his book Range: Why Generalists Triumph in a Specialized World.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on July 1, 2022.
Chris Hill: We've got some early voting on CEO of the year and a few stocks that are poised for upside, Motley Fool money starts now.
It's a Motley Fool Money radio show. I'm Chris Hill and joining me this week, senior analysts, Jason Moser and Ron Gross. Good to see as always, gentlemen.
Jason Moser: Hey.
Ron Gross: How you doing, Chris?
Chris Hill: It is our mid-year review special. We're recording this a little earlier than usual, a little before the start of the holiday weekend. I just wanted to time stamp that Ron, in case there's any late-breaking news. [laughs] With that Jason Moser, let me start with you. What is your business/investing headline for the first half of 2022?
Jason Moser: Well, Chris, I'm going to take you back to our 2022 Preview Show. When I offered up a, I think, somewhat unpopular, I wouldn't be surprised if and I said I wouldn't be surprised if next year we have a down year in the market. I said I do think we're going to see some level of inflation impacting our economy stimulus. I think is going to become a thing of the past. We're going to see interest rates continuing to go up. Chris, we are in the throes of a bear market now. I don't mean to serve as a bee in anyone's bonnet, but unfortunately, the market is down, I think that that released the headline here. It's the bear market. What's going on and when are we going to get ourselves out of this? Now I also said, that doesn't mean you should stop investing. You should and I still stand by that. If you look at the data, you go back to 1929 on average since 1929 bear markets, the S&P has lost 36 percent. Now we're at around 22 percent on the S&P now. Granted, the Nasdaq has lost around 30 percent. We could be in for some additional downside. Who really knows? There is a lot going on in the world impacting our economy that's simply out of our control. But I will encourage investors to stay on the course and try to stay optimistic. If you look back to 2008, when the market lost 36.5 percent just in that year alone, it then went on to return 25.9 percent and 14.8 percent in 2009 and 2010 respectively. My point there if you remember the mood in 2008, it was dour, to say the least. Remember what Shelby Davis said, I always go back to this, you make most of your money in a bear market, you just don't realize it at the time. As bad as things feel right now, remember they will get better but the bear market that feels top of the list for me here so far this year.
Chris Hill: Ron, so Jason admitting that he caused this bear market by speaking into existence on our preview show, what's your headline for the first half of the year?
Ron Gross: Well, since Jason's bear market headline basically covered everything, I will still drill down for the listening audience on inflation and recession, 8.6 percent inflation reading in May, highest increase since December 1981. What a good year that was? Consumers definitely feeling the pinch, fuel oil up more than 100 percent, average price of gas per gallon around 4.92, which is actually down a bit. Maybe we have a trend of somewhat lower prices for fuel. But the price of everyday foods like cereal and eggs are up double-digit percentages as well, wages not coming close to keeping up with inflation. The Fed is raising interest rates aggressively to slow the economy and bring down that inflation. They're trying to engineer a soft lending. Investors are concerned there it's going to throw us into a recession. JPMorgan's Jamie Dimon said we should brace for an economic hurricane just recently Fed Chairman Powell acknowledged that recession is "Certainly a possibility." We're going to have to wait and see what they engineer here. Hold on tight though, and everything that Jason said I would agree with about investing in good times and bad, as long as you have a long-term horizon.
Chris Hill: Ron, let me stick with you. Long-time listeners know at the end of the year we do our full-year in review show. We hand out the award for CEO of the year. Who is your early front-runner at this point?
Ron Gross: This could be controversial because it's Big Pharma. But I like Albert Bourla from Pfizer. Last year, obviously his company's vaccines basically helped save the world. That's pretty special I think. Pfizer vaccines continue to get FDA approval, additional boosters for younger children. He's using a lot of the cash generated during COVID to aggressively make acquisitions to position the company in a good place for the future? I would expect to see him buy back a bunch of stock. Stock is trading only at seven times earnings. In May, the company said it will make 23 of its medicines, many of them are patented, available to 45 low-income countries at a what they call not-for-profit price. They're not going to make any money on those medicines. Great to see, especially in the age where big pharma certainly gets criticized on the pricing side. Bourla said he would want to reduce by 50 percent the number of people on the planet who cannot afford our medicines. I like that mission as well.
Chris Hill: Jason, who's your early front runner for CEO of the year.
Jason Moser: I'm going to give a hat tip to The Trade Desk, Jeff Green. I think stock performance aside, all stocks out there they got pummeled these days. Honestly, we need to take a little bit of a longer view here. I think what he's done setting this business up for success. But if you look at the tailwinds that are forming an ad-based video on demand he's really been building this business to capitalize on that opportunity and as inflation persists, consumers show they're more than willing to use the AVOD, that ad-based video on demand. Virtually everyone out there now is developing an ad-based offering with programmatic advertising playing a much larger role in programmatic advertising plays right into The Trade Desk's specialty there. Like I said, he's been studying this business up over the past several years to capitalize on this, he's developed partnerships with Peacock, Paramount Plus, Discovery Plus Sky just announced a partnership with HBO Max. There'd be some questions as to a potential relationship there with Netflix as they assess the landscape on how they're going to roll out their ad-supported model. You've got Disney coming out with an ad-supported model as well here very soon. You see the tailwinds growing there and ad-supported video-connected TV in general, becoming a bigger part of The Trade Desk's business. Now, accounting for better than 40 percent overtaking mobile this most recent quarter. The company just has a track record of really doing right by their customers. The customer retention is still over 95 percent and that is the eighth consecutive years now they've maintained that metric. For me, separate what you saw from the stock price, you look at what Jeff Green has done for this business to get to this point, it really feels like they are in a good position going forward.
Chris Hill: Ron, I don't think any of us are surprised that inflation continued through the first half of the year, but we did have some surprises so far. What would you say is the most surprising company news?
Ron Gross: One thing that shocked me a bit was in April, Starbucks announced that Kevin Johnson was out and Howard Schultz was back in as Interim CEO. The announcement seemed very abrupt to me, especially because the new CEO search hadn't even begun yet. It felt like something was going on that we weren't really privy to behind the scenes. It was surprising to me, that Starbucks had hit an all-time high in July of 2021, Johnson executed several strategies that were successful. He expanded in China, he expanded the rewards program. He navigated the pandemic pretty well, he improved the technology at the company. Yes, he was criticized for its handling of the potential unionization of some of the stores whose compensation package had been scrutinized quite a bit. I was overall pretty surprised Schultz immediately suspended the company's stock buyback program, choosing to refocus on investing in people and stores. Obviously, Schultz knows this company very well. I'm sure it's in good hands, but that announcement seemed rather abrupt and surprising to me.
Chris Hill: Jason, anything surprised you so far this year?
Jason Moser: A lot of things, but I think one thing that really stands out so far is Elon Musk announcing he wants to buy Twitter. That really was like a whee. But it's turned into quite the soap opera. I think we all initially were somewhat sceptical that this would actually work out or play out the way it has. I think actually though, it looks like it may work and it feels like he could give Twitter its best shot. He says he has no interest in being the CEO but he wants half of the world on Twitter. That's a big goal. But that's also his style, and he's a proponent of free speech. But by the same token, he notes that he didn't mean Twitter needs to promote that bad stuff, it's just the enforcement of the policies that they have at least seem extremely arbitrary. Just tightening that up, getting rid of the bots, it seems like there's a lot there that he could clean up to make it a better experience.
The board has unanimously approved it and you look at Jack Dorsey, one of the founders of the business speaking of Twitter, he said, "It has been owned by Wall Street and the ad model, taking it back from Wall Street is the correct first step." I feel like there's something to this, I think before anything happens to make Twitter a better platform for all, it really feels like it will function better out of that public company's spotlight, so to speak. It's a polarizing subject I'm sure. I actually wouldn't mind seeing this deal play out because I do feel like he has the opportunity to make Twitter a much better platform because it certainly seems like a very resilient and useful one.
Chris Hill: Up next we're going to have some predictions about the second half of 2022. 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 Money 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 with Jason Moser and Ron Gross. It is our midyear review special. All right, Ron. We're going to play around the fill-in-the-blank. For this first one, you can go with a company as CEO or something else altogether. Blank, really needs a strong second half of the year.
Ron Gross: I'm got to go with Target or Tar-Jay as it's called in my family. [laughs] Stocks down 46 percent from its 52-week high. Couple of weeks ago, Target explained that it had a merchandise problem. It over ordered big, bulky home goods like patio, furniture, TVs, kitchen appliances. Those items are costly to ship, they're costly to store in warehouses. Basically, from a merchandising perspective, they thought the COVID purchase patterns would continue. They were wrong. Inventory was up 43 percent. They issued weak guidance, stock-out whacked. A week later, they said it was even worse than expected. Brian Cornell, the CEO said, "We have to be decisive. Get out in front of this, make sure this doesn't linger through the back half of the year." They were ripping off the band-aid. There's severely cutting prices. They're getting rid of excess inventory in the hopes that they can put this behind them. That at the same time, they raised their dividend 20 percent as to say, we're OK here folks, that yield is now 3.1 percent. Shares are trading at only 15 times forward earnings. Don't sleep on Target.
Chris Hill: As a shareholder, I hope you're right and they have a strong second half of the year. Jason, what about you?
Jason Moser: It feels like Bob Chapek, CEO at Disney, he needs a strong finish to the year. All stocks are down, as we've noted, but Disney being down 40 percent seems excessive, giving the company's assets and diverse revenue streams. The fact that people are back out traveling and life is more or less back to normal. You've looked at the numbers trailing 12-month revenue was up 10 percent from 2019. Greater profitability is still recovering, but domestic per capita spending was up by more than 40 percent versus 2019, which is also very encouraging. They believe they are still on track to reach that milestone of 230, 260 million Disney Plus subscribers by fiscal 2024. As I mentioned, they are going to be rolling out an ad-supported version of that service. But of course, he got into hot water earlier in the year with the way he handled the parental rights and Education Bill in Florida. He put himself in the company square in the politicians crosshairs.
Then he got this big back and forth with the whole special tax status and whatnot. It's going to be interesting to see how he handles these types of situations in the future. Because you look at the company itself, there is 165,000 employees there at Disney. You have to be careful jumping into these hot button political issues when a company actually takes a firm stance on what is honestly debatable issue in many cases, that only creates division and it puts the business in an untenable position. Bob Iger, he is not, but he's going to have to figure out his identity as a CEO going forward because Disney is going to be in the spotlight for sure.
Chris Hill: Ron, we've already seen some M&A activity in the first half of the year in terms of the second-half fill-in-the-blank. Don't be surprised if blank gets acquired.
Ron Gross: Netflix, Chris. They've stumbled. Things are not great at the moment. Subscriber growth is going the wrong way. The stock is down from 700-180, but they still have over 220 million subscribers, making it the biggest subscription video-on-demand service in the world. That alone could make Netflix an attractive takeover candidate. For some folks in this arena, I'm thinking Amazon, I'm thinking Apple, the gaming angle could also potentially be interesting. I'm thinking Microsoft or Sony, even at current prices, still would be an $80 billion acquisition. Not for the faint of heart, but trading it only 16 times forward earnings, so it's not expensive.
Chris Hill: That a big one. Jason, what about you?
Jason Moser: Yeah, it is a big one. One that I think is a lot of people have had fun kicking this around recently, DocuSign. Don't be surprised if DocuSign gets acquired. There will be a number of reasons why Dan Springer, the former CEO recently stepped down. It may not be related to potentially shocking the company around at all. But I can certainly see, given where the stock is today in relation to the fundamentals of the business, a suitor really taking a close look. True, it is still working its way to profitability, but it is cash flow positive. It's got a massive user base and a very user-friendly interface. What kinds of suitors might exist? You look at a competitor like Adobe, they could easily digest this, but with their own offering, I'm not sure they really need something like a DocuSign.
You look at Microsoft, that would be a candidate, were it not for this Activision Blizzard deal that they are trying to push through. The one thing that comes back to mind, Chris, it's Zoom. I think Zoom could just be the total wildcard here, but Zoom wanted to make a deal earlier, they tried to buy Five9 for around $15 billion, so they have the wherewithal to get this done. It is something that they don't have currently. A DocuSign could be very complementary to their overall offering in the new way that we're doing business in many cases. DocuSign management sees the opportunity to be a five billion dollar revenue business over the course of the next several years if they execute, which is essentially where Zoom is today. I'm not saying it will happen, Chris, but I wouldn't be surprised if it does.
Chris Hill: Got just a couple of minutes left. This is going to count as a stand-in for radar stocks, Ron. I think blank is poised for upside the rest of this year.
Ron Gross: I like the hospitality sector right here. Consumers continue to move away from buying things like outdoor patio furniture and televisions just ask Target, and they're moving on to experiences such as travel, we're getting back out there. Yes, inflation will push back against this. We don't know if another COVID variant is around the corner, but I like companies like Marriott, Airbnb here at their current prices for the next several years.
Chris Hill: Jason.
Jason Moser: I think a little bit in line with Ron's hospitality angle there. Uber to me is a business that stands to benefit from a recovering economy as these things get better. People are traveling again, the world is opened back up. The neat thing about Uber is they benefit from three key drivers in mobility, delivery, and freight. The cross platform nature of the business leads to lower customer acquisition costs and ultimately higher retention over time, which is encouraging as well. You've got management there that continues to roll out new initiatives with things like high-capacity vehicles, partnering with Avis to offer Uber valet and person-to-person car rentals. It goes on and they're even building out a little advertising driver of the business as well. With a renewed focus now on cash flow and profitability in whittling down those costs to maximize efficiency, it feels like there's a pretty attractive risk-reward scenario set up for Uber long term.
Chris Hill: Drop us an email, podcasts@fool.com. That's podcasts@fool.com. We want to hear from you, what do you think is poised for upside in the rest of 2022? Jason Moser, Ron Gross, guys, thanks so much for being here.
Jason Moser: Thank you
Ron Gross: Thank you, Chris.
Chris Hill: Coming up after the break, we're dipping into The Motley Fool Money Audio Vault for a conversation with best-selling author, David Epstein. We talk about Tiger Woods, predictors of success in the business world, Epstein's memorable encounter with fellow best-selling author Malcolm Gladwell and why it might be time to dramatically scale back travel, and soccer here in America. I really think you're going to enjoy. Stay right here. You're listening to Motley Fool Money. [MUSIC] Welcome back to Motley Fool Money. I'm Chris Hill. I hope you're enjoying the start of the Independence Day holiday weekend. Now, our interview. In 2019, I got the chance to talk with best-selling author David Epstein.
He joined me on stage in front of a live audience at our annual FoolFest Investing conference. Epstein has masters degrees in journalism and environmental science, he's been a senior rider for sports illustrator and is the author of The New York Times Best Seller, The Sports Gene: Inside the Science of Extraordinary Athletic Performance. On stage, we talked about his latest book, Range: Why Generalists Triumph in a Specialized World. During our time, we discussed a wide range of topics including Tiger Woods, Roger Federer, and how to predict success in a business setting. But my first question for David was, where he got the idea for his new book.
David Epstein: The idea still did grow out of the first books. The first book was about the balance of nature and nurture in athleticism. I was invited to the MIT Sloan Sports Analytics Conference co-founded by the General Manager of the Houston Rockets to debate Malcolm Gladwell. So 10,000 hours versus the Sports Gene, it's up on YouTube, I never met him before. He's very clever. I didn't want to get embarrassed. I tried to anticipate some of his arguments I knew he'd have to argue; this was specifically about the development of athletes. I knew he'd have to argue for early specializations in sports and highly technical deliberate practice. I said, "Okay, I'm the science writer Sports Illustrated. Let's go look at what the science has to say." We actually found, in almost all sports, in most places in the world, athletes who would want to become a lead actually have these so-called sampling periods where they play a variety of sports.
The gain is broad general skills that scaffold later learning. They learn about their interest and abilities and they systematically delay specializing until later than their peers. We all know the Tiger Woods story of early specialization, that's like the most famous developmental model, but it's actually completely the exception. Golf is an unusual sports skill compared to other ones. Whereas like with this, we all know when Mark Zuckerberg at 22 says, "Young people are just smarter," we all hear that story. Meanwhile, the research shows that the typical age, on the day of founding, not when it becomes a blockbuster, is 45.5. But it's like we don't hear the stories of the science they're really telling, we just hear the Tiger Woods, Mark Zuckerberg's stuff. These much more, it's very like Daniel Kahneman's availability heuristic; the dramatic stories that we base our models of the world on, not what the actual science finds.
Chris Hill: You've opened the book with a great sports example because as you said, everybody, I'm not even a big golf fan and I know the Tiger Woods story of just basically from the time he couldn't walk, his father is drilling him on all these different things and he's Tiger Woods, he's the dominant golfer of his time and maybe of all time. But the comparison you draw with Roger Federer, who is also the dominant tennis player of his age, and probably on the shortlist of the greatest of all time, it's a completely different path.
David Epstein: Roger was exposed to tennis early, but he was also doing swimming, skiing, wrestling, handball, basketball, badminton, rugby, tennis, of course, table tennis. I'm probably forgetting, oh soccer. That was his other biggest one, soccer. His mother actually was a tennis coach, but she refused to coach him because he wouldn't return balls normally like she couldn't get him to do the normal drills, so she declined. When he got good enough to be pushed up a level with older players he declined because he just like talking pro wrestling with his friends after practice. We finally got good enough to warrant an interview from a local paper. The reporter asked him if he ever became a pro, what will he buy with his hypothetical first paycheck and he says a Mercedes. His mother was totally appalled and asks the reporter if she can hear the interview tape and the reporter obliges.
It turns out Roger actually said, "mehr CDs" in Swiss German, he just wanted more CDs, not a Mercedes. Then his mother was fine. One of my colleagues who was the senior tennis writer at Sports Illustrated described Roger's parents as pulley not pushy. Eventually, he did specialize but it was after what we now know is the very typical developmental trajectory for most elite athletes. In golf, the people who study skill acquisition in sports view golf as different, it's non-dynamic domain where you don't need anticipatory skills like to judge things that are happening quickly. Early specialization may well work in golf, I don't know, there's a dearth of science. I can believe that it does. But the problem is that we've extrapolated from that to all these other skills.
Chris Hill: We'll get into some of the business stuff from the book in a second. But I want to stick with sports because I expose these ties into business as well. Because if you think about the youth sports in America, the business of it has almost gotten too big. It's pretty amazing that Roger Federer's parents were not only actively pulling him away from specialization, but also his mother was a tennis coach herself. In the United States, the flip of that is she's the tennis coach and as soon as he can walk, she's got him out there, drilling and not to pick on soccer, but it really does seem like soccer more than any sport in the United States. The youth sports business machine of that is almost too big to overcome.
David Epstein: No, do pick on soccer, you should pick on soccer. I don't live in Brooklyn anymore, but when I did, there was a youth seven travel soccer team that met near where I lived. I don't think anybody thinks that six-year-olds have to travel to find good enough competition in a city of nine million people. [laughs] Really. I don't think that has anything to do with optimal development for those kids because we know the way to make the best 10-year-old soccer player is not the same as the way to develop best 20-year-old soccer player. But those kids are our customers. Someone else has an interest in keeping them away from those other sports. When you talk to lead athletes, they are the ones who know and they're like the most against because they know what they did, against specialization. But that's a whole other industry.
But some places like France, which just won the World Cup, started decades ago reforming its pipeline, where they get kids exposed early and they get them in the pipeline early. Because I think multiple sports is really just a proxy for diversity of movement and training, because there's this classic research finding, breadth of training predicts breadth of transfer. It means the broader your training scenarios, the more likely you will be able to apply your skill to situations you've never seen before. They get the kids exposed early. But then they put them in these games where they're playing like on sand one day and cobblestones another day, this game called Futsal whether in small spaces and the coaches aren't even allowed to talk most of the time, they're just saying there's no remote control, meaning the coaches shouldn't try to micro-manage the players. They get them exposed early, but they put them in this very free-form development that we know is the best. I think there's hope because there are models for making this better.
Chris Hill: Business is one of the thrill lines of this book because we just talked about youth sports. But one of the things that comes up is the business implications on scientific research. Before we started, one of the more jarring things to me in the book is how scientific funding has increased over the last say 30 years or so. But discovery has actually dropped. Because it seems like the pressure for economic outcomes immediately in the short-term are taking precedence over just discovery.
David Epstein: I think everyone knows we want those outcomes, that the end goal is applications. The question is how best to get there? To that point, I was reading a lot of Nobel acceptance speeches when I was doing the research and the funny thing in the more recent years, you start to notice that almost every year someone giving their speech says, "Well, I wouldn't be able to do my work today because I didn't really know what I was going to find." I just had this interesting question, now in your grant applications, you have to say, "Here will be my application." That's OK. But we have VC community for that. They can be more focused on that. Why squash the diversity of the research endeavor? Because so many of the biggest breakthroughs have come from questions that someone was interested in, that we didn't know where it was leading, like Vannevar Bush who led the scientific research efforts during World War II, wrote a report for the president about a successful research culture. You see these phrases that are like the free play of free intellects working on questions of their own design. That led to like 30 years of wildly successful progress that led to microwaves and MRIs and the Internet and all these other things. We have to keep in mind that we know the process is inefficient when we don't exactly know what we're looking for. It's a problem that we're having a purifying selection where we're forcing people to say the applications before they really know what they're going to find.
Chris Hill: One other things I like about your book is we just meet all these people. Put aside Tiger Woods and Roger Federer in your research, all of these people. You just touched on something from one of my favorite people in the book, Arturo Casadevall, who speaks to that and talks about the very nature of pushing boundaries is that you're out there, you're probing, you're not really sure what you're going to find and by definition, it's an inefficient process.
David Epstein: Yeah, Arturo is one of the most prominent immunologists in the world. If specialization continues, he wins no matter what happens basically. He sees no problem getting funding, but he decided to leave a cushy post in New York to go to Johns Hopkins School of Public Health because they were allowing him to start a new education program, where he is essentially trying to despecialize the training of future scientists. He arrived and he showed this graph where he said the rate of retractions of science, the acceleration is now outpacing the rate of new publications, so if we continue this trend, we will have retracted all of science in a couple of years. [laughs] Science gallows humor, but there is this retraction problem now. We're recognizing there's been a lot of bad work.
By the way, I contributed to that bad work. I have a Master's Degree in Science and only as an investigative reporter writing about how science works did I realize that I too committed statistical malpractice of the variety he's talking about. Because not purposely, I was rushed into very didactic specialized material about arctic plant physiology before I knew how my statistical tools worked. You can get these big databases, hit a button to run this incredibly complicated statistically significant master's degree, [laughs] and this research is still published. It's crazy that only later did I learn how scientific thinking is supposed to work. We're having these problems, so he's trying to despecialize the research and get people to think more broadly.
He describes science as becoming a system of parallel trenches where everyone's in their own trench and not standing up to look over the next trench, even though that's often where their solution is. There's always perverse effects like women are much more likely to write grants for interdisciplinary proposals, but interdisciplinary proposals that are systematically marched down because they always go to one discipline or the other, and so they are about less likely to get funded. But the world's interdisciplinary, disciplines are a necessary evil for breaking down how we study. We're docking people who are asking questions about how the world really is.
Chris Hill: One of those things you get at is Arturo does it with science. We've seen it in the military where basically leaders are trying to figure out what's the best way to mentor people, what's the best way to educate people. Along the way, they find out, we've been doing it wrong. Not only have we achieved short-term success in education, we've deluded ourselves in thinking, we'll pat ourselves on the back, everything's fine and in fact, we've set those people back.
David Epstein: Yeah. That gets to some themes in the book so they can jump into that one in a couple of places. But one of the themes to me was that there are things you can do to cause the most rapid immediate progress that systematically undermine long-term development. I'm going to use that queue to get into one of the studies that was most surprising to me in the book which was done in the US Air Force Academy that you could never set up. They had this amazing scenario where they bring in their freshman class, thousand students or whatever it is and they have to all take a sequence of three math courses. Start calculus 1, calculus 2, and then a follow-on course. They are randomized to professors for calculus 1, and then they're randomized to the next course, and then rerandomized again to the next course. You can really see the impact of teaching, and that's what these researchers wanted to see. What they found was that the teachers were the best at promoting contemporaneous overachievement compared to the characteristics of the students came in with in calculus 1.
Those students then systematically underperformed in the follow-on courses. The teachers and students performed sixth best out of 100 in his calculus 1, got the seventh best ratings because the kids feel like they're learning, they rate them higher, was dead last in how his students then did the follow-on courses. It turned out that professors whose students did the best contemporaneously were teaching a very narrow curriculum and their students were learning so-called using procedures knowledge that they could execute when the test came, but when you get into a different class and you're facing different stuff, breadth of training for next breadth of transfer, you don't have those broader conceptual models, and so you don't have what's called making connections knowledge, which is the broader frames where you learn how to match a strategy to a type of problem instead of just executing procedures. It's really deceptive because the learners rate their learning as faster, they rate the professors as better, they do better, and then in the long run, they're undermined, which is deeply counterintuitive to me.
Chris Hill: Coming up, David Epstein talks birds, frogs, and LinkedIn. Stay right here. You're listening to Motley Fool Money. [MUSIC] Welcome back to Motley Fool Money. I'm Chris Hill. This week we're revisiting my conversation in front of a live audience with best-selling author David Epstein about his latest book, Range: Why Generalists Triumph in a Specialized World. In terms of business and leadership and one of the things I think you touched on in the book was how to deal with maybe using LinkedIn to figure out how do people get promoted. It really does seem like the people who have the widest breadth of experience, they're the ones most likely to move on.
David Epstein: Yeah. I should say we absolutely need specialists, I don't want to denigrate specialists. I like Freeman Dyson, the mathematician and physicist, and writers framing of it where you said we need frogs and birds. The frogs are down in the mud looking all the little details. The birds are up above, they don't see those details, but they can integrate the work of the frogs. He said we need both for a healthy ecosystem, the problem is we're telling everyone to be frogs and we're not telling anyone to be birds. The LinkedIn researcher referring to, they looked at about a half-million members because they have this amazing database. What are the best predictors of someone who goes on to become an executive? One of the best predictors was the number of different job functions that an individual has worked across in their industry, and their chief economist thinks that's because they get this month more holistic view of the industry, each additional job function saved them about three years of experience in moving toward the C-suite. That resonated with me because I saw that as I was visiting different companies.
Chris Hill: I know it's only been out for a week or so, but I'm curious what's been the reaction that you've gotten, not necessarily from readers who I'm sure are enjoying the book, but to the extent that you've heard from communities or leaders and whether it's an industry or used sports or something else.
David Epstein: More positive than I expected and maybe that's because the blowback part takes a little longer. [laughs] But this book got out again faster than my last one did. The last one, there was a lot of pushback about 10,000 hours rules stuff. Helpfully this time, Malcolm Gladwell and I were recently conference in March, the same one when we first did the debate. This is on YouTube and at minute 54, he says, I now believe I conflated to ideas. The idea that it takes a lot of practice to get good at something with the idea that in order to become good at X, you should do only X, X and only X starting early as possible. I thought that was a very astute thing for him to say. I think that might have softened some of the blow a little bit for me. But it really has been interesting to hear people identify with it. I started getting invited to some business things and the executives would tell me this really resonates.
I just met a woman who was the head of executive search for a really big company, and this really resonated with her. She was telling me, I think in the age of LinkedIn for all its good things, we're getting too narrow in describing our job functions, because if you look at research on serial innovators, for example. This women, Abby Griffin, whose research is in range, she says to HR people, you have to keep it broad because the serial innovators, they often zigzag, they've had other domain experience, they have wide range of interest, they tend to have hobbies, they read a lot, they need to communicate with people outside their domain. When you define the job too narrowly, you accidentally screen them out. Some of the people who do executive search, apparently that's resonated with them because they've reached out to me and said, we are increasingly making this square hole and we have the square peg we want to fit it, but those aren't necessarily actually the people who are set up to make the biggest contributions.
Chris Hill: I've actually experienced that on LinkedIn because I host a radio show and a podcast and that's what I list on LinkedIn. Once a month I got an email from LinkedIn, and it's here are some jobs you might be interested in and all of them are host jobs, but it's at a restaurant. [laughs] I'm like maybe I need to do a better job of getting across what I actually do.
David Epstein: Well, that would be a transfer of skill.
Chris Hill: It would be if it does. You know what? I'm too specialized, I should branch out into that sort of thing. The book is Range: Why Generalists Triumph in a Specialized World. You can find it wherever you find books. Unlike when I interviewed David Epstein in 2019, now it's available in paperback, you get to save a couple of bucks. If you're just starting out or you know someone who's just looking to get started investing, we have a free investing starter kit that covers everything from saving money to 401k plans to how to buy your first stock. It comes with a built-in watchlist of 15 stocks and five ETFs that were selected by our investing team and it's free. Just go to fool.com/starterkit. That's fool.com/starterkit. Check it out when you get a chance.
On behalf of everyone at The Motley Fool, I hope you have a safe and fun Independence Day weekend. Please be safe with the fireworks. Don't be one of those people who ends up trending on social media because it did something really stupid with fireworks and ended up in the emergency room. Look out for your friends too, you know who I'm talking about, that one friend, yeah, that guy, keep an eye on him. That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill, thanks for listening. We'll see you next time.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Chris Hill has positions in Activision Blizzard, Adobe Inc., Airbnb, Inc., Amazon, Apple, DocuSign, JPMorgan Chase, Microsoft, Starbucks, Target, The Trade Desk, and Walt Disney. Jason Moser has positions in Adobe Inc., Amazon, Apple, DocuSign, Starbucks, The Trade Desk, and Walt Disney. Ron Gross has positions in Airbnb, Inc., Amazon, Apple, Marriott International, Microsoft, Starbucks, Target, and Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Adobe Inc., Airbnb, Inc., Amazon, Apple, DocuSign, Microsoft, Netflix, Starbucks, Target, The Trade Desk, Twitter, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Marriott International and Uber Technologies and recommends the following options: long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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. | We talk about Tiger Woods, predictors of success in the business world, Epstein's memorable encounter with fellow best-selling author Malcolm Gladwell and why it might be time to dramatically scale back travel, and soccer here in America. He sees no problem getting funding, but he decided to leave a cushy post in New York to go to Johns Hopkins School of Public Health because they were allowing him to start a new education program, where he is essentially trying to despecialize the training of future scientists. The Motley Fool has positions in and recommends Activision Blizzard, Adobe Inc., Airbnb, Inc., Amazon, Apple, DocuSign, Microsoft, Netflix, Starbucks, Target, The Trade Desk, Twitter, Walt Disney, and Zoom Video Communications. | Chris Hill has positions in Activision Blizzard, Adobe Inc., Airbnb, Inc., Amazon, Apple, DocuSign, JPMorgan Chase, Microsoft, Starbucks, Target, The Trade Desk, and Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Adobe Inc., Airbnb, Inc., Amazon, Apple, DocuSign, Microsoft, Netflix, Starbucks, Target, The Trade Desk, Twitter, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Marriott International and Uber Technologies and recommends the following options: long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple. | Chris Hill: You've opened the book with a great sports example because as you said, everybody, I'm not even a big golf fan and I know the Tiger Woods story of just basically from the time he couldn't walk, his father is drilling him on all these different things and he's Tiger Woods, he's the dominant golfer of his time and maybe of all time. To that point, I was reading a lot of Nobel acceptance speeches when I was doing the research and the funny thing in the more recent years, you start to notice that almost every year someone giving their speech says, "Well, I wouldn't be able to do my work today because I didn't really know what I was going to find." The Motley Fool recommends Marriott International and Uber Technologies and recommends the following options: long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple. | He says he has no interest in being the CEO but he wants half of the world on Twitter. It is something that they don't have currently. Chris Hill: We'll get into some of the business stuff from the book in a second. |
20370.0 | 2022-07-07 00:00:00 UTC | Inflation: This Time It's Different? | AAPL | https://www.nasdaq.com/articles/inflation%3A-this-time-its-different | nan | nan | In this podcast, we zoom in on comments from central bank leaders at the recent ECB Forum on Central Banking to see what insights we can glean. Motley Fool analysts Dylan Lewis and John Rotonti discuss:
What Fed Chairman Jerome Powell had to say.
Why experts have so consistently been wrong about inflation.
The types of companies you want to own in an inflationary environment.
Why Shopify's (NYSE: SHOP) stock split is less important than its share-structure changes.
Motley Fool producer Ricky Mulvey and Motley Fool analyst Ron Gross discuss the ins and outs of investing in a bear market and what types of companies you should be keeping an eye on.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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Dylan Lewis: We've got comments from Central bank leaders and a stock split from a Fool favorite. Motley Fool Money starts now. Dylan Lewis sitting in for Chris Hill, joined by Motley Fool premium Analyst John Rotonti. John, inflation is one of the inescapable stories of 2022 for investors and consumers alike. Yesterday, we got a little bit of an update on how some of the Central Bank leaders around the world, especially the US own J. Powell, are thinking about the current environment right now.
John Rotonti: Hey, Dylan. Thanks for having me on the show. Chairman Powell's comments yesterday were definitely interesting. What concerns me, I think is that we're at this generational inflexion point and very few investors have truly invested in an inflationary environment. Dylan, you and I were barely born the last time we had real inflation in the US. The Motley Fool had not been founded yet. Interest rates have been falling for 40 years, which was a massive tailwind for stocks by the way. Inflation has been benign for 30 years. Money has been pretty much free since coming out of the GFC, the global financial crisis in 2009. Now all of that is changing. Even Fed chair Jerome Powell admitted that the Fed really doesn't understand inflation or what it will truly take to fight it. Because we are in a fight, 8.5, 8.6 percent inflation is real and households are anxious and they're angry when the price at the gas pump is going up. Prices at the grocery store is going up. That really affects people's way of life and so we're in a fight.
Dylan Lewis: John, I want to zoom in on that comment that Powell made. It made the rounds on Twitter yesterday. I think we now understand how little we understand about inflation. That got dumped on a lot on social media yesterday because you would think of all the people to have a good finger on the pulse for what's going on. It would hopefully be our Fed chair. The reason for it, though, it gets back to a lot of things you were just talking about before. Where so much of what we've seen over the last couple of decades is so different than what we're staring out at going forward. Especially because the force is driving a lot of those things are things that not necessarily have been a part of the macro picture over the last couple of decades.
John Rotonti: I think you're right, Dylan. There's recency bias here and by recency, I don't mean the last few years or the last few months. Thirty years, we've had benign inflation and then more recently, we couldn't even hit our two percent inflation target. We were constantly under that. No matter what Chairman Powell and the Fed did, they could not get up to two percent. This is a new problem we really are at this generational inflection point. The other thing that concerns me, and it's related is that Chairman Powell and the Federal Reserve understand even less about how to wind down a nine trillion dollar balance sheet, because that has never been done before. At least we can look back at history and learn about inflation and how rising interest rates impact the economy. There's some history lesson there, but there is no history lesson. There is no precedent for scaling down a nine trillion dollar balance sheet. What concerns me, it's not a large concern, it's just what concerns me or what I'm starting to factor into my analysis more and more is the uncertainty and inexperience that virtually all of us have with us, even Chairman Powell. I do think that the stocks that worked in a period of inflation below two percent and when we had free money, like I said, really dating back to 2009, are not necessarily the stocks that will work in a high inflationary environment. That's where we stand today.
Dylan Lewis: I think that's an interesting point, John. There are a lot of feelings of what got us here may not necessarily be what gets us to move forward with this. Even zooming in on the comments that Powell made. One of the things that he had talked about in his ECB form comments was that when you look at how we've been approaching inflation, how we've been measuring inflation, how we've been anticipating inflation. The models that we've been using didn't have us above four percent. From the prognosticators that tend to look at these things. A year out, you said 34 out of 35 professional forecasters a year-ago had inflation below four percent. The reason for that was the model they use without getting too far into it. It's called the Phillips curve. It assumes that inflation and unemployment are inversely related. What we've seen, especially over the last 12 months, 18 months or so, is that isn't necessarily the case. We've seen unemployment is trending downward. We've seen the job market be relatively strong. Yet we've continued to see a lot of inflation and a big part of that is because of supply side issues that are much harder to anticipate.
John Rotonti: I think that's part of it, Dylan. I think it's also that these curves completely breakdown when you've had a decade plus of free money. I think that's the Number 1 thing that everyone is under-estimating. Is what happens when money is free. Going back to 2009 and then on top of that, we were in a very scary time. We were in the pandemic. Unprecedented amounts of liquidity we're pumped into the market. Then free money was given out as handouts, these transfer payments to households. After 12 or 13 years of free money, we layered on more free money, which we needed to do. We needed to do it. But now after 13 years of that type of liquidity, these curves start to break down. It's not just the Phillips curve and inflation and unemployment.
Its stocks and bonds typically didn't move in the same direction, and now they're moving in the same direction. There's a lot of strange weird things happening because of a decade plus of unprecedented fiscal stimulus, monetary stimulus, any type of stimulus that you can think of. All these curves start to break down. Although I have never invested during an inflationary environment, I do try to consider myself a student in history. I didn't notice this generational inflection point very early on, even last year. I arranged for 12 outside experts to come in and speak to the Motley Fool investing team all in the first quarter of this year Dylan, on the first quarter. I feel like our team is ready and we got a jump start on our educational sessions for the current environment that we're in.
I front-loaded. I purposefully front-loaded these educational sessions all into the first quarter because of macro is going to demand so much more of our attention. In a world of higher inflation Fed tightening cycle, higher interest rates, liquidity being siphoned from the economy, high oil prices of potential de-emphasis on globalization and the Fed attempting to slowdown in the economy without causing a recession. What I'm very positive about Dylan, I'd like to end this session, this little part on a positive note is the strength of the US consumer, the strength of household balance sheets. Like you said, unemployment is still very low, we're at maximum employment in this country and I'm also very positive on The Motley Fool's ability to pick the best stocks for this environment in our ability to guide our members through whatever the markets and whatever macro throw our way.
Dylan Lewis: I appreciate you bringing some of the positive stuff in there, John because I think it can be hard to stare at the headlines that are just pumping the inflation news and talking about the impact that's being felt and it's real. But there are a lot of positive signs on what we're seeing in the broader macro picture. Knowing all this, seeing all this, and looking at some of the comments from yesterday, it's pretty clear they are going to be focused on getting inflation back down to two percent. It was reiterated as a main target for the Fed and Powell said the risk would be in failing to restore price stability, not so much in going too far with rate hikes, if they're going to overshoot on one, the focus should be on restoring price stability. In this environment where we have all these forces, what are you looking at for companies? What are you looking for in companies? What do you want to be owning?
Dylan Lewis: I love that question, I'll answer that in a second. I'll just say really quickly, Fed chair Powell is saying time and time again, we're going to fight inflation and we're going to get back down our two percent target, no matter what it takes. The market doesn't necessarily believe in doing, the market is playing chicken with Fed pallet at points and that's when you see these massive updates, these massive up weeks, and then they're followed by these massive down weeks. I think the reason is that despite chair Powell saying time and time again, we are going to do whatever it takes. I think the market is worried that every one percent increase in interest rates increases the debt service on US debt by $300 billion. I think the market is predicting that Fed chair is going to have to backtrack on interest rate hikes at some point in time. Now, I don't have an opinion on that, that's above my pay grade, but it's interesting this dynamic of chair Powell constantly saying we will do whatever it takes and the market constantly not really believing him so that dynamic is going to be interesting to watch play out.
What do you want to own? I think first and foremost, Dylan, we need to remember that stocks are the best long-term hedge against inflation. If you look at the Deutsche Bank long-term asset returns study or work by Professor Jeremy Siegel or Morgan Housel, or so many other people, stocks have provided higher real returns than US government bonds, high-rate corporate bonds, junk bonds, real estate, and gold, going back very long periods of time. Such first thing, stocks are the best hedge against inflation, secondly, you want to invest across the growth spectrum and diversify, diversify, diversify, diversify by industry, sector, market cap and geography. Then getting more specific, you want to own companies with high returns on invested capital because these businesses tend to be not capital-intensive, meaning they don't need to spend a lot of capital to maintain and grow their assets at a time when input costs for those assets are rising.
Inflationary investing 101 is really to own businesses that generate high ROIC and that don't need to invest a lot of new capital to grow because of the cost of that capital is rising. Then you also want to make sure you have companies that have a long runway of free cash flow growth and you want free cash flow that you expect to grow faster than the rate of inflation. Then the same with dividends, look for companies that have a long history of consistently increasing the dividend every single year and that you expect will continue to increase the dividend at an annualized rate higher than inflation. Then finally, real estate has historically been a great place to be during inflation because one, a lot of real estates has long-term contracts with annual pricing power written into the contracts and two, the replacement cost of real estate goes up. The input costs go up, so becomes more expensive to build new real estate, so this increases the value of current real estate because it means less new capacity comes onto the market.
Dylan Lewis: John, I have to ask the question because I'm sure listeners are thinking it. Are there any specific names that you throw out there as something that is worth checking out? Maybe a business that wouldn't necessarily be beyond someone's radar following some of the more growth-oriented strategies that The Fool has tended to follow over the last 10 years or so.
John Rotonti: I love to The Fool's growth oriented strategy, I support a one-for-one balancing, so for every earlier stage growth company that The Fool loves, you balance it out with The Home Depot, so that's one example right there. Then for every earlier-stage group growth company that The Fool loves you, balance it out with a Visa, you balance it out with a Berkshire Hathaway. Those types of really high return, high free cash flow, moderate growth but the highly resilient type of businesses, Dylan.
Dylan Lewis: Speaking of high-growth names in The Fool universe, Shopify shareholders saw a bit of shuffling in their portfolios. Yesterday, the company completed a 10-to-1 stock split, bringing the price per share down to 30-ish dollars down from the 300s pre-split. John, we know in the academic sense, we're staring at the same thing here pre and post-split. Stock splits have gotten a lot of attention over the last couple of years apart because we've seen some high-growth names really dramatically appreciate in value and they've looked to make shares more accessible to the average investor, what do you see in the trend with stock splits in Shopify, deciding to make this move? I know you're a Shopify shareholder, how do you think about all this?
John Rotonti: Yeah. Just to reiterate what you just said, the value of what you own fools has not changed by one penny, the value of what we own has not changed by one penny. Dylan, I think this one is a joke, I think this is a bad move on Shopify's part. I'm not selling my shares, it's not overly concerning to me, but this is poor judgment. I understand that this decision was made a couple of months ago or whatever it was, but I had to speak out on this one, Dylan, I tweeted yesterday was a drop from 1,700 down to 300 and not enough for Tobi and company, like honestly, I would've reversed course if I was Tobi. I know they announced this split, but when they saw that their stock was continuing to fall, virtually every day. Dylan, 82 percent off a tie from 1,700 down to 300 at one point, is that not enough to attract retail investors? I think this is really poor judgment, I think this is followed by the leader because Amazon did it and [Alphabet's] Google did it and I don't know who else did it.
It's all poor judgment in my opinion, I think this is pandering to option traders. This is encouraging margin, it's encouraging options, and it's encouraging stonk traders. Honestly, I think this is poor judgment, I don't think it changes the thesis, but it's a game of follow the leader. I think Tobi should be focusing on Amazon fulfilment, I think Tobi should be focusing on improving its product suite, honestly, there's I've been reading a lot of reviews recently that Shopify doesn't have everything that entrepreneurs need to succeed as a lot, but not everything, they've struggled with fulfilment. Then finally, as we all know, this is a power grab by Tobi, but Tobi is not the only one doing it, a lot of founders are doing this type of thing.
Dylan Lewis: To unpack that a little bit, you mentioned that they announced this a couple of months ago. As a part of that announcement, they also made some updates to their corporate governance and some of their share structures. I think, if anything, the stock split for me, it's an example of paying attention to this, not that. Don't pay attention as much to the number of shares or the price of the share and what we're seeing pretty post-split. But pay attention to the fact that when they made this decision and when shareholders were voting on things, they also approved nontransferable founder shares, which increased Tobi Lütke's power to 40 percent prior to this, I think his voting power was around 33 or 34 percent of the company. John, the story with this business, basically the entire time that it's been a public company has been, if you are buying shares of Shopify, you're investing in and right alongside Tobi Lütke. So far that's generally been a pretty good proposition for people. I as a shareholder, I'm happy to see that his incentives in his stake are there and we'll represented, I think he is a pretty good vision for where the company should be heading in his road map has been pretty strong so far. I'm curious how you feel about it.
John Rotonti: I'm invested alongside Tobi, I intend to be a long-term share-owner of Shopify. I feel like 33 percent ownership and control is probably enough, Dylan. I come at this from an ESG angle to my dear friend and colleague, Alyce Lomax, I know she's like probably fuming over this because this is something that we tend to see as not a red flag, but maybe like almost red flag. When looking at corporate structures and corporate governance, it's like when does it stop? Does it ever feel like he's going to need 45 percent voting control? I don't know, 33 percent seems like a lot to me. If I had my druthers in an ideal world, I'd want my vote to matter and I feel like my vote does it matter at Shopify, but overall, Tobi has proven himself to be a visionary, he's proven himself to be someone that can build great teams, great product. If we take them out as where they just trying to build a 100-year business, then maybe controllers is the right move here. It's just not super comfortable with me, but I do intend to be a long-term shareholder.
Dylan Lewis: Yeah. I think wanting to vote and being a tech investor or growth in the fixture can sometimes be a little bit mutually exclusive.
John Rotonti: Actually, the good point though. [laughs]
Dylan Lewis: Just a reality of the space. I mean, what's interesting about it is even at 40 percent is not a controlling voting stake, there's still needs to be agreement, some consensus so far, anything dramatic to the past, but I see your points there, John, they are good ones. I mean, you make a point though when you are investing in founder-led tech you're giving up some voting power.
If you've been investing for a few weeks, for even 10 years you haven't been through an extended bear market before, fear not. Producer Ricky Mulvey and TMF Analyst Ron Gross are here with a bear market boot camp.
Ricky Mulvey: Welcome to bear market boot camp. If you've been investing since 2020 or even 2012 you have not seen a long bear market, so we don't know when the bottom will come. But if you're a stock investor you might want to pack your bags for a longer ride than the last one. Joining me now is Ron Gross, thanks for being here.
Ron Gross: Hey Ricky, always a pleasure.
Ricky Mulvey: Ron, this is not your first bear market. For investors heading into their first bear market boot camp, what are they packing? What should they bring?
Ron Gross: I think it's pretty much the same two things you should bring to investing in general. That is time and temperament. They are the most important tools an investor can have. The proper temperament will make sure you don't make unnecessary mistakes, and the proper time horizon will make sure you can compound your wealth over long periods of time. It will ensure that you can ride out whatever lens the bear market happens to be. Time and temperament.
Ricky Mulvey: Whatever length is the key phrase there. [laughs] The last bear market lasted exactly 33 days. I think that's the shortest one on record. Why are some investors expecting this one to last much longer?
Ron Gross: I did a little research for you, Ricky and I came up with that since 1966 the average bear market has lasted about 15 months, much shorter than the average bull market by the way. They do often end pretty quickly with a rebound that is very difficult to predict, as you mentioned 2020, 33 days. That's why long-term investors are usually better off just staying the course and not pulling money out of the market and trying to time it because you don't know when that quick rebound is going to occur. The COVID-induced bear market was caused obviously by a very specific reason, the pandemic, it was short-lived. But if vaccines didn't make it to the market as quickly as they did, it's likely we would have been in for a much longer and scarier ride there. Now the one we're in now has a different cause although it has some of its roots in COVID, namely supply chain disruptions and some fiscal stimulus that COVID did require.
But we've lived with interest rates that are basically zero and quantitative easing for a very long time now. The chickens are simply just coming home to roost. We've had some very good years. Now it's time for a bit of a correction. That's the way the market works in cycles. Hard to predict how long it will take the Fed to get inflation under control. We don't know how high-interest rates will go. We don't know if we're in a recession actually right now, as some are saying, or if we're going to be going into recession as a result of Fed policy, or if the Fed will be able to engineer a soft landing. I have no way to predict how long a bear market will last. At the heart of COVID, I certainly wouldn't have guessed 33 days so that's really the reason for staying the course.
Ricky Mulvey: I've seen some comparisons to the bear market from the '70s with high oil [laughs] prices and inflation. I've seen some comparisons to the tech or the dot-com bubble with tech stock prices collapsing. What are the similarities you're seeing in this bear market to previous ones?
Ron Gross: Even though all corrections and bear markets are different, they do have certain very fundamental basic things in common. Chief among them are stocks go down, you get nervous. That's really what it boils down to. The different reasons during 2008, 2009 great financial crisis, great recession whatever you want to call it, the fear was pretty palpable. We were actually concerned that the financial markets could be significantly or even permanently impaired, and we could end up in depression. In 2000 it wasn't like that at all. Most everyone knew that there was a .com Internet bubble forming and that it was going to burst at some point. Then I have developed a rule of thumb, Ricky, maybe you can use this at home. If people you meet that don't know that much about investing are coming up to at a party or a backyard barbecue and telling you about how much money they are making and how easy it is, then you can be relatively sure you're in some kind of a bubble. That's how it was with dot-com stocks in 2000, and real estate speculating in 2008. Ricky, how about this year? Can you think of anything perhaps that people would come up to at a party and tell you that they're making gobs and gobs of money at least a few months ago?
Ricky Mulvey: Cryptocurrencies.
Ron Gross: That could be Ricky, yes good answer. Crypto and maybe even NFTs would be a little bit even more suspect. It's not to say that there weren't good Internet stocks back then or good real estate investments back then. Perhaps good cryptocurrencies right now. It's the excess that we have to watch out for. It's tulips in Holland in the 1600s that we need to be wary of. All corrections in bear markets are somewhat different but they all really have that in common stocks go down, we get really fearful and we sometimes don't know how to react.
Ricky Mulvey: Let's talk about the Fed for a sec, Fed chair Jerome Powell recently said in a congressional testimony, "We're not trying to provoke and do not think we will need to provoke a recession. But we do think it's absolutely essential that we restore price stability really, for the benefit of the labour market as much as anything else." What he's talking about here is the buzzwords, the soft landing. Is there any historical precedent of the Fed achieving this or is a recession bear market inevitable whenever the Fed hikes interest rates?
Ron Gross: I love the word provoke in that sentence. It's like a bear, a wild animal. Maybe it's actually appropriate. A couple of different times where perhaps we did see a soft landing. Alan Greenspan, Fed Reserve chair, has been credited with engineering a soft landing in 1994, '95. Fed reserve chair Jerome Powell has also suggested that Fed achieved soft landings in 1965, back in the day and 1984, but it is a difficult thing to do. In contrast, a recession followed the last five instances when inflation peaked above five percent: 1970, 1974, 1980, 1990, 2008, possibly 2022. We will see when the next GDP results come out. A soft landing would be wonderful. But it is not the easiest thing to achieve.
Ricky Mulvey: Going to skip ahead a little bit. You're a stock investor, you're looking down your brokerage account. What are some signals that the companies you own are ready for a long bear market? Is cash on the balance sheet more important right now, should we be focusing on companies with high ROIC. What are you looking at?
Ron Gross: For sure, companies that actually generate cash flow are profitable and generate cash flow and have strong balance sheets, will be able to weather a bear market or an economic downturn. Now that doesn't mean every company you own has to have those characteristics. If you're well-diversified you'll likely have a mix of companies, some that do better during boom times and some that hold up better during bust times. During difficult times. The stronger the company, the likely the better it will perform or the better you'll be able to sleep at night knowing that you are an owner of it. But sometimes these great companies also get their prices bid up and then during bad times, they just come back down. I think Isaac Newton taught us that what goes up eventually must come down at least for certain periods of time. But listen, you couldn't never go wrong in any market or any economy by buying really strong profitable companies with great balance sheets.
Ricky Mulvey: Any really strong profitable companies with great balance sheets coming to mind for you?
Ron Gross: Oh, guys. I mean, there's so many. I've always been a fan of Costco and Nike, although Nike is getting smacked around a bit this week, as a result of higher shipping costs. Home Depot is a great company. Disney, Apple and Microsoft probably go without saying, despite the pounding that Target has taken this year. I'm a big fan of that business model. Lots of wonderful companies out there that not only make a ton of money, but have great balance sheets as well.
Ricky Mulvey: Any final tips for newer investor? Maybe this is your first bear market, maybe this is your second traversing these lands.
Ron Gross: I think I'll go back to where we started. It always comes back to me to time in temperament. One hundred percent of the time the stock market has rebounded and moved higher after a correction or bear market, 100 percent of the time. I see no reason to think this time would be any different if it is by the way [MUSIC] we've got bigger problems on the stock market. Stay the course, keep a long-term perspective and it'll all be just fine.
Ricky Mulvey: Ron Gross, thank you for your time and your temperament.
Ron Gross: Thank you for Ricky, my pleasure.
Dylan Lewis: As always, people on the program may have interest in stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis, thanks for listening. We'll see you tomorrow.
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. Dylan Lewis has positions in Alphabet (A shares), Amazon, Apple, Shopify, and Walt Disney. John Rotonti has positions in Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Costco Wholesale, Home Depot, Microsoft, Shopify, and Walt Disney. Ricky Mulvey has positions in Home Depot and Walt Disney. Ron Gross has positions in Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, Microsoft, Nike, Target, and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, Home Depot, Microsoft, Nike, Shopify, Target, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), 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. | Dylan Lewis: I appreciate you bringing some of the positive stuff in there, John because I think it can be hard to stare at the headlines that are just pumping the inflation news and talking about the impact that's being felt and it's real. If people you meet that don't know that much about investing are coming up to at a party or a backyard barbecue and telling you about how much money they are making and how easy it is, then you can be relatively sure you're in some kind of a bubble. Dylan Lewis: As always, people on the program may have interest in stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. | John Rotonti has positions in Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Costco Wholesale, Home Depot, Microsoft, Shopify, and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, Home Depot, Microsoft, Nike, Shopify, Target, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | Motley Fool producer Ricky Mulvey and Motley Fool analyst Ron Gross discuss the ins and outs of investing in a bear market and what types of companies you should be keeping an eye on. One hundred percent of the time the stock market has rebounded and moved higher after a correction or bear market, 100 percent of the time. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | I don't know, 33 percent seems like a lot to me. In 2000 it wasn't like that at all. One hundred percent of the time the stock market has rebounded and moved higher after a correction or bear market, 100 percent of the time. |
20371.0 | 2022-07-07 00:00:00 UTC | After Hours Most Active for Jul 7, 2022 : SWN, BMY, AUY, QQQ, OPEN, TWTR, LYFT, CI, PINS, AAPL, CSCO, XP | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jul-7-2022-%3A-swn-bmy-auy-qqq-open-twtr-lyft-ci-pins-aapl-csco | nan | nan | The NASDAQ 100 After Hours Indicator is down -18.4 to 12,090.65. The total After hours volume is currently 133,729,353 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is -0.02 at $6.24, with 6,819,150 shares traded. SWN's current last sale is 69.33% of the target price of $9.
Bristol-Myers Squibb Company (BMY) is -0.14 at $75.00, with 4,605,699 shares traded. BMY's current last sale is 93.75% of the target price of $80.
Yamana Gold Inc. (AUY) is unchanged at $4.66, with 4,167,081 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.39 at $294.59, with 3,490,557 shares traded. This represents a 9.4% increase from its 52 Week Low.
Opendoor Technologies Inc (OPEN) is -0.01 at $5.64, with 3,194,844 shares traded. As reported by Zacks, the current mean recommendation for OPEN is in the "buy range".
Twitter, Inc. (TWTR) is -0.1401 at $38.65, with 3,066,697 shares traded. TWTR's current last sale is 71.31% of the target price of $54.2.
Lyft, Inc. (LYFT) is -0.01 at $13.75, with 2,891,754 shares traded. As reported by Zacks, the current mean recommendation for LYFT is in the "buy range".
Cigna Corporation (CI) is unchanged at $275.78, with 2,691,758 shares traded., following a 52-week high recorded in today's regular session.
Pinterest, Inc. (PINS) is -0.17 at $20.10, with 2,619,792 shares traded. PINS's current last sale is 77.31% of the target price of $26.
Apple Inc. (AAPL) is -0.22 at $146.13, with 2,284,869 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cisco Systems, Inc. (CSCO) is -0.12 at $43.10, with 2,100,764 shares traded. CSCO's current last sale is 82.88% of the target price of $52.
XP Inc. (XP) is +0.01 at $18.49, with 1,824,381 shares traded. As reported by Zacks, the current mean recommendation for XP is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.22 at $146.13, with 2,284,869 shares traded. As reported by Zacks, the current mean recommendation for LYFT is in the "buy range". | Apple Inc. (AAPL) is -0.22 at $146.13, with 2,284,869 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AUY is in the "buy range". | Apple Inc. (AAPL) is -0.22 at $146.13, with 2,284,869 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 133,729,353 shares traded. | Apple Inc. (AAPL) is -0.22 at $146.13, with 2,284,869 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -18.4 to 12,090.65. |
20372.0 | 2022-07-07 00:00:00 UTC | EXCLUSIVE-EU antitrust regulators probing tech group AOM's video licensing policy | AAPL | https://www.nasdaq.com/articles/exclusive-eu-antitrust-regulators-probing-tech-group-aoms-video-licensing-policy | nan | nan | BRUSSELS, July 7 (Reuters) - EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, the European Commission said on Thursday.
"The Commission confirms that it has a preliminary investigation ongoing into AOM's licensing policy," a spokesperson for the EU executive told Reuters.
"The fact that the Commission has a preliminary investigation does not prejudge the outcome of the investigation on the existence of an infringement," the spokesperson said, without providing further details.
(Reporting by Foo Yun Chee Editing by Chris Reese)
((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. | BRUSSELS, July 7 (Reuters) - EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, the European Commission said on Thursday. "The Commission confirms that it has a preliminary investigation ongoing into AOM's licensing policy," a spokesperson for the EU executive told Reuters. (Reporting by Foo Yun Chee Editing by Chris Reese) ((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. | BRUSSELS, July 7 (Reuters) - EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, the European Commission said on Thursday. "The Commission confirms that it has a preliminary investigation ongoing into AOM's licensing policy," a spokesperson for the EU executive told Reuters. "The fact that the Commission has a preliminary investigation does not prejudge the outcome of the investigation on the existence of an infringement," the spokesperson said, without providing further details. | BRUSSELS, July 7 (Reuters) - EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, the European Commission said on Thursday. "The Commission confirms that it has a preliminary investigation ongoing into AOM's licensing policy," a spokesperson for the EU executive told Reuters. (Reporting by Foo Yun Chee Editing by Chris Reese) ((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. | BRUSSELS, July 7 (Reuters) - EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O and Meta FB.O, the European Commission said on Thursday. "The Commission confirms that it has a preliminary investigation ongoing into AOM's licensing policy," a spokesperson for the EU executive told Reuters. "The fact that the Commission has a preliminary investigation does not prejudge the outcome of the investigation on the existence of an infringement," the spokesperson said, without providing further details. |
20373.0 | 2022-07-07 00:00:00 UTC | Pre-Market Most Active for Jul 7, 2022 : TQQQ, SQQQ, FFIE, NIO, QQQ, F, ANVS, CCL, AAPL, BP, BBBY, TEN | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-jul-7-2022-%3A-tqqq-sqqq-ffie-nio-qqq-f-anvs-ccl-aapl-bp-bbby-ten | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 54.36 to 11,906.95. The total Pre-Market volume is currently 32,510,168 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.3 at $26.44, with 2,899,953 shares traded. This represents a 24.02% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.6 at $53.05, with 1,624,577 shares traded. This represents a 88.45% increase from its 52 Week Low.
Faraday Future Intelligent Electric Inc. (FFIE) is +0.38 at $4.92, with 1,329,221 shares traded. As reported in the last short interest update the days to cover for FFIE is 9.442662; this calculation is based on the average trading volume of the stock.
NIO Inc. (NIO) is +0.44 at $21.27, with 948,706 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.1 at $289.90, with 681,863 shares traded. This represents a 7.66% increase from its 52 Week Low.
Ford Motor Company (F) is +0.1799 at $11.24, with 475,365 shares traded. F's current last sale is 66.12% of the target price of $17.
Annovis Bio, Inc. (ANVS) is +3.33 at $16.59, with 434,986 shares traded. As reported by Zacks, the current mean recommendation for ANVS is in the "strong buy range".
Carnival Corporation (CCL) is +0.12 at $8.86, with 412,773 shares traded. CCL's current last sale is 63.29% of the target price of $14.
Apple Inc. (AAPL) is +0.35 at $143.27, with 399,022 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
BP p.l.c. (BP) is +1.04 at $27.76, with 391,118 shares traded. BP's current last sale is 77.11% of the target price of $36.
Bed Bath & Beyond Inc. (BBBY) is +0.28 at $4.75, with 363,023 shares traded. BBBY's current last sale is 118.75% of the target price of $4.
Tenneco Inc. (TEN) is +1.64 at $18.80, with 358,499 shares traded. TEN's current last sale is 94% of the target price of $20.
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 +0.35 at $143.27, with 399,022 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for FFIE is 9.442662; this calculation is based on the average trading volume of the stock. | Apple Inc. (AAPL) is +0.35 at $143.27, with 399,022 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 32,510,168 shares traded. | Apple Inc. (AAPL) is +0.35 at $143.27, with 399,022 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 32,510,168 shares traded. | Apple Inc. (AAPL) is +0.35 at $143.27, with 399,022 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for FFIE is 9.442662; this calculation is based on the average trading volume of the stock. |
20374.0 | 2022-07-07 00:00:00 UTC | Interesting AAPL Put And Call Options For August 26th | AAPL | https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-august-26th | nan | nan | Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 26th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new August 26th contracts and identified one put and one call contract of particular interest.
The put contract at the $144.00 strike price has a current bid of $6.45. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $144.00, but will also collect the premium, putting the cost basis of the shares at $137.55 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $145.40/share today.
Because the $144.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.48% return on the cash commitment, or 32.70% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $144.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $148.00 strike price has a current bid of $5.95. If an investor was to purchase shares of AAPL stock at the current price level of $145.40/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $148.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.88% if the stock gets called away at the August 26th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $148.00 strike highlighted in red:
Considering the fact that the $148.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.09% boost of extra return to the investor, or 29.87% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $145.40) to be 30%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $148.00 strike highlighted in red: Considering the fact that the $148.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 26th expiration. | Below is a chart showing AAPL's trailing twelve month trading history, with the $148.00 strike highlighted in red: Considering the fact that the $148.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 26th expiration. | Below is a chart showing AAPL's trailing twelve month trading history, with the $148.00 strike highlighted in red: Considering the fact that the $148.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 26th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new August 26th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new August 26th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $148.00 strike highlighted in red: Considering the fact that the $148.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 26th expiration. |
20375.0 | 2022-07-07 00:00:00 UTC | ITOT, XDQQ: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/itot-xdqq%3A-big-etf-inflows | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units.
VIDEO: ITOT, XDQQ: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. |
20376.0 | 2022-07-07 00:00:00 UTC | How Good Are You at Guessing a Company's Market Cap? | AAPL | https://www.nasdaq.com/articles/how-good-are-you-at-guessing-a-companys-market-cap | nan | nan | Motley Fool analyst Yasser El-Shimy and Motley Fool contributor Brian Stoffel play The Market Cap Game Show.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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David Gardner: A lot of people, when they first think about stocks, tend to lock in on the share price. Maybe this was you or maybe this is a friend of yours. They'll say, "Well, Alphabet, it's $2,235 a share, that's expensive." By contrast, the same mentality when looking at penny stocks can get a lot more excited. Some penny stock they're seeing promoted by someone, perhaps some near do well and they'll say, "Wow, the stock is at 22 cents, not $2,200 like Alphabet." 22 cents. They will think that's the one to buy, the one at 22 cents because if it just reaches a dollar, you quadruple your money. Well, from the earliest days of the Motley Fool, we've tried to get people focused not on the price per share of the company, but rather on the market cap of the company. The price per share of a stock tells you almost nothing. It's the price to buy one share of the stock.
But how many shares does the company have outstanding? Well, in math, we multiply two multiplicands together, but the price per share is only one multiplicand. If you don't know the other one, you can't do any meaningful math or figure out much of the world around you. Fools with a capital F know that you need to know the shares outstanding, and then multiply that by the price per share, and now you know the actual full value of the company, its full price tag, its market capitalization market cap. Well, to teach this lesson inexorably and unforgettable, we invented a game, that's what I do. The date was August 9th, 2017 and we've been playing every quarter since, you're planning too. You know this. You've been playing along all the way through I hope, and it's that time of the year. Again, that time of the quarter, 10 new stocks, two guest stars, both returning champions. Three guest stars actually, because you're playing along too, only on this week's Rule Breaker Investing.
Welcome back to Rule Breaker Investing. It is a June of five Wednesdays, and since this podcast comes out approximately 4:00 PM Eastern Time, every Wednesday as it has since July of 2015 when we get five Wednesdays in a month, that's a big month. I hope you've been enjoying. We did a Blast From The Past to start June, Company Culture Tips and Reviewapalooza looking at three disappointing June samplers last week with Asit Sharma, Nick Sciple, and Alicia Alfiere. Well, I've got two more Fool guest stars joining me this week. It's the Market Cap Game Show and the champion of the last one, one quarter ago and of the one before that, two quarters ago right around Christmas, they're both here and getting ready to face the onslaught of 10 randomized stocks pulled from the Motley Fool universe, I call it the Fool 500. These are 500 companies in our screener database that are the highest-ranking, combining our interest in them as analysts, with your interest in them, the clicks that you give as members. That's a very informal Fool 500. There's no mutual fund tied to this or anything like that. Although, I should mention that this database is used in lots of different ways by our business.
All I really do is just randomize some numbers from 1-500 and do a little bit of due diligence. Sometimes I pick the stock, sometimes I know nothing about it myself. That's certainly true of my guests as well who come in from their soundproofed chambers and their internet-free screens, having no idea what company we're going to talk about or what the market cap is although since they're both pretty smart, sometimes they do have some idea of what the market cap is and your pretty smart too. I hope you get smarter, happier, and richer every week listening to Rule Breaker Investing, that's kind of the point. This is an opportunity to pull your smart boots on. That's right, those boots that make you smarter. Bootstrapping it as a fellow player because the Market Cap Game Show, as has been the case since summer of 2017, so it's about five years old at this point, it's your opportunity to compete right along with them. I'll be asking each of my guests for the 10 stocks, what's the range of the market cap that you estimate for that stock? Then I'll turn to the other guests contestants as Kim, is your friend right or wrong inside that range or outside that range? While I asked that question of my guests contestant, I'm asking it of you as well so you're able to play right along with us and you can even outscore my guest stars, which probably happens from time to time, maybe every quarter.
I think at the top I explained market cap, really just the price tag of companies. It's more complicated than that because companies that have large amounts of debt or cash on their balance sheet, that creates an enterprise value, which is the actual value of the company. But it's a lot simpler for most of us and pretty accurate most of the time just to look at how many shares outstanding for that company and what its price per share is and do the simple multiplication I talked about, and find the market cap, which is a much more important number. It's really the real value of the company. I think so many new investors tend to look at our price per share of a stock and think bigger means bigger and smaller means smaller, and by no means, is that the case? Many times it's not the case at all. It's really important, I think, for us to know the market caps. Of course in 2022 the market caps, they are a bit lower than I remember at the start of this very difficult year for investors [MUSIC] Well, I say without further ado, let's yet the June 2022 edition of the Market Cap Game Show starting. Well our guests contestants, yeah, they each won the previous Market Cap Game Show or the one before that. I'd like first to introduce Yasser El-Shimy. [MUSIC] Yasser, welcome back, our returning champion for March 2022. Yasser happy summer.
Yasser El-Shimy: Thank you, David. Thanks for having me back and I don't want to get used to that word champion.
David Gardner: [LAUGHTER] You don't?
Yasser El-Shimy: I don't think so. I feel it was beginners like last time and I'm about to be found out on this episode.
David Gardner: Well, I think that we're all part of the reason I only MC the game, I don't play this because I like to hide behind the idea that I'm real expert and people think I'm authoritative in all things and so as the MC, I can always appear that way as Alex Trebek and others have demonstrated over the course of decades. So thank you for being brave enough to be on that side of the transom. Yasser, could you give a couple of sentences about what you're doing at the Fool these days and maybe a Summer Street or pleasure that not enough people recognize or appreciate.
Yasser El-Shimy: Sure. At the fall I just continue the endless quest to find that next great company. I usually gravitate toward younger, smaller sized companies with really innovative technologies that I feel can contribute meaningfully to the economy and to society at large and have a strong chance of generating strong returns over a long time period.
David Gardner: That sounds good to me, I'm sure that sounds good to every listener.
Yasser El-Shimy: Exactly. We've been doing a lot of that at the Motley Fool. I've been involved in a few services including Trend Spotter and Showdown, and Next-Gen Supercycle. That's my work at the Fool. In terms of summer thrill, an underrated one to be sure, I would say that playing Backgammon on the beach is underrated. I cannot recommend that enough to people.
David Gardner: I love board games and I love the beach. I don't often mix one with the other, but you're right, Yasser. The wind sometimes is right out there on the coast, so it can be hard but chunkier bits.
Yasser El-Shimy: Yeah.
David Gardner: Like marble pieces and heavy dice.
Yasser El-Shimy: I have the real deal sets with the marble dice and everything and it's beautiful.
David Gardner: Do you feel like you play Backgammon better when you're at the beach?
Yasser El-Shimy: I think I do. The reason is because I'm more relaxed and so I'm able to just completely let go of any other worries or concerns and just completely give myself to the game.
David Gardner: Roll those XX's. Well, thank you, Yasser, looking forward to your participation this week and now let me introduce our other guest star. It's Brian Stoffel. Brian, in the Battle of the Brians December 2021, two market cap gameshows ago. As I recall, you and our friend Brian Feroldi, each scored five points, but we had a pre-existing tiebreaker that you won. So Brian Stoffel, welcome back as a returning champion.
Brian Stoffel: Thank you and since the previous one was against Brian Feroldi, I will accept the title of Champion. If only because we had many tiebreaker shows like that on Motley Fool Live that I lost. [laughs]
David Gardner: We had another Battle of the Brians before that where I think you both tied again. You have a remarkable ability to score five points in the 10 point Market Cap Game Show contest. Brian, delight to have you. What are you doing around the Fool these days? What's an underrated summer thrill?
Brian Stoffel: Around the Fool, everything pretty much goes into two buckets. The first bucket is Motley Fool Live where I am on the Mindset Show, Brian Feroldi, who we just mentioned and I, we have a stocks from scratch show that we do. Then I'm also in the Morning Show. Then I also help with the monthly write-ups for the Stock Advisor recommendation. Now when it comes to underappreciated thing, it's funny because David, you just mentioned the wind being something that can make things harder. My underappreciated thing is the wind because at least where I am, the mosquitoes can be terrible [laughs] during the summer, except if the wind is out. I'm a big fan of summer breezes because it means that I'm not going to be scratching my ankles for the next couple of months.
David Gardner: Are you describing Wisconsin Lakes? Is that one I'm hearing?
Brian Stoffel: That is correct.
David Gardner: Of course, mosquitoes are a lot more universal than that. But boy, do I hear you, Brian, I've been feeling them here on the coast in North Carolina. Well, thank you both for joining us for this summer edition. It is June 2022. I'd say without further ado, let's get started with company Number 1. Yeah, so let me turn to you first and I'm thinking about companies that manage multiple brands. Companies that manage multiple brands, who does it well or poorly in your mind, given me an exemplar.
Yasser El-Shimy: One company that immediately comes to mind would be Procter & Gamble, with the Tide brand and Cascade and other household essentials, if you will.
David Gardner: How about retail operations that have more than one type of store under a different name?
Yasser El-Shimy: That's an interesting question.
David Gardner: They're the Clothiers, I sometimes think back to Gap stores which also had Old Navy. That's not the company we're talking about now, but I think it's not uncommon in retail to be owning multiple brands.
Yasser El-Shimy: No that's true. The Gap is one famous example they own Banana Republic, Old Navy.
David Gardner: That's right.
Yasser El-Shimy: Other so, yeah, I guess it is not that uncommon.
David Gardner: Well, this particular company is an example. This company is in the top 100 by revenue in the Fortune 500. It was formed as a subsidiary of Xero Corporation in 1987. That's a brand I still remember some of the older hands listening right now may remember Z-A-Y-R-E discovery today is headquartered in Framingham, Massachusetts, but the first T.J. Maxx store was actually open in Auburn, Massachusetts, it was part of the discount department store chain of Xero today. TJX Companies ticker symbol TJX is actually headquartered in Framingham, Massachusetts. The reason I was mentioning multiple brands, Yasser is because I'd forgotten. I don't know this company that well, but they also own Marshalls and HomeGoods, Homesense, Sierra in the United States, they've got Winners in Canada, they're operating primarily in North America with a lot of discount off-price department stores. This is a company again, that is one of the 100 largest by revenue share in the United States of America. Before I ask you about the market cap, Yasser, have you been into a T.J. Maxx any time in the last few years?
Yasser El-Shimy: Absolutely. I've been to a T.J. Maxx, to Marshalls, and to HomeGoods. I would say that my mom is probably singularly responsible for 50 percent of their sales. [laughs] The number of times she has just dragged me in there to buy stuff it's incredible, but there's a certain excitement associated with going to these stores even if you don't really need to get those "Bargain prices." There's a certain thrill associated with the egg hunt aspect of it, the Easter egg hunt, because you don't know what you're going to get there. You just go and you just go through the stuff. Sometimes you find stuff you like sometimes you don't.
David Gardner: Well said.
Yasser El-Shimy: I love that thrill of finding something new.
David Gardner: Well, given that your mother is providing about 50 percent of the company's revenues, I'm hoping Yasser you'll have at least a decent guess at the market cap for The TJX Companies ticker symbol TJX. What is your range, Yasser, for the market cap for TJX?
Yasser El-Shimy: Good question. That's not the kind of company I would have personally looked at to consider as an investment. But if I were to speculate on the market cap of TJX, I would probably say it's in the 14 billion to $22 billion range.
David Gardner: Fourteen billion and $22 billion. Players at home and Brian Stoffel, you're either going to say it's within Yasser's range or outside might be higher, might be lower. Again, new players, it's about time to make your decision right along with Brian Stoffel. As I ask Brian, a little bit of thinking for you here and where you are on inside or outside Yasser's range.
Brian Stoffel: Yeah. When you first introduced the company, I was like to write down what I think it is. Then at least I've got something to anchor to. It's funny because first I wrote 10-15. Then I heard you say that it's in the top 100 per sales and I was like could it be 30? I don't know. Since this is pretty close to that, I'm going to go ahead and say inside the range. Oh, no.
David Gardner: It is unfortunately outside Yasser's range. Again, players at home, if you said outside the range, you've got it right. History will now show that both Yasser and Brian had it well lower than the TJX Companies about which I know not that much myself, to be clear. I haven't been to T.J. Maxx as many times as the El-Shimy family. But the market cap for TJX Companies is 66.48 billion. Actually about triple the range that you were both thinking. Perhaps the mention that it was in the top 100 by revenues would be a reason to think higher. But that's just second guessing and Monday morning quarterbacking, and we don't do that on this show.
Brian Stoffel: I never would've guessed that high no matter what you said [laughs]
Yasser El-Shimy: I'm absolutely stumped. I know my mom has done them a favor too, but not that much.
David Gardner: [laughs] I've got this one as Yasser 1, Brian nothing, as we move onto company Number 2. Brian, your life in or out of video games. Do you care about video games?
Brian Stoffel: Not really. I played them a lot of Madden football and college football when I was in college. But once I became a teacher and then after that, once I became a dad, a lot less time. Although I will say my daughter just turned nine and we agreed to get her a Nintendo system so our family can play just dance, so that could change soon.
David Gardner: That is a wonderful use of video game time. We have certainly done the dance pad thing in the Gardner family home admittedly with kids who are now adults. But I want to validate that decision that the [inaudible 00:17:24] are considering because I think not only do you get a little more coordinated, you have fun as a family. Brian, I think you know that I love being in some video games, so it almost doesn't matter the genre I love video games, and often these companies have made it into Motley Fool portfolios. It's been a great growth area of the economy over the last 30 years as you well know, and not everybody likes video games. Some people think that they are responsible for violence.
Often, I think new media when they show up over the course of history, I think it was once mentioned to me that the novel was considered corrupting of younger women when it first showed up that horrific new art form novels. I think it's always going to be true and we're probably going to see that with the metaverse as well, where people look at the downside and don't like new media sometimes for that reason. Admittedly though, I'd like to say I probably spent too many hours playing video games over the course of my life. One day on the Gardner deathbed, I might say, I played too many [laughs] video games. But anyway, just dance sounds good to me Brian. Well, not every video game company is an American company. We certainly have some big brands, but I think a lot of us know that Sony, one of the biggest video game companies in the world is Japanese, of course. Then there are Chinese companies. That's what I'm thinking about right now, Brian Stoffel. Have you ever heard of the Westward Journey series?
Brian Stoffel: I have not.
David Gardner: How about Tian Xia III?
Brian Stoffel: Yeah, that's a huge no.
David Gardner: Heroes of Tang Dynasty Zero, or Ghost II, or Nostos, and Onmyoji?
Brian Stoffel: Man, that's the whole lot of blanks.
David Gardner: [laughs] Well, more Americans may have heard of World of Warcraft, StarCraft, and Overwatch, which NetEase sticker symbol NTES operates the Chinese versions of those games. This is a long running Rule Breaker stock pick done well over the course of time with a lot of stocks. More recently, it hasn't fared so well over the last 12 months. But what's more important than the performance, well, at least for this game show, I actually thing the performance is most important. But for this game show, what's more important, Brian, as you know, is the market cap of NetEase, sticker symbol NTES. What is your range of market cap for NetEase?
Brian Stoffel: Oh man, so I've got to consider the fact that video games in general are down, people are spending last time inside, although there's more lockdowns in China than there are other places. But then there's also concern about Chinese delisting. Oh man, I'm going to give a big range here, which might be a treat for Yasser or might not. But I'm going to say between 30 and 60 billion.
David Gardner: Thirty and 60 billion players at home, and Yasser El-Shimy does feel as if Brian has been generous with his range. But let's find out. Yasser, players at home, inside 30 to 60 billion or outside that range?
Yasser El-Shimy: That's a tough one, David. Yeah, I mean, for all the reasons that Brian just listed, there are lot of question marks on the volatility associated with Chinese stocks lately. Even though he did offer a very generous range here, it's a tough one to call, but I'm going to go with outside the range.
David Gardner: It is outside the range. It was a generous range and it was pretty close. Players at home and Yasser, the answer is 63.59 billion. Just outside that range. It's interesting. One of the reasons I love market cap is it gives us an opportunity to compare companies that are completely different from each other. Think about how different the purveyor of off-price discounting department stores, largely in North America TJX Companies, T.J. Maxx, etc. Thinking about how different that is from those video game tiles many of us had never heard of and yet both of these companies are right around lower $60 billion market cap. Very comparable. In that regard, I'm also happy to say that for Rule Breaker members, even with the recent weakness in NetEase, this has been a wonderful. Last 10 years the stock is up eight times in value. By the way, guys, this is a fund rule of thumb to remember. Over the last 10 years, the S&P 500 is up almost exactly 200 percent. Over the last 10 years, the stock market has almost exactly tripled. When we talk, we may reference at other times, this episode when we talked about 10-year performance of some of these stocks, they're trying to be 200 percent,. T's coming to about 700 percent over the last 10 years and rather anonymously, I think for most, at least US investors. Yasser, if my math is right, I think you're up to nothing. Your feelings at this moment.
Yasser El-Shimy: Sure I got David. I don't want to get ahead of myself here, but it's a better start than I expected.
David Gardner: [laughs] I thought that was a generous range, Brian. If you just said 30 to 65 or something like that, would've done it. Sometimes we shouldn't too often rock round numbers. I don't know. Let's see and keep planning going forward. Let me turn back to Yasser. Yasser, I know you live in the greater Washington DC area, which is, of course, where the original Fool HQ anyway is based. Have you been in Downtown DC recently?
Yasser El-Shimy: I have actually just this weekend, went to the Museum of Natural History.
David Gardner: Oh, wonderful. Was that to go with your family, is that an annual soldier, and why?
Yasser El-Shimy: [laughs] I mean, we had the extended weekend just with Juneteenth holiday. The weather was perfect so we decided, hey, let's go on a trip to the newly renovated Museum of Natural History, and luckily, the girls really loved it.
David Gardner: I'm so glad to hear that. I grew up in Washington DC myself, so I can remember with six-year-old, I seeing a gigantic, great, big blue whale. I think it was right almost as you walk in. Is that big blue whale still in this Smithsonian Museum of Natural History?
Yasser El-Shimy: There is a huge skeleton of a big blue whale. But I think you might be thinking of the big elephant. That's right. As soon as you step in they have a full size elephant [laughs] in the hallway.
David Gardner: Most of all, Yasser, I think I need to go back to that [laughs] museum it's a bit of few decades for me, but I'm delighted. Certainly one of the great things about growing up in Washington DC are all those amazing museums as well. When I've talked to friends who are downtown, they say stuff like, yeah, it's still really quiet in Downtown DC. A lot of us in cities, if we think about the corporate district, not as much activity certainly as pre-COVID. Most recently I was seeing numbers like we're peaking post-COVID at 78 percent occupancy relative to where we were 100 percent before that, ie, we're three quarters back, but there's still a quarter missing. This is of concern to anybody in the commercial real estate business and a lot of us have questions about what the future of that business is. Perhaps most of all Yasser people in that industry themselves, I will say by the way, on a side note, it hasn't stopped. I think the DC traffic from still seem to be pretty bad. If people are downtown, are they still out on for 495? I'm not sure. But the reason we're talking about commercial real estate is because I'm thinking of CoStar Group, ticker symbol CSGP. This is a company that for years has taught it up the numbers, created a database and services around that, around the prices of office buildings and other commercial properties. It's a place where if you work within this industry, you are very familiar with CoStar Group and the data that this company overseas manages on its platform. Yasser, have you ever taken a look at CoStar Group the stock?
Yasser El-Shimy: I have not had the pleasure unfortunately.
David Gardner: It's not a very well-known stock, we'll certainly have better known stocks this week on the Market Cap Game Show. But I think without further ado, I should just turn to you and ask, since you're now on point for the range of market cap for this, again, longtime Rule Breakers stock. I will turn to you, Yasser, and ask you a question I myself would have a hard time answering. What does the market cap range that you'd like to specify for CoStar Group?
Yasser El-Shimy: I'm going to go with 28 to 36 billions.
David Gardner: Twenty eight to 36 billion. I see that you're still working in a tighter range. It feels as if that might be distinctive to your approach to this game, Yasser. I know you're still getting your feet under you here, but do you feel like that might be a little bit more of the El-Shimy way to play the game?
Yasser El-Shimy: Yeah. I think the way I approach the game is I generally do try to situate where a company might be and then offer a relatively tight range.
David Gardner: Well players at home and Brian Stoffel, Yasser said 28 to 36 billion for a company not that many people know well, CoStar Group. Brian, inside that range or outside 28 to 36 billion?
Brian Stoffel: Man, I can't wait till we get to those more familiar names in the [inaudible 00:26:56] [laughs] Low end was 28 when I wrote mine down my high end was 27.8 [laughs] I'm over two so far, my gut tells me to say outside to the bottom, but since I'm over two, I'm going to switch it up, I'm going to say inside the range.
David Gardner: [laughs] I'm sorry to say it is a little bit lower. Not a bad call. It's 21.86 billion so we could round that to 22 billion players at home. If you said outside Yasser's range, Yasser keeps getting the range wrong, but scoring points that's part of the charm and fun of the market cap game, show and players at home are experiencing that as well. Yasser, by my accounting, you're right now three nothing but it feels like maybe you still have some of your best calls ahead of you.
Yasser El-Shimy: If I told you [laughs] I'll have to call you so [laughs] let's keep playing.
David Gardner: [laughs] Let's keep playing, on the company number 4 now Brian, one of the things I've always appreciated about you is not only are you somewhat of a world traveler, but you also have lived overseas and I think you still maintain a place in Costa Rica, am I right?
Brian Stoffel: Yes. In fact, on the trip down this past year at the last minute, my wife couldn't go so it was myself, a three-year-old, and an eight-year-old. Right as we were about to leave we all got COVID and so we had to quarantine in a shipping container, that's our house, on the farm for a week without Internet.
David Gardner: [laughs] What did you discover about yourself during that week?
Brian Stoffel: It's funny if you watch the Mindset episode that happened today, the day we recorded, we actually talked about that because what I discovered was I like focusing on mindset issues and working with our beginner members, especially more than specific stocks and so I shifted that when I came back.
David Gardner: We've referenced Motley Fool live a couple of times already. That's the way I describe that, Brian and Yasser is that's basically our TV channel on our website. It is member-focused so if you're a Motley Fool member, I hope you already know, live.fool.com and you've seen Brian, you've seen Yasser. Many Motley Fool analysts appear generally during the weekdays, all throughout the market year. It's something that I've enjoyed so much and I do wish the entire world watched Motley Fool Live, but that only happened when the entire world becomes Motley Fool members, which we hope will be the case one day, but it is our member-focused TV channels. Again, if you're already a member, you know that if you're not and you're curious take a look at Motley Fool services, Motley Fool premium services, Stock Advisor, many others and then you can join us at Motley Fool Live. Well, Brian, I'm glad that you guys got over COVID and I've often picture, I think you've sent me a picture or two of your place in Costa Rica so I know what it looks like. But what I don't know is how remote you are and whether there are any American brands that still are evident to you, even at that remote Costa Rican site?
Brian Stoffel: We are quite remote. When we fly in, then you can see, and it's really only in the capital city. There's a Walmart right there, there's some fast food restaurants you'd be familiar with. But beyond that, I think unless it's a company that produces tools, very slim chances. Coca-Cola is around everywhere.
David Gardner: That is a huge international brand and that's what I'm thinking about right now with the company number 4, so the biggest brands in the world, Brian, what would, what do you think is a brand that all Costa Ricans have probably heard of that's an American brand if you went top-three?
Brian Stoffel: Okay. I will go Coke and then it's a little bit unfair, but I'd throw Mehta or [Meta's] Facebook in there and then beyond that, probably McDonald's.
David Gardner: Wow, well, maybe Apple didn't rank there, but ticker symbol A-A-P-L is, I'm sure well known to many Costa Ricans and I think it's just about the biggest brand worldwide and for lots of great reasons. Often I think that the companies that build brand over decades are the stocks we want to own. It's no coincidence to me that many of the best-performing stocks end up being the best brands in the world over meaningful periods of time in each industry. As you guys can probably guess, relieving the obscurity of the CoStar Group's and net eases and right now we're looking at Apple. Brian, I'm turning back to you and wondering what market cap you'd like to specify for Apple Inc.
Brian Stoffel: I'm going to go, last time I did this, I said billion instead of trillion, and Brian Feroldi tried to get his answer in real quick. I'll remember trillion, let me say between 2.05 trillion to 2.405 trillion.
David Gardner: 2.05 trillion to 2.405 trillion. I do want to mention, by the way, it's been more than two years since any of these 10 stocks on this game show have appeared on the Market Cap Game Show. Not only do we have 10 fresh companies to discuss, but we have 10 fresh market caps to consider since the market itself has been about as fresh to investors as could possibly be in the first six months of a year. So 2.05 trillion Yasser, to 2.45 trillion, I want to ask you and our players at home right now, inside or outside that range.
Yasser El-Shimy: Well, I would say the trillion is right, [laughs] other than that.
David Gardner: Which is amazing on its own.
Yasser El-Shimy: [laughs] Exactly. That's incredible sometimes when you think of how incredibly large these companies are placed by market cap, I would say outside the range. I think the market has been absolutely brutal. Many of the technology companies out there, including the so-called Fang companies, Apple being one notable member of them. I'm feeling it's on the lower side of that equation.
David Gardner: The market cap of Apple is 2.105 trillion and so it is inside Brian's pretty generous range, just a range of 450 billion or so [laughs]. Larger than most companies by multiples of their market caps. But yeah, these numbers are so large that it's astonishing to consider. Apple has a significantly larger market cap than Russia has GDP, for example. It's always interesting to compare some of these global numbers. But when you think about the world's, I think probably best-known company, it's perhaps not surprising that we would be running up to the not just nine-figures friends, but 12 or 13 to anyway, a lot of numbers 2105000000000, and I think three more after that, 2.105 trillion. If you said inside the range, give yourself a point, Yasser, you said outside that range and so Brian racks up his first point. That makes it a little bit more dramatic. Remember, Brian always finishes these games five to five. It's Yasser three, Brian one, and players at home, you are somewhere from four we hope, right down to zero. Let's move on to company number five. From the very big to the significantly smaller, but I won't be any more helpful than that. Turning back to Yasser for company number 5. Yasser, do you use an iPhone or an Android phone?
Yasser El-Shimy: I do use an iPhone.
David Gardner: You use an iPhone. Well, let's stick with Apple. Then speaking of Apple, so you use an iPhone. Have you ever used Apple Cash?
Yasser El-Shimy: I do. Yes.
David Gardner: You use Apple cash?
Yasser El-Shimy: Well, hold on. I use Apple Pay and Apple Wallet. I'm not sure what Apple Cash is.
David Gardner: Well, I'm glad we're talking about this, and I have to admit I'm not an Apple Cash user myself and these things can start sounding confusing. But the Wallet app on my iPhone enables me to add my credit card or debit cards or other things and other ways to pay people. One of the options more recently has been Apple Cash. You can actually open up a debit card and just instead of maybe using Venmo or PayPal, you can pay people with Apple Cash. Now, I haven't signed up for it and Yasser it sounds like you're not specifically using Apple cash either.
Yasser El-Shimy: I'm not. No.
David Gardner: How do you send payments to friends? Do you ever pay your friends?
Yasser El-Shimy: I have to, unfortunately, [laughs] But when I do so it's usually via Venmo or the Cash app.
David Gardner: Okay. There are lots of ways to pay people these days, but the company behind Apple Cash is Green Dot Corporation. Check it. Ticker symbol is G-D-O-T, Green Dot Corporation. This is a company that is within Motley Fool coverage, not a stock I've looked at before, so I didn't know it very well. I'm not using Apple Cash, I don't know, maybe I should. But I don't really feel like I have a payments-to-friends problem. As Seth Gordon's often said, "who's actually scratching a niche or really solving a problem." I feel as if lots of different companies are all solving that problem which is maybe why Green Dot Corporation isn't larger than it actually is. But since we're talking about that, I guess I should turn back to Yasser and ask you what your market cap range is for Green Dot Corporation, ticker symbol G-D-O-T.
Yasser El-Shimy: Market cap for Green Dot, I will go with a range of 650 million to 1.75 billion..
David Gardner: Six hundred and fifty million to 1.75 billion. Spoiler alert this company is smaller than Apple, and so it makes these numbers I will [laughs] easily handled, shall we say. Brian Stoffel and players at home as I turn to you Green Dot Corporation, and ask you is it's market cap within Yasser's specified range of 650 million to 1.75 billion or outside that range.
Brian Stoffel: Every morning I look for big movers on the market. I don't like following it every day, but I look for big movers, but I always have a screener that says show me 2 billion and above. I don't ever remember seeing Green Dot which tells me that it's probably under 2 billion. Which means that I'm going to say inside and if this is between 1.75 and two billion, I'm going to go with the inside [laughs], I'm going with inside.
David Gardner: It is indeed well done. A screening stock researcher I here, Brian Stoffel, and that served you well in this case, the market cap for Green Dot Corporation is 1.22 billion, Apple 2.1 trillion, Green Dot 1.2 billion. But who's really counting? Actually, I'm counting, I count Yasser with three points and now Brian having scored two in a row, players at home, again, give yourself a gold star and a plus 1, if you said inside that range. We're at the halfway point of the Market Cap Game Show this week, with the market down as far as it is, the normal halftime entertainment we would've featured is unfortunately not available to us this week. I'm simply going to have to turn to my friends. Brian and Yasser decided you guys know a joke?
Brian Stoffel: I can tell you a joke that my three-year-old said to me this morning at breakfast. He's three, so you got to picture this, it's not coming from me, but from a three-year-old.
David Gardner: This is definitely the best halftime entertainment we can manage.
Brian Stoffel: He says, knock, knock.
David Gardner: Who's there?
Brian Stoffel: Interrupting cow.
David Gardner: Interrupting cow?
Brian Stoffel: He's three. So I thought it was a [inaudible 00:39:27] .
David Gardner: Well-played. Thank you. I think many of Motley Fool will be able to use that in the week ahead. I think that could come from anybody. Brian, I'm 56, I'd be willing to try out what your three-old just sprung, and thank you for that. While the halftime follies are over, the expensive Super Bowl ads, they are starting to get less expensive as we move to the second half of the show. Except that I think things might get even more dramatic. I don't know. It's getting closer and closer as we move to stock number 6, turning back to Brian now, company number 6, Brian, planes, trains, or automobiles?
Brian Stoffel: Trains.
David Gardner: Why do you say trains?
Brian Stoffel: It's more fun.
David Gardner: Did you ever see the movie, Planes, Trains, and Automobiles?
Brian Stoffel: John Candy are you kidding me? That's a great movie.
David Gardner: Steve Martin, John Candy, etc., you betcha. Planes, Trains, and Automobiles, but I like your answer. Planes, trains, or automobiles because trains was the correct answer. This company was founded in 1862. Today, Union Pacific Corporation, ticker symbol UNP, is the second largest US rail company after BNSF. I was looking at the history of this, the Act that enabled the Union Pacific Corporation to build its first railroad was actually approved by Abraham Lincoln himself in 1862. This company dominates the West. It has a duopoly actually with BNSF for that portion of US rail commerce. Do you guys know where Union Pacific is headquartered these days?
Brian Stoffel: Somewhere in California.
David Gardner: I would've thought so too, but the answer is right where it's been for a long time in Omaha, Nebraska. Right in Warren Buffett's backyard union, Pacific Corporation is, of course, where we have our market cap sights set. Brian, let me turn to you, the second largest US rail company. A good performer for a lot of stock market investors who'd like a little dividend and we'll just patiently passively hold this stock. One of my stock advisor picks back in the day. I like trains as well. Planes, trains, automobiles. The answer is always. The correct answer is always trains. Brian Stoffel, what is your market cap for the Union Pacific Corporation ticker symbol, UNP?
Brian Stoffel: We're going to go from 82 billion up to 137 billion.
David Gardner: Eighty two billion to 137 billion, Yasser, people can't see you. I can see you because we're doing this by video, but this is of course just an audio podcasts. But I would say your brow looked knit, you had a hand on your head. You look deep in thought.
Yasser El-Shimy: I have been thinking about this ever since you said trains. That got me thinking about the railways. Some of these companies have been great investments over the many decades. They've been on the stock market. As you mentioned, they are good dividend payers. But I also know that with recessionary fears gripping the market these days, we have had a quite a remarkable node pullback in those stocks. I was trying to think hard about what the market cap could be for Union Pacific.
David Gardner: I'm glad that you've been thinking about that because we're about to ask you whether Brian is correct with his range of 82 billion to 137 billion, or whether that's incorrect, and so Yasser, I think the time has come players at home inside that range or outside that range.
Yasser El-Shimy: I feel 137, that seems awfully arbitrary. [laughs] I'm going to go outside the range.
David Gardner: [NOISE] It is inside a rather generous range, although it was close. You weren't far off with that call, Yasser. The correct market cap as of Tuesday afternoon, June 21st, we're recording this right around 3:00 PM Eastern, the market cap for Union Pacific is 130.75 billion, so $131 billion just inside the high-end of Brian's range. Yasser if I turned to you, and just point-blank said planes, trains, or automobiles, what would you have said?
Yasser El-Shimy: I probably would have said planes.
David Gardner: That's unfortunately the wrong answer. [laughs]
Yasser El-Shimy: Exactly. That's why I'm tied now. [laughs]
David Gardner: [laughs] It's 33. Let's move on. Thank you, guys. Here we go. Company number 7, Yasser, Disney, Universal, or Six Flags?
Yasser El-Shimy: Disney.
David Gardner: It's probably the right answer, but that's not the company we're going to be talking about on this Market Cap, Game Show, Six Flags entertainment, the ticker symbol is S-I-X, appropriately enough, is the company we're taking a look at. This is a really interesting, it's been around for 60 years, but the company has been through bankruptcy at least once. It's been troubled at different points and has an interesting development which I'm going to mention. Do you know who became CEO of this company toward the end of last year, Yasser?
Yasser El-Shimy: I do not.
David Gardner: All right. Brian, jump right in with your knowledge, we reward knowledge on the show.
Brian Stoffel: Is it Selim Bassoul?
David Gardner: It is indeed. The former CEO of Middleby Corp, longtime friend of the Fool, conscious capitalist, he had taken over as Chairman of the Board for a while and then they asked him to become President and CEO on November 15th of last year. I won't say the company's revenues, because that starts making the question easier. Let's just leave it right there. We're going to come back and talk a little bit more about Six Flags entertainment in a sec. But first, as our listeners at home, mirroring Brian Stoffel's good habit right away, are already thinking of their number. I'm going to turn to you, Yasser, and say, what is your range of market cap for Six Flags entertainment ticker symbol S-I-X?
Yasser El-Shimy: The picture of a turkey drumstick is clouding my judgment right now because that's the snack they have at Six Flags. I recall many years ago being offered one and politely passing on. [laughs]
David Gardner: It was right around Thanksgiving Day last year, that Selim Bassoul became Turkey Drum became CEO of this company. There's a lot of Turkey and this has been a little bit of Turkey were performer as well. I'm not saying it's Selim's fall, he's just started but stock's been nose-diving. I'm not trying to affect your guests here though. Yasser, what is your range of market cap?
Yasser El-Shimy: My range of market cap would be 3-7.5 billion.
David Gardner: 3.0-$7.5 billion for Six Flags entertainment. Brian Stoffel, if I'd said to you Disney, Universal, or Six Flags, what would've been your answer?
Brian Stoffel: Definitely Disney.
David Gardner: That is the correct answer.
Brian Stoffel: This is a tough one because I'm going to use that same screener and trick. I was asking myself, does this ever show up? Have I ever seen this and now I can't remember if I've seen that or not. [laughs] But I went against my gut before and I got it wrong. I'm going to go with my gut. I think it's below the low range of what was offered. I'm going to say outside. [NOISE]
David Gardner: We have an incredible comeback underway as Brian Stoffel has just racked up his fourth straight, correct answer. Players at home, if you said outside the Yasser's 3-$7.5 billion range, you'd be right on the low-end indeed, the company's market cap is 1.75 billion as we speak this Tuesday afternoon. The company had revenues last year of $1 and 1/2 billion. This is a company at about one times sales. I was checking it out. They have right around 2,000 full-time employees. They have seasonally 43,000 more employees than that. Imagine trying to run a company with 45,000 employees about half of the year, and then not the other half that owns many different parks, including waterparks, lots of different brands, and all of that at a market cap of just 1.75 billion. What does it sound like to you, Brian?
Brian Stoffel: Like a job, I don't want.
David Gardner: [laughs] It definitely sounds stressful.
Yasser El-Shimy: I'm just going to go ahead David, it sounds cheap.
David Gardner: I will say this Selim Bassoul has a well demonstrated history of playing the long game and winning hugely on behalf of the shareholders. Certainly my brother Tom, who first discovered The Stock somewhere around 2001, that will be Middleby Corporation, Selim's previous company. Wow, what an incredible run that stock went on over his roughly 20-year career. It wasn't so great last year's as he eventually cycled off. But take it, all in all, what a gigantic winner. If winners win, guys, I think we might want to keep our eye on Six Flags entertainment, although, man I agree with you, Brian, that's not [laughs] a piece of this I would want to run. Yasser, it sounds you've done your time at Six Flags here and there. You've been to at least one?
Yasser El-Shimy: I have been to a couple. But I would say the last time I have been to Six Flags was over 12 years ago.
David Gardner: I know you live in suburban Maryland in, Largo, Maryland is Six Flags America. That's an important one. Maybe you want to take the kids sometime this summer, help out Selim?
Yasser El-Shimy: As matter of fact, I do. That's great idea.
David Gardner: Wonderful. Well, I wish I could award you a bonus points for your good nature there, but unfortunately, that's not how this game works. Right now, we're looking at Brian Stoffel -4, Yasser El-Shimy-3. You guys you're both neck and neck. Yasser took the big lead early, and now in the middle for longs we have a new leader with three companies left, and I'm quite certain at least one of our listeners has 7. That's how smart some of our listeners are, some of us may have zero, but we're having fun. Let's move to company Number 8. Turning back to you Brian. Brian it sounds like screening companies that have market caps below $2 billion is of passing interest to you.
Brian Stoffel: Yeah. I don't like seeing what the market is doing every day. It doesn't really bother me. But what is interesting is if all of a sudden the stock is down by 50 percent or up 50 percent, that's worth looking at. The thing is, if you include those really low cap companies, there's going to be a ton of them because that's the nature of small-cap companies. That's just the cutoff.
David Gardner: Well, spoiler alert. This next company wouldn't make your screen, but I think you'd already know that. Do you ever invest hoping a company will get bought out by another company? Can you think of a stock that you've picked or owned in the past where you had your fingers crossed, you confidently thought, these guys are going to get taken out?
Brian Stoffel: I haven't, but I do know that one of your most successful booking when I went back and read the write-up, you said, oh, it's a great buyout target. It ended up being one of the best performers stand-alone on the whole scorecard. [laughs]
David Gardner: Exactly. It's one of my favorite examples because it's one of the few times in Motley Fool Stock Advisor history where I wrote the write-up, saying in the write-up, I think these guys will get bought out, and they never did. Instead they started buying others out, booking in Europe, etc, and became the industry leader on their own. I've always loved that example, and I'm so grateful you're referencing again. Once again, this company is involved in a mega merger, so the stock is not as volatile because there is an overhanging price that Microsoft is supposedly going to be buying them out by the first half of next year. I'm not going to say the share price of it might help one of my players, including those of you at home, but a lot of us probably have heard. I know Brian doesn't like video games very much.
A lot of us have probably heard that Activision Blizzard ticker symbol, ATVI, I think it's fair to say embattled Activision Blizzard at this point received a generous buyout offer earlier this year from Microsoft, the company I would say trading in a surprisingly large discount to Softies cash. I think there's some share conversion offer too there, but this is a pretty rock solid offer. Let's put it that way. When Microsoft comes in knocking and, says we're going to buy you out, Satya Nadella has the cash to do it. Activision Blizzard, a longtime Motley Fool Stock Advisor holding, a stock I personally own, and I've written positively about it many a time in the past. I've been right at different points, and wrong in others. But take it all-in-all, it's been a great stock for Stock Advisor members. But Brian, are you following the story at all? Is this of interest to you, Microsoft buying Activision Blizzard, the largest video game acquisition of all time?
Brian Stoffel: I'm aware of it. Just what I remember was just what a fall the stock had. It was the pullback from society's opening up, the culture issues, just so many things pulling it down. I'm aware of it, but now I'm just trying to gauge where I'm sitting on the market cap. [laughs]
David Gardner: Well, again, the offer is supposed to be consummated by early next year. Now some people question whether the Justice Department, the Biden administration would let a big merger like this happen. But then others point out what a large industry this is. This would make Microsoft the third largest Video Games Company in the world, but it's not like they'd be the Number 1 or even Number 2. It'll be interesting to see how this plays out. But more important, let's forget about then and talked about just now. Let's talk about the market cap right now. Brian, what range would you like to specify for Activision Blizzard ticker symbol, ATVI?
Brian Stoffel: Let me go 21-29 billion, and I'm wrong, I'm guessing it's higher than that, but that's what I'm going to go with.
David Gardner: Now you're saying if you're wrong, you guess it's higher, you don't want to extend your range?
Brian Stoffel: No, I'm going to leave it right there. [LAUGHTER]. It is still the mind games?
David Gardner: I'm really good at speaking at both sides of my mouth. I did that a lot on this podcast from week-to-week as well. I admire your skill, sir. Let's turn to Yasser and of course, all of our players at home. Brian has specified a market cap of 21 billion to 29 billion for this somewhat fallen star within its industry, and yet still so many great brands, speaking of merging multiple brands as we talked about earlier this show. Almost a day doesn't go by that I don't play some Hearthstone, I'm a big fan of that Digital Card Game, but certainly Diablo IV, I can't wait for that. I remain a lifelong inveterate video gamer. I already mentioned my deathbed pre-confession. But let's turn back to Yasser, and our players at home Brian stood at 21-29 inside or outside that range.
Yasser El-Shimy: Outside. It maybe a fallen star, but it's not quite dead star. I think Microsoft did pay a premium on Activision, and I believe it is higher than that range.
David Gardner: It is correct. Outside the range, that makes it Yasser-4, Brian-4. Makes an exciting conclusion. Let's talk briefly before moving to company Number 9. What's happening with this company? The Microsoft acquisition announced earlier this year was for $69 billion, and the stock is trading at a market cap of 57.8. There's a fair amount of gap between where it is right now, and Microsoft's tons of cash offer for this company which is due within the next year. I'm looking at it, seems to be about 20 percent below where that offer lies, so it'll be interesting to watch this one further, but I'll will tell you guys whether or not Microsoft buys Activision Blizzard, I would just keep holding it in either case. I feel good about this industry and where this company's positioned for the long term.
Anyway it's a fun interesting sidelight. Part of the beauty of investing in the stock market is that it causes you to pay more attention to the business world and what's happening in the world at large. This is a good example for many of us a sideshow, but still really interesting to study and learn from. Speaking of studying and learning, I'm learning a lot from these guys. Did they study? It's 4 to 4. Two very talented returning champions. As we enter the home stretch, we have two companies left. Let's move Yasser to company Number 9. I know you've documented the huge share that your family represents of the nation's retail revenues. We're headed right back there. Clearly you are spending a lot at The TJX Companies, but I'm curious, Yasser. Let's forget about your mom or your wife for a sec or anybody else related to you. If you, sir, need to go buy something in bulk, where would you buy?
Yasser El-Shimy: Costco? No question.
David Gardner: Are you a member?
Yasser El-Shimy: I am a member. Longtime member.
David Gardner: Are you a shareholder?
Yasser El-Shimy: I'm not, and not by choice. Basically, I'm not allowed to own any shares in any companies with exposures to food or drugs because my wife works at the FDA.
David Gardner: Wow. That's really interesting and also very admirable. Every Motley Fool employee operates under the Motley Fool's rules of disclosure. That means that anybody can look up, even a brand-new employee who might be answering phones for us as their first job, if they own stocks, you can see what he or she has as tickers in their portfolio. But some of us abide by additional rules of disclosure that a partner or spouse might bring into that relationship. Thank you first of all for disclosing and sharing that. I'm sorry to hear that in part, because there are so many great companies in those industries. Yet Yasser, I see you smiling because there are lots of other great stocks outside those industries as well. Sounds like you would own some Costco if you could have?
Yasser El-Shimy: Yes, I would own it if I could. I don't know about the valuation right now. I haven't looked at it recently because I am restricted out of it. But it's a conscious capitalists company, treats its workers well, offers great value proposition to its consumers. People who shop there are very loyal, and they stay with the business for years and years. I feel Costco treats its members right. That's the kind of company I'd like to invest in.
David Gardner: Turning to you, Brian, do you shop at Costco ever?
Brian Stoffel: I don't. We only have one in the area. We move to where we move because we don't really need our car that often, and so driving that far to one just doesn't make sense for where we live.
David Gardner: I here you. But we all recognize what a wonderful company this is as Yasser eloquently conveyed in the stock. By the way, over the last 10 years, we already established the S&P 500 up a pretty good round number of 200 percent over the last 10 years as of today. Costco up 400 percent over the last 10 years. Doubling the markets returned 400 percent return is a 5-bagger for Costco shareholders over the last 10 years. The ticker symbol, as many Motley Fool members will know, is C-O-S-T pretty straightforward. Yasser, what is your range of market cap for Costco?
Yasser El-Shimy: I would say that Costco's market cap range is between 235 billion to 267 billion.
David Gardner: Two hundred and thirty five billion to 267 billion, earlier, Yasser, it seemed as if you've got a little jab in a Brian for selecting market cap, one of the range numbers that ended with a seven. Now I'm hearing you start to rock some sevens on the back end of your range numbers.
Brian Stoffel: Are you trying to unlock my mind games, David? [laughs] Because you shouldn't, [laughs] you should be a neutral umpire here.
David Gardner: I am. I'm just looking at Scanst. [laughs] But you're right. I need to return to neutrality. The truth is, I'm cheering for our listeners most of all, but I'm having so much fun with you guys. Brian, 235 billion to 267 billion inside or outside that range.
Brian Stoffel: Boy, I was seeing below before. But then when I heard that it's a six bagger, I mean to say inside.
David Gardner: It is outside that range, and for the record, it's actually a five-bagger, not a six-bagger. If it were a six-bagger, it would probably be inside that range. But as it turns out, Costco, talk about round numbers. Is it 200.11 billion? Let's just call it $200 billion today of market cap, which is an amazingly large number. About 1 tenth Apple. Unfortunately, under Yasser's range of 235 to 267, which means in this case, Yasser, you get the point, which means you've just taken a 5-4 lead in the market cap game show. Brian Stoffel, you have played previously twice. This is your third appearance of the Market Cap Game Show. The final scores of both of your previous games were 5-5, and 5-5. How confident are you feeling right now as we go to company Number 10?
Brian Stoffel: Not very excited, I don't have the control. The person who stays inside or outside, they're the ones with the control. [laughs]. I'm just sitting in the passenger seat here.
David Gardner: It is true as we turn to you for the final company, company Number 10. Let's play word association, Brian, you're ready? We'll present you a phrase, present me a word or phrase or maybe a few that come to mind as I say this phrase, female billionaire.
Brian Stoffel: Oprah Winfrey.
David Gardner: That's also who comes to mind first for me as well. Any others?
Brian Stoffel: Female billionaire, Oprah Winfrey. I don't think I can't remember Lake was her last name from Stitch Fix but I don't think she was anymore.
David Gardner: Katrina Lake, no, I don't think so either.
Brian Stoffel: I don't think.
David Gardner: How about J.K. Rowling, ever read Harry Potters?
Brian Stoffel: I've heard of her, yeah.
David Gardner: I think she makes the list. I think Queen Elizabeth also makes a list.
Brian Stoffel: Yes.
Yasser El-Shimy: Melinda Gates, perhaps.
David Gardner: I think Melinda Gates would count. Mackenzie Bezos, I think she has to count.
Yasser El-Shimy: I think Mackenzie Scott is her name now.
David Gardner: Mackenzie Scott. Absolutely, is her name now. Thank you for that, Yasser. Well, there's another name we can add to this list and one that a fair number of Motley Fool members might recognize, and yet I think we highly over-index that way. I think most of the rest of the world doesn't know that much about Jayshree Ullal, the CEO of Arista Networks. The ticker symbol is A and E. I'm happy to say we first added this to the Motley Fool Rule Breakers scorecard on November 25th of 2014, it was David Kretzmann, longtime Fool, who picked it, and it's been a market crusher. Like a lot of stocks, it hasn't been so great the last year or so, and yet taken all-in-all, this comedy which ranks in the top 10 in our Motley Fool Stock Screener universe in terms of companies that we seem to favor going forward, Arista Networks, a lot of promise, some good performance behind the guys. We hope for even better performance going forward and Jayshree Ullal is the CEO of this company. She owns about five percent of the company. That would mean she's a billionaire at least, but I'll let you figure out Brian Stoffel what the market cap ranges that you'd like to specify for Arista Networks.
Brian Stoffel: I stayed away from the company because of concentration risks that ended up being a good move in the short-term because some of their bigger customers pulled back and I forgot about it, and I remember Brian Feroldi told me, oh, no, it's doing really well. I'm going to go up, I'm going to say between 66 and 92 billion.
David Gardner: Sixty six and $92 billion of generous range? Sixty six to $92 billion Arista Networks? Of course, a company that had a lot of challenges at networking company going in your face competing directly with Cisco and having some questions in terms of who owns what intellectual property which did drag down the stock for a while in the teens of the past decade, 66 billion to 92 billion, the range. Yasser, not going to say the pressure's on, but let's face it, the pressure is on. You have a lead right now, 5-4. This is your game to lose. Some people would say to win. This is your game to lose, Yasser, players at home 66-$92 billion. Before you give your answer, Yasser, do you want to share any thoughts?
Yasser El-Shimy: Yeah. I know this has been a long-term winter for the Motley Fool, and I guess the company itself has done extremely well. Definitely direct beneficiary of the growth of datacenters. But it's not one that I own personally or one that I've studied as part of my work.
David Gardner: It's a big world out there. There's so many different ways, I mean.
Yasser El-Shimy: Yeah.
David Gardner: Just think about what we've talked about this week, and I was pulling randomly from the Motley Fool universe. But we've talked about Apple, and we talked about Green Dot, [laughs] which is a partner of Apple. We talked about six flags and Union Pacific. We've talked about video game companies, both domestically and internationally, and here we are after Costco talking about a completely different company, Arista Networks. I'm going to ask you now point-blank. Yasser El-Shimy, inside Brian's range of 66-92 billion or outside Brian's range?
Yasser El-Shimy: Just because I believe every single answer that I heard before was outside the range, I'm going to take a different track this time and say inside the range.
David Gardner: Sure now, [laughs] that gives us the 5-5 finish that I think everyone wanted and some of us for saw, possibly from the dawn of time. Brian Stoffel, congratulations because it wasn't actually even close. It was much lower than the range that you specified. But this is one of those more opaque companies that, I mean, for a lot of Motley Fool, Rule Breaker members or Stock Advisor members, you might have owned this. My brother is a big fan of this company, has interviewed Jayshree personally, so you might have owned it over the years, but I think most people don't really know this company or much about its industry because it's a B2B company, let's face it. The market cap for Arista Networks is 27.87 billion, so well, lower outside Brian's range. But since Yasser said inside, that gave Brian the fifth point that he needed for his third consecutive tie, and because, gentlemen, we've tied, I think I might already be inviting you both on one quarter from now to join me in September to break, I think hope this tie, but maybe Brian in the end is our beginning and maybe everything circular and maybe you will just tie every time added for the item.
Brian Stoffel: I'm OK with it now, the big thing is we just got to come up with the tiebreaker beforehand, just to not leave, you don't like the way that soccer with the two dove. I'm not as big a fan either. I'd love if they pull the player off the field every five minutes.
Yasser El-Shimy: Like rapid-fire outside.
Brian Stoffel: Yeah. Or even just like crowdsource it. [laughs].
David Gardner: Maybe I'll think about the equivalent of a shootout for overtime next time if we get another tie. But one thing is for sure each of you scored five, which is great, and listeners at home, if you scored at least five, give yourself a pat on the back, if you scored less, keep listening, keep getting smarter, happier and richer with us. If you scored more, let us know on Twitter, use the rarely used hashtag, hashtag I beat Brian and Yasser, [laughs] and maybe you too will appear on this show one day. Well, I want to thank my talented guests stars. Good nature as always I had a lot of fun with you guys, Brian, Yasser, thank you both.
Yasser El-Shimy: Thank you, David.
Brian Stoffel: Good game, Yasser.
Yasser El-Shimy: Good game, Brian.
David Gardner: You know 2468, who do we appreciate? [laughs] Do you remember that being forced to do that as kids?
Brian Stoffel: Oh, yeah.
David Gardner: Towards the end of soccer little league games. Yeah. We haven't done that traditionally on this show, but thank you guys. You are both great sports and I want to thank our listeners for joining us for this summer fun. I think this is a summer thrill that is probably not appreciated by enough people. The opportunity to kick around market caps and thinking about stocks in good years and bad, always fund four times a year, I think part of what makes the market cap gameshow specialist like holidays, doesn't recur that frequently, so it's more special when it comes around. [MUSIC] Next week is mailbag on this podcast, so rbi@fool.com is our email address. If you want to react to anything that you learnt this week or the other weeks for Rule Breaker Investing in this long hot month of June 2022. In the meantime, for Brian and for Yasser and for our 10 companies from Apple write-down degree that we bid a Foolish. I do.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Brian Stoffel has positions in Alphabet (A shares), Alphabet (C shares), and PayPal Holdings. David Gardner has positions in Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Apple, Middleby, and Walt Disney. Yasser El-Shimy has positions in Alphabet (A shares), Microsoft, and Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Apple, Arista Networks, Cisco Systems, CoStar Group, Costco Wholesale, Meta Platforms, Inc., Microsoft, Middleby, PayPal Holdings, Six Flags, Stitch Fix, Walt Disney, and Xero. The Motley Fool recommends Green Dot Corporation , NetEase, The TJX Companies, and Union Pacific 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. | I don't know this company that well, but they also own Marshalls and HomeGoods, Homesense, Sierra in the United States, they've got Winners in Canada, they're operating primarily in North America with a lot of discount off-price department stores. David Gardner: [laughs] Let's keep playing, on the company number 4 now Brian, one of the things I've always appreciated about you is not only are you somewhat of a world traveler, but you also have lived overseas and I think you still maintain a place in Costa Rica, am I right? David Gardner: Wow, well, maybe Apple didn't rank there, but ticker symbol A-A-P-L is, I'm sure well known to many Costa Ricans and I think it's just about the biggest brand worldwide and for lots of great reasons. | A lot of us have probably heard that Activision Blizzard ticker symbol, ATVI, I think it's fair to say embattled Activision Blizzard at this point received a generous buyout offer earlier this year from Microsoft, the company I would say trading in a surprisingly large discount to Softies cash. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Apple, Arista Networks, Cisco Systems, CoStar Group, Costco Wholesale, Meta Platforms, Inc., Microsoft, Middleby, PayPal Holdings, Six Flags, Stitch Fix, Walt Disney, and Xero. The Motley Fool recommends Green Dot Corporation , NetEase, The TJX Companies, and Union Pacific 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. | David Gardner: Well players at home and Brian Stoffel, Yasser said 28 to 36 billion for a company not that many people know well, CoStar Group. But since we're talking about that, I guess I should turn back to Yasser and ask you what your market cap range is for Green Dot Corporation, ticker symbol G-D-O-T. Yasser El-Shimy: Market cap for Green Dot, I will go with a range of 650 million to 1.75 billion.. David Gardner: Six hundred and fifty million to 1.75 billion. David Gardner: I'm glad that you've been thinking about that because we're about to ask you whether Brian is correct with his range of 82 billion to 137 billion, or whether that's incorrect, and so Yasser, I think the time has come players at home inside that range or outside that range. | David Gardner: Well, this particular company is an example. David Gardner: It is unfortunately outside Yasser's range. Right now, we're looking at Brian Stoffel -4, Yasser El-Shimy-3. |
20377.0 | 2022-07-07 00:00:00 UTC | Beat the Bear Market With These 3 Warren Buffett Stocks | AAPL | https://www.nasdaq.com/articles/beat-the-bear-market-with-these-3-warren-buffett-stocks | nan | nan | Fishing in a stocked pond, so to speak, can be a great way to filter for new investments. And one of the greatest stocked ponds when it comes to investing ideas is Warren Buffett's Berkshire Hathaway portfolio.
Considering Berkshire's 20% annualized returns since 1965, compared to the 10% returns for the S&P 500 index, it would be foolish not to monitor what the Oracle of Omaha adds to each quarter.
Buffett's investments often tend to make capital preservation of paramount importance, making their picks even more interesting in today's bear market.
With that said, three Berkshire holdings, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Kroger (NYSE: KR), make for great buys in a tricky market environment.
Apple's cash-flow machine is tough to beat
Bradley Guichard (Apple): Just how much do Buffett and Berkshire Hathaway like Apple stock? Enough to make it more than 39% of its total portfolio. This makes Berkshire one of Apple's largest stockholders. Berkshire began buying Apple stock in 2016 and has seen tremendous profits since.
A potential recession could hurt Apple's overall sales; however, this will likely be a short-term bump in the road. The company isn't showing noticeable ill effects so far as the fiscal second quarter of 2022 brought record revenue of $97.3 billion, up 9% over the prior year.
Apple's rumored new hardware-as-a-service initiative could also help keep sales flowing when consumers tighten budgets. This new program will allow people to purchase iPhones on a subscription plan by making monthly payments. This will help consumers who don't want to shell out the full price upfront and create a recurring revenue stream for Apple.
One reason to love Apple is the company's profitability and cash-flow generation. Apple pushed its operating margin for the first half of fiscal 2022 to 32%, beating the 30% margin posted in the same period last year. This brought $75 billion in cash from operations into Apple's coffers.
The stock buyback program is the second reason Apple is an excellent choice during a down market. Apple returns a tremendous amount of the cash it generates to shareholders through buybacks and dividends. The advantage of buybacks during a market downturn is that the company can repurchase and retire more shares for the same investment. This will then leverage shareholders' gains when the market resumes its climb. Apple's board has just approved another $90 billion in buybacks, and the program shows no sign of slowing.
Apple has repurchased $268.4 billion in stock and paid $49.9 billion in dividends since fiscal year 2019. This amounts to a combined 14% of the current market cap in just three and a half years. Investors can rest assured that even if Apple stock declines a bit in the short term, the impressive cash flow will keep rewarding shareholders in the long term.
Optionality will help Amazon weather the storm
Jeff Santoro (Amazon): Despite being caught up in the broader sell-off, Amazon is a Buffett stock that's still well positioned to succeed despite the bear market. Currently only a small portion of Berkshire's investments, Amazon has some potential growth drivers that could help it move up in Buffett's portfolio.
The day after Amazon reported its first-quarter 2022 earnings in April, the stock sold off 14% on fears of slowing growth, weak guidance, and an unexpected net loss. Considering the recessionary and supply chain issues serving as a backdrop, it shouldn't have been a surprise that Amazon saw its e-commerce business struggle. However, these headwinds are likely temporary and there were other bright spots in the earnings report.
Amazon Web Services (AWS) had another strong quarter, with revenue topping $18 billion, good for a 37% year-over-year increase. The cloud infrastructure business now has an annualized sales run rate of almost $74 billion. At the end of Q1 2022, AWS accounted for 16% of Amazon's total revenue, up from 13% in the year-ago quarter.
As AWS grows as a percentage of Amazon's overall business, profitability and margins should improve. As an example, in Q1, Amazon's overall operating income was $3.7 billion, with AWS contributing $6.5 billion. This more than made up for an operating loss of $2.8 billion in the other segments. The difference isn't always this stark, but AWS does typically have a higher operating margin, which allows Amazon to spend more on growing the e-commerce side of the business. These investments have helped Amazon keep its online retail advantage.
Another part of the business that doesn't get talked about enough is Amazon's advertising services. As of Q1 2022, advertising accounted for 6.8% of total revenue, up from 5.9% one year earlier. The company doesn't provide much detail on this part of the business, but it's worth keeping an eye on to see if it continues to grow over time. If it does, Apple is likely to give more color on margins and profitability.
There may be some slower quarters ahead as Amazon continues to fight inflation and supply chain headwinds. However, Amazon currently trades for a price-to-sales (P/S) ratio of 2.4, a multiple not seen since 2016. At this valuation, and considering the strength of AWS, Amazon shares look too cheap to ignore.
Bolster your portfolio's defenses with Kroger
Josh Kohn-Lindquist (Kroger): While Kroger and its massive chain of grocery stores are not immune to the inflation pressures currently facing the global economy, its defensive positioning in the consumer goods sector can benefit investors in a bear market. Kroger may operate on razor-thin margins as the only pure-play grocer in the S&P 500 index, but it sells seemingly recession-resistant products.
These resilient sales perhaps make Berkshire Hathaway's $1 billion holding in the company no surprise, as Buffett and Berkshire Hathaway Vice Chairman Charlie Munger often emphasize capital preservation with their investments.
As for Kroger's current operations, the company is laser-focused on building out its private-label offerings -- a move that lowers the prices of goods for customers and increases margins for investors. Kroger rolled out 239 new private label items in the first quarter of 2022, and reported Our Brands identical sales rose by 6% year over year, compared to storewide identical sales growth of 4% over the same time. It is clear that these cheaper options are resonating with customers.
These private label brands are critical as consumers naturally look for the best values when shopping during trying economic times. While the United States has yet to enter an official recession, Kroger has positioned itself to benefit should these struggles continue.
With management guiding for $3.85 to $3.95 in earnings per share (EPS) for 2022, Kroger trades around 12 times forward earnings -- the fourth-lowest valuation among its 36 S&P 500 peers in the consumer defensive sector.
This low forward price-to-earnings valuation is advantageous to individual investors and Kroger alike, as it has consistently lowered its share count over the last two decades through significant share repurchases.
KR Shares Outstanding data by YCharts
Thanks to the company continually lowering its total shares outstanding, its EPS has grown by 19% annually over the last five years, despite revenue only growing by 4% each year over the same period.
On top of this promising bottom-line growth, Kroger sports a 16-year dividend increase streak to pair with a 1.8% yield and meager 21% payout ratio. Thanks to this low payout ratio, it is reasonable to expect the company to continue raising its dividend far into the future -- despite having already boosted its payouts by 12% annually over the last five years.
Due to these fantastic cash returns to shareholders, the company's budding private-label operations, and its relatively cheap valuation, Kroger looks like a tremendous Buffett-style investment to buy and hold through trying economic conditions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With that said, three Berkshire holdings, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Kroger (NYSE: KR), make for great buys in a tricky market environment. The day after Amazon reported its first-quarter 2022 earnings in April, the stock sold off 14% on fears of slowing growth, weak guidance, and an unexpected net loss. As for Kroger's current operations, the company is laser-focused on building out its private-label offerings -- a move that lowers the prices of goods for customers and increases margins for investors. | With that said, three Berkshire holdings, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Kroger (NYSE: KR), make for great buys in a tricky market environment. These resilient sales perhaps make Berkshire Hathaway's $1 billion holding in the company no surprise, as Buffett and Berkshire Hathaway Vice Chairman Charlie Munger often emphasize capital preservation with their investments. 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. | With that said, three Berkshire holdings, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Kroger (NYSE: KR), make for great buys in a tricky market environment. Apple's cash-flow machine is tough to beat Bradley Guichard (Apple): Just how much do Buffett and Berkshire Hathaway like Apple stock? Optionality will help Amazon weather the storm Jeff Santoro (Amazon): Despite being caught up in the broader sell-off, Amazon is a Buffett stock that's still well positioned to succeed despite the bear market. | With that said, three Berkshire holdings, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Kroger (NYSE: KR), make for great buys in a tricky market environment. Berkshire began buying Apple stock in 2016 and has seen tremendous profits since. Apple returns a tremendous amount of the cash it generates to shareholders through buybacks and dividends. |
20378.0 | 2022-07-07 00:00:00 UTC | Meta Platforms' (META) New AI Model Can Translate 200 Languages | AAPL | https://www.nasdaq.com/articles/meta-platforms-meta-new-ai-model-can-translate-200-languages | nan | nan | Meta Platforms META recently announced that its AI researchers have created a new AI model called No Language Left Behind (NLLB 200), which can translate 200 different languages and improves the quality of translations across its various technologies.
Language barrier still exists in this world due to the lack of high-quality translation tools. Due to this, billions of people cannot access digital content or participate fully in conversations online.
Meta is looking to solve this issue with its latest AI model, which according to the company, improves translation quality by 44% more than any previous translation models. For certain African and Indian languages, NLB 200’s translations are more than 70% accurate.
In order to improve NLLB 200, Meta has also built Flores-200 — a data set that enables AI researchers to assess the translation AI model’s performance in 40,000 different language directions.
Meta is introducing the new AI model and Flores-200 data set to developers to help in properly translating content. The new AI model will serve more 25 billion translations everyday in FEED on Facebook, Instagram reels and other features that have emerged as new trends on social networking websites.
Meta’s recent investment in its new AI model will help in building the metaverse, which can be a multilingual AR space to help include people who speak different languages without creating a centralized language base.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Investing in AI to Drive Long-Term Growth
Meta Platforms is currently facing the worst downturn in the company's history due to the global macro-economic situation, geopolitical tensions, rising inflation and interest rate hike by the Federal Reserve Bank. This has hurt Meta’s share price negatively.
Shares of Meta Platforms, which currently has a Zacks Rank #4 (Sell), have tumbled 50% in the year-to-date period compared with the Zacks Internet – Software industry decline of 49.6%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Meta’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund the growth of its Reality Labs have taken a major hit, and the company has been recently closing various long-term projects, which is burning a lot of cash for the company.
One of the most recent setbacks has been the discontinuation of its cryptocurrency wallet pilot project — Novi. This is a major setback for Meta Platforms in its efforts to develop metaverse as an independent commercial platform as both the crypto and NFT markets came crashing down.
The situation is not expected to get better in the near term as negative sentiments are hurting Meta’s tech peers, who are looking to venture into the AR space, including Twitter TWTR, Microsoft MSFT and Apple AAPL.
Meta has been beaten by Twitter as the first social media giant to enter the NFT marketplace by launching a tool to showcase and sell NFTs on its platform. Microsoft's M12 venture fund recently invested in NFT startup, Palm NFT Studio, to develop projects on the Palm Protocol, an energy-efficient Ethereum sidechain. Apple has one of the largest AR platforms in the world to help creators build AR experiences with frameworks like ARKit, RealityKit and Reality Composer. Apple’s mixed-reality headset is its most anticipated product that is expected to help the company diversify its sources of revenues.
Twitter shares have fallen 10.5% compared with the Zacks Internet Software industry’s decline of 49.6%.
Microsoft shares have lost 20.1% in the year-to-date period compared with the Zacks Computer-Software industry's decline of 24.1%.
Apple's shares have fallen 18% in the year-to-date period compared with the Zacks Computer - Mini computers industry's decline of 19.2%.
Although Meta’s short-term revenue growth looks bleak, the company is confident about its long-term growth. Meta is investing heavily in developing AI, which will drive revenue growth in its ad business.
Reels are the newest trend right now, and the feeds are increasingly being recommended by AI. This will enable Meta to evolve its ad systems to help creators earn through Facebook and Instagram, and create new ad revenues for the company.
This will help provide funds for building the metaverse and aid the company to generate positive returns from its investments in AI.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The situation is not expected to get better in the near term as negative sentiments are hurting Meta’s tech peers, who are looking to venture into the AR space, including Twitter TWTR, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The new AI model will serve more 25 billion translations everyday in FEED on Facebook, Instagram reels and other features that have emerged as new trends on social networking websites. | The situation is not expected to get better in the near term as negative sentiments are hurting Meta’s tech peers, who are looking to venture into the AR space, including Twitter TWTR, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META recently announced that its AI researchers have created a new AI model called No Language Left Behind (NLLB 200), which can translate 200 different languages and improves the quality of translations across its various technologies. | The situation is not expected to get better in the near term as negative sentiments are hurting Meta’s tech peers, who are looking to venture into the AR space, including Twitter TWTR, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META recently announced that its AI researchers have created a new AI model called No Language Left Behind (NLLB 200), which can translate 200 different languages and improves the quality of translations across its various technologies. | The situation is not expected to get better in the near term as negative sentiments are hurting Meta’s tech peers, who are looking to venture into the AR space, including Twitter TWTR, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META recently announced that its AI researchers have created a new AI model called No Language Left Behind (NLLB 200), which can translate 200 different languages and improves the quality of translations across its various technologies. |
20379.0 | 2022-07-07 00:00:00 UTC | Where to Invest $10,000 in This Bear Market | AAPL | https://www.nasdaq.com/articles/where-to-invest-%2410000-in-this-bear-market | nan | nan | Being "greedy when others are fearful" is one of the more popular Warren Buffett quotes investors are likely familiar with. Well, with fears of a recession and inflation mounting, this may be the time to load up on some stocks. Valuations are crashing, whether stocks have good fundamentals or not. And for investors who can afford to hang on for multiple years, now can be a great time to buy.
A couple of stocks that look incredibly promising today include Innovative Industrial Properties (NYSE: IIPR) and Meta Platforms (NASDAQ: META). I've already bought one of these bargains this year, but both look like solid buys. Here's why investing $10,000 into either one of these stocks can generate thousands in profits for you in a year or two.
1. Innovative Industrial Properties
What I really like about Innovative Industrial Properties (IIP) is that it gives investors the ability to collect a high dividend without sacrificing growth potential. Its 6.3% yield is high (the S&P 500 averages 1.7%)and it isn't unaffordable. The real estate investment trust's free cash flow over the past few years has been growing and is sufficient to cover its dividend payments:
Fundamental Chart data by YCharts.
The company also offers some long-term growth potential as the cannabis industry expands into new states. It has 111 properties in its portfolio as of the end of June with 8.6 million in rentable square feet in 19 states. IIP is well-positioned to help cannabis producers expand in the industry through its sale-and-leaseback agreements.
IIP's net income over the trailing 12 months has totaled $121 million, which is more than half of its revenue ($226 million) during that period. IIP's strong margins, promising growth opportunities, and high-yielding dividend make it one of the best stocks to buy right now.
Although the pot stock has lost more than half of its value this year, the marijuana market as a hole hasn't been strong, with the Horizons Marijuana Life Sciences ETF falling 45% over the same time frame. Buying IIP's stock today could set investors up for some great gains in a few years.
2. Meta Platforms
I bought shares of Meta Platforms earlier this year, despite being unconvinced of the company's transition to the metaverse. It's the company's business today that looks impressive, not a venture that may or may not pan out. But companies need to pursue growth opportunities, regardless of how unrealistic they may appear right now.
And for a company like Meta, that's generating tens of billions in profits and free cash each year, the business can afford to take chances. Apple's new privacy features are going to put a dent in Meta's earnings, and that is a concern. However, at a forward price-to-earnings multiple of less than 14, Meta still looks incredibly cheap compared to what other top tech stocks trade at:
META PE Ratio (Forward) data by YCharts.
Even if its growth rate does slow down, Meta makes for a solid value investment. Owning a top brand like Facebook that has billion of eyeballs every day on it gives it loads of monetization potential in the future. Investors are hung up on slowing growth and the business cutting back on new hires, which is why its shares have fallen 52% this year. What I see, however, is an already profitable business that commands net margins of more than 30% that could become even more profitable as it focuses on cutting its costs.
Although its flashy growth numbers may stumble, Meta's fundamentals should improve, making it a much better investment over the long haul.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Jagielski has positions in Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple, Innovative Industrial Properties, Meta Platforms, Inc., Salesforce, Inc., 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. | The real estate investment trust's free cash flow over the past few years has been growing and is sufficient to cover its dividend payments: Fundamental Chart data by YCharts. And for a company like Meta, that's generating tens of billions in profits and free cash each year, the business can afford to take chances. The Motley Fool has positions in and recommends Apple, Innovative Industrial Properties, Meta Platforms, Inc., Salesforce, Inc., and Twitter. | A couple of stocks that look incredibly promising today include Innovative Industrial Properties (NYSE: IIPR) and Meta Platforms (NASDAQ: META). IIP's strong margins, promising growth opportunities, and high-yielding dividend make it one of the best stocks to buy right now. The Motley Fool has positions in and recommends Apple, Innovative Industrial Properties, Meta Platforms, Inc., Salesforce, Inc., and Twitter. | A couple of stocks that look incredibly promising today include Innovative Industrial Properties (NYSE: IIPR) and Meta Platforms (NASDAQ: META). Innovative Industrial Properties What I really like about Innovative Industrial Properties (IIP) is that it gives investors the ability to collect a high dividend without sacrificing growth potential. 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. | A couple of stocks that look incredibly promising today include Innovative Industrial Properties (NYSE: IIPR) and Meta Platforms (NASDAQ: META). Innovative Industrial Properties What I really like about Innovative Industrial Properties (IIP) is that it gives investors the ability to collect a high dividend without sacrificing growth potential. The Motley Fool has positions in and recommends Apple, Innovative Industrial Properties, Meta Platforms, Inc., Salesforce, Inc., and Twitter. |
20380.0 | 2022-07-07 00:00:00 UTC | Is There Any Hope for Bed Bath & Beyond? | AAPL | https://www.nasdaq.com/articles/is-there-any-hope-for-bed-bath-beyond | nan | nan | Too little, too late is perhaps what can best describe what's happened to Bed Bath & Beyond (NASDAQ: BBBY), which either just sacked its CEO or at least helped carry his bags out of the C-suite in recent days. Plummeting sales, widening losses, and crashing comparable-store sales all mean that the home goods retailer now looks like a business that may be too threadbare to save.
Image source: Bed Bath & Beyond.
Dramatic changes were not enough
In late June, Bed Bath & Beyond announced that Mark Tritton was out as president, CEO, and board director and was being replaced on an interim basis by director Sue Gove, who has served in executive capacities at two other retailers, Golfsmith and Zale.
"We must deliver improved results. Our shareholders, associates, customers, and partners all expect more," Gove said in a statement.
It's a long way down from the mountain of hope that surrounded Tritton when he took over executive leadership back in 2019. As the former chief marketing officer at Target (NYSE: TGT), he immediately began making bold, decisive moves, such as clearing out holdovers from the previous management team, updating Bed Bath & Beyond's website, and selling off the patchwork of ancillary businesses that had been acquired over the years.
Earlier this year, however, Chewy founder and GameStop Chairman Ryan Cohen took a stake in the retailer and said all that wasn't enough. Bed Bath & Beyond needed to sell off more businesses and even put itself up for sale.
Similarities to another attempted retail overhaul
While Tritton tried to turn Bed Bath & Beyond into something of a Target Lite, and there were early promising results, they could not be maintained. It was reminiscent of another corporate leader who was brought in to revitalize an ailing retailer but instead failed miserably: Ron Johnson's stint as CEO of JCPenney.
Following a successful career at Apple, Johnson did away with Penney's culture of "doorbuster" sales, upgraded stores to make them more modern, and greatly changed the product lineup, all without perhaps fully considering how it would be received by Penney's customers.
Although Johnson was right in many respects that JCPenney needed to be brought into the modern age of retailing, he failed to bring along the retailer's customers. They liked the idea of big sale days rather than everyday low pricing, and they couldn't make heads or tails out of what to do with iPad-equipped employees instead of having checkout lines.
In many ways, that's what occurred with Bed Bath & Beyond.
Addicted to discounts
It's a cautionary tale for all retailers not to get customers hooked on discounting. The home goods store was too dependent on its ubiquitous blue-and-white 20%-off coupons to lure customers in, and every time it tried to wean them off the discounts, sales plunged.
Even former CEO Steve Temares recognized customers wouldn't shop the stores without a coupon in hand. He tried to thread the needle by making them available only to loyalty program members, but that didn't work either. And with no carrot to lure customers in, Tritton wasn't able to keep regular customers coming back or attract new ones. The retail landscape has just changed too much for Bed Bath & Beyond to effectively compete.
In the decade-and-a-half since Linens 'n Things declared bankruptcy, home goods competition has greatly evolved. For many years Bed Bath & Beyond simply rested on its laurels, allowing Amazon.com, Walmart, and even Target to become power brokers in the online and offline market.
There's a shakeout coming to the home goods space. Superstore chain At Home went private in a $2.8 billion deal completed last year, while online retailer Wayfair is struggling under the weight of plummeting sales and active customers shopping its stores. Sales were down 13% last quarter while active customers collapsed 23%.
No way out
It could be Tritton just wasn't given enough time to make his changes stick while having to deal with a pandemic, rampant inflation, high gas prices, and supply chain snarls. It may also be that there is just no fix for Bed Bath & Beyond. Too much time was squandered by the previous management team, and now all that it does is reactionary.
While I once had high hopes for Tritton leading the home goods retailer to a recovery, the company looks more like a candidate at the end of its rope. The best investors might be able to hope for is a buyout, but any turnaround -- if one is to ever come -- appears far into the future.
Add it all up, and it's clear that investors' money would be better spent elsewhere.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Chewy, Inc., and Target. The Motley Fool recommends Wayfair 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. | As the former chief marketing officer at Target (NYSE: TGT), he immediately began making bold, decisive moves, such as clearing out holdovers from the previous management team, updating Bed Bath & Beyond's website, and selling off the patchwork of ancillary businesses that had been acquired over the years. Superstore chain At Home went private in a $2.8 billion deal completed last year, while online retailer Wayfair is struggling under the weight of plummeting sales and active customers shopping its stores. No way out It could be Tritton just wasn't given enough time to make his changes stick while having to deal with a pandemic, rampant inflation, high gas prices, and supply chain snarls. | Superstore chain At Home went private in a $2.8 billion deal completed last year, while online retailer Wayfair is struggling under the weight of plummeting sales and active customers shopping its stores. The Motley Fool has positions in and recommends Amazon, Apple, Chewy, Inc., and Target. The Motley Fool recommends Wayfair and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Dramatic changes were not enough In late June, Bed Bath & Beyond announced that Mark Tritton was out as president, CEO, and board director and was being replaced on an interim basis by director Sue Gove, who has served in executive capacities at two other retailers, Golfsmith and Zale. As the former chief marketing officer at Target (NYSE: TGT), he immediately began making bold, decisive moves, such as clearing out holdovers from the previous management team, updating Bed Bath & Beyond's website, and selling off the patchwork of ancillary businesses that had been acquired over the years. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bed Bath & Beyond wasn't one of them! | Superstore chain At Home went private in a $2.8 billion deal completed last year, while online retailer Wayfair is struggling under the weight of plummeting sales and active customers shopping its stores. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, Apple, Chewy, Inc., and Target. |
20381.0 | 2022-07-06 00:00:00 UTC | Beyond Crypto: This Is the Secret Sauce to Retiring a Millionaire | AAPL | https://www.nasdaq.com/articles/beyond-crypto%3A-this-is-the-secret-sauce-to-retiring-a-millionaire | nan | nan | While many would agree that the stock market has been the best tool historically to building long-term wealth, cryptocurrencies have taken that title in the past several years. Bitcoin and Ethereum, for example, have produced trailing five-year returns of 700% and 310%, respectively, compared with the S&P 500's total return of only 73% during that time.
But with cryptocurrencies getting absolutely hammered over the past few months, now is a good time to reassess your investment philosophy and the path you want to take to achieve adequate financial returns. And if you want to retire a millionaire, a valid argument can be made that avoiding crypto altogether might be the right course of action now.
Image source: Getty Images.
Don't chase the shiny object
With stories of individuals becoming millionaires virtually overnight by trading digital assets, a fear of missing out can no doubt be the feeling many non-crypto investors have been experiencing. It's human nature. We see others having incredible success doing something and we immediately want to copy that behavior.
The problem, however, is that it completely goes against what a rational person should do. What really matters is how much a person is consistently saving, the time until retirement, and their risk tolerance. Building a financial plan that helps one achieve personal goals is the ultimate objective.
While some cryptocurrencies have crushed stocks in recent years, they are not the right investment for everyone. For starters, digital assets are ridiculously volatile with daily moves greater than 10% a normal occurrence. And because the sector as a whole just started its teenage years -- Bitcoin was launched in January 2009 -- the potential range of outcomes for the still-nascent asset class is extremely wide. This is too much uncertainty for most to stomach.
Furthermore, the lack of regulation with cryptocurrencies, something that is not an issue in the traditional financial system, adds to the level of risk. There are countless stories of scams. And even with legitimate projects, the total risk involved with different crypto enterprises is simply unknown. We're seeing this play out right now, with major crypto hedge fund Three Arrows Capital filing for bankruptcy protection and Voyager Digital, a large crypto brokerage, suspending all trading because of market conditions.
It can certainly be tempting to buy into the hype of cryptocurrencies, especially given the monster returns some speculators have achieved by buying digital assets, but a safer approach is to just focus on owning stocks for the long haul.
Do this instead
There really is no secret to retiring a millionaire. It's actually quite simple. People should start investing at a young age and let compounding take care of the rest.
But what's the right way to invest? If you have the time to study and research different businesses, then actively picking stocks might be a viable option. Blue-chip stocks such as Apple, Berkshire Hathaway, and Coca-Cola are great companies to help build a solid foundation for well-diversified portfolios. On the other hand, if you simply want to adopt a passive approach, buying exchange-traded funds such as the Vanguard S&P 500 ETF or Vanguard High-Dividend ETF is a good idea as well.
Based on the S&P 500's average annual return of roughly 10% since 1900, someone who invests as little as $200 per month starting at age 25 would have a $1 million nest egg at 65. Of course, extending the time horizon, investing more money, and achieving higher returns will result in a greater retirement fund.
Some important things to keep in mind are that investors should expect there to be major drawdowns, such as the dramatic one we're currently experiencing. Volatility is the price of achieving stock market success. Also, be in it for the long haul, ideally targeting returns over multiple decades.
With this mindset, you're well on your way to becoming a millionaire. And the best part is that it can be done without owning any cryptocurrencies.
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Neil Patel has positions in Apple, Berkshire Hathaway (B shares), Bitcoin, and Ethereum. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Bitcoin, Ethereum, Vanguard High Dividend Yield ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But with cryptocurrencies getting absolutely hammered over the past few months, now is a good time to reassess your investment philosophy and the path you want to take to achieve adequate financial returns. Don't chase the shiny object With stories of individuals becoming millionaires virtually overnight by trading digital assets, a fear of missing out can no doubt be the feeling many non-crypto investors have been experiencing. And because the sector as a whole just started its teenage years -- Bitcoin was launched in January 2009 -- the potential range of outcomes for the still-nascent asset class is extremely wide. | See the 10 stocks Stock Advisor returns as of 2/14/21 Neil Patel has positions in Apple, Berkshire Hathaway (B shares), Bitcoin, and Ethereum. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Bitcoin, Ethereum, Vanguard High Dividend Yield ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | It can certainly be tempting to buy into the hype of cryptocurrencies, especially given the monster returns some speculators have achieved by buying digital assets, but a safer approach is to just focus on owning stocks for the long haul. See the 10 stocks Stock Advisor returns as of 2/14/21 Neil Patel has positions in Apple, Berkshire Hathaway (B shares), Bitcoin, and Ethereum. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Don't chase the shiny object With stories of individuals becoming millionaires virtually overnight by trading digital assets, a fear of missing out can no doubt be the feeling many non-crypto investors have been experiencing. Volatility is the price of achieving stock market success. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Bitcoin, Ethereum, Vanguard High Dividend Yield ETF, and Vanguard S&P 500 ETF. |
20382.0 | 2022-07-06 00:00:00 UTC | After Hours Most Active for Jul 6, 2022 : SWN, BEKE, FRSH, OPEN, TFC, DNB, VG, MSFT, AAPL, MDT, AMZN, CYH | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jul-6-2022-%3A-swn-beke-frsh-open-tfc-dnb-vg-msft-aapl-mdt-amzn | nan | nan | The NASDAQ 100 After Hours Indicator is up 7.46 to 11,860.05. The total After hours volume is currently 82,943,896 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is unchanged at $5.86, with 5,956,524 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.38. SWN's current last sale is 65.11% of the target price of $9.
KE Holdings Inc (BEKE) is unchanged at $15.97, with 4,285,949 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Freshworks Inc. (FRSH) is unchanged at $14.86, with 3,191,673 shares traded. FRSH's current last sale is 59.44% of the target price of $25.
Opendoor Technologies Inc (OPEN) is unchanged at $5.36, with 3,190,828 shares traded. As reported by Zacks, the current mean recommendation for OPEN is in the "buy range".
Truist Financial Corporation (TFC) is unchanged at $47.65, with 2,585,520 shares traded. TFC's current last sale is 80.08% of the target price of $59.5.
Dun & Bradstreet Holdings, Inc. (DNB) is unchanged at $14.69, with 2,581,496 shares traded. DNB's current last sale is 73.45% of the target price of $20.
Vonage Holdings Corp. (VG) is unchanged at $19.29, with 2,352,775 shares traded. VG's current last sale is 91.86% of the target price of $21.
Microsoft Corporation (MSFT) is +0.03 at $266.24, with 2,220,453 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Apple Inc. (AAPL) is +0.09 at $143.01, with 2,090,881 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Medtronic plc (MDT) is unchanged at $89.62, with 2,055,519 shares traded. MDT's current last sale is 76.6% of the target price of $117.
Amazon.com, Inc. (AMZN) is +0.17 at $114.50, with 2,046,710 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $0.14. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Community Health Systems, Inc. (CYH) is unchanged at $3.90, with 1,952,435 shares traded. CYH's current last sale is 32.5% of the target price of $12.
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 +0.09 at $143.01, with 2,090,881 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Southwestern Energy Company (SWN) is unchanged at $5.86, with 5,956,524 shares traded. | Apple Inc. (AAPL) is +0.09 at $143.01, with 2,090,881 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. | Apple Inc. (AAPL) is +0.09 at $143.01, with 2,090,881 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is unchanged at $15.97, with 4,285,949 shares traded. | Apple Inc. (AAPL) is +0.09 at $143.01, with 2,090,881 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is unchanged at $15.97, with 4,285,949 shares traded. |
20383.0 | 2022-07-06 00:00:00 UTC | Apple to release new 'Lockdown Mode' as it battles spyware firms | AAPL | https://www.nasdaq.com/articles/apple-to-release-new-lockdown-mode-as-it-battles-spyware-firms | nan | nan | By Stephen Nellis
July 6 (Reuters) - Apple Inc AAPL.O on Wednesday said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks.
The move comes after at least two Israeli firms have exploited flaws in Apple's software to remotely break into iPhones without the target needing to click or tap anything. NSO Group, the maker of the "Pegasus" software that can carry out such attacks, has been sued by Apple and placed on a trade blacklist by U.S. officials.
"Lockdown Mode" will come to Apple's iPhones, iPads and Macs this fall and turning it on will block most attachments sent to the iPhone's Messages app. Security researchers believe NSO Group exploited a flaw in how Apple handled message attachments. The new mode will also block wired connections to iPhones when they are locked. Israeli firm Cellebrite has used such manual connections to access iPhones.
Apple representatives said that they believe sophisticated attacks the new feature is designed to fight - called "zero click" hacking techniques - are still relatively rare and that most users will not need to active the new mode.
Spyware companies have argued they sell high-powered technology to help governments thwart national security threats. But human rights groups and journalists have repeatedly documented the use of spyware to attack civil society, undermine political opposition, and interfere with elections.
To help harden the new feature, Apple said it will pay up to $2 million for each flaw that security researchers can find in the new mode, which Apple representatives said was the highest such "bug bounty" offered in the industry.
Apple also said it is making a $10 million grant, plus any possible proceeds from its lawsuit against NSO Group, to groups that find, expose and work to prevent targeted hacking. Apple said the grant will go to the Dignity and Justice Fund established by the Ford Foundation, one of the largest private foundations in the United States.
(Reporting by Stephen Nellis in San Francisco; Editing by Alexandra Hudson)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis July 6 (Reuters) - Apple Inc AAPL.O on Wednesday said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks. Apple representatives said that they believe sophisticated attacks the new feature is designed to fight - called "zero click" hacking techniques - are still relatively rare and that most users will not need to active the new mode. But human rights groups and journalists have repeatedly documented the use of spyware to attack civil society, undermine political opposition, and interfere with elections. | By Stephen Nellis July 6 (Reuters) - Apple Inc AAPL.O on Wednesday said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks. The move comes after at least two Israeli firms have exploited flaws in Apple's software to remotely break into iPhones without the target needing to click or tap anything. Security researchers believe NSO Group exploited a flaw in how Apple handled message attachments. | By Stephen Nellis July 6 (Reuters) - Apple Inc AAPL.O on Wednesday said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks. "Lockdown Mode" will come to Apple's iPhones, iPads and Macs this fall and turning it on will block most attachments sent to the iPhone's Messages app. To help harden the new feature, Apple said it will pay up to $2 million for each flaw that security researchers can find in the new mode, which Apple representatives said was the highest such "bug bounty" offered in the industry. | By Stephen Nellis July 6 (Reuters) - Apple Inc AAPL.O on Wednesday said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks. "Lockdown Mode" will come to Apple's iPhones, iPads and Macs this fall and turning it on will block most attachments sent to the iPhone's Messages app. Security researchers believe NSO Group exploited a flaw in how Apple handled message attachments. |
20384.0 | 2022-07-06 00:00:00 UTC | Alphabet's (GOOGL) Google TV to Woo Users With New Feature | AAPL | https://www.nasdaq.com/articles/alphabets-googl-google-tv-to-woo-users-with-new-feature | nan | nan | Alphabet’s GOOGL division Google is consistently making strong efforts to increase customer engagement on the Google TV platform.
Reportedly, Google’s recent move of offering the “What to Watch on Google TV” show from Entertainment Weekly to its users, serves as a testament to the above-mentioned fact.
The “What to Watch on Google TV” show is an extended version of Entertainment Weekly’s “What to Watch” podcast.
Per the report, the “What to Watch on Google TV” show, hosted on YouTube, will be shown once at the end of each month.
Devices like Chromecast with Google TV have been showcasing the “What to Watch” series on Google TV homescreen for the last few days.
On the back of this show, Google TV aims to offer recommendations for popular and good quality shows to its customers, which will enhance their streaming experience. This in turn will likely drive Google’s momentum among the Google TV users. This is expected to boost the adoption rate of Google TV in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google TV Initiatives
Apart from the latest step, GOOGL started rolling out an innovative capability, Google TV Profiles, which lets users create multiple profiles and switch among the same to get a personalized content experience.
Alphabet also started releasing Google TV’s revamped screensaver, which shows customized results for weather, videos, music, quotes, sports score and news and screensaver photos.
Additionally, Google TV was made available on iOS for iPhone and iPad users. It replaced the Google Play Movies & TV app on iOS.
Also, Alphabet’s growing efforts to expand Google TV app globally remain noteworthy. Currently, the Google TV app on Android is available in more than 100 countries. GOOGL has plans to expand further in the coming months.
All these endeavors will continue to help Google in penetrating the growing streaming market rapidly.
Per a Fortune Business Insights report, the global video streaming market is expected to reach $1.69 trillion by 2029 from $473.4 billion in 2022, witnessing a CAGR of 19.9% between 2022 and 2029.
The underlined market has been witnessing significant growth owing to the increasing number of video streaming platforms as consumers are spending more on media and entertainment.
We believe Google’s growing prospects in the booming market are likely to aid its parent company, Alphabet, in winning investors’ confidence in the near term.
Notably, shares of Alphabet have been down 24.9% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 31.2%.
Competitive Market Scenario
However, the search-giant faces stiff competition from Apple AAPL given this upbeat scenario.
Apple which has lost 20.3% in the year-to-date period, is continuously witnessing solid momentum across its video streaming platform Apple TV.
Apple’s growing interest in sports streaming remains a major positive. AAPL also signed a multi-year agreement with Nike to create and produce sports movies. Further, its expanding original as well as regional content portfolio is another positive.
Thus, AAPL’s growing initiatives toward its video streaming service remain a major threat to 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 stocks like Aspen Technology AZPN and Advanced Micro Devices AMD. While Aspen Technology sports a Zacks Rank #1 (Strong Buy), Advanced Micro Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aspen technology has returned 25.6% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Advanced Micro Devices has lost 47.7% in the year-to-date period. The long-term earnings growth rate for AMD is currently projected at 28.1%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Competitive Market Scenario However, the search-giant faces stiff competition from Apple AAPL given this upbeat scenario. AAPL also signed a multi-year agreement with Nike to create and produce sports movies. Thus, AAPL’s growing initiatives toward its video streaming service remain a major threat to Alphabet’s market position. | Competitive Market Scenario However, the search-giant faces stiff competition from Apple AAPL given this upbeat scenario. AAPL also signed a multi-year agreement with Nike to create and produce sports movies. Thus, AAPL’s growing initiatives toward its video streaming service remain a major threat to Alphabet’s market position. | Competitive Market Scenario However, the search-giant faces stiff competition from Apple AAPL given this upbeat scenario. AAPL also signed a multi-year agreement with Nike to create and produce sports movies. Thus, AAPL’s growing initiatives toward its video streaming service remain a major threat to Alphabet’s market position. | Apple Inc. (AAPL): Free Stock Analysis Report Competitive Market Scenario However, the search-giant faces stiff competition from Apple AAPL given this upbeat scenario. AAPL also signed a multi-year agreement with Nike to create and produce sports movies. |
20385.0 | 2022-07-06 00:00:00 UTC | Stock Market Sell-Off: The Best Stocks to Buy for the Second Half of 2022 | AAPL | https://www.nasdaq.com/articles/stock-market-sell-off%3A-the-best-stocks-to-buy-for-the-second-half-of-2022 | nan | nan | The stock market fared terribly in the first half of 2022 thanks to multiple headwinds that seem to have become stronger as the year has progressed.
From Russia's war on Ukraine to rising interest rates to surging inflation and now the possibility of a recession, investors have had several reasons to flee the stock market so far this year. The S&P 500 has declined 20%, while the tech-laden Nasdaq-100 Technology Sector index has witnessed a severe drop of 33%. But investors shouldn't forget that the stock market has delivered solid average returns over the past decade.
As such, it would be a good idea to buy some top stocks before they start taking off in the second half of the year thanks to some solid catalysts.
A new iPhone could give Apple a nice boost
Smartphone sales may be dwindling this year, but that hasn't kept Apple (NASDAQ: AAPL) from increasing its sales thanks to healthy demand for its latest iPhones. The tech giant had shipped 56.5 million iPhones in the first quarter of 2022, a year-over-year increase of 8% as per market research firm Canalys.
Apple grew even though global smartphone shipments contracted 11% during the quarter. What's more, the company increased its share of the global smartphone market to 18% in Q1 from 15% in the prior-year period. It now looks like Apple is expecting robust iPhone sales growth in the second half of the year.
Contract electronics manufacturer Foxconn, which assembles the iPhones, recently raised its full-year outlook, citing healthy smartphone demand. The Taiwanese company pointed out that its sales in June were up 31% year-over-year on account of improving demand, and added that its third-quarter revenue could witness significant year-over-year growth.
The developments at Foxconn aren't surprising, as Apple is about to start the production of its next iPhone soon. Apple usually refreshes the iPhone lineup in September, and the trend is expected to continue in 2022. This explains why Foxconn is confident of delivering robust growth in the third quarter, and that indicates that Apple may be looking at increasing its production.
A bump in iPhone production isn't out of the picture. Daniel Ives of Wedbush Securities estimates that there are 240 million iPhones that are around three and a half years old now, so the next iPhone could set the sales registers ringing and give Apple a nice boost. With the stock trading at 22 times trailing earnings following its 20% drop in 2022, now looks like a good time to buy Apple -- it is cheaper than the Nasdaq-100 index, which has an average earnings multiple of 24.6.
AMD has a new ace up its sleeve
Advanced Micro Devices (NASDAQ: AMD) stock has shed half of its value in 2022. But investors looking for a top growth stock on the cheap have a great opportunity to buy AMD right now, as it is trading at just 27 times trailing earnings, compared to its five-year average earnings multiple of 104. Even better, the forward earnings multiple of 17 suggests that its earnings could grow impressively over the next year.
A big reason why AMD's growth could pick up the pace in the second half of the year and beyond is the launch of its new data center server processors. AMD's fourth-generation EPYC server processors, based on a 5-nanometer (nm) manufacturing process codenamed Genoa, will hit the market in the fourth quarter.
AMD claims that these new server processors should deliver strong performance gains over the current-generation chips. For instance, the top-of-the-line Genoa processor is expected to be at least 75% faster than the current-generation chip as far as enterprise performance while running Java applications is concerned.
More importantly, AMD's new server processors should help it take more market share away from Intel (NASDAQ: INTC), which is the dominant player in this space. A big reason why that could be the case is that Intel's next-generation Sapphire Rapids server processors have been delayed once again. Chipzilla was originally supposed to release its 10nm Sapphire Rapids server chips last year, but it has run into a couple of delays.
Had Intel released its 10nm server chips on time, it would have kept AMD from extending its technology lead in the server processor market. But that's not going to be the case, as the Sapphire Rapids processors will witness a ramp in volume production in 2023. So AMD could continue stealing server market share from Intel.
Mercury Research estimates that it controlled 11.6% of the server CPU (central processing unit) market in the first quarter of 2022. That number is expected to increase to 19% this year, as per Bank of America, and head toward 35% in the long run.
Success in data centers is going to be a critical growth driver for AMD in the long run, and it is one of the reasons why analysts expect its earnings to grow at an annual rate of 28% for the next five years. That's why buying the stock right now looks like a no-brainer, as it could step on the gas in the second half and sustain that momentum in the long run.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A new iPhone could give Apple a nice boost Smartphone sales may be dwindling this year, but that hasn't kept Apple (NASDAQ: AAPL) from increasing its sales thanks to healthy demand for its latest iPhones. From Russia's war on Ukraine to rising interest rates to surging inflation and now the possibility of a recession, investors have had several reasons to flee the stock market so far this year. AMD's fourth-generation EPYC server processors, based on a 5-nanometer (nm) manufacturing process codenamed Genoa, will hit the market in the fourth quarter. | A new iPhone could give Apple a nice boost Smartphone sales may be dwindling this year, but that hasn't kept Apple (NASDAQ: AAPL) from increasing its sales thanks to healthy demand for its latest iPhones. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. | A new iPhone could give Apple a nice boost Smartphone sales may be dwindling this year, but that hasn't kept Apple (NASDAQ: AAPL) from increasing its sales thanks to healthy demand for its latest iPhones. With the stock trading at 22 times trailing earnings following its 20% drop in 2022, now looks like a good time to buy Apple -- it is cheaper than the Nasdaq-100 index, which has an average earnings multiple of 24.6. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. | A new iPhone could give Apple a nice boost Smartphone sales may be dwindling this year, but that hasn't kept Apple (NASDAQ: AAPL) from increasing its sales thanks to healthy demand for its latest iPhones. It now looks like Apple is expecting robust iPhone sales growth in the second half of the year. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Intel. |
20386.0 | 2022-07-06 00:00:00 UTC | Apple Stock Remains a Buy As the iPhone Turns 15 | AAPL | https://www.nasdaq.com/articles/apple-stock-remains-a-buy-as-the-iphone-turns-15 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With a 3.5-inch display, 3G connectivity, 4GB of base storage, 8-hour battery life and a $499 starting price, the iPhone would quickly disrupt the mobile phone industry. The iPhone marked the point where Apple transformed from a PC maker (that had also had success with the iPod) to a consumer electronics company. It also marked the start of an era of massive growth for AAPL stock.
To put things in some perspective, Apple’s market capitalization in 2006 — the year before the iPhone went on sale — was about $73 billion. Today, even with AAPL stock down 22% since the start of the year, Apple’s market cap is nearly $2.3 trillion.
Fifteen years after its release, the iPhone still drives massive business for Apple. With AAPL stock down and the iPhone 14 due to be released in September, now is a good time to buy Apple stock. Even better considering the company has what could be its next game-changing product waiting in the wings.
Ticker Company Current Price
AAPL Apple $141.61
The iPhone Is Still a Massive Revenue Driver
The days of massive growth in iPhone sales are over. The market has matured so, unlike 15 years ago, there is no mad rush by consumers to move from feature cell phones to a smartphone like the iPhone. However, the iPhone is still big business for Apple. In the last quarter, the company sold over $50 billion worth of them. Users still upgrade their phones (although the replacement cycle has grown longer) and 5G is driving many users to buy new iPhones.
In September, the company will release the iPhone 14 series. The company is reportedly expecting to move 220 million units this year.
7 Best Fintech Stocks to Buy in July
It’s not just the direct revenue Apple gets from iPhone sales that investors should be watching. It’s the additional money coming into the company’s coffers courtesy of iPhone owns. In 2021, Apple CEO Tim Cook said there were over 1 billion iPhones in active use. Those iPhone owners are a huge part of app sales, Apple Music subscriptions and other services that brought in nearly $20 billion last quarter. Regardless of the number of iPhones Apple sells, that Services division revenue continues to flow. That is a big plus for the APPL stock ownership argument.
Apple Poised to Release New, Game-Changing Product
Another reason to buy AAPL stock now is its product pipeline. As I wrote back in May, 2022 is expected to be a huge year for new Apple product releases. That has already begun with key launches like the all-new M2 MacBook Air. It will continue with the iPhone 14 series in September. There will be more, including a new Apple Watch version and expectations for everything from new AirPods to a new Mac Pro.
But the next big shoe to drop is looking like early next year. That’s when Apple is expected to launch its long-awaited AR headset. The company has already shown off a version to its board of directors. An AR headset would be the culmination of Apple’s strategy of building augmented reality that began in 2017 with the release of ARKit development software.
Apple’s AR headset could be the next iPod or iPhone, the must-have device that disrupts established players in the market. With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels.
Should You Buy AAPL Stock?
Apple is far from immune from the macroeconomic forces that have battered so may tech stocks in 2022. If you buy Apple stock now, there’s no guarantee you won’t see continued volatility.
However, if you’re in it for the long term, AAPL stock earns a “B” rating in Portfolio Grader. Ongoing demand for iPhones and the added revenue iPhone owners generate will continue to provide a solid foundation for Apple’s value. With the next big thing potentially around the corner, that only adds to the case for growth investors to buy AAPL stock now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
The post Apple Stock Remains a Buy As the iPhone Turns 15 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. | With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. It also marked the start of an era of massive growth for AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels. With the next big thing potentially around the corner, that only adds to the case for growth investors to buy AAPL stock now. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With AAPL stock down and the iPhone 14 due to be released in September, now is a good time to buy Apple stock. Ticker Company Current Price AAPL Apple $141.61 The iPhone Is Still a Massive Revenue Driver The days of massive growth in iPhone sales are over. | Should You Buy AAPL Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. It also marked the start of an era of massive growth for AAPL stock. |
20387.0 | 2022-07-06 00:00:00 UTC | Growth Stocks Are Soaring as a Recession Looms Large | AAPL | https://www.nasdaq.com/articles/growth-stocks-are-soaring-as-a-recession-looms-large | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Like it or not, a recession is coming. And Wall Street is finally preparing.
Yesterday, bond yields and commodity prices plunged while stocks struggled. That’s exactly what you’d expect as investors prep for a recession over the next 12 months.
But guess what else happened? Investors piled into growth stocks. The signature portfolio in our Innovation Investorinvestment researchadvisory comprises the top 10 growth stocks to buy right now. And it soared more than 6% yesterday!
This is also typical “recession prep” trading action.
Usually, when a recession hits, investors seek growth stocks that have so much momentum, they’ll grow through the storm. Not to mention, those same growth stocks also benefit from the lower bond yields that typically accompany recessions.
Therefore, yesterday’s huge move higher in growth stocks isn’t surprising.
It’s also just the beginning of something much, much bigger…
The reality is that the U.S. economy is spiraling into a recession. Wall Street has long neglected this. Finally, investors are waking up. Over the next six months, investors will prepare for and navigate through a recession. And they’ll increasingly pivot into growth stocks that power through an economic slowdown.
Net-net — growth stocks are in the early stages of a big multi-month breakout.
And we have the best growth stocks to buy for this breakout.
Here’s a deeper look.
Recession Incoming
One of the best recession signals in the markets is a yield curve inversion.
In short, the U.S. government issues a bunch of “bonds” with different maturity dates. Typically, the Treasuries with shorter maturity dates have lower yields than those with longer maturities. That indicates that investors require more return to hold a certain security for a longer period.
However, when investors get nervous about a recession, they don’t want to hold short-term bonds. Their confidence in the near-term outlook for the economy is reduced. So, they sell short-term bonds and buy long-term ones instead. This pushes short yields higher and long yields lower. When this dynamic becomes extreme, long yields fall below short yields. This is called a yield curve inversion.
Yield curve inversions are rare. They only happen about once a decade. But when they do happen, they’re almost always followed by a recession.
Yesterday, the yield curve inverted as the 10-year Treasury yield dropped below the 2-year. Some of you may recall that this 10-2 inversion happened once before in 2022. It did. But what we haven’t seen so far in 2022 — and, indeed, haven’t seen since the months before the COVID-driven recession and before that, 2007 — is a “5-2 inversion.” That’s when the 5-year Treasury yield drops below 2-year.
That happened yesterday for the first time this cycle. Such an inversion is pretty much a surefire recession indicator.
In other words, the bond market is the biggest market in the world. And it’s flashing its biggest warning signal yet that a recession’s on the horizon.
We’d be fools not to listen.
That’s why Wall Street played “recession prep” so strongly yesterday. Yields plunged. Commodities crashed. Stocks struggled.
And growth stocks surged — a trend we expect to continue.
Growth Stocks Thrive in Recessions
Many investors think that recessions kill all stocks. That’s not true. Recessions impact all stocks differently. And when it comes to growth stocks, recessions can actually be beneficial.
The reasoning is two-fold.
First, recessions create a scarcity of earnings growth. This pushes investors to allocate funds into the stocks that can still create strong earnings growth despite a no-growth environment. (Those are secular growth stocks).
Second, recessions push bond yields lower. And when bond yields go lower, the future cash flows upon which growth stocks are valued become worth more today. (That’s because bond yields are used as a proxy for the discount rate on those cash flows).
In other words, investors pile into growth stocks during recessions because they can keep growing. And they benefit from the lower yields that accompany recessions.
Makes sense, right?
This is more than just theory. Look at the last “real” recession the U.S. faced in 2008.
During that downturn, there was a five-month stretch at the end of the market’s selloff where the S&P 500 and Dow Jones both dropped about 10%. Yet growth stocks like Amazon (Nasdaq:AMZN), Netflix (Nasdaq:NFLX) and Booking (Nasdaq:BKNG) all rose more than 50%.
It was the same with the recession before that. In 2001-02, there was a year-long stretch where the stock market dropped more than 20% as the economy’s growth slowed. Yet, over that same period, growth stocks like Amazon rose nearly 150%!
In every recession-driven stock market selloff, there comes a point where investors start piling into growth stocks to play defense.
We think we’re at that point today.
Usually, it happens when yields start to plunge. In the early 2000s, yields took a dive in mid-2001. And that’s when growth stocks started to soar as the rest of the market struggled. In 2008, yields dropped in late 2008, and growth stocks began to roar as the rest of the market slumped.
Today, yields are plunging. The 10-year was 3.5% just a week ago. Now it’s at 2.8%.
Yields are plunging. And as such, we think this recession-driven selloff is at that critical tipping point where growth stocks start to surge.
The Final Word on Growth Stocks
History doesn’t repeat – but it does rhyme.
Every time a recession hits the stock market, the cycle is simple:
Recession fears emerge. Stocks and bonds drop as investors sell everything.
Recession fears are confirmed, leading investors to rush into bonds for safety. Yields drop.
As yields drop, growth stocks start to rise and even surge, but the rest of the market drops.
The recession ends, and the whole market rebounds.
Right now, we are between steps two and three. Recession fears have been all but confirmed. Investors are rushing into bonds. Yields are plunging. And growth stocks are starting to rise from the ashes.
What comes next? A mega-rally in growth stocks… while the rest of the market flops.
That’s why I recently put together an exclusive presentation about what may be the best growth stock to buy today.
You see, there’s this company… you may have heard of it. It’s called Apple (Nasdaq:AAPL)… and they make these wonder gadgets called iPhones that everyone owns these days.
Heard of them?
Well, reportedly, Apple is about to a launch a new tech product that could be bigger than the iPhone. In fact, it could be bigger than the iPhone, Mac, iPad, iPod, and Apple Watch put together.
And the stock I’m talking about is a tiny $3 stock that my analysis suggests is about to be the supplier of the most mission-critical piece of technology for Apple’s next big product launch.
It’s a growth stock that could absolutely surge over the next few years and turn early investors into millionaires.
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 Growth Stocks Are Soaring as a Recession Looms Large 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. | It’s called Apple (Nasdaq:AAPL)… and they make these wonder gadgets called iPhones that everyone owns these days. This pushes investors to allocate funds into the stocks that can still create strong earnings growth despite a no-growth environment. And when bond yields go lower, the future cash flows upon which growth stocks are valued become worth more today. | It’s called Apple (Nasdaq:AAPL)… and they make these wonder gadgets called iPhones that everyone owns these days. Not to mention, those same growth stocks also benefit from the lower bond yields that typically accompany recessions. This pushes short yields higher and long yields lower. | It’s called Apple (Nasdaq:AAPL)… and they make these wonder gadgets called iPhones that everyone owns these days. Not to mention, those same growth stocks also benefit from the lower bond yields that typically accompany recessions. Growth Stocks Thrive in Recessions Many investors think that recessions kill all stocks. | It’s called Apple (Nasdaq:AAPL)… and they make these wonder gadgets called iPhones that everyone owns these days. Yesterday, bond yields and commodity prices plunged while stocks struggled. Growth Stocks Thrive in Recessions Many investors think that recessions kill all stocks. |
20388.0 | 2022-07-06 00:00:00 UTC | Netflix (NFLX) Series Stranger Things 4 Sets Viewership Record | AAPL | https://www.nasdaq.com/articles/netflix-nflx-series-stranger-things-4-sets-viewership-record | nan | nan | Netflix’s NFLX 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.
This milestone comes after the show's fourth season concluded with the second volume of the final two episodes, which were released on Jul 1, according to streamers’ internal tracking. The first seven episodes earned 930.32 million hours during their first 28 days, while episodes eight and nine contributed 301.28 million hours to total viewing time during the Jun 27 to Jul 3 week.
Last weekend, Stranger Things stayed in the top 10 series on Netflix in 93 countries around the world. The science-fiction drama, starring Winona Ryder and Millie Bobby Brown, has become the first television series in the English language and the second TV series overall to surpass one billion hours of viewing time.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix Enjoys Growing Popularity of Original Content
Of late, Netflix has been witnessing a rise in viewership of its popular content portfolio. The third season of The Umbrella Academy came in second on the Netflix Top 10 Series Chart with 88 million hours viewed.
Meanwhile, the comedy series Man vs. Bee had 25.4 million hours viewed. The final season of Peaky Blinders pulled in an additional 18.4 million hours viewed.
The dynamic duo of Kevin Hart and Woody Harrelson held the No. 1 spot on the English films list as The Man From Toronto had 62.6 million hours viewed. Love & Gelato had 18.9 million hours viewed and was in the top 10 Netflix series list. Adam Sandler’s Hustle had an additional 14.6 million hours viewed during the week. Nollywood drama Glamour Girls debuted at #5 with 12.4 million hours viewed.
On the non-English TV list, Money Heist: Korea — Joint Economic Area came in first for the second week in a row with 49 million hours viewed. Following the launch of the series, La Casa de Papel/Money Heist, Part 1, it entered the list in the ninth spot with 8.6 million hours viewed. Spanish drama Intimacy maintained its standing on the list with 10.8 million hours viewed.
New entrants on the list included the Korean drama Alchemy of Souls with 9.9 million hours viewed, Japanese anime series Bastard!! — Heavy Metal, Dark Fantasy with 8.9 million hours viewed and Polish drama Queen with 7.4 million hours viewed.
This comes amid growing competition from the likes of Apple AAPL owned Apple TV+, Amazon’s AMZN Prime Video and Disney’s DIS Disney+, with popular shows available on both.
Squid Game star, Hoyeon will soon make her Apple TV+ debut with Disclaimer. Apple has been expanding its genre base to attract varied viewers, as is evident from its foray into the live sports streaming space. Apple TV+ has won exclusive rights to broadcast Major League Soccer ("MLS") worldwide, starting from 2023 for 10 years.
Disney recently began offering its streaming service, 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, 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. Amazon is expected to outperform Starzplay, with 4.8 million subscribers, to grab the third spot.
In the year-to-date period, Netflix’s shares have tumbled 69.2% compared with the Zacks Broadcast Radio and Television industry’s and the Zacks Consumer Discretionary sector’s declines of 55.9% and 34.4%, respectively.
This Zacks Rank #3 (Hold) company’s underperformance is primarily attributed to stiff competition in the streaming space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nevertheless, Netflix’s diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content, is a key catalyst.
Netflix is expected to add 5.29, 4.7 and 3.7 million subscribers in 2022, 2023 and 2024, respectively, in APAC. It 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.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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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. | This comes amid growing competition from the likes of Apple AAPL owned Apple TV+, Amazon’s AMZN Prime Video and Disney’s DIS Disney+, with popular shows available on both. Apple Inc. (AAPL): Free Stock Analysis Report New entrants on the list included the Korean drama Alchemy of Souls with 9.9 million hours viewed, Japanese anime series Bastard!! | Apple Inc. (AAPL): Free Stock Analysis Report This comes amid growing competition from the likes of Apple AAPL owned Apple TV+, Amazon’s AMZN Prime Video and Disney’s DIS Disney+, with popular shows available on both. Netflix’s NFLX 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. | This comes amid growing competition from the likes of Apple AAPL owned Apple TV+, Amazon’s AMZN Prime Video and Disney’s DIS Disney+, with popular shows available on both. Apple Inc. (AAPL): Free Stock Analysis Report Netflix’s NFLX 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. | This comes amid growing competition from the likes of Apple AAPL owned Apple TV+, Amazon’s AMZN Prime Video and Disney’s DIS Disney+, with popular shows available on both. Apple Inc. (AAPL): Free Stock Analysis Report Netflix’s NFLX 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. |
20389.0 | 2022-07-06 00:00:00 UTC | Facebook asks U.S. court for old FTC merger documents in antitrust fight | AAPL | https://www.nasdaq.com/articles/facebook-asks-u.s.-court-for-old-ftc-merger-documents-in-antitrust-fight | nan | nan | WASHINGTON, July 6 (Reuters) - Meta's Facebook FB.O has asked a U.S. court for eight documents created by the U.S. Federal Trade Commission as part of their review of the company's purchases of Instagram and WhatsApp, which the agency allowed to go forward.
The request was made late on Tuesday and comes in a lawsuit filed by the FTC that has asked the court to order both of those deals undone. Facebook bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014.
The FTC sued Meta's Facebook in 2020, during the Trump administration, alleging that the company acted illegally to maintain its social network monopoly.
Facebook is fighting the lawsuit, and wants the materials as part of that fight.
"Both the Instagram and the WhatsApp documents are almost certain to reveal that the FTC determined that each acquisition was unlikely to lessen competition or harm consumers," Facebook said in its filing.
The company argued that the FTC had given the documents to the House Judiciary Committee when it probed the tech giants, also including AmazonAMZN.O, Alphabet's Google GOOGL.O and Apple AAPL.O. Current FTC Chair Lina Khan was on the staff of that committee.
"Any claim of privilege was waived when the FTC chose to voluntarily share the documents with House Judiciary Committee members and staff," Facebook said in its filing.
The FTC did not immediately respond to a request for comment on the filing.
Among the documents being requested are the memos that the FTC Bureau of Competition and Bureau of Economics wrote for commissioners about whether the Instagram deal should be allowed to close. Meta is also asking for notes made by Bureau of Competition personnel about the WhatsApp transaction.
(Reporting by Diane Bartz Editing by Tomasz Janowski)
((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. | The company argued that the FTC had given the documents to the House Judiciary Committee when it probed the tech giants, also including AmazonAMZN.O, Alphabet's Google GOOGL.O and Apple AAPL.O. WASHINGTON, July 6 (Reuters) - Meta's Facebook FB.O has asked a U.S. court for eight documents created by the U.S. Federal Trade Commission as part of their review of the company's purchases of Instagram and WhatsApp, which the agency allowed to go forward. The FTC sued Meta's Facebook in 2020, during the Trump administration, alleging that the company acted illegally to maintain its social network monopoly. | The company argued that the FTC had given the documents to the House Judiciary Committee when it probed the tech giants, also including AmazonAMZN.O, Alphabet's Google GOOGL.O and Apple AAPL.O. WASHINGTON, July 6 (Reuters) - Meta's Facebook FB.O has asked a U.S. court for eight documents created by the U.S. Federal Trade Commission as part of their review of the company's purchases of Instagram and WhatsApp, which the agency allowed to go forward. "Any claim of privilege was waived when the FTC chose to voluntarily share the documents with House Judiciary Committee members and staff," Facebook said in its filing. | The company argued that the FTC had given the documents to the House Judiciary Committee when it probed the tech giants, also including AmazonAMZN.O, Alphabet's Google GOOGL.O and Apple AAPL.O. WASHINGTON, July 6 (Reuters) - Meta's Facebook FB.O has asked a U.S. court for eight documents created by the U.S. Federal Trade Commission as part of their review of the company's purchases of Instagram and WhatsApp, which the agency allowed to go forward. "Both the Instagram and the WhatsApp documents are almost certain to reveal that the FTC determined that each acquisition was unlikely to lessen competition or harm consumers," Facebook said in its filing. | The company argued that the FTC had given the documents to the House Judiciary Committee when it probed the tech giants, also including AmazonAMZN.O, Alphabet's Google GOOGL.O and Apple AAPL.O. The request was made late on Tuesday and comes in a lawsuit filed by the FTC that has asked the court to order both of those deals undone. "Any claim of privilege was waived when the FTC chose to voluntarily share the documents with House Judiciary Committee members and staff," Facebook said in its filing. |
20390.0 | 2022-07-06 00:00:00 UTC | The Kroger and Activision Blizzard have been highlighted as Zacks Bull and Bear of the Day | AAPL | https://www.nasdaq.com/articles/the-kroger-and-activision-blizzard-have-been-highlighted-as-zacks-bull-and-bear-of-the-day | nan | nan | For Immediate Release
Chicago, IL – July 6, 2022 – Zacks Equity Research shares The Kroger Co. KR as the Bull of the Day and Activision Blizzard ATVI asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Meta Platforms META, Microsoft MSFT and Apple AAPL.
Here is a synopsis of all five stocks:
Bull of the Day:
The Kroger Co. sports the highly coveted Zacks Rank #1 (Strong Buy) and resides within the Zacks Retail – Supermarkets Industry.
Kroger has undergone an extensive makeover, not only regarding products but also in terms of how consumers prefer shopping for groceries.
Founded in 1883, the long-time retailer operates approximately 2,700 retail stores under its various banners and divisions in 35 states.
Share Performance
Kroger shares have been a bright spot in an otherwise dim market throughout 2022, increasing nearly 5% in value and easily outperforming the S&P 500's decline of almost 20%.
Upon widening the time frame to encompass a year's worth of price action, the story remains the same – Kroger shares have enjoyed a stellar run, increasing nearly 30% in value and extensively outperforming the S&P 500 in this time frame as well.
The company's share performance is inspiring – many companies have witnessed deep double-digit valuation slashes throughout 2022.
Quarterly Performance & Valuation
Kroger has been on a blazing-hot earnings streak, exceeding bottom-line expectations in ten consecutive quarters dating back to early 2020. In its latest quarter, in the face of adverse business conditions, the company beat earnings expectations by a substantial 13% and reported quarterly EPS of $1.45.
Furthermore, the average EPS surprise has been a strong 20% over its last four quarters.
In addition to strong quarterly performance, the grocery retailer sports attractive valuation levels. Its current forward earnings multiple resides at 12.3X, marginally below its five-year median value of 12.6X and nowhere near highs earlier this year of 16.4X.
Additionally, the value represents an enticing 28% discount relative to the S&P 500's forward earnings multiple of 17.1X.
Growth Estimates
Analysts have primarily revised their earnings outlook positively over the last 60 days. For the upcoming quarter, the $0.81 per share estimate reflects a respectable 1.3% growth in earnings from the year-ago quarter.
Furthermore, the $3.91 per share estimate for the current fiscal year represents a sizable 6.3% expansion in the bottom-line year-over-year.
Quarterly revenue is forecasted to climb to $34 billion for the upcoming quarter, a substantial 7.3% increase compared to year-ago quarterly sales of $31.7 billion.
Pivoting to current fiscal year sales, the grocery retailer is penciled in to rake in a mighty $147 billion, a notable 6.7% increase in the top-line year-over-year.
Dividends
For investors who like to get paid, good news – Kroger has that covered with its annual dividend with a yield of 1.7% and a payout ratio sitting sustainably at 21% of earnings.
Impressively, the company has increased its dividend six times over the last five years, with a five-year annualized dividend growth rate of a double-digit 13%.
Additionally, the yield is notably higher than that of the S&P 500.
Bottom Line
One of the best ways investors can find expected winners within the market is by utilizing the Zacks Rank – one of the most potent market tools out there. A portfolio consisting of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 31 years with an average annual return of 25%.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Kroger would be an excellent bet for investors looking to add a solid stock to their portfolios, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Activision Blizzard, a Zacks Rank #5 (Strong Sell), resides in the Zacks Toys – Games – Hobbies Industry, which currently ranks in the bottom 25% of all Zacks Industries. Due to its unfavorable Zacks Industry ranking, we expect it to underperform the market over the next three to six months.
Activision Blizzard is a leader in video game development and an interactive entertainment content publisher, most well-known for Call of Duty.
Currently, the company operates five business units: Activision Publishing, Blizzard Entertainment, Major League Gaming, King, and Activision Blizzard Studios.
Share Performance
Over the last year, ATVI shares have struggled immensely, declining approximately 16% in value and underperforming the S&P 500 by a wide margin.
As we can see, there was a sharp move upward in January due to the news of Microsoft acquiring the company.
Quarterly Performance & Valuation
The company has recently struggled, reporting top and bottom-line results under expectations in its latest two earnings releases. Regarding the bottom-line, ATVI reported quarterly EPS of $0.38 in its latest quarter, missing the Zacks Consensus Estimate of $0.73 by a concerning 48%.
In fact, the average EPS surprise over the last four quarters has been -7.7%.
Pivoting to the top-line, quarterly sales results of $1.5 billion in its latest quarter missed the $1.8 billion estimate by nearly 18%. It was the company's second consecutive revenue miss, with the other one also being in the double-digits at 11%.
ATVI's valuation levels appear a bit stretched, further displayed by its Style Score of a D for Value. Its 31.6X forward earnings multiple is undoubtedly pricey and is well above its five-year median value of 27.1X.
Additionally, the value represents a steep 84% premium relative to the S&P 500's forward P/E ratio of 17.1X.
Growth Estimates
Analysts have extensively dialed back their earnings estimates over the last 60 days with a 100% revision agreement percentage. For the upcoming quarter, the $0.45 per share estimate reflects a disheartening 50% decrease in earnings from the year-ago quarter.
Additionally, the $2.82 per share estimate for the current fiscal year represents a nasty 25% decline in earnings year-over-year.
Top-line projections show softening as well. For the upcoming quarter, the Zacks Consensus Sales Estimate of $1.5 billion reflects a 21% decrease from year-ago quarterly sales of $1.9 billion.
Furthermore, the $7.8 billion FY22 revenue estimate represents a 7% decline in revenue year-over-year.
Bottom Line
ATVI shares have been the victim of a double-digit valuation slash over the last year. This, paired with the earnings picture softening, paints a grim picture for the company within the short term.
The company is a Zacks Rank #5 (Strong Sell) and a stock that investors will be better off staying away from for now.
Instead, investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – the odds of reaping considerable gains are much higher within the companies that carry these ranks.
Additional content:
Meta Platforms to Discontinue Crypto Wallet Novi
Meta Platforms recently announced that it is discontinuing its cryptocurrency wallet pilot project — Novi. In a recent post, the company stated that both the Novi app and Novi on WhatsApp would not be available from Sep 1, 2022.
This is a major setback for Meta Platforms in its efforts to develop Metaverse as an independent commercial platform as both the crypto and NFT market came crashing down. Customers will be unable to add funds from July 2022 to their Novi wallet and are advised to withdraw funds before September 2022.
The Novi crypto wallet was initially launched as a pilot program in October in Guatemala and select areas of the United States. It had custody support from Coinbase Global and Paxos stablecoin USDP.
However, despite the custody support of Coinbase, which is the largest U.S. cryptocurrency exchange trading some 50 different digital assets, the market scenario and volatility have forced Meta Platforms to shut its operations for Novi.
The closure of the digital payments project marks the end of Meta Platforms' venture into the crypto market.
Previously, Meta Platforms' Diem cryptocurrency was shelved even before it commenced operations as several high-profile partners bailed out due to increasing scrutiny from lawmakers and financial regulators on the company.
Meta's Metaverse Ambitions Take a Hit Due to Volatility
Meta Platforms is currently facing the worst downturn in the company's history due to the global macro-economic situation, geopolitical tensions, rising inflation and FED interest rate hikes.
Amid such market volatility, the company intends to make its way out of the crypto market at the moment. Meta Platforms' revenue growth was driven exponentially by the e-commerce boom amid the pandemic, which in turn has been funding its Metaverse dreams.
However, it was momentum growth and is finally slowing down. Meta's revenue growth has been significantly impacted by the Russia-Ukraine war, which can be described as a black swan event.
This kind of negative global geopolitical situation and inflation, which the war has aggravated, have hurt the company's stock price.
Shares of Meta Platforms, which currently has a Zacks Rank #4 (Sell), have tumbled 49.8% in the year-to-date period compared with the Zacks Internet – Softwareindustry decline of 48.6%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The situation is not expected to get better in the near term as negative sentiments are evident with traders shorting shares of every major tech stock in the NASDAQ composite, including Meta Platforms' tech peers, who are looking to venture into the Metaverse, including Microsoft and Apple.
Microsoft shares have lost 22.9% in the year-to-date period compared with the Zacks Computer-Software industry's decline of 25.9%.
Apple's shares have fallen 20% in the year-to-date period compared with the Zacks Computer - Mini computers industry's decline of 19.7%.
As a result of the current market volatility, traders and investors are bearish regarding the cryptocurrency markets. The global crypto market cap shrunk to $977 billion after touching the $3-trillion mark in November last year. The price of almost every major cryptocurrencies like Bitcoin and Ethereum is now worth half or even less than their all-time highs.
Even though Meta Platforms' short-term growth looks tepid, the company's decision to stop certain investments that are costing it huge amounts of money is in alignment with its long-term growth.
Meta Platforms is currently looking to increase its revenues from its Family of Apps business segment, which will fund the growth of its Metaverse.
As a result, Meta has been investing heavily in developing AI, which is expected to drive revenue growth across the ad business.
As Meta bets on building the Metaverse for the future, investment in AI is expected to bring lofty ROI for the company and separate its services from competitors. This will help the company regain lost market share in the long term.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
The Kroger Co. (KR): 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. | In addition, Zacks Equity Research provides analysis on Meta Platforms META, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Pivoting to current fiscal year sales, the grocery retailer is penciled in to rake in a mighty $147 billion, a notable 6.7% increase in the top-line year-over-year. | In addition, Zacks Equity Research provides analysis on Meta Platforms META, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Bear of the Day: Activision Blizzard, a Zacks Rank #5 (Strong Sell), resides in the Zacks Toys – Games – Hobbies Industry, which currently ranks in the bottom 25% of all Zacks Industries. | In addition, Zacks Equity Research provides analysis on Meta Platforms META, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Here is a synopsis of all five stocks: Bull of the Day: The Kroger Co. sports the highly coveted Zacks Rank #1 (Strong Buy) and resides within the Zacks Retail – Supermarkets Industry. | In addition, Zacks Equity Research provides analysis on Meta Platforms META, Microsoft MSFT and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Impressively, the company has increased its dividend six times over the last five years, with a five-year annualized dividend growth rate of a double-digit 13%. |
20391.0 | 2022-07-06 00:00:00 UTC | 2 Ways To Take Advantage of the Worst Market in 50 Years | AAPL | https://www.nasdaq.com/articles/2-ways-to-take-advantage-of-the-worst-market-in-50-years | nan | nan | After the worst first half since 1970, stock market investors may be struggling with what to do now. The S&P 500 lost 20.6% in the first six months of 2022, nearly the same as the 21% lost during the first half of 1970. Rather than panic, however, investors can use that to their advantage.
What can happen next? Well, the last half of 1970 saw the market gain 26.7%. While no two time periods are exactly alike, the lessons from past market downturns are as valid as ever. Here's how to take advantage of the current market to boost long-term wealth creation.
1. Look for low prices offering value
One of the benefits of this type of downturn is that stocks of well-known, successful businesses are on sale. Investors don't need to get fancy when searching for opportunities. Consider what you already know works. Take Home Depot (NYSE: HD) as an example. Based on its price-to-earnings (P/E) ratio, Home Depot's stock is trading at a valuation it has only hit once in the past 10 years. This is a company that has doubled its annual revenue over that time.
HD PE Ratio data by YCharts
And Home Depot isn't the only solid company trading at a discount. Apple (NASDAQ: AAPL) reported record revenue for its fiscal second quarter (ended March 26). Its services revenue reached an all-time high. Sales grew 9% year over year, and the company has more than $190 billion in cash. Apple chooses to hold some debt, but it's manageable should things worsen. And with the stock down 40% over the past 18 months, it is also trading at a multi-year low P/E.
Another cash-rich company with growing sales is GPS-device maker Garmin (NYSE: GRMN). It expects sales to grow another 10% this year and holds $3.2 billion in cash and marketable securities with no debt. Garmin shares are down nearly 30% year to date.
These flush companies are solid holdings in a struggling economy. Both Apple and Garmin also use that cash to regularly increase dividends paid to shareholders, providing real income through good times and bad.
2. Watch what Buffett's buying
It makes sense to take a cue from one of the best investors of all time. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) spent more than $51 billion to repurchase about 9% of its own shares in 2020 and 2021. Those share repurchases slowed in the first quarter of 2022 when the share price was rising. Warren Buffett said he tends to increase share buybacks when Berkshire's share price drops below 1.2 times book value.
BRK.B data by YCharts
As Berkshire's stock increased earlier in 2022, its price-to-book value approached 1.6. That helps explain why the company only repurchased $3.2 billion in shares during the first quarter. Instead, Buffett found investments he considered to be better values. But the stock is now back close to Buffett's 1.2 times book value threshold.
With stakes in businesses that operate in manufacturing, energy, and insurance, buying Berkshire stock provides investors with immediate diversification. It also wouldn't be surprising to see that Buffett has increased the pace of repurchases from the first quarter when the company reports its second-quarter results in the beginning of August.
Win in a losing market
The market has been in a historically sharp downturn in 2022. Besides being the worst first half in more than 50 years, it was the fourth-worst of all time behind 1932, 1962, and 1970. There's no way to know if the market will bounce back in 2022 like it did in the second half of 1970 but it is sure to recover in time.
No investor can call the exact bottom, but these bargain stocks all make strong investments. All are high-quality, proven companies that are easy to understand. With many of them trading at multi-year lows, investors are getting a good opportunity right now to juice their long-term returns.
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Howard Smith has positions in Apple, Berkshire Hathaway (B shares), Garmin, and Home Depot. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Garmin, and Home Depot. 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 (NASDAQ: AAPL) reported record revenue for its fiscal second quarter (ended March 26). Both Apple and Garmin also use that cash to regularly increase dividends paid to shareholders, providing real income through good times and bad. With stakes in businesses that operate in manufacturing, energy, and insurance, buying Berkshire stock provides investors with immediate diversification. | Apple (NASDAQ: AAPL) reported record revenue for its fiscal second quarter (ended March 26). HD PE Ratio data by YCharts And Home Depot isn't the only solid company trading at a discount. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Garmin, and Home Depot. | Apple (NASDAQ: AAPL) reported record revenue for its fiscal second quarter (ended March 26). See the 10 stocks *Stock Advisor returns as of June 2, 2022 Howard Smith has positions in Apple, Berkshire Hathaway (B shares), Garmin, and Home Depot. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Garmin, and Home Depot. | Apple (NASDAQ: AAPL) reported record revenue for its fiscal second quarter (ended March 26). After the worst first half since 1970, stock market investors may be struggling with what to do now. Warren Buffett said he tends to increase share buybacks when Berkshire's share price drops below 1.2 times book value. |
20392.0 | 2022-07-06 00:00:00 UTC | Should Schwab U.S. LargeCap Growth ETF (SCHG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-growth-etf-schg-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 Schwab U.S. LargeCap Growth ETF (SCHG), a passively managed exchange traded fund launched on 12/11/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $13.45 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 find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.58%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 64.80% of the portfolio. Telecom and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN).
The top 10 holdings account for about 56.48% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has lost about -27.66% so far this year and is down about -19.09% in the last one year (as of 07/06/2022). In the past 52-week period, it has traded between $55.73 and $83.40.
The ETF has a beta of 1.08 and standard deviation of 27.74% for the trailing three-year period, making it a medium risk choice in the space. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Schwab U.S. LargeCap 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, SCHG is an outstanding 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 $68.27 billion in assets, Invesco QQQ has $156.87 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
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. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $13.45 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. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. | Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (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 Schwab U.S. LargeCap Growth ETF (SCHG), a passively managed exchange traded fund launched on 12/11/2009. | Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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. |
20393.0 | 2022-07-06 00:00:00 UTC | Should You Invest in the Vanguard Information Technology ETF (VGT)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-1 | nan | nan | Launched on 01/26/2004, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $40.76 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.90%.
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 in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.98% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
Performance and Risk
The ETF has lost about -27.75% so far this year and is down about -16.89% in the last one year (as of 07/06/2022). In that past 52-week period, it has traded between $315.97 and $466.10.
The ETF has a beta of 1.12 and standard deviation of 30.22% for the trailing three-year period, making it a medium risk choice in the space. With about 360 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology 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, VGT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ARK Innovation ETF (ARKK) tracks N/A and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. ARK Innovation ETF has $8.93 billion in assets, Technology Select Sector SPDR ETF has $38.50 billion. ARKK has an expense ratio of 0.75% and XLK charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Information Technology ETF (VGT): 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
ARK Innovation ETF (ARKK): 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 22.98% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $40.76 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.98% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 01/26/2004, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.98% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard Information Technology 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. (AAPL) accounts for about 22.98% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 01/26/2004, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market. |
20394.0 | 2022-07-06 00:00:00 UTC | Warren Buffett's Secret Portfolio Has 86% of Its Assets Invested In These 3 Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffetts-secret-portfolio-has-86-of-its-assets-invested-in-these-3-stocks | nan | nan | For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has put on a clinic for Wall Street and the investing community. Since taking the helm at Berkshire in 1965, he's created more than $610 billion in value for shareholders (himself included), and delivered an aggregate return of 3,641,613% for the company's Class A shares (BRK.A), as of Dec. 31, 2021.
Because of the Oracle of Omaha's incredible track record, Wall Street and investors closely monitor every stock his company buys and sells. This is relatively easy to do given that Berkshire Hathaway is required to file Form 13F with the Securities and Exchange Commission once per quarter. A 13F provides an under-the-hood look at what the smartest and most successful investors have been buying and selling in the most recent quarter.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what you might not realize is that Buffett and his company have a secret portfolio with $6.3 billion in assets under management. You won't find these holdings listed in a Berkshire Hathaway 13F filing.
In June 1998, Berkshire Hathaway acquired insurance company General Re for $22 billion. One of the operating segments Buffett's company came to possess with this buyout is specialized investment services firm New England Asset Management (NEAM). Although Buffett isn't in charge of New England Asset Management's $6.31 billion in assets under management, these assets are, ultimately, owned by Berkshire Hathaway.
Interestingly, even though this secret Buffett portfolio contains more than 160 separate holdings, 86% of invested assets are tied up in only three stocks.
Apple: 56.6% of invested assets
New England Asset Management's largest holding, Apple (NASDAQ: AAPL), also happens to be the biggest holding of Berkshire Hathaway. But whereas Apple accounted for 39.4% of Berkshire's invested assets, as of this past weekend, it comprised an even beefier 56.6% of NEAM's invested assets, as of March 31, 2022.
Apple is a company that's consistently checked all the appropriate boxes for Warren Buffett -- and apparently other money managers. It has an extremely loyal customer base, it's one of the most recognized brands in the world, and its innovation has propelled its revenue and earnings to an all-time high.
For instance, Apple's physical products have, for decades, introduced consumers to its brand. As of the first quarter, Apple accounted for 50% of U.S. smartphone market share. With the exception of the third quarter of 2021, the Apple iPhone has garnered at least half of U.S. smartphone sales since 5G-capable versions were introduced, according to data from Counterpoint Research.
However, Apple's future is about far more than just selling smartphones, tablets, and laptops. CEO Tim Cook is overseeing a multiyear transition that emphasizes subscription services. Focusing on subscriptions should further enhance brand loyalty, steadily improve the company's operating margins, and minimize the sales fluctuations that typically accompany product replacement cycles. In other words, Apple isn't abandoning the products that consumers still love. It's simply realizing its potential as a platform provider.
No discussion of Apple is complete without mentioning its mammoth capital return program. Since introducing share buybacks in 2013, Apple has gobbled up nearly $500 billion worth of its own common stock. It also returns close to $14.9 billion annually to shareholders as a dividend.
U.S. Bancorp: 14.9% of invested assets
The second largest holding in Warren Buffett's secret portfolio is regional bank stock U.S. Bancorp (NYSE: USB), which is the parent of the more familiar U.S. Bank.
Whereas Berkshire Hathaway owns more than 126 million shares of U.S. Bancorp, NEAM held approximately 17.7 million shares, as of the end of the first quarter. This works out to 14.9% of NEAM's $6.3 billion of invested assets.
One reason U.S. Bancorp has been such a consistently popular pick among successful money managers is the fiscal prudence of its management team. In the past, riskier derivative investments have gotten money-center banks into trouble. As for U.S. Bancorp, it's primarily stuck to the bread-and-butter of banking: Growing its loans and deposits. Without these riskier land mines on its books, U.S. Bancorp has been able to deliver higher return on assets than most big banks.
The company's digital engagement trends are, arguably, even more impressive. As of Feb. 28, 2022, 82% of all company transactions were completed digitally (online or via mobile app), including 65% of loan sales. For comparison, only 45% of loan sales were being conducted online or via mobile app when 2020 began. Digital transactions are considerably cheaper for banks than in-person or phone-based interactions. U.S. Bancorp's success in encouraging users to bank digitally is allowing it to reduce its noninterest expenses by consolidating some of its branches.
Although fears of a U.S. recession have depressed U.S. Bancorp's share price, nothing has, thus far, suggested anything is wrong with the nation's steadiest regional bank.
Image source: Getty Images.
Bank of America: 14.9% of invested assets
The third biggest holding in Warren Buffett's secret portfolio happens to be another stock that ranks very highly with Berkshire Hathaway. NEAM held more than 22.7 million shares of Bank of America (NYSE: BAC) at the end of the first quarter, which equates to 14.9% of its invested assets. By comparison, Berkshire Hathaway owns north of 1 billion shares of BofA, which works out to about 10% of its invested assets.
Warren Buffett's attraction to Bank of America can be traced to three key points.
First, bank stocks are cyclical and allow the Oracle of Omaha to take advantage of a simple numbers game that favors long-term investors. Buffett is keenly aware that recessions are an inevitable part of the economic cycle. However, recessions only tend to last for a few months to a couple of quarters. Alternatively, economic expansions usually extend for years. Buying well-capitalized bank stocks lets Buffett and his company take advantage of the natural expansion of the U.S. and global economy over time.
Second, BofA is the most interest-sensitive of the big banks. With inflation hitting four-decade highs in the U.S., the nation's central bank has had no choice but to aggressively raise interest rates. These rate hikes should increase the net-interest income earning potential for financial institutions on outstanding variable-rate loans. In April, Bank of America estimated that a 100-basis-point parallel shift in the interest rate yield curve would net it $5.4 billion in added net-interest income over 12 months.
And third, Buffett has to like what he's seen from BofA's digitization initiatives. Even though U.S. Bancorp is the trendsetter when it comes to digital banking among larger financial institutions, BofA has gained 5 million digital active users over the past three years. More importantly, the percentage of loan sales completed digitally has soared to 53% from 30% over that same span. This steady digital push is helping BofA consolidate its physical locations and is boosting its operating efficiency.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple 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. | Apple: 56.6% of invested assets New England Asset Management's largest holding, Apple (NASDAQ: AAPL), also happens to be the biggest holding of Berkshire Hathaway. Focusing on subscriptions should further enhance brand loyalty, steadily improve the company's operating margins, and minimize the sales fluctuations that typically accompany product replacement cycles. Bank of America: 14.9% of invested assets The third biggest holding in Warren Buffett's secret portfolio happens to be another stock that ranks very highly with Berkshire Hathaway. | Apple: 56.6% of invested assets New England Asset Management's largest holding, Apple (NASDAQ: AAPL), also happens to be the biggest holding of Berkshire Hathaway. U.S. Bancorp: 14.9% of invested assets The second largest holding in Warren Buffett's secret portfolio is regional bank stock U.S. Bancorp (NYSE: USB), which is the parent of the more familiar U.S. Bank. 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. | Apple: 56.6% of invested assets New England Asset Management's largest holding, Apple (NASDAQ: AAPL), also happens to be the biggest holding of Berkshire Hathaway. U.S. Bancorp: 14.9% of invested assets The second largest holding in Warren Buffett's secret portfolio is regional bank stock U.S. Bancorp (NYSE: USB), which is the parent of the more familiar U.S. Bank. Bank of America: 14.9% of invested assets The third biggest holding in Warren Buffett's secret portfolio happens to be another stock that ranks very highly with Berkshire Hathaway. | Apple: 56.6% of invested assets New England Asset Management's largest holding, Apple (NASDAQ: AAPL), also happens to be the biggest holding of Berkshire Hathaway. Berkshire Hathaway CEO Warren Buffett. U.S. Bancorp: 14.9% of invested assets The second largest holding in Warren Buffett's secret portfolio is regional bank stock U.S. Bancorp (NYSE: USB), which is the parent of the more familiar U.S. Bank. |
20395.0 | 2022-07-06 00:00:00 UTC | Apple will Continue to Prove its Naysayers Wrong | AAPL | https://www.nasdaq.com/articles/apple-will-continue-to-prove-its-naysayers-wrong | nan | nan | Apple (AAPL) is one of the most well-regarded stocks among tech sector stars. AAPL stock was soaring early in the year, but since has dipped amidst broader market fears. The macro-economic situation has created uncertainty, but it might be a good time for savvy investors to pick it up while it trades at multi-year lows. Not to forget, Apple's self-sustaining ecosystem and rock-solid cash balance indicate that it can weather the current economic storm, and offer massive gains down the line. Hence, I am bullish on AAPL stock
On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. This indicates a high potential for the stock to outperform the broader market.
Apple Works Better than a Magnet at Attracting Customers
Apple always succeeds at keeping people coming back to its incredibly popular product base. This quality has helped the company earn billions before and continues to provide it with a competitive advantage. Apple, in its second quarter of 2022, generated more than $97 billion in revenue.
The iPhone, which is considered Apple's bread and butter, contributed more than $50 billion to overall sales. Undoubtedly, Apple's products, especially the iPhone, have what it takes to sustain this level of growth. Hence, the iPhone has it all covered.
Apple has had a knack for grabbing opportunities. The company recognized the 5G opportunity and has pounced on it. Apple released 5G-compatible phones in late 2020 to which has led to a double-digit surge in revenues since its release.
Despite the high revenue growth, it might be ignorant to assume that Apple won’t be hurt by inflation. The increase in prices might put consumers off from buying Apple’s devices. But the good part is that Apple isn’t just a hardware company. The firm's diversification towards software-as-a-service (SaaS) has aided Apple in generating recurring revenue through subscriptions.
The company's service segment, which comprises of digital payments, AppleCare, cloud storage, and advertising products, saw a revenue hike from $46.3 billion in 2019 to more than $68 billion last year.
Incredibly Sticky Ecosystem
Apple's self-sustaining ecosystem must be one of the reasons to invest in the company's stock. In addition, the interplay between Apple's products and services ensures that consumers rely on both, which means Apple's revenue will bolster as more people continue to subscribe between product purchases.
The amazing part is that Apple is consistently putting efforts into expanding this ecosystem. The company has acquired more than 100 companies in the last few years, and it spends millions in research and development just to enhance the ecosystem it has built over the years.
The company's research and development budget has soared from $0.78 billion in 2007 to a whopping $21.91 billion. The considerable research and development cost represents half of the company's operating expenses. This means that Apple's expenses today will turn into profits in the long run.
A Cash Flow Generating Machine
Cash hoarding is one of Apple's powerful assets. The company wrapped up its second quarter with more than $193 billion in cash and cash equivalents. So, while looking at Apple's cash flow, one can say that Apple has a lot of capital to put into work.
The powerful cash position has not only helped Apple invest in research and development, but rewarded shareholders. For instance, Apple spent a massive $85.5 billion in share repurchases and $14.5 billion on dividends last year. Hence, it reaffirms its commitment to reward its shareholders.
Wall Street's Take
Turning to Wall Street, AAPL stock maintains a Strong Buy consensus rating. Out of 28 total analyst ratings, 22 Buys and six Holds were assigned over the past three months.
The average AAPL price target is $186.09, implying 31.46% upside potential. Analyst price targets range from a low of $157 per share to a high of $210 per share.
Final Word on AAPL Stock
Apple's strong cash flows and liquidity are reason enough to invest in the tech giant. Its timeless products continue to impress and leave an indelible mark on its burgeoning customer base. Moreover, the company's thriving service segment continues to grow at double-digit rates, entailing that revenue will keep growing in the future. Yes, Apple isn't unsusceptible to macroeconomic challenges, so the stock may experience pain in the short run.
However, it doesn't take away from its incredible long-term case which continues to get stronger over time. Hence, it's plausible to expect another bumpy year, despite the headwinds.
So while macroeconomic factors such as inflation and recession fears may paint a sordid picture, investors holding AAPL stock will be glad they picked up the right company for the long haul.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Final Word on AAPL Stock Apple's strong cash flows and liquidity are reason enough to invest in the tech giant. So while macroeconomic factors such as inflation and recession fears may paint a sordid picture, investors holding AAPL stock will be glad they picked up the right company for the long haul. Apple (AAPL) is one of the most well-regarded stocks among tech sector stars. | Wall Street's Take Turning to Wall Street, AAPL stock maintains a Strong Buy consensus rating. Final Word on AAPL Stock Apple's strong cash flows and liquidity are reason enough to invest in the tech giant. Apple (AAPL) is one of the most well-regarded stocks among tech sector stars. | Apple (AAPL) is one of the most well-regarded stocks among tech sector stars. AAPL stock was soaring early in the year, but since has dipped amidst broader market fears. Hence, I am bullish on AAPL stock On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. | Apple (AAPL) is one of the most well-regarded stocks among tech sector stars. AAPL stock was soaring early in the year, but since has dipped amidst broader market fears. Hence, I am bullish on AAPL stock On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. |
20396.0 | 2022-07-06 00:00:00 UTC | Amazon Stock Has a Strong Base and Is a Buy | AAPL | https://www.nasdaq.com/articles/amazon-stock-has-a-strong-base-and-is-a-buy | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amazon (NASDAQ:AMZN) stock has not been a leader for a while. This is an unusual situation, but so is the entire setup on Wall Street. Today we are suggesting that this shall pass. AMZN stock will once again be a profit center for retail investors. But first we must address the situation with the lack of any positive sentiment.
Investing in the past year has become an extremely challenging proposition. Even the experts are at a loss, because these circumstances are unique and without precedent. Last week the bulls ended strongly, but they came into a deep red situation on Tuesday. The market open after the July 4 holiday was somber and left a big gap.
But somehow it pulled off another incredible rally back to close it in its entirety. It even managed to close with mixed market score board. The Nasdaq actually soared 1.7% and the small-caps were about half as strong. Tiny glimmers of hope that markets are finally gathering courage.
Meanwhile, investors are suffering through severe peaks and valleys, but in a descending channel. Here we evaluate the opportunity from the AMZN stock for the rest of this year. It is no longer a part of the famous FANG acronym, since they have disbanded the posse. The FANG components are no longer traveling together.
Ticker Company Price
AMZN Amazon $112.25
AMZN Stock Is Leaner Than Most Giga-Caps
Source: Charts by TradingView
Amazon stock has already retraced its entire distance back to the pre-pandemic breakouts. Whereas Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG), for example, has not. Therefore we must address their opportunities differently from here. There is no reason for AMZN to fall further on its own. But GOOG has about 32% altitude it can quickly shed.
7 Best Large-Cap Stocks to Buy in July 2022
For the last two months, AMZN has consolidated strongly above $101 per share. The weakest weekly close happened mid-June and above $106 per share. I bet that this base will hold through the next two weeks. This could just be enough time for the bulls to take back some control. I don’t expect a moonshot straight up, but at least stringing a few wins together.
Fundamentally AMZN is beyond reproach and it has the financials metrics to prove it. The company almost tripled revenues and net income since 2019. Profitability may stumble a bit with the higher gas prices, but they can adjust. With metrics this strong, by definition dips remain buying opportunities. The experts were wrong about it for a decade, because they spent too much money. It turns out they were busy changing the world.
Now the company is the second largest private employer on the planet. These two things are not coincidences, and we have plenty of proof to have confidence in the management team. They know what they’re doing, and shorting AMZN stock equates with shorting the whole market. Besides, at this point, there’s more downside risk in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and GOOGL.
Hold Some
Source: Charts by Tradytics
Also, according to Tradyticks, big dark pools of money will defend the AMZN price. They have been active at levels scattered below current price. So if it falls again they are likely to be active with it, which provides support.
It is appropriate to engage with AMZN stock – especially with starter positions. The strategy is to leave room to add later to spread the risk across time. Or even better, use the options markets to create income out of the fear that other investors have. These credit put spreads strategies are slick and work well in a choppy market like this.
On the date of publication, Nicolas Chahine 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 Amazon Stock Has a Strong Base and Is a Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Besides, at this point, there’s more downside risk in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and GOOGL. 7 Best Large-Cap Stocks to Buy in July 2022 For the last two months, AMZN has consolidated strongly above $101 per share. Hold Some Source: Charts by Tradytics Also, according to Tradyticks, big dark pools of money will defend the AMZN price. | Besides, at this point, there’s more downside risk in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN) stock has not been a leader for a while. Ticker Company Price AMZN Amazon $112.25 AMZN Stock Is Leaner Than Most Giga-Caps Source: Charts by TradingView Amazon stock has already retraced its entire distance back to the pre-pandemic breakouts. | Besides, at this point, there’s more downside risk in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon (NASDAQ:AMZN) stock has not been a leader for a while. Ticker Company Price AMZN Amazon $112.25 AMZN Stock Is Leaner Than Most Giga-Caps Source: Charts by TradingView Amazon stock has already retraced its entire distance back to the pre-pandemic breakouts. | Besides, at this point, there’s more downside risk in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and GOOGL. AMZN stock will once again be a profit center for retail investors. Here we evaluate the opportunity from the AMZN stock for the rest of this year. |
20397.0 | 2022-07-05 00:00:00 UTC | EU lawmakers pass landmark tech rules, but enforcement a worry | AAPL | https://www.nasdaq.com/articles/eu-lawmakers-pass-landmark-tech-rules-but-enforcement-a-worry-0 | nan | nan | By Foo Yun Chee
BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcement could be hampered by regulators' limited resources.
In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content.
Companies face fines of up to 10% of annual global turnover for DMA violations and 6% for DSA breaches. Lawmakers and EU states had reached a political deal on both rule books earlier this year, leaving some details to be ironed out.
The European Commission has set up a taskforce, with about 80 officials expected to join up, which critics say is inadequate. Last month it put out a 12 million euro ($12.3 million) tender for experts to help in investigations and compliance enforcement over a four-year period.
EU industry chief Thierry Breton sought to address enforcement concerns, saying various teams would focus on different issues such as risk assessments, interoperability of messenger services and data access during implementation of the rules.
Regulators will also set up a European Centre for Algorithmic Transparency to attract data science and algorithm scientists to help with enforcement.
"We have started to gear the internal organisation to this new role, including by shifting existing resources, and we also expect to ramp up recruitment next year and in 2024 to staff the dedicated DG CONNECT team with over 100 full time staff," Breton said in a blogpost.
DEEP POCKETS
Lawmaker Andreas Schwab, who steered the issue through the European Parliament, has called for a bigger taskforce to counter Big Tech's deep pockets and array of lawyers.
European Consumer Organisation (BEUC) echoed the same worries.
"We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech's practices in the market, the legislation could be hamstrung by ineffective enforcement," BEUC Deputy Director General Ursula Pachl said in a statement.
The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data.
Business users would be able to promote competing products and services on a platform and reach deals with customers off the platforms.
Companies will not be allow to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
The DSA bans targeted advertising aimed at children or based on sensitive data such as religion, gender, race and political opinions. Dark patterns, which are tactics that mislead people into giving personal data to companies online, will also be prohibited. ($1 = 0.9754 euros)
(Reporting by Foo Yun Chee; Editing by Alex Richardson)
((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. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcement could be hampered by regulators' limited resources. EU industry chief Thierry Breton sought to address enforcement concerns, saying various teams would focus on different issues such as risk assessments, interoperability of messenger services and data access during implementation of the rules. "We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech's practices in the market, the legislation could be hamstrung by ineffective enforcement," BEUC Deputy Director General Ursula Pachl said in a statement. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcement could be hampered by regulators' limited resources. In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content. The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcement could be hampered by regulators' limited resources. In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content. The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcement could be hampered by regulators' limited resources. The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data. Business users would be able to promote competing products and services on a platform and reach deals with customers off the platforms. |
20398.0 | 2022-07-05 00:00:00 UTC | Down 30%, Is It Safe to Invest in the Nasdaq Right Now? | AAPL | https://www.nasdaq.com/articles/down-30-is-it-safe-to-invest-in-the-nasdaq-right-now | nan | nan | The Nasdaq Composite Index -- along with the Nasdaq-100 Index, which the popular Invesco QQQ (NASDAQ: QQQ) ETF tracks -- is among the most closely watched, technology-focused U.S. stock indexes. Its influence on equity prices is so great that one might discern a chicken-and-egg dynamic in which the Nasdaq's component stocks influence the index's price movements.
However, a sharp downtrend in the index could also prompt traders to dump their individual tech stocks. Wall Street witnessed this dynamic in action when the Nasdaq lost roughly 30% of its value during 2022's first half. As investors flipped the emotional switch from risk-on to risk-off, gut checks and tough choices had to be made: Is it best to stay the course, lean into the negative sentiment, or abandon ship?
Now, in the wake of a dismal six-month performance, some due diligence just might uncover an opportunity for intrepid tech-market traders.
Value in vogue
In case you didn't get the memo, inflation is rather high in mid-2022. Three consecutive months of 8%-plus increases in the U.S. Consumer Price Index are bound to impact the economy and markets -- and in response, the Federal Reserve began hiking interest rates for the first time in a long time.
As a result, just about anything perceived as a growth stock (whether justifiably or not) has come under pressure. A less accommodative Fed means that cautious investors are prioritizing value over growth now, and technology stocks were known for flying high when the Fed kept interest rates low.
With traders rotating out of tech stocks -- and with the Fed likely to raise interest rates at every Federal Open Market Committee (FOMC) meeting this year -- it might be tempting to dump all of one's technology stocks and just avoid the Nasdaq altogether.
Yet, there's no need to panic sell. The bear market in tech stocks has brought some high-flown valuations back down to Earth and opened up a window of opportunity to get into some steady, sturdy names.
Weighted with heavyweights
If you're going to buy or hold a Nasdaq-tracking fund such as the Invesco QQQ ETF, it's important to apply the principle of "know what you own." The Nasdaq 100 (which actually includes 102 stocks) comprises a mix of tech and non-tech names, including Pepsi and Dollar Tree, interestingly enough. Those non-tech stocks are minor players, though, as the Nasdaq is market-cap weighted, and a handful of tech-tonic names dominate the index.
Some critics might accuse the Nasdaq of having a weight problem as the top three stocks -- Apple (NASDAQ: AAPL) with 12.58% weighting, Microsoft (NASDAQ: MSFT) with 10.92%, and Amazon (NASDAQ: AMZN) with 6.15% -- comprise nearly 30% of the index's weighting. Another major influencer in the index is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), which is listed twice, with the company's Class A and Class C shares each getting nearly 4% index weightings.
It's a lopsided index, to be sure, but at least it's dominated by recognized brands. After all, Apple and Microsoft have been around since the 1970s, and Amazon and Alphabet are unrivaled in the e-commerce and search-engine markets. Maybe the apparent lack of breadth isn't such a bad thing, then.
Besides, now that the air has been let out of their stocks, perhaps these companies could actually fall into the value category. Using the good old trailing 12-month price-to-earnings ratio as a rough-and-ready metric, we find some decent value here with Apple at 22.6, Microsoft at 27.1, and Alphabet at 20.3 (Amazon clocked in at 51.2, but at least it's not in the triple digits like it used to be).
So now, the rest is up to you. See what's in the Nasdaq and decide for yourself whether these are brands you can stand behind as an investor. A deeper dive into the famous names dominating the index should uncover some surprising values and a potential recovery play for the year's second half.
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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. David Moadel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some critics might accuse the Nasdaq of having a weight problem as the top three stocks -- Apple (NASDAQ: AAPL) with 12.58% weighting, Microsoft (NASDAQ: MSFT) with 10.92%, and Amazon (NASDAQ: AMZN) with 6.15% -- comprise nearly 30% of the index's weighting. As investors flipped the emotional switch from risk-on to risk-off, gut checks and tough choices had to be made: Is it best to stay the course, lean into the negative sentiment, or abandon ship? The bear market in tech stocks has brought some high-flown valuations back down to Earth and opened up a window of opportunity to get into some steady, sturdy names. | Some critics might accuse the Nasdaq of having a weight problem as the top three stocks -- Apple (NASDAQ: AAPL) with 12.58% weighting, Microsoft (NASDAQ: MSFT) with 10.92%, and Amazon (NASDAQ: AMZN) with 6.15% -- comprise nearly 30% of the index's weighting. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Some critics might accuse the Nasdaq of having a weight problem as the top three stocks -- Apple (NASDAQ: AAPL) with 12.58% weighting, Microsoft (NASDAQ: MSFT) with 10.92%, and Amazon (NASDAQ: AMZN) with 6.15% -- comprise nearly 30% of the index's weighting. The Nasdaq Composite Index -- along with the Nasdaq-100 Index, which the popular Invesco QQQ (NASDAQ: QQQ) ETF tracks -- is among the most closely watched, technology-focused U.S. stock indexes. With traders rotating out of tech stocks -- and with the Fed likely to raise interest rates at every Federal Open Market Committee (FOMC) meeting this year -- it might be tempting to dump all of one's technology stocks and just avoid the Nasdaq altogether. | Some critics might accuse the Nasdaq of having a weight problem as the top three stocks -- Apple (NASDAQ: AAPL) with 12.58% weighting, Microsoft (NASDAQ: MSFT) with 10.92%, and Amazon (NASDAQ: AMZN) with 6.15% -- comprise nearly 30% of the index's weighting. With traders rotating out of tech stocks -- and with the Fed likely to raise interest rates at every Federal Open Market Committee (FOMC) meeting this year -- it might be tempting to dump all of one's technology stocks and just avoid the Nasdaq altogether. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Invesco QQQ Trust wasn't one of them! |
20399.0 | 2022-07-05 00:00:00 UTC | 5-Star Analyst Lays Out the Bullish Case for Apple Stock | AAPL | https://www.nasdaq.com/articles/5-star-analyst-lays-out-the-bullish-case-for-apple-stock | nan | nan | The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. That said, assessing the tech giant’s prospects, one Street analyst expects the upward trajectory to resume shortly.
Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. This suggests the stock will be changing hands for a 48% premium a year from now. (To watch Feinseth’s track record, click here)
Feinseth’s upbeat take is heavily based on the latest product introductions, and a number of “breakthrough announcements” made at the recent WWDC (Worldwide Developer Conference). According to the analyst, these should “continue to drive strong sales momentum.”
So, what did Feinseth particularly like?
One was the announcement of the new M2 chip which compared to the current “groundbreaking” M1 chip is 40% faster. The latest version of the MacBook Pro and the most significant MacBook Air redesigning in over a decade were also announced. There were also software upgrades, including iOS 16, iPadOS 16, and several watch and TV OS upgrades. Another key announcement was of a new BNPL (buy now pay later) payment option called Apple Pay Later.
That’s not all. The next-generation CarPlay interface also made an appearance, highlighting “further expansion into the automotive industry,” which going by Apple’s history, could well be a precursor to its own vehicle. As noted by Feinseth, Apple CarPlay’s functionality has seen constant expansion, and is now moving “beyond just controlling Apple apps to controlling the entire vehicle.”
“Apple’s new CarPlay can completely replace the car’s instrument cluster,” Feinseth expounded on the issue, “including controlling the radio, heating and AC, and other infotainment functions.”
All this ongoing innovation is backed by a balance sheet boasting $173.43 billion - or $10.65 per share - in excess cash (as of March 2022), which will keep on funding “new growth initiatives and strategic acquisitions while returning significant amounts of cash to shareholders.”
So, that’s Tigress’ take, what does the rest of the Street think lies in Apple store? Based on 22 Buys and 6 Holds, the stock has a Strong Buy consensus rating. The $186.09 average target might not be quite as high as Feinseth’s objective but could still generate returns of 31% over the one-year timeframe. (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. | The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. The next-generation CarPlay interface also made an appearance, highlighting “further expansion into the automotive industry,” which going by Apple’s history, could well be a precursor to its own vehicle. | The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. As noted by Feinseth, Apple CarPlay’s functionality has seen constant expansion, and is now moving “beyond just controlling Apple apps to controlling the entire vehicle.” “Apple’s new CarPlay can completely replace the car’s instrument cluster,” Feinseth expounded on the issue, “including controlling the radio, heating and AC, and other infotainment functions.” All this ongoing innovation is backed by a balance sheet boasting $173.43 billion - or $10.65 per share - in excess cash (as of March 2022), which will keep on funding “new growth initiatives and strategic acquisitions while returning significant amounts of cash to shareholders.” So, that’s Tigress’ take, what does the rest of the Street think lies in Apple store? | The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. As noted by Feinseth, Apple CarPlay’s functionality has seen constant expansion, and is now moving “beyond just controlling Apple apps to controlling the entire vehicle.” “Apple’s new CarPlay can completely replace the car’s instrument cluster,” Feinseth expounded on the issue, “including controlling the radio, heating and AC, and other infotainment functions.” All this ongoing innovation is backed by a balance sheet boasting $173.43 billion - or $10.65 per share - in excess cash (as of March 2022), which will keep on funding “new growth initiatives and strategic acquisitions while returning significant amounts of cash to shareholders.” So, that’s Tigress’ take, what does the rest of the Street think lies in Apple store? | The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. Based on 22 Buys and 6 Holds, the stock has a Strong Buy consensus rating. |
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