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20600.0 | 2022-06-22 00:00:00 UTC | If You'd Invested $10,000 in Apple in 2012, This Is How Much You Would Have Today | AAPL | https://www.nasdaq.com/articles/if-youd-invested-%2410000-in-apple-in-2012-this-is-how-much-you-would-have-today | nan | nan | Apple (NASDAQ: AAPL) has turned out to be a terrific investment over the past decade thanks to the company's dominant position in the smartphone market, as evident from the stock's impressive market-beating returns.
AAPL data by YCharts
However, shares of the iPhone maker have been sliding rapidly over the past few months amid the broader stock market sell-off. Despite this, investors who purchased Apple stock a decade ago are sitting on fat gains, which demonstrates that buying and holding great companies for the long run is a sound investment strategy.
A $10,000 investment in Apple stock at the beginning of 2012 would now be worth just over $106,000, assuming the dividends paid out by the tech giant were reinvested. That translates into average annual returns of just over 25% over the past decade. But should investors buy Apple stock now in anticipation of similar returns over the next 10 years? Let's find out.
Is Apple stock worth buying right now?
With share prices down 26% in 2022, Apple stock is now trading at an attractive valuation compared to recent years. The stock's price-to-earnings (P/E) ratio of 21 is lower than its five-year average P/E ratio of 23.5. Still, Apple is expensive as compared to its valuation in 2012 when it used to trade at just 12 times earnings.
But it is worth noting that Apple has come a long way in the past decade. The company generated $156 billion in revenue in fiscal 2012. In fiscal 2021, Apple's annual revenue stood at nearly $366 billion, and analysts expect the company's top line to hit $393 billion in the current fiscal year, which ends in September. So Apple has more than doubled its annual revenue in the space of a decade, and that has translated into impressive stock market gains.
That's why the company's richer valuation right now as compared to 2012 seems justified. What's more, Apple's P/E ratio is lower than the Nasdaq-100 index's multiple of 23. So the stock is trading at an attractive level, and investors may want to grab this buying opportunity, as Apple could be on track for another decade of healthy growth given the company's efforts to unlock new streams of revenue.
The next decade seems bright
Apple's growth over the last decade has been driven by the booming sales of consumer electronic devices such as the iPhone, the iPad, the Watch, and MacBooks. The iPhone remains its biggest money-maker, generating $122 billion in revenue in the first half of fiscal 2022, which is 55% of its total revenue.
The future of Apple's biggest business remains bright thanks to the rapid adoption of 5G smartphones. It dominated the 5G smartphone market last year with a 31% market share, according to Strategy Analytics. The momentum continued in 2022 as Apple cornered 45% of global smartphone revenue in the first quarter, compared to 42% in the prior-year period, according to Counterpoint Research.
The 5G smartphone market has a lot of room for growth. According to Ericsson, 5G subscriptions hit 660 million last year, and they are expected to hit 4.4 billion by 2027. This means that the iPhone is sitting on a secular growth opportunity, and Apple is pulling the right strings to ensure that it grabs it by expanding the iPhone's addressable market.
For instance, Apple is reportedly working on a foldable iPhone that may arrive by 2025, as supply chain gossip indicates. Third-party research estimates that foldable phones could account for 10% of global smartphone sales by 2030. So Apple's entry into this market could give iPhone revenue a nice shot in the arm in the future.
Meanwhile, the global augmented reality (AR) and virtual reality (VR) markets are expected to witness rapid revenue growth through 2030, with one estimate putting the annual growth rate at nearly 43%. Companies can take advantage of this potential growth in several ways, and it looks like Apple is already preparing itself to benefit.
The company is reportedly looking to jump into the AR/VR hardware market with a mixed reality headset, which is expected to become its next major product addition. Head-mounted displays (HMDs) and AR/VR headsets are expected to witness rapid sales growth in the coming years, with IDC estimating 35% annual growth through 2026.
Apple's foray into emerging niches such as AR/VR hardware should help it increase its installed base of devices further. That's going to rub off positively on the company's services business, which has been growing at a faster pace than the company's overall business. Apple's services business has generated $39 billion in revenue in the first six months of the current fiscal year, an increase of 20% over the prior-year period.
Morgan Stanley expects this business to hit $100 billion in annual revenue next year, and that wouldn't be surprising given Apple's focus on expanding its installed base of devices. Additionally, Apple is diving deeper into the automotive market with its CarPlay infotainment software. It has lined up several major automakers such as Honda, Mercedes-Benz, Nissan, and Ford Motor Company that could use its software to power their cars.
Vehicles powered by Apple's automotive infotainment software are expected to be announced next year. This could open another solid opportunity for the company to grow its services business as those car owners hopefully buy CarPlay-enabled vehicles.
What's more, the automotive software market could turn out to be a major growth driver for Apple on its own. The automotive software market was reportedly worth $24.6 billion last year, and it could hit $105 billion in revenue by 2030.
In the end, there are multiple ways in which Apple may be looking to enhance its addressable market, and that could translate into robust revenue and earnings growth over the next decade. That's why it may be a good idea to use Apple's drop to buy more shares of this tech giant, as it could replicate its impressive performance in the coming years.
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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 (NASDAQ: AAPL) has turned out to be a terrific investment over the past decade thanks to the company's dominant position in the smartphone market, as evident from the stock's impressive market-beating returns. AAPL data by YCharts However, shares of the iPhone maker have been sliding rapidly over the past few months amid the broader stock market sell-off. Despite this, investors who purchased Apple stock a decade ago are sitting on fat gains, which demonstrates that buying and holding great companies for the long run is a sound investment strategy. | Apple (NASDAQ: AAPL) has turned out to be a terrific investment over the past decade thanks to the company's dominant position in the smartphone market, as evident from the stock's impressive market-beating returns. AAPL data by YCharts However, shares of the iPhone maker have been sliding rapidly over the past few months amid the broader stock market sell-off. In fiscal 2021, Apple's annual revenue stood at nearly $366 billion, and analysts expect the company's top line to hit $393 billion in the current fiscal year, which ends in September. | Apple (NASDAQ: AAPL) has turned out to be a terrific investment over the past decade thanks to the company's dominant position in the smartphone market, as evident from the stock's impressive market-beating returns. AAPL data by YCharts However, shares of the iPhone maker have been sliding rapidly over the past few months amid the broader stock market sell-off. In fiscal 2021, Apple's annual revenue stood at nearly $366 billion, and analysts expect the company's top line to hit $393 billion in the current fiscal year, which ends in September. | Apple (NASDAQ: AAPL) has turned out to be a terrific investment over the past decade thanks to the company's dominant position in the smartphone market, as evident from the stock's impressive market-beating returns. AAPL data by YCharts However, shares of the iPhone maker have been sliding rapidly over the past few months amid the broader stock market sell-off. Is Apple stock worth buying right now? |
20601.0 | 2022-06-22 00:00:00 UTC | 7 Blue-Chip Stocks to Buy and Hold for the Long-Haul | AAPL | https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-and-hold-for-the-long-haul | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the Federal Reserve aggressively increasing interest rates by 75 basis points, equity markets have plunged. Amid the fear and uncertainties, I see a golden opportunity for investors to accumulate quality stocks. While I would selectively look at growth stocks, I would be overweight on certain blue-chip stocks in current market conditions.
Coming back to the market correction and an opportunity to accumulate, the following point is worth noting: If we look at the equity market chart for decades, there have been small and big corrections. However, the market has remained in an uptrend.
Smart investors use such corrections to accumulate stocks that can be value creators in the next bull-market. Another important observation is as follows: The Vanguard Large Cap ETF (NYSEARCA:VV) has delivered cumulative returns of 278% in the last 10 years.
7 Bargain Income Stocks to Buy and Hold Forever
Clearly, in a bull-market, it’s equally attractive to hold large-cap or blue-chip stocks. Let’s therefore discuss seven blue-chip stocks that are worth considering.
TICKER COMPANY PRICE
LMT Lockheed Martin Corporation $418.96
AAPL Apple Inc. $135.87
COST Costco Wholesale Corporation $463.11
PFE Pfizer Inc. $48.11
AZN AstraZeneca PLC $62.83
JPM JPMorgan Chase & Co. $115.83
Lockheed Martin
Source: Ken Wolter / Shutterstock.com
The rise in geo-political tensions is unlikely to be fleeting. There are several points of friction globally. This will translate into steady growth in defense spending.
Among blue-chip stocks, Lockheed Martin Corporation (NYSE:LMT) is a top defense sector pick. For year-to-date 2022, LMT stock has trended higher by 17.5%. However, at a forward price-to-earnings-ratio of 15.5, the stock looks attractive. Additionally, the shares provide a dividend yield of 2.69% at current levels.
It’s worth noting that Lockheed reported an order backlog of $134 billion as of March 2022. With possibility of increase in defense spending for NATO Allies, the backlog is likely to improve in the coming years.
This provides Lockheed with a clear cash flow visibility. The company has guided for free cash flow of $6.0 billion for 2022. FCF is likely to be similar, if not higher, for 2023.
Overall, LMT stock is a quality dividend stock and as revenue growth accelerates, there is visibility for the stock trending higher. A low-beta of 0.76 also makes the stock attractive.
Apple
Source: View Apart / Shutterstock.com
Given the cash flow potential and the balance sheet health, Apple Inc. (NASDAQ:AAPL) is among the top blue-chip stocks to hold. Of course, it goes without saying that the innovation factor gives Apple an edge.
For the second quarter of 2022, Apple reported revenue growth of 9%. For the same period, services revenue touched an all-time high. The company’s wearable segment has also delivered healthy growth.
While the iPhone segment remains the cash cow, emerging segments are likely to ensure that steady growth sustains.
It’s worth noting that as of March 2022, Apple reported $193 billion in cash and equivalents. The company’s annualized cash flow potential is approximately $150 billion.
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This provides ample flexibility to diversify and invest in product development. Possible entry into the electric car business is likely to be a growth catalyst. Also, shareholder value creation through dividend growth and share repurchase will sustain in the coming years.
Costco Wholesale
Source: ARTYOORAN / Shutterstock.com
Costco Wholesale Corporation (NASDAQ:COST) stock has witnessed a meaningful correction from 52-week highs of $612. With inflation hitting margins for retailers, the correction was coming. Also, there are fears of a potential recession in 2023.
Even with these near-term headwinds, COST stock is attractive for the long term. It’s worth noting that retail spending is a key growth driver for the U.S. economy. Policy action over the long-term will ensure that retail spending remains robust.
While it may seem that with 829 warehouses globally, Costco has saturated things. However, the company still has just two warehouses in China and none in India. There seems to be ample scope for growth in new markets.
As of Q3 2022, Costco also reported 64.4 million household members. For the last 12 months, the company reported $4.1 billion in membership revenue. As members increase in the U.S. and globally, there is scope for upside in recurring revenue, which is already robust.
Costco has been building strong omnichannel presence and I am bullish on sustained long-term growth.
Pfizer
Source: photobyphm / Shutterstock.com
Among pharmaceutical blue-chip stocks, Pfizer Inc. (NYSE:PFE) seems like a quality pick at current valuations. The stock currently trades at a forward P/E of 7.0 and also offers investors a dividend yield of 3.3%.
In the last 12-18 months, the drug maker’s cash flow has got a major boost from Covid-19 vaccine sales. While vaccines sales will decline on a relative basis, there are two important points to note.
One is that Pfizer has been aggressive in terms of acquisitions in last few quarters. With strong financial flexibility, the company is well positioned to inorganically boost the product pipeline.
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Further, Pfizer has a deep organic pipeline. As of May 2022, the company reported a pipeline of 96 drug candidates. Of this, 29 drug candidates are in Phase 2 with another 6 in the registration phase. This is likely to ensure steady growth in revenue and cash flow upside in the next few years.
Overall, PFE stock has upside potential from current levels. Additionally, the dividend yield is attractive and dividends are sustainable.
Chevron Corporation
Source: Denis Kuvaev / Shutterstock.com
Chevron Corporation (NYSE:CVX) has been in an uptrend with surging oil price. CVX stock is also among the top holdings in Warren Buffett’s portfolio. I believe small correction would provide a good opportunity to accumulate this blue-chip stock.
Chevron has high quality assets with a low break-even. With Brent crude trading above $100 per barrel, the company is positioned for annualized cash flows in excess of $30 billion. Further, with an investment grade balance sheet, the company is positioned to sustain dividends and aggressively invest in growth. As of Q1 2022, Chevron reported a net-debt-ratio of 10.8%.
Chevron has already planned capital investments in the tune of $15 to $17 billion annually for the next few years. Significant investment in renewable assets is also on the cards. Recently, Chevron completed the acquisition of Renewable Energy Group. This will boost the company’s renewable fuels production capacity to 100,000 barrels per day by 2030.
Overall, CVX stock is a potential long-term value creator through dividends and share repurchase. Additionally, the stock is likely to remain in a long-term uptrend.
AstraZeneca
Source: Roland Magnusson / Shutterstock.com
AstraZeneca PLC (NASDAQ:AZN) is another pharmaceutical name that I would add in the list of blue-chip stocks to buy. AZN stock trades at an attractive forward P/E of 14.9 and also offers investors a robust dividend yield of 3.3%.
AstraZeneca is attractive from a long-term perspective considering the deep project pipeline. Currently, the company has 183 projects in the pipeline. As new drugs enter the market, revenue growth is likely to be healthy.
It’s also worth noting that the company is well diversified from a geographical perspective. For Q1 2022, 44% of the revenue was from emerging markets. Wider geographical coverage coupled with drugs for diversified disease areas makes AstraZeneca attractive.
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From a financial perspective, the company reported net debt of $25.2 billion as of March 2022. However, debt is not a concern with cash flows likely to remain robust in the coming years. The company commands an investment grade credit rating.
JPMorgan Chase
Source: Shutterstock
JPMorgan Chase & Co. (NYSE:JPM) stock has been depressed, off 27% in the last six months. I believe that the correction provides an attractive entry point for long-term investors. The blue-chip stock trades at a forward P/E of 10.0 and also offers investors a dividend yield of 3.5%.
With concerns related to a potential recession, the banking sector might see relatively higher loan delinquencies. However, JPMorgan Chase has a strong balance sheet to navigate challenging times. Importantly, the stock seems to have discounted these concerns.
With rising interest rates, the bank is expected to deliver higher net interest income margin. On the other hand, turbulent equity markets might imply that investment banking growth is muted.
However, even with a near-term headwind, analysts expect the company’s earnings to grow at a CAGR of 5% over the next five-years. Therefore, dividends will sustain and JPM stock looks attractive at current valuations.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Blue-Chip Stocks to Buy and Hold for the Long-Haul 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. | LMT Lockheed Martin Corporation $418.96 AAPL Apple Inc. $135.87 COST Costco Wholesale Corporation $463.11 PFE Pfizer Inc. $48.11 AZN AstraZeneca PLC $62.83 JPM JPMorgan Chase & Co. $115.83 Lockheed Martin Source: Ken Wolter / Shutterstock.com The rise in geo-political tensions is unlikely to be fleeting. Apple Source: View Apart / Shutterstock.com Given the cash flow potential and the balance sheet health, Apple Inc. (NASDAQ:AAPL) is among the top blue-chip stocks to hold. Another important observation is as follows: The Vanguard Large Cap ETF (NYSEARCA:VV) has delivered cumulative returns of 278% in the last 10 years. | LMT Lockheed Martin Corporation $418.96 AAPL Apple Inc. $135.87 COST Costco Wholesale Corporation $463.11 PFE Pfizer Inc. $48.11 AZN AstraZeneca PLC $62.83 JPM JPMorgan Chase & Co. $115.83 Lockheed Martin Source: Ken Wolter / Shutterstock.com The rise in geo-political tensions is unlikely to be fleeting. Apple Source: View Apart / Shutterstock.com Given the cash flow potential and the balance sheet health, Apple Inc. (NASDAQ:AAPL) is among the top blue-chip stocks to hold. Among blue-chip stocks, Lockheed Martin Corporation (NYSE:LMT) is a top defense sector pick. | LMT Lockheed Martin Corporation $418.96 AAPL Apple Inc. $135.87 COST Costco Wholesale Corporation $463.11 PFE Pfizer Inc. $48.11 AZN AstraZeneca PLC $62.83 JPM JPMorgan Chase & Co. $115.83 Lockheed Martin Source: Ken Wolter / Shutterstock.com The rise in geo-political tensions is unlikely to be fleeting. Apple Source: View Apart / Shutterstock.com Given the cash flow potential and the balance sheet health, Apple Inc. (NASDAQ:AAPL) is among the top blue-chip stocks to hold. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the Federal Reserve aggressively increasing interest rates by 75 basis points, equity markets have plunged. | Apple Source: View Apart / Shutterstock.com Given the cash flow potential and the balance sheet health, Apple Inc. (NASDAQ:AAPL) is among the top blue-chip stocks to hold. LMT Lockheed Martin Corporation $418.96 AAPL Apple Inc. $135.87 COST Costco Wholesale Corporation $463.11 PFE Pfizer Inc. $48.11 AZN AstraZeneca PLC $62.83 JPM JPMorgan Chase & Co. $115.83 Lockheed Martin Source: Ken Wolter / Shutterstock.com The rise in geo-political tensions is unlikely to be fleeting. However, debt is not a concern with cash flows likely to remain robust in the coming years. |
20602.0 | 2022-06-22 00:00:00 UTC | This Dirt-Cheap Warren Buffett Stock Should Be Your Top Pick Right Now | AAPL | https://www.nasdaq.com/articles/this-dirt-cheap-warren-buffett-stock-should-be-your-top-pick-right-now | nan | nan | Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns dozens of stock positions in its closely followed, $300 billion portfolio. And there are plenty that are trading for significant discounts compared to where they were just a month or two ago. Some look like excellent bargains right now and should be just fine even if inflation and rising rates last longer than expected.
However, the best "Buffett stock" to buy right now might not be any of the stocks in Berkshire's portfolio. I'd argue that the top Buffett stock to own in uncertain times like these is none other than Berkshire Hathaway itself.
Berkshire's businesses are built for times like these
Berkshire Hathaway owns more than 60 individual subsidiary businesses, many of which are well-known to consumers in the U.S. and internationally. Just to name some of the most consumer-facing examples, if you have GEICO auto insurance, if you've eaten at a Dairy Queen restaurant, or if you have Duracell batteries in any of your electronics, you're a Berkshire Hathaway customer.
The key point to know is that most of Berkshire's businesses are rather immune to recessions and inflationary pressures. Consider GEICO, one of the conglomerate's biggest businesses. People need auto insurance no matter what the economy is doing. The same can be said for Berkshire's massive utility business. And its BNSF Railroad subsidiary, which is another of the company's largest revenue drivers, provides shipping services that are essential in all economic climates.
A diverse and well-protected stock portfolio all in one
As mentioned earlier, Berkshire also owns a stock portfolio with a current market value of about $308 billion. There are over 40 stocks in the portfolio, including large stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO).
To be fair, many of the stocks in Berkshire's portfolio have declined significantly in the market downturn, which has been a big contributing factor to Berkshire's own decline. Apple is nearly 30% below its 52-week high, and that's one of the better performers. But the common denominator among most of the stocks in the portfolio (especially the larger positions) is that they are financially sound and resilient businesses that are well-equipped to make it through tough times.
Tons of dry powder at its disposal
Last, but certainly not least, Berkshire Hathaway has tremendous financial flexibility. Even after deploying more than $50 billion into the stock market in the first quarter of 2022, the conglomerate still had $106 billion in cash on its balance sheet at the end of March. Buffett likes to always keep at least $30 billion in reserves, so this still gives Berkshire $76 billion to work with. Plus, Berkshire's operating businesses are generating billions in cash flow every quarter that can be redeployed.
This puts Berkshire in an excellent position to capitalize on market downturns. With many stocks trading for steep discounts to their highs, Buffett and his team can choose to take advantage of great businesses at attractive valuations. And if management isn't impressed with any particular stocks, they can choose to buy back Berkshire's stock, which is trading for more than 25% below its highs.
I've said before that Berkshire's massive cash hoard could make it the biggest winner of any market crash or correction, and I'd be shocked if Buffett and his team didn't put billions of dollars to work in the current bear market.
In a nutshell, Berkshire is a great long-term buy, no matter what happens with the economy – and buying shares of the time-tested conglomerate when it has fallen by 25% from recent highs has historically been a very smart move.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in Bank of America and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There are over 40 stocks in the portfolio, including large stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). Just to name some of the most consumer-facing examples, if you have GEICO auto insurance, if you've eaten at a Dairy Queen restaurant, or if you have Duracell batteries in any of your electronics, you're a Berkshire Hathaway customer. But the common denominator among most of the stocks in the portfolio (especially the larger positions) is that they are financially sound and resilient businesses that are well-equipped to make it through tough times. | There are over 40 stocks in the portfolio, including large stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns dozens of stock positions in its closely followed, $300 billion portfolio. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). | There are over 40 stocks in the portfolio, including large stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). However, the best "Buffett stock" to buy right now might not be any of the stocks in Berkshire's portfolio. A diverse and well-protected stock portfolio all in one As mentioned earlier, Berkshire also owns a stock portfolio with a current market value of about $308 billion. | There are over 40 stocks in the portfolio, including large stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). However, the best "Buffett stock" to buy right now might not be any of the stocks in Berkshire's portfolio. Consider GEICO, one of the conglomerate's biggest businesses. |
20603.0 | 2022-06-22 00:00:00 UTC | Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now | nan | nan | The iShares U.S. Equity Factor ETF (LRGF) made its debut on 04/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
Because the fund has amassed over $1.02 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. LRGF is managed by Blackrock. This particular fund seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index before fees and expenses.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
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.
Operating expenses on an annual basis are 0.08% for LRGF, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.63%.
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.
LRGF's heaviest allocation is in the Information Technology sector, which is about 29.50% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO).
The top 10 holdings account for about 25.58% of total assets under management.
Performance and Risk
The ETF has lost about -18.44% and is down about -9.22% so far this year and in the past one year (as of 06/22/2022), respectively. LRGF has traded between $36.62 and $46.80 during this last 52-week period.
The ETF has a beta of 0.97 and standard deviation of 24.36% for the trailing three-year period, making it a medium risk choice in the space. With about 165 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Equity Factor ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $6.27 billion in assets, iShares Core S&P U.S. Value ETF has $10.81 billion. DFAT has an expense ratio of 0.29% and IUSV 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 - All 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 U.S. Equity Factor ETF (LRGF): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO). Apple Inc. (AAPL): Free Stock Analysis Report The iShares U.S. Equity Factor ETF (LRGF) made its debut on 04/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO). Apple Inc. (AAPL): Free Stock Analysis Report The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO). Apple Inc. (AAPL): Free Stock Analysis Report The iShares U.S. Equity Factor ETF (LRGF) made its debut on 04/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO). Apple Inc. (AAPL): Free Stock Analysis Report The iShares U.S. Equity Factor ETF (LRGF) made its debut on 04/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market. |
20604.0 | 2022-06-22 00:00:00 UTC | Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-motley-fool-100-index-etf-tmfc-be-on-your-investing-radar-1 | nan | nan | Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Motley Fool 100 Index ETF (TMFC) is a passively managed exchange traded fund launched on 01/30/2018.
The fund is sponsored by Motley Fool Asset Management. It has amassed assets over $396.30 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. 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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
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 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.32%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.70% of the portfolio. Telecom and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG).
The top 10 holdings account for about 60.91% of total assets under management.
Performance and Risk
TMFC seeks to match the performance of the MOTLEY FOOL 100 INDEX before fees and expenses. The Motley Fool 100 Index is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies.
The ETF has lost about -28.18% so far this year and is down about -17% in the last one year (as of 06/22/2022). In the past 52-week period, it has traded between $30.80 and $44.66.
The ETF has a beta of 1.07 and standard deviation of 26.12% for the trailing three-year period. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Motley Fool 100 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, TMFC is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $66.44 billion in assets, Invesco QQQ has $153.55 billion. VUG has an expense ratio of 0.04% 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.
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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. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Motley Fool 100 Index ETF (TMFC) is a passively managed exchange traded fund launched on 01/30/2018. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Motley Fool 100 Index ETF (TMFC) is a passively managed exchange traded fund launched on 01/30/2018. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Motley Fool 100 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Motley Fool 100 Index ETF (TMFC) is a passively managed exchange traded fund launched on 01/30/2018. |
20605.0 | 2022-06-22 00:00:00 UTC | Apple Stock: WWDC Innovations Suggest Big Video-Game Push Coming | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-wwdc-innovations-suggest-big-video-game-push-coming | nan | nan | Apple (AAPL) excited many Mac gamers when it unveiled the capabilities of its latest M2 chip. With a few triple-A titles, including Resident Evil: Village and No Man's Sky coming to the Mac later in the year, the Mac may be on the cusp of challenging today's specced-out gaming PCs.
Now, the Mac has shied away from video gaming for most of its history. However, recent hardware advancements and Apple's broader gaming push (think the Apple Arcade service) could pave the way for a bigger move into one of the fastest-growing consumer markets out there.
Undoubtedly, gaming has grown to become larger than video streaming and music combined. Apple is an established player in Music, with its flagship Apple Music service, while its Apple TV+ video-streaming service is starting to pick up meaningful momentum. Apple Arcade, Apple's mobile-centric gaming service, has experienced some success, but not to the magnitude of its rivals, most notably Microsoft (MSFT), which has evolved into a gaming juggernaut.
Now that the latest and greatest Macs are catching up in terms of graphical capabilities, Apple may be ready to introduce some larger-budget titles to Apple Arcade, designed to be played on Mac or Apple TV.
The MetalFX upscaling technology featured in WWDC 2022 was impressive and could mark the beginning of an initiative to capture the hearts of gamers, many of whom have stuck with PCs and consoles for decades.
Macs aren't exactly a type of computer known for their gaming capabilities. With M2 and MetalFX, that could change, especially if Apple looks to rival Microsoft's Xbox Game Pass subscription with Apple Arcade.
It's hard not to be excited about Apple's hardware and gaming performance after WWDC 2022. I remain bullish on the 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.
Can Apple Arcade Level Up a Gaming Market Push?
Apple has been a mobile-gaming powerhouse for many years. The Apple Arcade service is the best of its kind. Though Netflix (NFLX) could evolve to become a worthy competitor, as it seeks to offer mobile games to keep its existing subscriber base from canceling their subscriptions.
Still, Apple needs to push beyond mobile to make a smooth transition into the metaverse. Indeed, it's no secret that Apple's working on a virtual- or augmented-reality headset. It may be closer than many of us think. The biggest attraction to such next-generation mixed-reality technologies is gaming. Gaming may very well be the onramp that entices users to make the initial purchase.
As Apple looks to new frontiers, it has to move beyond mobile gaming, and bringing triple-A titles to the Mac is a great first start. Eventually, Apple Arcade may grow to include Mac-exclusive titles, and, eventually, headset-exclusive augmented-reality experiences.
Resident Evil and No Man's Sky are older triple-A games that have been on the market for quite a while now. Two older games coming to Mac are unlikely to cause a gamer to buy a Mac over a gaming PC. That said, the two games built for Apple's M2 chip could be just the start of what's to come.
Looking ahead, Apple will need to incentivize game developers to unlock the power of its M-series chips. If it's able to, Mac may very well catch up to PCs on the gaming front.
Laying a Foundation for AR Headset Games?
Apple laid out a nice foundation for developers when it changed the world with the first iPhone. It's that foundation that helped the firm build an incredible ecosystem that's been hard for users to leave. Undoubtedly, mobile games were just one of the many major draws of the iPhone. These days, iPhones do so much more.
As Apple looks to unveil its biggest hardware innovation in years, it needs a similar foundation to make it easy for developers to create apps and gaming experiences. Arguably, augmented worlds will be far more gaming-oriented than mobile phones.
Wall Street's Take
According to TipRanks’ analyst rating consensus, AAPL stock comes in as a Strong Buy. Out of 27 analyst ratings, there are 21 Buy recommendations, and six Hold recommendations.
The average Apple price target is $186.33, implying an upside of 37.14%. Analyst price targets range from a low of $157.00 per share to a high of $210.00 per share.
The Bottom Line on Apple Stock
With gaming advancements in WWDC 2022 (M2 and MetalFX), I do think Apple is ready to ramp up on gaming so its headset can be as successful as the iPhone.
Indeed, Apple has a lot of catching up to do in non-mobile gaming to catch up to Microsoft, which is also eager to break into the metaverse. Regardless, Apple's on the right track after WWDC 2022, and it will be interesting to see how the firm can evolve its Apple Arcade subscription to stack up against rivals like Netflix and Microsoft.
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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 (AAPL) excited many Mac gamers when it unveiled the capabilities of its latest M2 chip. On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. Wall Street's Take According to TipRanks’ analyst rating consensus, AAPL stock comes in as a Strong Buy. | Apple (AAPL) excited many Mac gamers when it unveiled the capabilities of its latest M2 chip. On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. Wall Street's Take According to TipRanks’ analyst rating consensus, AAPL stock comes in as a Strong Buy. | Apple (AAPL) excited many Mac gamers when it unveiled the capabilities of its latest M2 chip. On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. Wall Street's Take According to TipRanks’ analyst rating consensus, AAPL stock comes in as a Strong Buy. | Apple (AAPL) excited many Mac gamers when it unveiled the capabilities of its latest M2 chip. On TipRanks, AAPL scores a 9 out of 10 on the Smart Score spectrum. Wall Street's Take According to TipRanks’ analyst rating consensus, AAPL stock comes in as a Strong Buy. |
20606.0 | 2022-06-22 00:00:00 UTC | 3 Reasons to Buy Meta Platforms, and 1 Reason to Sell | AAPL | https://www.nasdaq.com/articles/3-reasons-to-buy-meta-platforms-and-1-reason-to-sell | nan | nan | Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, shed more than 50% of its market value this year as investors fretted over its decelerating growth and polarizing plans for the future. The broader sell-off across the tech sector, which was largely driven by rising interest rates and other macro headwinds, exacerbated that pain.
But did investors overreact and prematurely dump Meta's stock, which is still about 330% above its initial public offering price from 10 years ago? Let's review three reasons to buy Meta -- and one reason to sell it -- to find out.
Meta Platforms CEO Mark Zuckerberg. Image source: Meta Platforms.
1. Its advertising business could stabilize soon
Meta generates nearly all of its revenue from its advertising business, which shares a near-duopoly with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google across the U.S. and other major markets.
Meta's revenue rose 37% to $118 billion in 2021, but increased just 7% year over year to $27.9 billion in the first quarter of 2022. It expects that slowdown to continue with nearly flat revenue in the second quarter.
Meta attributed that gloomy forecast mainly to Apple's (NASDAQ: AAPL) privacy update on iOS, which reduced the effectiveness of Meta's targeted ads; intense competition from ByteDance's TikTok; a slowdown across Europe amid the war in Ukraine war, and unfavorable foreign exchange rates.
Those challenges seem daunting, but Piper Sandler analyst Thomas Champion said he believes Apple took a more "accommodative" stance toward advertisers during its Worldwide Developers Conference (WWDC) in early June. Champion noted that Apple didn't tighten its privacy standards again, and it even made a few tweaks to its SKAdNetwork that could open up fresh advertising options for Meta.
Citi analyst Ronald Josey, who reiterated his buy rating on Meta with a $300 price target in early June, said he also believes its advertising revenue growth will accelerate again in the second half of 2022 as the near-term headwinds wane. If that happens, Meta could finally silence the bearish concerns about Apple and ByteDance, and convince investors its advertising business can weather a potential recession.
2. Its slowdown could be temporary
As Meta's revenue growth stalled out, it ramped up its spending on new short videos for Facebook and Instagram, which could eventually widen its moat against TikTok; and its unprofitable Reality Labs segment, which produces its virtual reality (VR) and augmented reality (AR) devices.
The combination of slowing sales and rising expenses spooked investors, and the bears were convinced that Meta's high-growth days are over. As a result, analysts expect Meta's revenue to increase just 7% this year as its earnings per share (EPS) decline by 14%. But if we look beyond 2022, Wall Street's expectations for the following two years are still fairly bullish.
2022
2023
2024
Estimated Revenue Growth
7%
16%
14%
Estimated EPS Growth (Decline)
(14%)
17%
15%
Data source: S&P Global.
We should take those long-term estimates with a grain of salt, but they strongly suggest Meta can continue to monetize its core family of apps (Facebook, Messenger, Instagram, and WhatsApp) with fresh features. That family served 3.64 billion active people in Meta's latest quarter, and that massive audience should remain a lucrative target for advertisers.
3. Low expectations and low valuations
Meta trades at just 14 times forward earnings, making it the cheapest FAANG stock. That low multiple indicates that investors aren't too confident in Meta's ability to overcome its recent challenges.
But the market's expectations for Meta are now so low that any positive developments -- including a stabilization of its advertising business, tighter spending measures at its Reality Labs division, cooler inflation, or other positive macroeconomic developments -- will likely drive its stock higher.
Therefore, it might make more sense to simply buy Meta as a value play than roll the dice on the market's more speculative tech stocks.
The one reason to sell Meta: regulatory headwinds
Meta's advertising business might overcome its recent slowdown, but it still faces unresolved antitrust and privacy probes in the U.S., the U.K., and Europe, as well as ongoing calls to spin off Instagram and WhatsApp into stand-alone companies.
Sheryl Sandberg, Meta's longtime chief operating officer who had steered the tech giant through many of those tough times, also recently resigned and was succeeded by the company's chief growth officer Javier Olivan. It's unclear if Olivan can successfully fend off all those regulatory challenges, many of which could disrupt or throttle the long-term growth of Meta's advertising business.
Is Meta's stock still worth buying?
Meta clearly faces a lot of near-term headwinds, but I don't think its core platforms will ever fade away like Myspace or Friendster. Its apps are still used by nearly half of the world's population every month. And it was still sitting on $43.9 billion in cash and marketable securities in its latest quarter, which gives it plenty of room for fresh investments and acquisitions.
Simply put, I believe Meta's strengths easily outweigh its weaknesses. Its stock won't blast off anytime soon, but its downside potential is fairly limited at these prices. Once its advertising business recovers, it could command a much higher valuation and generate impressive gains for patient investors.
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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. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Leo Sun has positions in Alphabet (A shares), Apple, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meta attributed that gloomy forecast mainly to Apple's (NASDAQ: AAPL) privacy update on iOS, which reduced the effectiveness of Meta's targeted ads; intense competition from ByteDance's TikTok; a slowdown across Europe amid the war in Ukraine war, and unfavorable foreign exchange rates. Those challenges seem daunting, but Piper Sandler analyst Thomas Champion said he believes Apple took a more "accommodative" stance toward advertisers during its Worldwide Developers Conference (WWDC) in early June. Citi analyst Ronald Josey, who reiterated his buy rating on Meta with a $300 price target in early June, said he also believes its advertising revenue growth will accelerate again in the second half of 2022 as the near-term headwinds wane. | Meta attributed that gloomy forecast mainly to Apple's (NASDAQ: AAPL) privacy update on iOS, which reduced the effectiveness of Meta's targeted ads; intense competition from ByteDance's TikTok; a slowdown across Europe amid the war in Ukraine war, and unfavorable foreign exchange rates. The one reason to sell Meta: regulatory headwinds Meta's advertising business might overcome its recent slowdown, but it still faces unresolved antitrust and privacy probes in the U.S., the U.K., and Europe, as well as ongoing calls to spin off Instagram and WhatsApp into stand-alone companies. 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. | Meta attributed that gloomy forecast mainly to Apple's (NASDAQ: AAPL) privacy update on iOS, which reduced the effectiveness of Meta's targeted ads; intense competition from ByteDance's TikTok; a slowdown across Europe amid the war in Ukraine war, and unfavorable foreign exchange rates. Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, shed more than 50% of its market value this year as investors fretted over its decelerating growth and polarizing plans for the future. Its advertising business could stabilize soon Meta generates nearly all of its revenue from its advertising business, which shares a near-duopoly with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google across the U.S. and other major markets. | Meta attributed that gloomy forecast mainly to Apple's (NASDAQ: AAPL) privacy update on iOS, which reduced the effectiveness of Meta's targeted ads; intense competition from ByteDance's TikTok; a slowdown across Europe amid the war in Ukraine war, and unfavorable foreign exchange rates. Meta's revenue rose 37% to $118 billion in 2021, but increased just 7% year over year to $27.9 billion in the first quarter of 2022. 10 stocks we like better than Meta Platforms, Inc. |
20607.0 | 2022-06-21 00:00:00 UTC | XLK, MSFT, AAPL, AVGO: Large Inflows Detected at ETF | AAPL | https://www.nasdaq.com/articles/xlk-msft-aapl-avgo%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $436.1 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 297,760,000 to 301,260,000). Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 2.7%, Apple Inc (Symbol: AAPL) is up about 3.7%, and Broadcom Inc (Symbol: AVGO) is up by about 2.2%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average:
Looking at the chart above, XLK's low point in its 52 week range is $122.46 per share, with $177.04 as the 52 week high point — that compares with a last trade of $128.05. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 2.7%, Apple Inc (Symbol: AAPL) is up about 3.7%, and Broadcom Inc (Symbol: AVGO) is up by about 2.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $436.1 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 297,760,000 to 301,260,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 2.7%, Apple Inc (Symbol: AAPL) is up about 3.7%, and Broadcom Inc (Symbol: AVGO) is up by about 2.2%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $122.46 per share, with $177.04 as the 52 week high point — that compares with a last trade of $128.05. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 2.7%, Apple Inc (Symbol: AAPL) is up about 3.7%, and Broadcom Inc (Symbol: AVGO) is up by about 2.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $436.1 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 297,760,000 to 301,260,000). For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $122.46 per share, with $177.04 as the 52 week high point — that compares with a last trade of $128.05. | Among the largest underlying components of XLK, in trading today Microsoft Corporation (Symbol: MSFT) is up about 2.7%, Apple Inc (Symbol: AAPL) is up about 3.7%, and Broadcom Inc (Symbol: AVGO) is up by about 2.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $436.1 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 297,760,000 to 301,260,000). For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average: Looking at the chart above, XLK's low point in its 52 week range is $122.46 per share, with $177.04 as the 52 week high point — that compares with a last trade of $128.05. |
20608.0 | 2022-06-21 00:00:00 UTC | Big Tech bill advocates and critics keep pressure on U.S. lawmakers | AAPL | https://www.nasdaq.com/articles/big-tech-bill-advocates-and-critics-keep-pressure-on-u.s.-lawmakers | nan | nan | WASHINGTON, June 21 (Reuters) - Supporters of a U.S. bill aimed at reining in Big Tech platforms like Amazon.com AMZN.O and Alphabet's Google GOOGL.O have flooded lawmakers with nearly 4,000 phone calls, while critics of the legislation sent a letter telling senators it would "harm consumers."
Versions of the bill have progressed further than any previous Big Tech antitrust legislation, with strong bipartisan support in the House of Representatives and Senate. The legislation seeks to bar companies from favoring their own businesses in search results and other ways.
Both Senator Amy Klobuchar and Representative David Cicilline, lead sponsors in each chamber, have predicted that their bills have enough support to pass Congress, if they come to a vote.
But the Senate has other matters on the calendar. Negotiators are close to a deal on gun control, and Senate Majority Leader Chuck Schumer has promised quick action on any bipartisan deal. That likely would take up much of this week's Senate floor action once the bill is introduced.
To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email - which 26,000 of them did, according to Evan Greer of the group Fight for the Future.
Fight for the Future and other advocacy groups also arranged for supporters to make 3,900 calls to lawmakers, Greer said.
Opponents have also kept up the pressure.
A long list of former antitrust enforcers who now teach economics, law, or business, sent a letter to senators Monday saying that the bill "is likely to reduce innovation and harm consumers."
Signatories include Doug Melamed and Carl Shapiro, both of whom previously served in the Department of Justice's antitrust division.
Since the beginning, the bills have been the subject of intense lobbying, with opponents warning of dire consequences such as an inability to protect consumers from hackers and privacy violations. Advocates say the legislation is needed to prevent stagnation in the technology market.
(Reporting by Diane Bartz; Editing by Rosalba O'Brien)
((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. | WASHINGTON, June 21 (Reuters) - Supporters of a U.S. bill aimed at reining in Big Tech platforms like Amazon.com AMZN.O and Alphabet's Google GOOGL.O have flooded lawmakers with nearly 4,000 phone calls, while critics of the legislation sent a letter telling senators it would "harm consumers." To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email - which 26,000 of them did, according to Evan Greer of the group Fight for the Future. A long list of former antitrust enforcers who now teach economics, law, or business, sent a letter to senators Monday saying that the bill "is likely to reduce innovation and harm consumers." | Versions of the bill have progressed further than any previous Big Tech antitrust legislation, with strong bipartisan support in the House of Representatives and Senate. To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email - which 26,000 of them did, according to Evan Greer of the group Fight for the Future. Fight for the Future and other advocacy groups also arranged for supporters to make 3,900 calls to lawmakers, Greer said. | WASHINGTON, June 21 (Reuters) - Supporters of a U.S. bill aimed at reining in Big Tech platforms like Amazon.com AMZN.O and Alphabet's Google GOOGL.O have flooded lawmakers with nearly 4,000 phone calls, while critics of the legislation sent a letter telling senators it would "harm consumers." Versions of the bill have progressed further than any previous Big Tech antitrust legislation, with strong bipartisan support in the House of Representatives and Senate. To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email - which 26,000 of them did, according to Evan Greer of the group Fight for the Future. | WASHINGTON, June 21 (Reuters) - Supporters of a U.S. bill aimed at reining in Big Tech platforms like Amazon.com AMZN.O and Alphabet's Google GOOGL.O have flooded lawmakers with nearly 4,000 phone calls, while critics of the legislation sent a letter telling senators it would "harm consumers." Versions of the bill have progressed further than any previous Big Tech antitrust legislation, with strong bipartisan support in the House of Representatives and Senate. To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email - which 26,000 of them did, according to Evan Greer of the group Fight for the Future. |
20609.0 | 2022-06-21 00:00:00 UTC | After Hours Most Active for Jun 21, 2022 : ITUB, VZ, AUY, BAC, AMZN, KGC, MSFT, QQQ, KDP, AAPL, MDLZ, VALE | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-21-2022-%3A-itub-vz-auy-bac-amzn-kgc-msft-qqq-kdp-aapl-mdlz | nan | nan | The NASDAQ 100 After Hours Indicator is down -2.77 to 11,543.99. The total After hours volume is currently 139,594,537 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is -0.05 at $4.60, with 13,770,192 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
Verizon Communications Inc. (VZ) is unchanged at $50.65, with 7,773,993 shares traded. VZ's current last sale is 88.86% of the target price of $57.
Yamana Gold Inc. (AUY) is -0.01 at $5.09, with 7,027,606 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Bank of America Corporation (BAC) is +0.03 at $32.88, with 5,825,207 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.01 at $108.67, with 4,794,505 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.52. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Kinross Gold Corporation (KGC) is +0.03 at $4.23, with 4,612,032 shares traded. KGC's current last sale is 52.55% of the target price of $8.05.
Microsoft Corporation (MSFT) is unchanged at $253.74, with 4,327,600 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.16 at $281.24, with 3,691,885 shares traded. This represents a 4.44% increase from its 52 Week Low.
Keurig Dr Pepper Inc. (KDP) is unchanged at $34.94, with 3,505,858 shares traded. As reported by Zacks, the current mean recommendation for KDP is in the "buy range".
Apple Inc. (AAPL) is +0.05 at $135.92, with 3,274,381 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Mondelez International, Inc. (MDLZ) is unchanged at $59.82, with 3,008,904 shares traded. MDLZ's current last sale is 81.95% of the target price of $73.
VALE S.A. (VALE) is unchanged at $14.72, with 2,435,790 shares traded. VALE's current last sale is 72.69% of the target price of $20.25.
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 +0.05 at $135.92, with 3,274,381 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is -0.05 at $4.60, with 13,770,192 shares traded. | Apple Inc. (AAPL) is +0.05 at $135.92, with 3,274,381 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 ITUB is in the "buy range". | Apple Inc. (AAPL) is +0.05 at $135.92, with 3,274,381 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 139,594,537 shares traded. | Apple Inc. (AAPL) is +0.05 at $135.92, with 3,274,381 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 -2.77 to 11,543.99. |
20610.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Wall Street gains over 2% in broad rebound | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-gains-over-2-in-broad-rebound | nan | nan | By Lewis Krauskopf, Devik Jain and Anisha Sircar
June 21 (Reuters) - Wall Street's major indexes jumped over 2% on Tuesday as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn.
All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020.
Investors are trying to assess how far stocks can fall as they weigh risks to the economy with the Federal Reserve taking aggressive measures to try to tamp down surging inflation. The S&P 500 earlier this month fell over 20% from its January all-time high, confirming the common definition of a bear market.
"Do I think we have hit bottom? No. I think we are going to see more volatility, I think the bottoming process will likely take some time," said Kristina Hooper, chiefglobal marketstrategist at Invesco. "But I do think it is a good sign to see investor interest."
The Dow Jones Industrial Average .DJI rose 641.47 points, or 2.15%, to 30,530.25, and the S&P 500 .SPX gained 89.95 points, or 2.45%, at 3,764.79. The Nasdaq Composite .IXIC added 270.95 points, or 2.51%, at 11,069.30.
The energy sector .SPNY, the top-gaining S&P 500 sector this year, surged 5.1% after tumbling last week. Every sector gained at least 1%.
Megacap stocks Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. Apple rose 3.3%, Tesla jumped 9.4% and Microsoft added 2.5%.
The Fed last week approved its largest interest rate increase in more than a quarter of a century to stem a surge in inflation.
Investors are pivoting to Fed Chair Jerome Powell's testimony to the U.S. Senate Banking Committee on Wednesday for clues on future interest rate hikes and his latest views on the economy.
Investors are "trying to read the tea leaves to see how aggressive the Fed is going to get," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "That's a hard question to answer right now because they are going to see what happens to the inflation story."
Meanwhile, Goldman Sachs now expects a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
In company news, Kellogg Co K.N shares rose about 2% after the breakfast cereal maker said it was splitting into three companies.
Spirit Airlines SAVE.N shares jumped 7.9% after JetBlue Airways JBLU.O said on Monday it sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Advancing issues outnumbered decliners on the NYSE by a 2.66-to-1 ratio; on Nasdaq, a 2.22-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 32 new lows; the Nasdaq Composite recorded 37 new highs and 122 new lows.
About 12.4 billion shares changed hands in U.S. exchanges, in line with the 12.4 billion daily average over the last 20 sessions.
VIX longtermhttps://tmsnrt.rs/3tMxqa4
(Reporting by Lewis Krauskopf in New York, Devik Jain and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila, Arun Koyyur and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Megacap stocks Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped over 2% on Tuesday as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn. Investors are pivoting to Fed Chair Jerome Powell's testimony to the U.S. Senate Banking Committee on Wednesday for clues on future interest rate hikes and his latest views on the economy. | Megacap stocks Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped over 2% on Tuesday as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn. The Nasdaq Composite .IXIC added 270.95 points, or 2.51%, at 11,069.30. | Megacap stocks Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped over 2% on Tuesday as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn. All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020. | Megacap stocks Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped over 2% on Tuesday as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn. All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020. |
20611.0 | 2022-06-21 00:00:00 UTC | Dow Movers: DIS, CVX | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-dis-cvx | nan | nan | In early trading on Tuesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.3%. Year to date, Chevron registers a 30.6% gain.
And the worst performing Dow component thus far on the day is Walt Disney, trading down 0.5%. Walt Disney is lower by about 39.4% looking at the year to date performance.
Two other components making moves today are MMM, trading down 0.2%, and Apple, trading up 3.2% on the day.
VIDEO: Dow Movers: DIS, CVX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Tuesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.3%. And the worst performing Dow component thus far on the day is Walt Disney, trading down 0.5%. Walt Disney is lower by about 39.4% looking at the year to date performance. | In early trading on Tuesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.3%. Year to date, Chevron registers a 30.6% gain. And the worst performing Dow component thus far on the day is Walt Disney, trading down 0.5%. | In early trading on Tuesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.3%. And the worst performing Dow component thus far on the day is Walt Disney, trading down 0.5%. Two other components making moves today are MMM, trading down 0.2%, and Apple, trading up 3.2% on the day. | And the worst performing Dow component thus far on the day is Walt Disney, trading down 0.5%. Walt Disney is lower by about 39.4% looking at the year to date performance. VIDEO: Dow Movers: DIS, CVX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20612.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Megacap, energy shares lead broad Wall Street rebound | AAPL | https://www.nasdaq.com/articles/us-stocks-megacap-energy-shares-lead-broad-wall-street-rebound | nan | nan | By Lewis Krauskopf, Devik Jain and Anisha Sircar
June 21 (Reuters) - Wall Street's major indexes jumped on Tuesday as investors scooped up shares of megacap growth and energy companies hammered last week on worries over a global economic downturn.
All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020.
Investors are trying to assess how far stocks can fall as they weigh risks to the economy with the Federal Reserve taking aggressive measures to try to tamp down surging inflation. The S&P 500 is down over 20% this year after confirming it was in a bear market earlier this month.
"Do I think we have hit bottom? No. I think we are going to see more volatility, I think the bottoming process will likely take some time," said Kristina Hooper, chiefglobal marketstrategist at Invesco. "But I do think it is a good sign to see investor interest."
The Dow Jones Industrial Average .DJI rose 585.65 points, or 1.96%, to 30,474.43, the S&P 500 .SPX gained 89.9 points, or 2.45%, at 3,764.74 and the Nasdaq Composite .IXIC added 301.06 points, or 2.79%, at 11,099.41.
The energy sector .SPNY, the top-gaining S&P 500 sector this year, surged over 5% after tumbling last week.
Megacap stocks Apple IncAAPL.O, Tesla Inc TSLA.O and Microsoft CorpMSFT.O all rose solidly to give the biggest individual boosts to the S&P 500.
The Fed last week approved its largest interest rate increase in more than a quarter of a century to stem a surge in inflation.
Investors are pivoting to Fed Chair Jerome Powell's testimony to the U.S. Senate Banking Committee on Wednesday for clues on future interest rate hikes and his latest views on the economy.
Goldman Sachs now expects a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
In company news, Kellogg Co K.N shares rose 3% after the breakfast cereal maker said it was splitting into three companies.
Spirit Airlines SAVE.N shares jumped 9% after JetBlue Airways JBLU.O said on Monday it sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Advancing issues outnumbered decliners ones on the NYSE by a 3.95-to-1 ratio; on Nasdaq, a 3.00-to-1 ratio favored advancers.
The S&P 500 posted 1 new 52-week highs and 32 new lows; the Nasdaq Composite recorded 36 new highs and 90 new lows.
VIX longtermhttps://tmsnrt.rs/3tMxqa4
(Reporting by Lewis Krauskopf in New York, Devik Jain and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila, Arun Koyyur and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Megacap stocks Apple IncAAPL.O, Tesla Inc TSLA.O and Microsoft CorpMSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped on Tuesday as investors scooped up shares of megacap growth and energy companies hammered last week on worries over a global economic downturn. Investors are trying to assess how far stocks can fall as they weigh risks to the economy with the Federal Reserve taking aggressive measures to try to tamp down surging inflation. | Megacap stocks Apple IncAAPL.O, Tesla Inc TSLA.O and Microsoft CorpMSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped on Tuesday as investors scooped up shares of megacap growth and energy companies hammered last week on worries over a global economic downturn. Spirit Airlines SAVE.N shares jumped 9% after JetBlue Airways JBLU.O said on Monday it sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O. | Megacap stocks Apple IncAAPL.O, Tesla Inc TSLA.O and Microsoft CorpMSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped on Tuesday as investors scooped up shares of megacap growth and energy companies hammered last week on worries over a global economic downturn. All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020. | Megacap stocks Apple IncAAPL.O, Tesla Inc TSLA.O and Microsoft CorpMSFT.O all rose solidly to give the biggest individual boosts to the S&P 500. By Lewis Krauskopf, Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes jumped on Tuesday as investors scooped up shares of megacap growth and energy companies hammered last week on worries over a global economic downturn. All 11 major S&P 500 .SPX sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020. |
20613.0 | 2022-06-21 00:00:00 UTC | Why Apple Stock Surged on Tuesday | AAPL | https://www.nasdaq.com/articles/why-apple-stock-surged-on-tuesday | nan | nan | What happened
Shares of Apple (NASDAQ: AAPL) jumped on Tuesday, adding as much as 4.2%. As of 11:19 a.m. ET, the stock is up 3.9%.
The catalyst that sent shares higher was reports that shipments of the iPhone may be on the upswing, which would represent some much-needed good news for the tech giant.
So what
UBS analyst David Vogt estimates that shipments of iPhones in China have rebounded in May, increasing 16% from April levels, according to The Fly. This suggests that the COVID-19-related lockdowns and resulting supply chain problems may finally be abating.
This follows reports late last month that government officials in several of China's largest cities had eased pandemic-related restrictions, resulting in steady improvement in the country's manufacturing capability.
Vogt went further, estimating that overall shipments of the iPhone have increased by 13% year over year and an eye-popping 155% month over month, further evidence of recovery in both iPhone production and delivery. UBS maintained its estimate for iPhone shipments during the second calendar quarter at 42 million, but it said that updated data "increases our confidence that our June forecast could be conservative."
The analyst also said that Apple appears to have to have gained "material share" last month, prompting him to maintain his buy rating and $185 price target. This represents potential gains of 41% for investors, compared to Apple's closing price on Monday.
Now what
A number of China's largest population centers have struggled with outbreaks of COVID-19 in recent months, resulting in swift and severe government restrictions in order to contain the spread. Apple has had more than its fair share of challenges resulting from China's "zero-COVID" policy, which temporarily shuttered some of the company's biggest assembly facilities, adding to existing supply chain and logistics difficulties.
These reports suggest that Apple may have recovered from these most recent setbacks, welcome news for the company and its shareholders.
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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 Shares of Apple (NASDAQ: AAPL) jumped on Tuesday, adding as much as 4.2%. This follows reports late last month that government officials in several of China's largest cities had eased pandemic-related restrictions, resulting in steady improvement in the country's manufacturing capability. Now what A number of China's largest population centers have struggled with outbreaks of COVID-19 in recent months, resulting in swift and severe government restrictions in order to contain the spread. | What happened Shares of Apple (NASDAQ: AAPL) jumped on Tuesday, adding as much as 4.2%. So what UBS analyst David Vogt estimates that shipments of iPhones in China have rebounded in May, increasing 16% from April levels, according to The Fly. Vogt went further, estimating that overall shipments of the iPhone have increased by 13% year over year and an eye-popping 155% month over month, further evidence of recovery in both iPhone production and delivery. | What happened Shares of Apple (NASDAQ: AAPL) jumped on Tuesday, adding as much as 4.2%. The analyst also said that Apple appears to have to have gained "material share" last month, prompting him to maintain his buy rating and $185 price target. Apple has had more than its fair share of challenges resulting from China's "zero-COVID" policy, which temporarily shuttered some of the company's biggest assembly facilities, adding to existing supply chain and logistics difficulties. | What happened Shares of Apple (NASDAQ: AAPL) jumped on Tuesday, adding as much as 4.2%. Apple has had more than its fair share of challenges resulting from China's "zero-COVID" policy, which temporarily shuttered some of the company's biggest assembly facilities, adding to existing supply chain and logistics difficulties. These reports suggest that Apple may have recovered from these most recent setbacks, welcome news for the company and its shareholders. |
20614.0 | 2022-06-21 00:00:00 UTC | Meta's (META) Recent Loss in Russian Court Impacts Ad Revenues | AAPL | https://www.nasdaq.com/articles/metas-meta-recent-loss-in-russian-court-impacts-ad-revenues | nan | nan | Meta Platforms META has faced another blow in its tussle with Russian authorities. A Moscow court on Jun 17 ruled against Meta’s appeal to withdraw the extremist activity tag.
On Mar 11, Russian authorities launched a criminal investigation against Meta, and prosecutors asked a court to mark Meta as an extremist organization. Russian authorities banned Facebook and Instagram to counter Meta’s decision to allow violent posts against Russian forces citing that such posts threaten the safety of Russian citizens.
Meta has since then narrowed its guidance to block death threats against the Russian head of state and defended the company's policy against the Russian authorities’ complaints. Meta stated that its policies do not support Russophobia or any sort of violence against Russian citizens on its platform.
The changes to standard content policies by Meta are directed toward Ukrainians as the company is supporting their rights to speech in self-defense against Russian military aggression in Ukraine.
The ban on Instagram and Facebook has impacted revenue growth negatively due to the loss of ad revenues in Russia. Meta expects this trend to continue in the second quarter of 2022 and might keep Global MAU flat. As a result, Meta has reduced the second-quarter revenue guidance.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Shares Hurt by the Russia-Ukraine War
The recent ban by Russia not only impacts Meta’s ad revenues but also indirectly impacts the stock price movement negatively.
Opposing Russia, the Biden organization banned the import of Russian oil and other petroleum products. This changed the oil supply forecast negatively, and crude oil prices climbed exponentially. This resulted in a broader increase in inflation, which increased to 8.6% in May 2022 — the highest in the last 41 years.
Rising inflation has compelled customers in the United States and Europe specifically to pull back on their purchases. This, in turn, slowed down growth in Meta’s online commerce vertical, which increased quickly during the COVID-19 pandemic.
The geopolitical tensions have impacted the S&P 500 index negatively, which plunged 23.2% in the year-to-date period. This was reflected in the falling stock prices of Meta’s FAAAM peers, Apple AAPL and Alphabet GOOGL. Twitter TWTR, another social media giant, faced a ban in Russia. Negative sentiments among investors after the ban and macro-economic turmoil hampered Twitter’s stock prices.
Shares of Meta have tumbled 51.6% in the year-to-date period compared with the Zacks Internet – Software industry and Zacks Computer and Technology sector’s decline of 53.1% and 32.3%, respectively.
Apple’s shares have fallen 25.2% in the year-to-date period compared with the Zacks Computer - Mini computers industry’s decline of 24.7%.
Alphabet shares have lost 26% in the year-to-date period compared with the Zacks Internet – Services industry’s decline of 28.9%.
Twitter shares have fallen 12.3% compared with the Zacks Internet Software Industry’s decline of 53.1%.
Although Meta’s short-term revenue growth looks bleak, the company is confident about its long-term opportunities and growth. Meta has divided its investment priorities into three parts — Reels, ads and the Metaverse.
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 do more with less data, thus reducing its privacy policy issues substantially. Meta is looking to grow video monetization in Reels, where people spend 20% of their time on Instagram.
As the company is looking to create the Metaverse, Meta’s Quest 2 continues to be the leading virtual reality headset. The company will release the higher-end headset Project Cambria later this year, which is anticipated help Meta retain its leading position in VR/AR hardware products. Meta will expectedly enjoy the first-mover advantage in developing the Metaverse where they are trying to create AR as a self-reliant economy.
Meta currently carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This was reflected in the falling stock prices of Meta’s FAAAM peers, Apple AAPL and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report The changes to standard content policies by Meta are directed toward Ukrainians as the company is supporting their rights to speech in self-defense against Russian military aggression in Ukraine. | This was reflected in the falling stock prices of Meta’s FAAAM peers, Apple AAPL and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Shares of Meta have tumbled 51.6% in the year-to-date period compared with the Zacks Internet – Software industry and Zacks Computer and Technology sector’s decline of 53.1% and 32.3%, respectively. | This was reflected in the falling stock prices of Meta’s FAAAM peers, Apple AAPL and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta Shares Hurt by the Russia-Ukraine War The recent ban by Russia not only impacts Meta’s ad revenues but also indirectly impacts the stock price movement negatively. | This was reflected in the falling stock prices of Meta’s FAAAM peers, Apple AAPL and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report The ban on Instagram and Facebook has impacted revenue growth negatively due to the loss of ad revenues in Russia. |
20615.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Wall Street bounces as growth, energy stocks jump | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-bounces-as-growth-energy-stocks-jump | nan | nan | By Devik Jain and Anisha Sircar
June 21 (Reuters) - U.S. stock indexes climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn.
The three main Wall Street indexes marked their third weekly fall in a row on Friday, and the benchmark S&P 500 .SPX posted its biggest weekly percentage drop since March 2020 in the wake of the Federal Reserve's largest interest rate hike in nearly three decades.
Other major central banks including the Swiss National Bank and the Bank of England also increased rates last week, raising concerns that aggressive tightening measures will slow the global economy, possibly causing a recession.
On Tuesday, each of the 11 major S&P sectors advanced in morning trade. Energy .SPNY was the top gainer, up 4.2%, as oil prices rose almost $2 on high summer fuel demand and tight supplies. O/R
Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.6% and 8.5%, respectively, boosting the tech-heavy Nasdaq .IXIC.
Markets have priced in aggressive rate hikes by the Fed in July and September to battle surging inflation amid growing doubts if the U.S. central bank can engineer a soft landing for the economy and avoid a recession.
Goldman Sachs now expects a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
"The market already in a sense may have priced in a shallow recession... you had negative GDP in Q1, so it is possible that the second quarter is negative, in which case the recession could potentially be in the rear-view mirror," said Thomas Hayes, managing member of Great Hill Capital in New York.
All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on future interest rate hikes.
At 9:54 a.m. ET, the Dow Jones Industrial Average .DJI was up 472.71 points, or 1.58%, at 30,361.49 and the S&P 500 was up 79.73 points, or 2.17%, at 3,754.57. The Nasdaq Composite was up 280.29 points, or 2.60%, at 11,078.64.
Markets were closed on Monday for Juneteenth holiday.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, was down to 30.21 points, its lowest level since June 15.
Kellogg Co K.N climbed 3.7% after the breakfast cereal maker said it was splitting itself into three separate companies with a focus on snacking.
Spirit Airlines SAVE.N jumped 6.5% as JetBlue Airways JBLU.O sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Charles Schwab Corp SCHW.N rose 5.1%. UBS upgraded the financial services company's stock to "buy" from "neutral".
Advancing issues outnumbered decliners by a 4.94-to-1 ratio on the NYSE and a 3.40-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 30 new highs and 51 new lows.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Devik.Jain@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. | O/R Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.6% and 8.5%, respectively, boosting the tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. Markets have priced in aggressive rate hikes by the Fed in July and September to battle surging inflation amid growing doubts if the U.S. central bank can engineer a soft landing for the economy and avoid a recession. | O/R Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.6% and 8.5%, respectively, boosting the tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. Markets have priced in aggressive rate hikes by the Fed in July and September to battle surging inflation amid growing doubts if the U.S. central bank can engineer a soft landing for the economy and avoid a recession. | O/R Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.6% and 8.5%, respectively, boosting the tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. Other major central banks including the Swiss National Bank and the Bank of England also increased rates last week, raising concerns that aggressive tightening measures will slow the global economy, possibly causing a recession. | O/R Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.6% and 8.5%, respectively, boosting the tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. Energy .SPNY was the top gainer, up 4.2%, as oil prices rose almost $2 on high summer fuel demand and tight supplies. |
20616.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Tech and energy shares boost Wall St in bear market rally | AAPL | https://www.nasdaq.com/articles/tech-and-energy-shares-boost-wall-st-in-bear-market-rally | nan | nan | By Devik Jain and Anisha Sircar
June 21 (Reuters) - Wall Street's major indexes climbed on Tuesday as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn.
All the 11 major S&P sectors advanced in the short-term rebound. The S&P 500 and the Nasdaq are still in bear market, with the benchmark index down 21.6% from its record closing high on Jan. 3.
"We are still viewing this as a rally in a bear market. Right now this is just another one-day wonder and investors have seen this movie before," said Ken Mahoney, chief executive officer of Mahoney Asset Management.
Energy .SPNY was the top gainer, up 4.3%, after losing more than 17% last week. Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.8% and 10.8%, respectively, boosting the S&P 500 .SPX and tech-heavy Nasdaq .IXIC.
"So while we have this rally today, I am looking at the volatility index that is down just slightly, it is not really buying this. There is still quite a bit of nervousness around the markets."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, was down to 29.94 points, its lowest level since June 15, but still way above its long-term average of 19.6 points.
The S&P 500 index had in the previous session posted its biggest weekly percentage drop since March 2020 as investors feared aggressive steps by global central banks to fight inflation would slow economic growth.
Markets have priced in further rate hikes in July and September amid growing doubts if the U.S. central bank can engineer a soft landing for the economy and avoid a recession.
Goldman Sachs now expects a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
"The market already may have priced in a shallow recession... you had negative GDP in Q1, so it is possible the second quarter is negative, in which case the recession could potentially be in the rear-view mirror," Thomas Hayes, managing member of Great Hill Capital in New York said.
All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on future interest rate hikes.
At 11:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 550.36 points, or 1.84%, at 30,439.14, the S&P 500 .SPX was up 90.52 points, or 2.46%, at 3,765.36, and the Nasdaq Composite .IXIC was up 323.46 points, or 3.00%, at 11,121.81.
Kellogg Co K.N climbed 4.1% after the breakfast cereal maker said it was splitting itself into three separate companies with a focus on snacking.
Spirit Airlines SAVE.N jumped 8% as JetBlue Airways JBLU.O sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Advancing issues outnumbered decliners by a 4.86-to-1 ratio on the NYSE and by a 3.59-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded 34 new highs and 69 new lows.
VIX longtermhttps://tmsnrt.rs/3tMxqa4
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Devik.Jain@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 Inc AAPL.O and Tesla Inc TSLA.O jumped 3.8% and 10.8%, respectively, boosting the S&P 500 .SPX and tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes climbed on Tuesday as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. The S&P 500 index had in the previous session posted its biggest weekly percentage drop since March 2020 as investors feared aggressive steps by global central banks to fight inflation would slow economic growth. | Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.8% and 10.8%, respectively, boosting the S&P 500 .SPX and tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes climbed on Tuesday as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded 34 new highs and 69 new lows. | Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.8% and 10.8%, respectively, boosting the S&P 500 .SPX and tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes climbed on Tuesday as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. The S&P 500 and the Nasdaq are still in bear market, with the benchmark index down 21.6% from its record closing high on Jan. 3. | Apple Inc AAPL.O and Tesla Inc TSLA.O jumped 3.8% and 10.8%, respectively, boosting the S&P 500 .SPX and tech-heavy Nasdaq .IXIC. By Devik Jain and Anisha Sircar June 21 (Reuters) - Wall Street's major indexes climbed on Tuesday as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn. "We are still viewing this as a rally in a bear market. |
20617.0 | 2022-06-21 00:00:00 UTC | Stock Market News for Jun 21, 2022 | AAPL | https://www.nasdaq.com/articles/stock-market-news-for-jun-21-2022 | nan | nan | Wall Street closed modestly higher on Friday in a choppy session, alternating between gains and losses. Markets tried to rebound from a selling week, but investors were wary of the stubbornly high inflation and braced for an impending recession. Fed chairman Jerome Powell reaffirmed the central bank’s bid to bring down inflation to its target 2%, fueling fears of further interest rate hikes. Oil prices plunged to a two-week low. Two of the three major stock indexes ended in the green, while the Dow ended in the red. Markets remained closed on Monday as the United States commemorated the end of slavery by observing Juneteenth.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) dipped 0.1% or 38.29 points to close at 29,888.78. Seventeen components of the 30-stock index ended in the red, while 13 ended in the green.
The tech-heavy Nasdaq Composite finished at 10,798.35, adding 1.4% or 152.25 points, led by a rally in tech stocks.
The S&P 500 rose 0.2% or 8.07 points to close at 3,674.84. Five out of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) rose 1.1%, 0.9% and 1.4%, respectively, while the Energy Select Sector SPDR (XLE) plunged 5.5%.
The fear-gauge CBOE Volatility Index (VIX) declined 5.5% to 31.13. A total of 18 billion shares were traded Friday, higher than the last 20-session average of 12.4 billion. Advancers outnumbered decliners on the NYSE by a 1.37-to-1 ratio. On the Nasdaq, a 1.92-to-1 ratio favored the advancing issues.
Fed Commits To Bring Inflation Down To 2%
Towing the line of its three-decade-high interest rate hike of 75 basis points on Wednesday, Fed Chairman Jerome Powell reiterated on Friday that the central bank remains committed to bring down inflation to its target 2%, as it is essential for the global financial system. Powell mentioned that the Fed is focused on restoring the widespread confidence in the dollar as a store of value and ensuring price stability domestically. Although this sounded like a re-assurance from the apex bank to markets reeling under the pressure of inflation, this also promised further interest rate hikes.
Markets have been seeing choppy sessions as investors strive to find a balance in the Fed’s outlook toward tackling inflation with an extremely tight monetary policy, while staying away from a recession in the economy. Friday was no different, and traders closed out positions on a volatile day following his comments. The volume of shares changing hands was unusually high even as two of the three indices managed to stay in the green.
Oil Prices Edge Lower
Oil prices plunged 6% on Friday, $11 lower than the recent $125/barrel high. Brent crude fell 0.8% to $118.98/barrel, while WTI crude registered a 0.7% fall to close at $116.79. Supply is on the rise and U.S. production is at its highest since April 2020. This can trigger a rally in stocks in the coming week. Although prices fell on global economic concerns, the relation that oil prices have with commodity prices can keep the markets in good stead.
Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
No economic data was released on Monday.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Fed chairman Jerome Powell reaffirmed the central bank’s bid to bring down inflation to its target 2%, fueling fears of further interest rate hikes. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Fed Commits To Bring Inflation Down To 2% Towing the line of its three-decade-high interest rate hike of 75 basis points on Wednesday, Fed Chairman Jerome Powell reiterated on Friday that the central bank remains committed to bring down inflation to its target 2%, as it is essential for the global financial system. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) rose 1.1%, 0.9% and 1.4%, respectively, while the Energy Select Sector SPDR (XLE) plunged 5.5%. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Five out of the 11 broad sectors of the benchmark index closed in the green. |
20618.0 | 2022-06-21 00:00:00 UTC | Pre-Market Most Active for Jun 21, 2022 : TQQQ, BKSY, REV, SQQQ, NIO, AAPL, QQQ, AMZN, ACAD, CCL, HAL, BABA | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-jun-21-2022-%3A-tqqq-bksy-rev-sqqq-nio-aapl-qqq-amzn-acad-ccl-hal | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 160.5 to 11,426.49. The total Pre-Market volume is currently 55,119,068 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +1.09 at $23.76, with 5,309,134 shares traded. This represents a 11.44% increase from its 52 Week Low.
BlackSky Technology Inc. (BKSY) is +0.7 at $2.73, with 5,204,891 shares traded. As reported by Zacks, the current mean recommendation for BKSY is in the "strong buy range".
Revlon, Inc. (REV) is +0.14 at $3.87, with 4,396,310 shares traded. REV's current last sale is 45.53% of the target price of $8.5.
ProShares UltraPro Short QQQ (SQQQ) is -3.02 at $60.94, with 2,276,072 shares traded. This represents a 116.48% increase from its 52 Week Low.
NIO Inc. (NIO) is +1.12 at $21.89, with 1,936,088 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Apple Inc. (AAPL) is +2.12 at $133.68, with 1,900,836 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +4.3374 at $278.50, with 1,762,766 shares traded. This represents a 3.42% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is +1.8664 at $108.09, with 997,441 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.52. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ACADIA Pharmaceuticals Inc. (ACAD) is -6.04 at $13.47, with 977,427 shares traded. As reported in the last short interest update the days to cover for ACAD is 9.359797; this calculation is based on the average trading volume of the stock.
Carnival Corporation (CCL) is +0.2 at $9.80, with 877,521 shares traded.CCL is scheduled to provide an earnings report on 6/24/2022, for the fiscal quarter ending May2022. The consensus earnings per share forecast is -1.13 per share, which represents a -180 percent increase over the EPS one Year Ago
Halliburton Company (HAL) is +0.9 at $32.59, with 834,886 shares traded. As reported by Zacks, the current mean recommendation for HAL is in the "buy range".
Alibaba Group Holding Limited (BABA) is +3.84 at $106.08, with 825,882 shares traded. As reported by Zacks, the current mean recommendation for BABA 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 +2.12 at $133.68, with 1,900,836 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. | Apple Inc. (AAPL) is +2.12 at $133.68, with 1,900,836 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 55,119,068 shares traded. | Apple Inc. (AAPL) is +2.12 at $133.68, with 1,900,836 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 55,119,068 shares traded. | Apple Inc. (AAPL) is +2.12 at $133.68, with 1,900,836 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 BKSY is in the "strong buy range". |
20619.0 | 2022-06-21 00:00:00 UTC | Got $2,000? These 4 Stocks Look Like Buys Now | AAPL | https://www.nasdaq.com/articles/got-%242000-these-4-stocks-look-like-buys-now | nan | nan | There's no getting around the fact that the market's drop over the past year has scared off some investors. But huge sell-offs in nearly every sector mean that there are some great stocks out there that investors can snatch up at a discount.
If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (NASDAQ: ROKU), Snowflake (NYSE: SNOW), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL). Here's why these four stocks look like buys now.
Image source: Getty Images.
1. Roku
Nearly every major media company has a streaming service, and some have more than one -- and as cable subscribers continue their decline, it's becoming increasingly clear that video streaming is the future.
Roku figured this out years ago. The company's platform allows users to watch nearly any streaming service and makes money through advertising and when users sign up for new services on its platform.
And some of the company's latest quarterly figures show how it continues to benefit from the transition from traditional TV providers to streaming services:
Roku's active accounts increased 14% in the first quarter to 61.3 million.
Users are very tuned in, with nearly 21 billion hours streamed in the first quarter -- up 14% year over year.
Roku's average revenue per user (ARPU) spiked 34% in the quarter to $42.91.
Total sales jumped by 28% in the first quarter to $734 million.
All of that growth has helped Roku remain the No. 1 TV streaming platform in the U.S., Canada, and Mexico. With that position and the company's ability to add new users and earn more money from them, Roku looks like a great place to put some money right now -- and leave it for the long-term.
2. Snowflake
Snowflake's cloud-based data storage and analytics platform was a huge hit among investors when the company went public back in September 2020. But when the market turned against tech stocks, Snowflake's share price got hammered and now trades well below its IPO price.
The good news is that Snowflake is actually growing quickly. Take a look at the company's latest figures from the first quarter:
Snowflake has 206 customers with trailing 12-month product revenue spending of $1 million or more, nearly double the amount from the year-ago quarter.
Total customers grew 40% year over year to 6,322.
Its net revenue retention rate (how much more a customer spends with the company than in the previous year) is 174%.
The company's product sales are up 84% from the year-ago quarter to $394.4 million.
Investors may be wary of high-growth stocks right now, but staying away from all of them could end up being a mistake.
The market is worried about the economy, but the massive sell-off in the tech sector has left Snowflake looking like a well-priced stock right now, especially when you consider its revenue growth, increasing customer count, and impressive net revenue retention rate.
3. Tesla
Consumers are becoming increasingly interested in electric vehicles, and the automotive industry as a whole is pivoting its resources and talent toward developing them.
But while some automakers are trying to move quickly to tap into EV demand, Tesla has been setting the pace for years. And even during this time of rising costs and high inflation, Tesla is still putting up impressive figures. Here's what the company's latest quarter looked like:
Vehicle production soared 69% year over year to 305,407 vehicles.
Tesla's vehicle deliveries were just as impressive, increasing 68% to 310,048.
Automotive revenue in the quarter increased by 87% to $16.9 billion.
The company's operating margin reached 19.2%, up from just 5.7% in the year-ago quarter.
Sure, there could be some difficulties ahead as inflation remains high and supply chain issues continue to plague the auto industry. But it's clear Tesla's vehicles are still in demand, and with the company's first-mover advantage as an all-electric vehicle company, Tesla still has the ability to continue growing even as EV competition heats up.
4. Apple
Apple may not be the fast-growing company it once was, but investors who are looking for a steady company that still delivers impressive growth certainly should consider putting some money into this tech stock right now.
Apple's share price has taken a hit in 2022, but the drop looks more like a great buying opportunity than a setback for existing shareholders. The recent slide means that Apple now trades at just 21 times its trailing earnings -- not bad at all for a tech powerhouse that still has plenty of life left in it.
Here are a few highlights from the company's latest quarter:
Total sales grew 9% year over year to $97.3 billion.
Services revenue increased 17% to $19.8 billion.
The company's wearables, home, and accessories revenue segment increased by 12% to $8.8 billion.
These figures show Apple can still put up impressive growth and there's likely more ahead that investors should keep an eye on. The company reportedly showed a new augmented reality (AR) and virtual reality (VR) headset to its board of directors in mid-May, indicating that Apple could soon enter an entirely new market.
For investors who are looking for a massively successful tech company that still has plenty of innovation left in it -- and that's trading at a discount right now -- Apple looks like a smart bet.
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Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, Roku, Snowflake Inc., and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (NASDAQ: ROKU), Snowflake (NYSE: SNOW), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL). Sure, there could be some difficulties ahead as inflation remains high and supply chain issues continue to plague the auto industry. Apple's share price has taken a hit in 2022, but the drop looks more like a great buying opportunity than a setback for existing shareholders. | If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (NASDAQ: ROKU), Snowflake (NYSE: SNOW), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL). Take a look at the company's latest figures from the first quarter: Snowflake has 206 customers with trailing 12-month product revenue spending of $1 million or more, nearly double the amount from the year-ago quarter. The market is worried about the economy, but the massive sell-off in the tech sector has left Snowflake looking like a well-priced stock right now, especially when you consider its revenue growth, increasing customer count, and impressive net revenue retention rate. | If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (NASDAQ: ROKU), Snowflake (NYSE: SNOW), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL). And some of the company's latest quarterly figures show how it continues to benefit from the transition from traditional TV providers to streaming services: Roku's active accounts increased 14% in the first quarter to 61.3 million. Apple Apple may not be the fast-growing company it once was, but investors who are looking for a steady company that still delivers impressive growth certainly should consider putting some money into this tech stock right now. | If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (NASDAQ: ROKU), Snowflake (NYSE: SNOW), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL). Users are very tuned in, with nearly 21 billion hours streamed in the first quarter -- up 14% year over year. Take a look at the company's latest figures from the first quarter: Snowflake has 206 customers with trailing 12-month product revenue spending of $1 million or more, nearly double the amount from the year-ago quarter. |
20620.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Futures jump after worst week for S&P 500 since March 2020 | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-jump-after-worst-week-for-sp-500-since-march-2020 | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 1.65%, S&P 1.82%, Nasdaq 1.84%
June 21 (Reuters) - U.S. stock index futures climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn.
Each of the three major Wall Street indexes fell for the third week in a row amid heightened volatility, while the S&P 500 index .SPX suffered on Friday its biggest weekly percentage drop since March 2020 following the Federal Reserve's largest rate increase in nearly three decades.
Markets have priced in aggressive rate hikes by the U.S. central bank in July and September to battle surging inflation, with some investors growing wary about whether the Fed can engineer a soft landing for the economy and avoid a recession.
Goldman Sachs now sees a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on future interest rate hikes.
At 6:10 a.m. ET, Dow e-minis 1YMcv1 were up 492 points, or 1.65%, S&P 500 e-minis EScv1 were up 67 points, or 1.82%, and Nasdaq 100 e-minis NQcv1 were up 207.5 points, or 1.84%.
The S&P 500 and the tech-heavy Nasdaq .IXIC are already in bear market, with the former down 23.4% from its record closing high on Jan. 3. Markets were closed on Monday for Juneteenth holiday.
Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.4% and 3.1% in premarket trading.
Wells Fargo WFC.N added 2.4% to lead gains among big banks.
Exxon Mobil Corp XOM.N firmed 3.2% after QatarEnergy signed a deal with the oil major for the Gulf state's North Field East expansion, the world's largest liquefied natural gas project.
Spirit Airlines SAVE.N jumped 12.7% as JetBlue Airways JBLU.O sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
(Reporting by Devik Jain in Bengaluru; Editing by Sriraj Kalluvila)
((Devik.Jain@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. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.4% and 3.1% in premarket trading. Markets have priced in aggressive rate hikes by the U.S. central bank in July and September to battle surging inflation, with some investors growing wary about whether the Fed can engineer a soft landing for the economy and avoid a recession. All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on future interest rate hikes. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.4% and 3.1% in premarket trading. Futures up: Dow 1.65%, S&P 1.82%, Nasdaq 1.84% June 21 (Reuters) - U.S. stock index futures climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. ET, Dow e-minis 1YMcv1 were up 492 points, or 1.65%, S&P 500 e-minis EScv1 were up 67 points, or 1.82%, and Nasdaq 100 e-minis NQcv1 were up 207.5 points, or 1.84%. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.4% and 3.1% in premarket trading. Futures up: Dow 1.65%, S&P 1.82%, Nasdaq 1.84% June 21 (Reuters) - U.S. stock index futures climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. Each of the three major Wall Street indexes fell for the third week in a row amid heightened volatility, while the S&P 500 index .SPX suffered on Friday its biggest weekly percentage drop since March 2020 following the Federal Reserve's largest rate increase in nearly three decades. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.4% and 3.1% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 1.65%, S&P 1.82%, Nasdaq 1.84% June 21 (Reuters) - U.S. stock index futures climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. |
20621.0 | 2022-06-21 00:00:00 UTC | Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-2 | nan | nan | Launched on 12/08/2014, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
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.
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 sponsored by Blackrock. It has amassed assets over $909.23 million, making it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the MSCI ACWI Low Carbon Target Index before fees and expenses.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
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.
Operating expenses on an annual basis are 0.20% for this ETF, which makes it one of the least expensive products in the space.
CRBN's 12-month trailing dividend yield is 2.28%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.17% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 15.98% of total assets under management.
Performance and Risk
So far this year, CRBN has lost about -22.61%, and is down about -15.92% in the last one year (as of 06/21/2022). During this past 52-week period, the fund has traded between $133.43 and $176.38.
The fund has a beta of 0.94 and standard deviation of 22.23% for the trailing three-year period, which makes CRBN a low risk choice in this particular space. With about 1263 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.36 billion in assets, iShares ESG Aware MSCI USA ETF has $20.34 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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 MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports
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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. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.17% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.17% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/08/2014, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.17% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/08/2014, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.17% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/08/2014, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market. |
20622.0 | 2022-06-21 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, NVIDIA, McDonald's, Cisco Systems and Vertex Pharmaceuticals | AAPL | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-nvidia-mcdonalds-cisco-systems-and-vertex | nan | nan | For Immediate Release
Chicago, IL – June 21, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, McDonald's Corp. MCD, Cisco Systems, Inc. CSCO and Vertex Pharmaceuticals Inc. VRTX.
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Apple, NVIDIA and McDonald's
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., NVIDIA Corp. and McDonald's Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have declined -0.1% over the past year against the S&P 500's decline of -12.4%. The company expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line by $4-8 billion. Unfavorable forex conditions along with the absence of Russian revenues is also expected to hurt the top line.
Nevertheless, Apple is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem. Also, the availability of new Mac Studio and new iPad Air is expected to drive top-line growth.
Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment. Services revenue growth is expected to be in strong double digits for the June quarter.
(You can read the full research report Apple here >>>)
NVIDIA shares have declined -13.8% over the past year against Zacks Semiconductor - General industry's decline of -19.1%. The company's management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.
However, NVIDIA is benefiting from the coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company's Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive its user base.
Further, a solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA's presence in the autonomous vehicles and other automotive electronics space.
(You can read the full research report NVIDIA here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+2.8% vs. -20.9%). The company continues to impress investors with robust comps growth. Strong drive-thru presence and its investments in delivery and digitization over the past few years have aided McDonald's in countering the pandemic. Robust digitalization will help the company in driving long-term growth and capturing market share.
The company is focusing on store expansion. It is planning to open more than 1,800 restaurants globally in 2022. The company is also benefiting from the robust loyalty program. It is very optimistic about building the world's largest loyalty program.
The loyalty program is likely to drive sales and average checks. However, coronavirus-related woes persist. In the first quarter of 2022, comps in the China market were hurt by the pandemic.
(You can read the full research report McDonald's here >>>)
Other noteworthy reports we are featuring today include Cisco Systems, Inc. and Vertex Pharmaceuticals Inc.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, McDonald's Corp. MCD, Cisco Systems, Inc. CSCO and Vertex Pharmaceuticals Inc. VRTX. Apple Inc. (AAPL): Free Stock Analysis Report (You can read the full research report NVIDIA here >>>) McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+2.8% vs. -20.9%). | Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, McDonald's Corp. MCD, Cisco Systems, Inc. CSCO and Vertex Pharmaceuticals Inc. VRTX. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Top Stock Reports for Apple, NVIDIA and McDonald's The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, McDonald's Corp. MCD, Cisco Systems, Inc. CSCO and Vertex Pharmaceuticals Inc. VRTX. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Top Stock Reports for Apple, NVIDIA and McDonald's The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, McDonald's Corp. MCD, Cisco Systems, Inc. CSCO and Vertex Pharmaceuticals Inc. VRTX. Apple Inc. (AAPL): Free Stock Analysis Report Services revenue growth is expected to be in strong double digits for the June quarter. |
20623.0 | 2022-06-21 00:00:00 UTC | US STOCKS-Wall Street set for strong open after bruising week | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-strong-open-after-bruising-week | nan | nan | By Devik Jain and Anisha Sircar
June 21 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn.
Each of the three major Wall Street indexes fell for the third week in a row in volatile trading and the S&P 500 .SPX on Friday suffered its biggest weekly percentage drop since March 2020 following the Federal Reserve's largest interest rate hike in nearly three decades.
Markets have priced in aggressive rate hikes in July and September to battle surging inflation amid growing doubts if the Fed can engineer a soft landing for the economy and avoid a recession.
Goldman Sachs now expects a 30% chance of the U.S. economy tipping into recession over the next year, up from its previous forecast of 15%.
"The market already in a sense may have priced in a shallow recession... you had negative GDP in Q1, so it is possible that the second quarter is negative, in which case the recession could potentially be in the rear-view mirror," said Thomas Hayes, managing member of Great Hill Capital in New York.
All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on future interest rate hikes.
"The only thing that is keeping (Fed) hawkish is they don't have any data to lean on to stop being so hawkish," Hayes said.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were up 438 points, or 1.47%, S&P 500 e-minis EScv1 were up 60.5 points, or 1.65%, and Nasdaq 100 e-minis NQcv1 were up 188.25 points, or 1.67%.
The S&P 500 and the tech-heavy Nasdaq .IXIC are in bear market, with the benchmark down 23.4% from its record closing high on Jan. 3. Markets were closed on Monday for Juneteenth holiday.
Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.5% and 3% in premarket trading.
Citigroup C.N added 2.3% to lead gains among big banks.
Kellogg Co K.N climbed 6.7% after the breakfast cereal maker said it was splitting itself into three separate companies, with a focus on snacking, North American cereal and plant-based businesses.
Spirit Airlines SAVE.N jumped 8.5% as JetBlue Airways JBLU.O sweetened its bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal ULCC.O.
Lennar Corp LEN.N rose 2.4% after the homebuilder reported upbeat quarterly revenue and profit, helped by a 14% jump in deliveries, higher home prices and strong demand.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, was down to 30.45 points, its lowest level since June 16.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Devik.Jain@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. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.5% and 3% in premarket trading. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. Markets have priced in aggressive rate hikes in July and September to battle surging inflation amid growing doubts if the Fed can engineer a soft landing for the economy and avoid a recession. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.5% and 3% in premarket trading. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. Each of the three major Wall Street indexes fell for the third week in a row in volatile trading and the S&P 500 .SPX on Friday suffered its biggest weekly percentage drop since March 2020 following the Federal Reserve's largest interest rate hike in nearly three decades. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.5% and 3% in premarket trading. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. Markets have priced in aggressive rate hikes in July and September to battle surging inflation amid growing doubts if the Fed can engineer a soft landing for the economy and avoid a recession. | Megacap technology and growth stocks Microsoft Corp MSFT.O, Meta Platforms META.O, Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Tesla Inc TSLA.O rose between 1.5% and 3% in premarket trading. By Devik Jain and Anisha Sircar June 21 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn. Each of the three major Wall Street indexes fell for the third week in a row in volatile trading and the S&P 500 .SPX on Friday suffered its biggest weekly percentage drop since March 2020 following the Federal Reserve's largest interest rate hike in nearly three decades. |
20624.0 | 2022-06-20 00:00:00 UTC | Taiwan May export orders return to growth, uncertainly ahead | AAPL | https://www.nasdaq.com/articles/taiwan-may-export-orders-return-to-growth-uncertainly-ahead | nan | nan | May export orders +6% y/y vs +0.3% poll forecast
Export orders from China -13.4% y/y vs -16.9% in April
Ministry sees June orders between +3.3% and +6.1% y/y
Warns of global economic uncertainly
Adds analyst comment, final two paragraphs
TAIPEI, June 20 (Reuters) - Taiwan's export orders, a bellwether for global technology demand, logged a strong annual rise in May, recovering from COVID-19 lockdowns in China and global supply chain disruptions, but the government warned of global economic uncertainty ahead.
Export orders last month were up 6% from a year earlier at $55.43 billion, a record high for the month, the Ministry of Economic Affairs said on Monday. Analysts had expected 0.3% growth.
The rise followed a 5.5% annual drop seen in April's figures, the first fall since February 2020, when the pandemic had just begun sweeping the world.
Orders for telecommunications products in May grew 2.7% on a year before, with some factories still being impacted by pandemic measures in China. Laptop orders were down, for example, the ministry said.
Orders for electronic products jumped 17.4%, driven by semiconductor demand for high-end computing, autos and other appliances, it said.
The trend towards working and studying from home has fuelled growth in orders for Taiwanese electronics in the past two years or so, more recently reinforced by a global semiconductor shortage that has filled Taiwanese chip makers' order books.
The ministry said it expected June export orders to be between 3.3% and 6.1% higher than a year before.
The ministry said global tech demand should keep driving export order momentum, but it warned of the war in Ukraine driving up inflation and of challenges presented by persistent supply-chain bottlenecks.
"Uncertainty in the global economic outlook has increased, which may suppress the growth momentum of orders," it added.
Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech firms.
Dai Si-ting, an analyst at Cathay Securities Investment Trust, said May's performance was a "pleasant surprise", but the second half of the year could be more difficult.
"In the short term, there are still many uncertainties and variables in the international economic situation," he said. "Some demand may still weaken under the impact of high inflation."
May orders from China were down 13.4% from a year earlier, compared with a fall of 16.9% seen in April, while orders from the United States rose 10.5%, compared with the previous 0.2% fall.
Export orders from Europe grew 9.5%, compared with an annual contraction of 17% in April, while those from Japan fell 7.8%.
(Reporting by Liang-sa Loh and Ben Blanchard; Additional reporting by Emily Chan; Editing by Bradley Perrett)
((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. | Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech firms. Orders for electronic products jumped 17.4%, driven by semiconductor demand for high-end computing, autos and other appliances, it said. Dai Si-ting, an analyst at Cathay Securities Investment Trust, said May's performance was a "pleasant surprise", but the second half of the year could be more difficult. | Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech firms. May export orders +6% y/y vs +0.3% poll forecast Export orders from China -13.4% y/y vs -16.9% in April Ministry sees June orders between +3.3% and +6.1% y/y Warns of global economic uncertainly Adds analyst comment, final two paragraphs TAIPEI, June 20 (Reuters) - Taiwan's export orders, a bellwether for global technology demand, logged a strong annual rise in May, recovering from COVID-19 lockdowns in China and global supply chain disruptions, but the government warned of global economic uncertainty ahead. The ministry said it expected June export orders to be between 3.3% and 6.1% higher than a year before. | Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech firms. May export orders +6% y/y vs +0.3% poll forecast Export orders from China -13.4% y/y vs -16.9% in April Ministry sees June orders between +3.3% and +6.1% y/y Warns of global economic uncertainly Adds analyst comment, final two paragraphs TAIPEI, June 20 (Reuters) - Taiwan's export orders, a bellwether for global technology demand, logged a strong annual rise in May, recovering from COVID-19 lockdowns in China and global supply chain disruptions, but the government warned of global economic uncertainty ahead. The trend towards working and studying from home has fuelled growth in orders for Taiwanese electronics in the past two years or so, more recently reinforced by a global semiconductor shortage that has filled Taiwanese chip makers' order books. | Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech firms. The ministry said it expected June export orders to be between 3.3% and 6.1% higher than a year before. "Some demand may still weaken under the impact of high inflation." |
20625.0 | 2022-06-20 00:00:00 UTC | Apple’s Innovations Position the Stock for Long-Term Growth | AAPL | https://www.nasdaq.com/articles/apples-innovations-position-the-stock-for-long-term-growth | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term.
Apple just wrapped up its annual Worldwide Developers Conference where it introduced several new software features and products that impressed attendees and generated positive media coverage. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover.
AAPL Apple $132
Pay Later Service
The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. The new payment feature, called Apple Pay Later, is an addition to its popular Wallet app, and part of the consumer electronics giant’s expansion into the world of online finance.
7 Long-Term Stocks That Never Go Out of Style
Apple Pay Later enables people to pay for things over four equal installments, paid monthly without any interest being charged. The move into the pay later loan segment puts Apple into direct competition with major financial technology (fintech) players such as PayPal (NASDAQ:PYPL) and Affirm (NASDAQ:AFRM).
However, Apple, which has had success launching its own credit cards, is well-positioned to succeed and win market share in the buy now, pay later space, say analysts.
Other news coming out of Apple’s weeklong conference was the unveiling of the latest iPhone software, iOS 16, which includes a new lock screen; two new Mac computers, including the biggest refresh of its MacBook Air model in more than a decade; improvements to the Apple Watch that include the addition of atrial fibrillation detection to help with heart health; an overhaul of Apple CarPlay that will integrate it more with a vehicle’s instruments such as the speedometer and other gauges; and more multitasking features for the iPad, including a long-awaited weather app.
All the new technologies will use Apple’s proprietary M2 chip, which the company developed internally after ending its long-term relationship with Intel (NASDAQ:INTC).
Overseas Challenges
The latest upgrades, products and features position Apple for a strong future and should help the company remain at the front of the pack in the consumer electronics space.
However, in the near-term, Apple continues to manage a number of overseas challenges that are weighing on its share price. These include ongoing Covid-19 lockdowns in China that have impacted its manufacturing and difficulty sourcing components and managing supply chains throughout Asia that threaten production of its iPhone.
Any challenges to the iPhone are bad news for Apple, as global sales of the popular smartphone continue to account for more than half of the company’s revenue, generating almost $192 billion in 2021.
On the other side of the world, in Europe, Apple also faces some near-term headwinds. European antitrust regulators have charged Apple with restricting rivals’ access to its chip technology in a move that could force the iPhone maker to open its mobile payment system to competition on the continent. The European Commission said it has sent Apple details of how the company has abused its dominant position in markets for mobile wallets on iOS devices and ordered that changes be made.
Separately, the EU has agreed to a single charging port for mobile phones, tablets and other electronic devices. That decision is seen as a blow to Apple, which must now change the connector on its iPhones sold in Europe by 2024. iPhones are in a unique position as they are charged from a Lightning cable that’s made in-house by Apple, while rival Android-based devices use more standard USB-C connectors.
Apple has warned that the proposal, which is designed to cut down on electronic waste, will hurt innovation going forward. However, it’s not clear how Apple will get around the new European requirements.
AAPL Stock Is Built for Long-Term Success
Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. Even as it manages supply chain issues in Asia and shifting regulations in Europe, the company continues to upgrade its existing products and introduce new ones that offer users constant improvements.
This approach has proven to be a recipe for success and should help Apple rebound mightily when the current market selloff finally ends. In the meantime, investors should view the current downturn in Apple’s share price as a buying opportunity. AAPL stock is a strong buy.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Apple’s Innovations Position the Stock for Long-Term Growth 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 Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. AAPL Apple $132 Pay Later Service The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. | AAPL Stock Is Built for Long-Term Success Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. AAPL Apple $132 Pay Later Service The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. | AAPL Stock Is Built for Long-Term Success Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. |
20626.0 | 2022-06-20 00:00:00 UTC | Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-russell-top-200-etf-iwl-be-on-your-investing-radar-2 | nan | nan | Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $835.58 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 32.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 33.81% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has lost about -23.76% so far this year and is down about -12.43% in the last one year (as of 06/20/2022). In the past 52-week period, it has traded between $86.81 and $114.92.
The ETF has a beta of 1 and standard deviation of 23.82% for the trailing three-year period, making it a medium risk choice in the space. With about 203 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 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, IWL is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $272.07 billion in assets, SPDR S&P 500 ETF has $327.26 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell Top 200 ETF (IWL): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.40% 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 $835.58 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009. |
20627.0 | 2022-06-20 00:00:00 UTC | Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-2 | nan | nan | If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the John Hancock Multifactor Large Cap ETF (JHML), a passively managed exchange traded fund launched on 09/28/2015.
The fund is sponsored by John Hancock. It has amassed assets over $690.82 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.38%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 17.24% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has lost about -21.92% so far this year and is down about -12.29% in the last one year (as of 06/20/2022). In the past 52-week period, it has traded between $46.37 and $59.70.
The ETF has a beta of 1.01 and standard deviation of 24.01% for the trailing three-year period, making it a medium risk choice in the space. With about 783 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap 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, JHML is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $272.07 billion in assets, SPDR S&P 500 ETF has $327.26 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.10% 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 $690.82 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the John Hancock Multifactor Large Cap ETF (JHML), a passively managed exchange traded fund launched on 09/28/2015. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives John Hancock Multifactor Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the John Hancock Multifactor Large Cap ETF (JHML), a passively managed exchange traded fund launched on 09/28/2015. |
20628.0 | 2022-06-20 00:00:00 UTC | 3 Dividend Stocks That Will Make Warren Buffett $2.6 Billion This Year | AAPL | https://www.nasdaq.com/articles/3-dividend-stocks-that-will-make-warren-buffett-%242.6-billion-this-year | nan | nan | Warren Buffett is a taker, not a giver. At least that's the case when it comes to dividends.
The legendary investor has never been supportive of having Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) pay dividends. However, Buffett seems to love receiving dividends. Berkshire's portfolio is loaded with dividend stocks.
Some of those stocks contribute a lot of money to the giant conglomerate's coffers. These three dividend stocks alone will make Buffett's Berkshire Hathaway a whopping $2.6 billion this year.
1. Chevron
Chevron (NYSE: CVX) has vaulted into Berkshire's top four holdings. Buffett continued to scoop up shares of the oil and gas giant in the first quarter of 2022. Berkshire now owns more than 159 million Chevron shares.
This significant stake translates to a hefty amount of dividend income. Chevron's dividends this year should total $5.68 per share. At that level, Berkshire stands to make in the ballpark of $904 million in dividends in 2022 from this one stock.
But Buffett and Berkshire will probably profit a lot more from Chevron. The stock is already up around 25% year to date. It had soared even higher before President Biden publicly rebuked several large oil companies, including Chevron, for what he called their excessive profits.
Chevron should continue to prosper with fuel prices likely to remain at high levels for a while. We'll have to wait and see, though, if Buffett will hold onto the stock once the global energy market settles down.
2. Bank of America
Bank of America (NYSE: BAC) has long been one of Buffett's favorite bank stocks. Berkshire owns more than 1 billion shares of the financial services company. BofA ranks as the No. 2 position in Berkshire's portfolio.
In 2022, Bank of America is expected to pay out dividends per share totaling $0.84. That might not seem like much at first glance. But when you own as many shares as Berkshire does, it adds up to nearly $868 million in dividend income.
This amount might not be enough to offset the decline in BofA's share price, though. The stock has plunged close to 30% so far this year.
However, Buffett has a long-term perspective. He knows that Bank of America has a solid underlying business that's built to last. And while the multibillionaire isn't a big fan of Wall Street analysts, he'd probably agree with them that Bank of America has tremendous upside potential.
3. Apple
Buffett likes Apple (NASDAQ: AAPL) so much that he refers to the technology company as one of Berkshire's "four giants". Apple is the only one of those giants that Berkshire doesn't wholly own. But it's by far Berkshire's biggest holding.
Apple isn't known for its dividend. That's understandable with the company's paltry dividend yield of 0.71%.
However, the $0.92 per share in dividends that Apple pays times Berkshire's more than 911 million shares equals more than $838 million in dividend income. Combining this amount with the dividends Berkshire will receive from Chevron and Bank of America this year brings the total to more than $2.6 billion.
Apple's year-to-date stock performance isn't anything to get excited about. But the company has plenty of long-term growth drivers, notably including its moves into augmented reality. Look for Buffett and Berkshire to make a lot more dividend income from Apple over the coming years.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway (B shares). 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 Buffett likes Apple (NASDAQ: AAPL) so much that he refers to the technology company as one of Berkshire's "four giants". It had soared even higher before President Biden publicly rebuked several large oil companies, including Chevron, for what he called their excessive profits. And while the multibillionaire isn't a big fan of Wall Street analysts, he'd probably agree with them that Bank of America has tremendous upside potential. | Apple Buffett likes Apple (NASDAQ: AAPL) so much that he refers to the technology company as one of Berkshire's "four giants". The legendary investor has never been supportive of having Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) pay dividends. However, the $0.92 per share in dividends that Apple pays times Berkshire's more than 911 million shares equals more than $838 million in dividend income. | Apple Buffett likes Apple (NASDAQ: AAPL) so much that he refers to the technology company as one of Berkshire's "four giants". These three dividend stocks alone will make Buffett's Berkshire Hathaway a whopping $2.6 billion this year. However, the $0.92 per share in dividends that Apple pays times Berkshire's more than 911 million shares equals more than $838 million in dividend income. | Apple Buffett likes Apple (NASDAQ: AAPL) so much that he refers to the technology company as one of Berkshire's "four giants". Apple isn't known for its dividend. Combining this amount with the dividends Berkshire will receive from Chevron and Bank of America this year brings the total to more than $2.6 billion. |
20629.0 | 2022-06-20 00:00:00 UTC | 7 Stocks to Buy If You Have $1,000 to Invest | AAPL | https://www.nasdaq.com/articles/7-stocks-to-buy-if-you-have-%241000-to-invest | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s been a lot made of stock prices recently. Much of the chatter has revolved around stock splits and why lower prices make better stocks to buy.
Many of the big tech firms have been doing them. Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG) are just two recent examples. Their management all seem to say the same: “We are doing the split to provide greater access to a larger group of investors.”
In reality, fractional shares make share prices irrelevant. It doesn’t matter what the price of a stock is. If you like Tesla (NASDAQ:TSLA) at $650 and you only have $100 to invest, you buy 1/6th of a TSLA share.
7 Retirement Stocks to Buy for a Bear Market
All seven of these stocks to buy have solid balance sheets and good prospects, and they’re diversified among seven different sectors.
Happy Investing!
EA Electronic Arts $128.54
NKE Nike $107.34
RJF Raymond James $87.50
ISRG Intuitive Surgical $192.08
AOS A.O. Smith $53.11
CTVA Corteva $53.22
ADBE Adobe $360.79
Electronic Arts (EA)
Source: Konstantin Savusia / Shutterstock.com
It seems like it’s only a matter of time before Electronic Arts (NASDAQ:EA) gets acquired. It’s big enough to be attractive to large-cap technology and asset management firms but small enough to be easily digestible by its prey.
The video game publisher’s stock did well in May, gaining almost 18% in the month.
Part of its resurgence was due to healthy Q4 2022 numbers, including a 17.5% increase in net bookings during the quarter. However, it also had to do with persistent rumors that its management held buyout meetings with several prominent tech players such as Apple (NASDAQ:AAPL) and Amazon.
Electronic Arts finished Q4 2022 with $3.06 billion in cash and short-term investments and $1.88 billion in long-term debt. That’s net cash of $1.18 billion.
Nike (NKE)
Source: mimohe / Shutterstock.com
Whenever you’re as big as Nike (NYSE:NKE), you’ve always got a target plastered on your back.
The latest candidate to want to take down the athletic footwear and apparel giant is none other than Adidas (OTCMKTS:ADDYY). Adidas filed a federal lawsuit against Nike on June 10 that claims Nike infringed on nine of Adidas’s fitness app tech patents.
“Adidas claims that the Nike Run Club, Training Club, and SNKRS apps infringe its patents related to features like audio feedback during workouts, GPS tracking, training plans, integration with third-party accessories like heart rate monitors, and the ability to reserve and buy limited-edition sneakers,” The Verge reported.
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Adidas wants the courts to force Nike to stop infringing on its nine patents. If Adidas were successful, it would have wide-ranging consequences for Nike and the fitness tracker industry.
Fortunately for Nike shareholders, the company has a sound balance sheet. It finished Q3 2022 (Feb. 28 quarter-end) with $13.47 billion in cash and short-term investments, $9.42 billion in long-term debt, and net cash of $4.05 billion.
Raymond James (RJF)
Source: JHVEPhoto / Shutterstock.com
I spent a couple of years writing about the financial advisor channel in Canada. As a result, much of my time was spent interviewing and speaking with advisors. My view of Raymond James’ (NYSE:RJF) Canadian advisors was highly positive. I doubt it’s much different in the U.S.
On June 1, Raymond James completed its acquisition of TriState Capital Holdings. The $1.1 billion cash-and-stock deal gives Raymond James a bank that serves middle-market businesses and high-net-worth individuals. It does this through TriState Capital Bank and investment management clients through Chartwell TSC Securities.
In the company’s monthly report for April, Raymond James noted that its assets under administration (AUA) for the month increased 5% over April 2021, to $1.18 billion. Unfortunately, due to weak markets, its AUA fell 6% from March 2022.
While business was softer during the month, overall, Raymond James remains rock-solid. At the end of April, it had $5.72 billion in cash and cash equivalents, baking it among the more stable stocks to buy for the long run.
Intuitive Surgical (ISRG)
Source: michelmond / Shutterstock.com
Like many stocks in 2022, Intuitive Surgical (NASDAQ:ISRG) is down more than 45% year-to-date. Trading $7 from its 52-week low of $188.81, ISRG hasn’t been at these levels since July 2020.
In May, the maker of robotic surgical systems and accessories got some excellent news from the courts.
A U.S. appeals court sided with Intuitive in its two disputes with Johnson & Johnson (NYSE:JNJ) regarding surgical cutting and stapling patents. The fight has been carried on for nearly five years. Were Intuitive to lose these disputes, it would jeopardize the importation of its SureForm staplers and reload cartridges.
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Outside the courtroom, Intuitive’s business is still solid.
In Q1 2022, its revenues increased 15% year over year to $1.49 billion. On the bottom line, its non-GAAP net income was down slightly to $413 million from $427 million a year earlier. It finished the quarter with $8.4 billion in cash, zero debt, and net cash of $8.4 billion.
A.O. Smith (AOS)
Source: Shutterstock
One of my favorite stocks to buy just got further involved with the water treatment industry in North America.
On June 8, A.O. Smith (NYSE:AOS), which got its start in water heaters many years ago, acquired Florida-based Atlantic Filter Corporation, a manufacturer of water treatment equipment for commercial and residential markets.
“The acquisition of Atlantic Filter further expands our capabilities in Florida and beyond. A. O. Smith is committed to growing our water treatment business as part of our strategy to deliver innovative, differentiated solutions that heat and treat water,” said Kevin J. Wheeler, president and chief executive officer.
The acquisition is the company’s fifth water treatment acquisition since 2016. While the company’s water treatment product sales are low — $56.8 million in the latest quarter — A.O. Smith continues to chip away at this business.
A.O. Smith finished the first quarter with $574.9 million in cash and marketable securities, long-term debt of $288.6 million, and net cash of $286.3 million.
Corteva (CTVA)
Source: Jonathan Weiss / Shutterstock
Corteva (NYSE:CTVA) is one of the world’s largest seed and crop protection providers.
With inflation and food scarcity crushing consumer sentiment globally, this is a business that ought to profit handsomely by helping solve the world’s food crisis.
“We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power,” wrote Independent investment management firm Aristotle Capital in its May investor letter.
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In Q1 2022, Corteva’s net sales grew 10% year over year to $4.6 billion. Its operating EBITDA increased 15% to $1.04 billion and quarterly sales increased 15% to $2.0 billion. Its crop protection business in North America had a 54% increase in sales during the quarter. They accounted for almost 18% of its global business.
In 2022, it expects sales and operating EBITDA of at least $16.7 billion and $2.8 billion, respectively, which puts it among the best stocks to buy for the long term. It finished the quarter with cash and marketable securities of $2.3 billion, long-term debt of $1.15 billion, and net cash of $1.15 billion.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Until November, Adobe (NASDAQ:ADBE) was on quite the five-year run. In June 2017, its stock was $138. By November 2021, it peaked at $699.54. Down 47% from its November highs, Adobe stock is a much better value today.
However, if analysts are correct, I probably wouldn’t buy until after earnings. Several analysts have recently cut their price targets for the stock. One big concern is that growth from Adobe’s Creative Cloud will slow.
That said, they’re still higher than where it’s currently trading.
Adobe finished the first quarter with cash and marketable securities of $4.70 billion, long-term debt of $3.63 billion, and net cash of $1.07 billion. Its free cash flow remains very healthy at $1.67 billion.
The further Adobe stock falls, the greater the long-term opportunity for investors.
On the date of publication, Will Ashworth 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 Stocks to Buy If You Have $1,000 to Invest 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. | However, it also had to do with persistent rumors that its management held buyout meetings with several prominent tech players such as Apple (NASDAQ:AAPL) and Amazon. “Adidas claims that the Nike Run Club, Training Club, and SNKRS apps infringe its patents related to features like audio feedback during workouts, GPS tracking, training plans, integration with third-party accessories like heart rate monitors, and the ability to reserve and buy limited-edition sneakers,” The Verge reported. Smith (AOS) Source: Shutterstock One of my favorite stocks to buy just got further involved with the water treatment industry in North America. | However, it also had to do with persistent rumors that its management held buyout meetings with several prominent tech players such as Apple (NASDAQ:AAPL) and Amazon. EA Electronic Arts $128.54 NKE Nike $107.34 RJF Raymond James $87.50 ISRG Intuitive Surgical $192.08 AOS A.O. Smith $53.11 CTVA Corteva $53.22 ADBE Adobe $360.79 Electronic Arts (EA) Source: Konstantin Savusia / Shutterstock.com It seems like it’s only a matter of time before Electronic Arts (NASDAQ:EA) gets acquired. | However, it also had to do with persistent rumors that its management held buyout meetings with several prominent tech players such as Apple (NASDAQ:AAPL) and Amazon. It finished Q3 2022 (Feb. 28 quarter-end) with $13.47 billion in cash and short-term investments, $9.42 billion in long-term debt, and net cash of $4.05 billion. It finished the quarter with cash and marketable securities of $2.3 billion, long-term debt of $1.15 billion, and net cash of $1.15 billion. | However, it also had to do with persistent rumors that its management held buyout meetings with several prominent tech players such as Apple (NASDAQ:AAPL) and Amazon. Many of the big tech firms have been doing them. Adidas filed a federal lawsuit against Nike on June 10 that claims Nike infringed on nine of Adidas’s fitness app tech patents. |
20630.0 | 2022-06-20 00:00:00 UTC | Warren Buffett Has Spent $118 Billion Buying These 3 Stocks Over the Past 6 Years | AAPL | https://www.nasdaq.com/articles/warren-buffett-has-spent-%24118-billion-buying-these-3-stocks-over-the-past-6-years | nan | nan | If you've ever wondered why everyone -- from professional money managers with decades of experience to novice investors -- pays close attention to what stocks billionaire Warren Buffett buys and sells, look no further than his track record.
Since taking the reins as Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO in 1965, the Oracle of Omaha, as he's come to be known, has overseen the creation of $615 billion in shareholder value and delivered an average annual return of 20.1% for his company's Class A shares (BRK.A). To put these gains into perspective, Berkshire Hathaway's shares could fall 99% tomorrow, yet would still be handily outperforming the benchmark S&P 500, inclusive of dividends paid, since the beginning of 1965.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett's illustrious track record necessitates investors to pay attention to where he's putting Berkshire Hathaway's capital to work. Thankfully, quarterly filings with the Securities and Exchange Commission make this task relatively easy.
Over the past six years, Buffett has deployed $118 billion of his company's capital, in aggregate, to buy three stocks.
Chevron: $23.3 billion (estimated)
The first stock Buffett and his team and have fallen head over heels in love with is integrated oil and gas giant Chevron (NYSE: CVX).
Although Buffett's annual letter to shareholders lays out the company's cost basis for its largest holdings, the bulk of Berkshire's buying activity for Chevron occurred during the first quarter of 2022 (i.e., after the shareholder letter came out). Based on an estimated per-share cost basis of $146.56, per WhaleWisdom.com, Buffett has spent approximately $23.3 billion purchasing close to 159.2 million shares of Chevron.
The likeliest reason for the Oracle of Omaha to pile more than $23 billion of Berkshire Hathaway's cash into Chevron is the expectation that crude oil and natural gas prices will remain elevated for the foreseeable future. Because of a historic oil and natural gas demand drawdown experienced during the pandemic, most drillers, midstream companies, and refiners, pared down their investments. Couple this with ongoing energy supply chain disruption tied to Russia's invasion of Ukraine, and you have a recipe for sustainably higher energy prices.
Another reason for Buffett's bullishness on Chevron is its integrated operating model. It's no secret that Chevron's upstream drilling segment generates the bulk of its profits. But as an integrated energy company, it also operates midstream (e.g., transmission pipelines and storage) and downstream assets (e.g., refineries and chemicals). If the price of oil and/or natural gas significantly declines, it allows the company's downstream operations to take advantage of lower input costs. This ability to hedge puts Chevron on sturdier ground than the majority of its peers.
And let's not overlook Buffett's love of a hearty capital return program. Chevron expects to repurchase $10 billion worth of its common stock before the end of 2022, and is doling out a 3.5% yield.
Image source: Apple.
Apple: $33.8 billion (estimated)
The second stock Buffett and his investing team have been enamored with since the start of 2016 is tech kingpin Apple (NASDAQ: AAPL).
When the closing bell tolled on Wednesday, June 15, nearly 39% ($123.4 billion) of Berkshire Hathaway's $317.4 billion investment portfolio was tied up in shares of Apple. Considering that Buffett purchased close to 3.8 million additional shares of the company during the first quarter, and we don't know the exact purchase price of these shares, the aggregate estimated value of Berkshire's purchases of Apple total roughly $33.8 billion over six years.
In Buffett's eyes, Apple is a major valuation determinant of his company. It's also a holding that checks all the appropriate boxes for long-term investors.
Apple is one of the most-recognized brands in the world, with one of the most loyal customer bases. Anytime a new product is released, you'll often see lines wrapped around its retail locations. This illustrates how putting innovation first has helped the United States' largest publicly traded company by market cap consistently grow its top and bottom line.
Another selling point for Apple is CEO Tim Cook's oversight. Cook is overseeing his company's transition to a services-oriented operating model. While this doesn't mean Apple is abandoning the products that made it the great company it is today, this evolution to services will boost operating margins, further improve brand loyalty, and minimize the sales lumpiness often associated with product replacement cycles.
And I have I mentioned that Buffett loves a good capital return program? Since the beginning of 2013, Apple has repurchased just shy of $500 billion worth of its own common stock. It also sports one of the highest nominal dividend payouts on the planet (about $14.9 billion paid annually).
Berkshire Hathaway: $61.1 billion
But the under-the-radar stock Buffett and his right-hand man, Charlie Munger, have sunk more money into over the past six years -- even more than Chevron and Apple combined -- is (drum roll) Berkshire Hathaway.
Before July 2018, Buffett and Munger were only able to repurchase shares of their company if they fell to, or below, 120% of book value (i.e., no more than 20% above book value). In the half-decade leading up to 2018, Berkshire Hathaway's shares never came close to 120% of book value, resulting in no shares being repurchased.
But things changed on July 17, 2018. Berkshire Hathaway's board passed new measures that gave Buffett and Munger the ability to more easily deploy the company's capital for buybacks. The new provisions require that:
Berkshire Hathaway must have $20 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet.
Buffett and Munger must agree that Berkshire Hathaway shares are trading at a discount to their intrinsic value.
Since this change was made in July 2018, Buffett and Munger have overseen the repurchase of $61.1 billion worth of their company's Class A (BRK.A) and Class B (BRK.B) shares.
As a reminder, when a company repurchases its own common stock, it tends to have a positive impact for shareholders. With fewer shares outstanding, companies with steady or rising profits will typically see their earnings per share increase. That can make a publicly traded company look more attractive to current and prospective investors.
If the recent bear market sell-off in the S&P 500 and Nasdaq Composite were to ramp up, it wouldn't be a surprise if Buffett responded by repurchasing even more shares of his company's stock.
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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: $33.8 billion (estimated) The second stock Buffett and his investing team have been enamored with since the start of 2016 is tech kingpin Apple (NASDAQ: AAPL). If you've ever wondered why everyone -- from professional money managers with decades of experience to novice investors -- pays close attention to what stocks billionaire Warren Buffett buys and sells, look no further than his track record. The likeliest reason for the Oracle of Omaha to pile more than $23 billion of Berkshire Hathaway's cash into Chevron is the expectation that crude oil and natural gas prices will remain elevated for the foreseeable future. | Apple: $33.8 billion (estimated) The second stock Buffett and his investing team have been enamored with since the start of 2016 is tech kingpin Apple (NASDAQ: AAPL). Although Buffett's annual letter to shareholders lays out the company's cost basis for its largest holdings, the bulk of Berkshire's buying activity for Chevron occurred during the first quarter of 2022 (i.e., after the shareholder letter came out). Considering that Buffett purchased close to 3.8 million additional shares of the company during the first quarter, and we don't know the exact purchase price of these shares, the aggregate estimated value of Berkshire's purchases of Apple total roughly $33.8 billion over six years. | Apple: $33.8 billion (estimated) The second stock Buffett and his investing team have been enamored with since the start of 2016 is tech kingpin Apple (NASDAQ: AAPL). Considering that Buffett purchased close to 3.8 million additional shares of the company during the first quarter, and we don't know the exact purchase price of these shares, the aggregate estimated value of Berkshire's purchases of Apple total roughly $33.8 billion over six years. Berkshire Hathaway: $61.1 billion But the under-the-radar stock Buffett and his right-hand man, Charlie Munger, have sunk more money into over the past six years -- even more than Chevron and Apple combined -- is (drum roll) Berkshire Hathaway. | Apple: $33.8 billion (estimated) The second stock Buffett and his investing team have been enamored with since the start of 2016 is tech kingpin Apple (NASDAQ: AAPL). Chevron: $23.3 billion (estimated) The first stock Buffett and his team and have fallen head over heels in love with is integrated oil and gas giant Chevron (NYSE: CVX). * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! |
20631.0 | 2022-06-18 00:00:00 UTC | Netflix Must Do This to Succeed in Video Games | AAPL | https://www.nasdaq.com/articles/netflix-must-do-this-to-succeed-in-video-games | nan | nan | Increasing competition in the streaming market has led several companies to diversify their offerings. Netflix (NASDAQ: NFLX) has done this by moving into games with its launch of Netflix Games in November 2021.
While Netflix is taking a step in the right direction by offering additional services, the company may have bitten off more than it can chew with its gaming service. Here's what Netflix needs to succeed in the incredibly competitive world of gaming.
Name recognition is key
Netflix announced that it lost 200,000 subscribers in Q1 2022. The disappointment led to a complete shift in priorities for the company, resulting in content cancellations, a recently announced ad-supported tier, and a larger focus on games. The last has resulted in Netflix acquiring three game developers in less than a year: Boss Fight Entertainment, Night School, and Next Games. These studios' output varies considerably, from popular mobile games to acclaimed indie titles to tie-ins with familiar franchises such as The Walking Dead.
Netflix's head of external games, Leanne Loombe, said at the Tribeca Film Festival on June 13 that the company is "intentionally keeping things a little bit quiet [about Netflix Games] because we're still learning and experimenting." Loombe added that Netflix wants to "make sure that games are a really valuable part of our members' subscription."
So far, Netflix offers 23 games. Titles such as Queen's Gambit Chess and Stranger Things 1984 show Netflix is attempting to entice players with tie-ins to its popular content. However, this method makes the hefty assumption that fans of these series are also at least partially interested in playing games.
Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+.
Rather than focus its gaming content on its streaming originals like Netflix, Apple has gone straight to the source by offering subscribers mobile titles from popular gaming brands. Apple Arcade currently offers games from well-known franchises such as LEGO, PAC-MAN, Sonic, Cooking Mama, and more. Apple's approach increases the odds that its players are already fans of games, increasing the odds of subscriber retention. The approach seems to be paying off: J.P Morgan has estimated that by 2025, Apple Arcade will see revenue increase 14% to $1.2 billion a year.
The Stranger Things of games
Gaming is a notoriously difficult and competitive industry to enter. If Netflix Games is going to help attract and retain subscribers, Netflix will need to offer hit games on the level of its mega-popular series Stranger Things, which racked up a record-breaking 286.79 million viewing hours in the first weekend of its latest season.
Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. It is home to several Xbox exclusives, with one of its biggest draws being the Halo series. By purchasing popular developers such as The Elder Scrolls and Fallout developer Bethesda Softworks, Microsoft has given Game Pass subscribers access to a library of major franchises for the low price of $9.99/month.
Netflix built streaming from nothing and has experience breaking down barriers. It is possible that the company has a foolproof strategy for its venture into gaming. But while Netflix was the first in streaming, it's now trying to break into a decades-old, well-established industry filled with fierce competitors.
Previous companies with even more financial firepower have tried and failed. Google (NASDAQ: GOOGL), whose parent company is 18 times larger than Netflix, launching its subscription-based cloud gaming service, Stadia, in November 2019. That same month, Stadia captured just 2.4% of the player base for Destiny 2, one of the biggest and most played games across consoles and PCs. Stadia's share then decreased to 0.08% in 2022, as the company struggled to compete with established companies like Microsoft and Sony. Netflix Games will need to convince subscribers its platform is worth choosing over competitors.
The future of Netflix Games
Game-to-film adaptations are a current trend among nearly all streaming platforms. Netflix previously had success with its adapted series The Witcher and has announced several other game-to-TV adaptations in development based on Resident Evil, Assassin's Creed, and Cyberpunk.
If Netflix can work with the studios behind these games to tie an adapted series' release to a mobile game within the same franchise, the company would be in a better position to connect Netflix Games with the kind of diehard gamers who are more likely to stay subscribed for the long haul.
Streaming service investors should keep an eye on Netflix's future game developer acquisitions. Studios home to popular game franchises will be worth their weight in gold for Netflix, since the company can use their intellectual property to further entice more players and subscribers.
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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. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. The disappointment led to a complete shift in priorities for the company, resulting in content cancellations, a recently announced ad-supported tier, and a larger focus on games. These studios' output varies considerably, from popular mobile games to acclaimed indie titles to tie-ins with familiar franchises such as The Walking Dead. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. Google (NASDAQ: GOOGL), whose parent company is 18 times larger than Netflix, launching its subscription-based cloud gaming service, Stadia, in November 2019. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Netflix (NASDAQ: NFLX) has done this by moving into games with its launch of Netflix Games in November 2021. If Netflix Games is going to help attract and retain subscribers, Netflix will need to offer hit games on the level of its mega-popular series Stranger Things, which racked up a record-breaking 286.79 million viewing hours in the first weekend of its latest season. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Increasing competition in the streaming market has led several companies to diversify their offerings. Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. |
20632.0 | 2022-06-18 00:00:00 UTC | Could This Be Netflix's Next Big Move? | AAPL | https://www.nasdaq.com/articles/could-this-be-netflixs-next-big-move | nan | nan | Streaming giant Netflix (NASDAQ: NFLX) alluded to an ad-supported product in its first-quarterearnings call implying a break from the company's historical insistence on subscription billing.
You need eyeballs to make money from advertising, which could be why the battle for streaming rights to live sports is heating up across the industry. Reportedly, Netflix has entered the bidding for streaming rights to Formula One racing, building on industry developments like Amazon's partnership to stream NFL games.
But live sports broadcasting is ruthlessly competitive, and investors should consider whether Netflix can emerge victorious or if live sports may threaten its leadership in streaming.
Live sports cost big dollars
Professional sports are a staple of culture in the United States and worldwide. The leagues are worth billions; the athletes are celebrities; fans spend big on apparel and tickets; and large audiences attract advertisers, fueling the success of this enormous industry.
Media companies continue shelling out record amounts of money for the rights to broadcast sports and advertise to the millions of people who tune in to watch them.
The National Football League (NFL) renewed its media deal in 2021, inking a deal worth $100 billion. This includes the $1 billion Amazon is paying annually to stream Thursday Night Football, which is essentially one game weekly.
Apple just signed a deal to stream Major League Soccer (MLS), a deal worth $2.5 billion over 10 years. Walt Disney pays $1.4 billion annually to put National Basketball Association (NBA) games on ABC and ESPN, and that's likely to increase in a few years.
Netflix is reportedly battling Disney, Comcast, and Amazon for rights to Formula One racing, and a deal could cost the winner more than $100 million annually.
Can Netflix outspend the field?
Netflix might find itself as the underdog in the sports field. You can compare Netflix to its streaming rivals below and see it is the smallest fish in the group as far as balance sheets go. Even with $6 billion of cash on hand, it has the smallest war chest at its disposal.
Data by YCharts.
So it's not clear that Netflix is ready for a bidding war of this scale. Beyond its cash on hand, the company is barely free-cash-flow neutral as it is, and its spending habits already stir up some long-term questions about the company. Meanwhile, competitors have legacy businesses that generate billions in free cash flow to support the growth of their streaming libraries.
Data by YCharts.
Perhaps it will land something smaller like the reported Formula One rights, but investors probably shouldn't expect that to make as big a difference as NFL or NBA games would. The average Formula One event drew 934,000 U.S. viewers in 2021, while viewership of Thursday Night Football typically surpasses 14 million each week.
Investor takeaway
The rise of ad-supported streaming is sparking a war for live sports content that Netflix has primarily sat out to this point. The company may have been a first-mover in the industry, but it's starting from behind in this case.
Any additional spending may put financial pressure on a business that doesn't have very much cash profits, and this is amid an existing backdrop of pricing pressure. Netflix is among the most expensive streaming services, and the lack of sports content might not help persuade viewers to pay more.
Ultimately, the streaming landscape seems up in the air right now. The uncertainty likely has to do with Netflix stock falling more than 70% from its high. Maybe investors will eventually look back at these challenges and see what was an opportunity in hindsight. On the other hand, investors must take a leap of faith that doesn't guarantee a happy landing.
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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. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Walt Disney. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Streaming giant Netflix (NASDAQ: NFLX) alluded to an ad-supported product in its first-quarterearnings call implying a break from the company's historical insistence on subscription billing. The leagues are worth billions; the athletes are celebrities; fans spend big on apparel and tickets; and large audiences attract advertisers, fueling the success of this enormous industry. Media companies continue shelling out record amounts of money for the rights to broadcast sports and advertise to the millions of people who tune in to watch them. | This includes the $1 billion Amazon is paying annually to stream Thursday Night Football, which is essentially one game weekly. Walt Disney pays $1.4 billion annually to put National Basketball Association (NBA) games on ABC and ESPN, and that's likely to increase in a few years. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | Reportedly, Netflix has entered the bidding for streaming rights to Formula One racing, building on industry developments like Amazon's partnership to stream NFL games. But live sports broadcasting is ruthlessly competitive, and investors should consider whether Netflix can emerge victorious or if live sports may threaten its leadership in streaming. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | You need eyeballs to make money from advertising, which could be why the battle for streaming rights to live sports is heating up across the industry. Netflix is reportedly battling Disney, Comcast, and Amazon for rights to Formula One racing, and a deal could cost the winner more than $100 million annually. Even with $6 billion of cash on hand, it has the smallest war chest at its disposal. |
20633.0 | 2022-06-17 00:00:00 UTC | Alphabet Stock is Your Best Option Among the FAANGs | AAPL | https://www.nasdaq.com/articles/alphabet-stock-is-your-best-option-among-the-faangs | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Following the June 13 stock market rout, FAANG stocks have hit new lows. Many may be cashing out of them, as uncertainty wreaks havoc on the market, but you may be looking to go against the grain. If you decide to do so, Google and YouTube parent Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) should be your first pick. Why GOOG stock?
Among the FAANG names, it beats out the rest of the pack. Sure, it’s not the cheapest among the FAANG names. Like the rest of them, it’s also facing the issue of slowing growth.
Yet if you factor in its high-quality, deep economic moat, and prospects once today’s storms pass? Even as it could continue to deliver middling performance (or worse, move lower), in the near-term, it could deliver strong returns for long-term investors deciding to buy it today.
Ticker Company Current Price
GOOG Alphabet Inc. $2,169.66
GOOG Stock and the Rest of the FAANG Pack
Before diving in, here’s a brief refresher on FAANG stocks. Admittedly, this acronym is in need of an update, due to Facebook’s name change to Meta Platforms (NASDAQ:META), but here are the five names that belong to this group:
F: Meta Platforms
A: Amazon (NASDAQ:AMZN)
A: Apple (NASDAQ:AAPL)
N: Netflix (NASDAQ:NFLX)
G: Alphabet
There are several factors that make GOOG stock your best option, after the FAANG stock “defanging.” First off, valuation. Again, it’s not the cheapest FAANG stock, but it trades at a lower forward multiple (19x) than AMZN (forward multiple of 117.3x) and AAPL (21.5x forward multiple). NFLX is cheaper (with its 15.5x forward multiple), yet this multiple may be misleading. Given the gray area when it comes to content amortization, its current earnings could be inflated.
Knocking out these three FAANGs leaves us just Alphabet and Meta. Among the five, these two are the most similar to each other. So, why is the former a better buy than the latter, especially as the latter has the lowest valuation (14.1x) among FANGs?
7 Long-Term Stocks That Never Go Out of Style
Chalk it up to two qualitative factors. Those are a deeper economic moat, and less uncertain long-term prospects.
Why it Wins Out Against Meta
In many ways, I believe the stock market has overreacted when it comes to bidding META stock lower. Yet taking other factors into account, it’s possible the more expensive GOOG stock outperforms it in the years ahead.
Yes, both companies at present are largely in the same boat. Both of these ad market dependent FAANG names delivered underwhelming results when they last reported in late April. An economic slowdown could further impact the digital ad space, producing more disappointment in the coming quarters.
But looking beyond current challenges, Alphabet appears to be the one best-positioned to make a comeback due to its deeper economic moat with its Google search business. Meta’s platforms, on the other hand, are facing intensifying competition from TikTok. Meta has also been affected by Apple’s changes to its privacy settings. Both these developments could have a long-lasting impact.
With Alphabet, even if growth slows down for search, growth from its cloud business, plus better monetization of YouTube, as well as success with some of its “Other Bets,” could more than make up the difference. For Meta, getting back on the growth train is more uncertain. It hinges on CEO Mark Zuckerberg’s “metaverse” dreams becoming reality.
Alphabet is Your Best Bet
When I say this is your best choice among the FAANG stocks, that doesn’t mean it’s going to soon begin its recovery. In the short-term, it’s more than likely to move in tandem with the overall stock market.
Nevertheless, once the dust settles, it may have a much easier time making a comeback. Amazon may have to grow into its valuation before it bounces back. Apple could need to lean more on its services business to move the needle. Netflix needs to show it can keep streaming competition at bay, all while optimizing its content spend.
Meta, as mentioned, has its own competitive headwinds, and is looking to re-accelerate growth via something that to many seems to be more faddish in nature rather than the internet’s next big thing.
That leaves GOOG stock. With a reasonable valuation, plus less uncertain long-term prospects, it is the best-in-class FAANG stock.
On the date of publication, Thomas Niel 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 Alphabet Stock is Your Best Option Among the FAANGs 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. | Admittedly, this acronym is in need of an update, due to Facebook’s name change to Meta Platforms (NASDAQ:META), but here are the five names that belong to this group: F: Meta Platforms A: Amazon (NASDAQ:AMZN) A: Apple (NASDAQ:AAPL) N: Netflix (NASDAQ:NFLX) G: Alphabet There are several factors that make GOOG stock your best option, after the FAANG stock “defanging.” First off, valuation. Again, it’s not the cheapest FAANG stock, but it trades at a lower forward multiple (19x) than AMZN (forward multiple of 117.3x) and AAPL (21.5x forward multiple). Both of these ad market dependent FAANG names delivered underwhelming results when they last reported in late April. | Admittedly, this acronym is in need of an update, due to Facebook’s name change to Meta Platforms (NASDAQ:META), but here are the five names that belong to this group: F: Meta Platforms A: Amazon (NASDAQ:AMZN) A: Apple (NASDAQ:AAPL) N: Netflix (NASDAQ:NFLX) G: Alphabet There are several factors that make GOOG stock your best option, after the FAANG stock “defanging.” First off, valuation. Again, it’s not the cheapest FAANG stock, but it trades at a lower forward multiple (19x) than AMZN (forward multiple of 117.3x) and AAPL (21.5x forward multiple). Ticker Company Current Price GOOG Alphabet Inc. $2,169.66 GOOG Stock and the Rest of the FAANG Pack Before diving in, here’s a brief refresher on FAANG stocks. | Admittedly, this acronym is in need of an update, due to Facebook’s name change to Meta Platforms (NASDAQ:META), but here are the five names that belong to this group: F: Meta Platforms A: Amazon (NASDAQ:AMZN) A: Apple (NASDAQ:AAPL) N: Netflix (NASDAQ:NFLX) G: Alphabet There are several factors that make GOOG stock your best option, after the FAANG stock “defanging.” First off, valuation. Again, it’s not the cheapest FAANG stock, but it trades at a lower forward multiple (19x) than AMZN (forward multiple of 117.3x) and AAPL (21.5x forward multiple). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Following the June 13 stock market rout, FAANG stocks have hit new lows. | Admittedly, this acronym is in need of an update, due to Facebook’s name change to Meta Platforms (NASDAQ:META), but here are the five names that belong to this group: F: Meta Platforms A: Amazon (NASDAQ:AMZN) A: Apple (NASDAQ:AAPL) N: Netflix (NASDAQ:NFLX) G: Alphabet There are several factors that make GOOG stock your best option, after the FAANG stock “defanging.” First off, valuation. Again, it’s not the cheapest FAANG stock, but it trades at a lower forward multiple (19x) than AMZN (forward multiple of 117.3x) and AAPL (21.5x forward multiple). Ticker Company Current Price GOOG Alphabet Inc. $2,169.66 GOOG Stock and the Rest of the FAANG Pack Before diving in, here’s a brief refresher on FAANG stocks. |
20634.0 | 2022-06-17 00:00:00 UTC | Dow Movers: CVX, WBA | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-cvx-wba | nan | nan | In early trading on Friday, shares of Walgreens Boots Alliance topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Walgreens Boots Alliance has lost about 22.6% of its value.
And the worst performing Dow component thus far on the day is Chevron, trading down 1.4%. Chevron is showing a gain of 30.7% looking at the year to date performance.
Two other components making moves today are Visa, trading down 1.0%, and Apple, trading up 1.4% on the day.
VIDEO: Dow Movers: CVX, WBA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Friday, shares of Walgreens Boots Alliance topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Walgreens Boots Alliance has lost about 22.6% of its value. And the worst performing Dow component thus far on the day is Chevron, trading down 1.4%. | In early trading on Friday, shares of Walgreens Boots Alliance topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Walgreens Boots Alliance has lost about 22.6% of its value. And the worst performing Dow component thus far on the day is Chevron, trading down 1.4%. | In early trading on Friday, shares of Walgreens Boots Alliance topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Chevron, trading down 1.4%. Two other components making moves today are Visa, trading down 1.0%, and Apple, trading up 1.4% on the day. | In early trading on Friday, shares of Walgreens Boots Alliance topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Chevron, trading down 1.4%. VIDEO: Dow Movers: CVX, WBA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20635.0 | 2022-06-17 00:00:00 UTC | After Hours Most Active for Jun 17, 2022 : KDP, ON, UA, UAA, AAPL, CSCO, T, DBRG, WFC, AMZN, VICI, URBN | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-17-2022-%3A-kdp-on-ua-uaa-aapl-csco-t-dbrg-wfc-amzn-vici | nan | nan | The NASDAQ 100 After Hours Indicator is up 1.11 to 11,267.1. The total After hours volume is currently 461,081,690 shares traded.
The following are the most active stocks for the after hours session:
Keurig Dr Pepper Inc. (KDP) is unchanged at $34.35, with 58,472,569 shares traded. As reported by Zacks, the current mean recommendation for KDP is in the "buy range".
ON Semiconductor Corporation (ON) is unchanged at $52.46, with 24,633,015 shares traded. As reported by Zacks, the current mean recommendation for ON is in the "buy range".
Under Armour, Inc. (UA) is unchanged at $8.38, with 19,367,447 shares traded. UA's current last sale is 83.8% of the target price of $10.
Under Armour, Inc. (UAA) is +0.0006 at $9.16, with 18,117,596 shares traded. As reported by Zacks, the current mean recommendation for UAA is in the "buy range".
Apple Inc. (AAPL) is +0.09 at $131.65, with 14,379,339 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cisco Systems, Inc. (CSCO) is +0.25 at $43.64, with 14,037,988 shares traded. CSCO's current last sale is 83.92% of the target price of $52.
AT&T Inc. (T) is +0.01 at $19.39, with 10,273,715 shares traded. T's current last sale is 80.79% of the target price of $24.
DigitalBridge Group, Inc. (DBRG) is unchanged at $4.74, with 10,059,799 shares traded. As reported by Zacks, the current mean recommendation for DBRG is in the "buy range".
Wells Fargo & Company (WFC) is unchanged at $38.48, with 9,107,612 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.0374 at $106.18, with 8,212,675 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
VICI Properties Inc. (VICI) is -0.0021 at $28.81, with 7,407,532 shares traded. As reported by Zacks, the current mean recommendation for VICI is in the "buy range".
Urban Outfitters, Inc. (URBN) is +0.0055 at $20.98, with 6,652,059 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2023. The consensus EPS forecast is $0.56. URBN's current last sale is 85.61% of the target price of $24.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.09 at $131.65, with 14,379,339 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Keurig Dr Pepper Inc. (KDP) is unchanged at $34.35, with 58,472,569 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.09 at $131.65, with 14,379,339 shares traded. As reported by Zacks, the current mean recommendation for KDP is in the "buy range". | Apple Inc. (AAPL) is +0.09 at $131.65, with 14,379,339 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 $19.39, with 10,273,715 shares traded. | Apple Inc. (AAPL) is +0.09 at $131.65, with 14,379,339 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 1.11 to 11,267.1. |
20636.0 | 2022-06-17 00:00:00 UTC | Friday's ETF with Unusual Volume: EQAL | AAPL | https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-eqal | nan | nan | The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Friday, with over 1.1 million shares traded versus three month average volume of about 108,000. Shares of EQAL were up about 0.4% on the day.
Components of that ETF with the highest volume on Friday were Apple, trading up about 1.4% with over 58.1 million shares changing hands so far this session, and Advanced Micro Devices, off about 0.6% on volume of over 55.3 million shares. Seagen is the component faring the best Friday, higher by about 16.3% on the day, while Diamondback Energy is lagging other components of the Invesco Russell 1000 Equal Weight ETF, trading lower by about 8.6%.
VIDEO: Friday's ETF with Unusual Volume: EQAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Friday, with over 1.1 million 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 1.4% with over 58.1 million shares changing hands so far this session, and Advanced Micro Devices, off about 0.6% on volume of over 55.3 million shares. Seagen is the component faring the best Friday, higher by about 16.3% on the day, while Diamondback Energy is lagging other components of the Invesco Russell 1000 Equal Weight ETF, trading lower by about 8.6%. | The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Friday, with over 1.1 million shares traded versus three month average volume of about 108,000. Seagen is the component faring the best Friday, higher by about 16.3% on the day, while Diamondback Energy is lagging other components of the Invesco Russell 1000 Equal Weight ETF, trading lower by about 8.6%. VIDEO: Friday's ETF with Unusual Volume: EQAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Friday, with over 1.1 million 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 1.4% with over 58.1 million shares changing hands so far this session, and Advanced Micro Devices, off about 0.6% on volume of over 55.3 million shares. Seagen is the component faring the best Friday, higher by about 16.3% on the day, while Diamondback Energy is lagging other components of the Invesco Russell 1000 Equal Weight ETF, trading lower by about 8.6%. | The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Friday, with over 1.1 million shares traded versus three month average volume of about 108,000. Seagen is the component faring the best Friday, higher by about 16.3% on the day, while Diamondback Energy is lagging other components of the Invesco Russell 1000 Equal Weight ETF, trading lower by about 8.6%. VIDEO: Friday's ETF with Unusual Volume: EQAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20637.0 | 2022-06-17 00:00:00 UTC | Bidding tops $12.3 mln for Warren Buffett charity lunch | AAPL | https://www.nasdaq.com/articles/bidding-tops-%2412.3-mln-for-warren-buffett-charity-lunch-0 | nan | nan | By Jonathan Stempel
June 17 (Reuters) - Someone has bid more than $12.3 million at an online auction to win a final, private lunch with billionaire businessman Warren Buffett to benefit a charity that helps the poor, homeless and people battling substance abuse.
The $12,345,678 bid from an unknown bidder in the auction, which ends on Friday night, far surpasses the previous record $4.57 million that cryptocurrency entrepreneur Justin Sun paid in a similar 2019 auction.
Proceeds benefit Glide, a nonprofit in San Francisco's Tenderloin district that offers meals, shelter, HIV and hepatitis C tests, job training and children's programs.
Prior to this year, Buffett, the 91-year-old chairman and chief executive of Berkshire Hathaway Inc BRKa.N, had helped Glide raise more than $34.1 million by auctioning 20 lunches. He has also pledged to give away nearly all his wealth.
The auctions began in 2000. None were held in 2020 and 2021 because of the pandemic. Bidding this year on eBay ends at 10:30 p.m. EDT Friday (0230 GMT Saturday).
This year's winner can take up to seven guests to dine with Buffett at the Smith & Wollensky steakhouse in Manhattan.
Buffett will talk about almost anything, though not where he may invest next.
He became a supporter of Glide after his first wife Susan introduced him to the charity, where she had been volunteering. Susan Buffett died in 2004.
Hedge fund managers David Einhorn and Ted Weschler are among the winners of prior auctions. Weschler became a Berkshire portfolio manager after paying a combined $5.25 million to win the 2010 and 2011 auctions.
Berkshire owns dozens of companies including the BNSF railroad; Geico car insurance; many energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N.
Buffett still owns nearly 16% of the Omaha, Nebraska-based conglomerate, despite having donated more than half of his shares since 2006, including $4 billion this week.
He was worth $92.8 billion on Friday afternoon, making him the eighth-richest person worldwide according to Forbes magazine.
(Reporting by Jonathan Stempel in New York Editing by Frances Kerry)
((jon.stempel@thomsonreuters.com; +1 646 223 6317;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire owns dozens of companies including the BNSF railroad; Geico car insurance; many energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - Someone has bid more than $12.3 million at an online auction to win a final, private lunch with billionaire businessman Warren Buffett to benefit a charity that helps the poor, homeless and people battling substance abuse. Proceeds benefit Glide, a nonprofit in San Francisco's Tenderloin district that offers meals, shelter, HIV and hepatitis C tests, job training and children's programs. | Berkshire owns dozens of companies including the BNSF railroad; Geico car insurance; many energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - Someone has bid more than $12.3 million at an online auction to win a final, private lunch with billionaire businessman Warren Buffett to benefit a charity that helps the poor, homeless and people battling substance abuse. Proceeds benefit Glide, a nonprofit in San Francisco's Tenderloin district that offers meals, shelter, HIV and hepatitis C tests, job training and children's programs. | Berkshire owns dozens of companies including the BNSF railroad; Geico car insurance; many energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - Someone has bid more than $12.3 million at an online auction to win a final, private lunch with billionaire businessman Warren Buffett to benefit a charity that helps the poor, homeless and people battling substance abuse. The $12,345,678 bid from an unknown bidder in the auction, which ends on Friday night, far surpasses the previous record $4.57 million that cryptocurrency entrepreneur Justin Sun paid in a similar 2019 auction. | Berkshire owns dozens of companies including the BNSF railroad; Geico car insurance; many energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. The $12,345,678 bid from an unknown bidder in the auction, which ends on Friday night, far surpasses the previous record $4.57 million that cryptocurrency entrepreneur Justin Sun paid in a similar 2019 auction. Prior to this year, Buffett, the 91-year-old chairman and chief executive of Berkshire Hathaway Inc BRKa.N, had helped Glide raise more than $34.1 million by auctioning 20 lunches. |
20638.0 | 2022-06-17 00:00:00 UTC | Warren Buffett charity lunch fetches winning bid of $19 mln | AAPL | https://www.nasdaq.com/articles/warren-buffett-charity-lunch-fetches-winning-bid-of-%2419-mln | nan | nan | By Jonathan Stempel
June 17 (Reuters) - A lucky, and likely wealthy, person bid more than $19 million to dine with Warren Buffett, in the 21st and final time that the billionaire businessman auctioned a private lunch to benefit a San Francisco charity.
The winning bid in the eBay auction that ended on Friday night far surpassed the previous record of $4.57 million, paid in 2019 by cryptocurrency entrepreneur Justin Sun, although the new winner's identity could not immediately be determined.
Proceeds benefit Glide, a nonprofit in San Francisco's Tenderloin district that helps the poor, homeless or those battling substance abuse. Glide offers meals, shelter, HIV and hepatitis C tests, job training and children's programs.
Buffett, 91, the chairman and chief executive of Berkshire Hathaway Inc BRKa.N, has raised more than $53.2 million for Glide in the 21 auctions, which began in 2000.
An eBay spokeswoman said the lunch was the most expensive item ever sold on the company's website to benefit charity.
No auctions were held in 2020 and 2021 because of the COVID-19 pandemic.
Buffett became a supporter of Glide after his first wife Susan, who died in 2004, introduced him to the charity, where she had been volunteering.
He has also pledged to give away nearly all of his fortune. Buffett was worth $93.4 billion on Friday, ranking seventh worldwide, according to Forbes magazine.
This year's auction winner and up to seven guests will dine with Buffett at the Smith & Wollensky steakhouse in Manhattan.
Buffett will talk about almost anything, but not where he may invest next.
Hedge fund managers David Einhorn and Ted Weschler are among previous auction winners.
Weschler became a Berkshire portfolio manager after paying a combined $5.25 million to win the 2010 and 2011 auctions.
Berkshire owns dozens of companies including the BNSF railroad, Geico car insurance, energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N.
Buffett still owns nearly 16% of the Omaha, Nebraska-based conglomerate, despite having donated more than half of his shares since 2006, including $4 billion on June 14.
(Reporting by Jonathan Stempel in New York, Additional reporting by Jahnavi Nidumolu in Bengaluru; Editing by David Gregorio and Clarence Fernandez)
((jon.stempel@thomsonreuters.com; +1 646 223 6317))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire owns dozens of companies including the BNSF railroad, Geico car insurance, energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - A lucky, and likely wealthy, person bid more than $19 million to dine with Warren Buffett, in the 21st and final time that the billionaire businessman auctioned a private lunch to benefit a San Francisco charity. The winning bid in the eBay auction that ended on Friday night far surpassed the previous record of $4.57 million, paid in 2019 by cryptocurrency entrepreneur Justin Sun, although the new winner's identity could not immediately be determined. | Berkshire owns dozens of companies including the BNSF railroad, Geico car insurance, energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - A lucky, and likely wealthy, person bid more than $19 million to dine with Warren Buffett, in the 21st and final time that the billionaire businessman auctioned a private lunch to benefit a San Francisco charity. Hedge fund managers David Einhorn and Ted Weschler are among previous auction winners. | Berkshire owns dozens of companies including the BNSF railroad, Geico car insurance, energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - A lucky, and likely wealthy, person bid more than $19 million to dine with Warren Buffett, in the 21st and final time that the billionaire businessman auctioned a private lunch to benefit a San Francisco charity. The winning bid in the eBay auction that ended on Friday night far surpassed the previous record of $4.57 million, paid in 2019 by cryptocurrency entrepreneur Justin Sun, although the new winner's identity could not immediately be determined. | Berkshire owns dozens of companies including the BNSF railroad, Geico car insurance, energy, manufacturing and retail businesses, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel June 17 (Reuters) - A lucky, and likely wealthy, person bid more than $19 million to dine with Warren Buffett, in the 21st and final time that the billionaire businessman auctioned a private lunch to benefit a San Francisco charity. Glide offers meals, shelter, HIV and hepatitis C tests, job training and children's programs. |
20639.0 | 2022-06-17 00:00:00 UTC | Calming Words for Investors in the Most Recent Bear Market | AAPL | https://www.nasdaq.com/articles/calming-words-for-investors-in-the-most-recent-bear-market | nan | nan | In this podcast, Motley Fool senior analyst Jason Moser discusses:
The pain investors are feeling.
Why he recommends putting cash to work slowly.
DocuSign's (NASDAQ: DOCU) latest quarter meeting management's expectations.
The relative attractiveness of DocuSign's stock.
Coca-Cola's (NYSE: KO) new partnership for Jack Daniel's-and-Coke cocktails in a can.
Plus, shares of Meta Platforms (NASDAQ: META) have fallen 50% so far this year. Is the stock a value play, or is it in the bargain bin for valid reasons? Motley Fool contributors Jose Najarro and Nick Rossolillo take a bull vs. bear approach to the social network.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Meta Platforms, Inc.
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*Stock Advisor returns as of June 2, 2022
This video was recorded on June 13, 2022.
Chris Hill: The bear has arrived, but so have reasons for hope. We got that plus a debate over Meta Platforms. Motley Fool Money starts now. I'm Chris Hill, I am joined by Motley Fool senior analyst Jason Moser. Happy Monday.
Jason Moser: Happy Monday, indeed.
Chris Hill: It's not really a happy Monday in the [laughs] stock market.
Jason Moser: We're trying to instill some positive vibes, Chris, positive vibes only, as big cat might say.
Chris Hill: Yeah, that would be great. But we also need to [laughs] recognize what's happening in the market, and what's happening, the headline is appropriate. The headline is hey, the bear market for the S&P 500 is officially here. We've got a couple hours before the close of the market today, so maybe it pulls out of the nosedive. But let's just for the sake of this conversation, let's assume that it doesn't. We're actually officially down more than 20%, where do you want to start? Because I hear the comment of positive vibes only, and yet you and I were talking earlier today in the office, because we're both in the office today, which is good to say.
Jason Moser: Yeah, it feels good.
Chris Hill: But we were talking earlier today about the amount of negativity, just the sentiment, all of the commentary, the analysts' notes coming out, and we'll get to at least one stock that's taken a turn for the worse recently, and the negative views on that one particular stock. But just in general, there is so much pessimism, Jason. It's hard in times like this to feel good as an investor, and it's hard to feel like, OK, now I am going to be proactive. Even though we know historically, this might be a pretty good time to start looking for ways to deploy cash into the market, even if you're just doing it through index ETFs.
Jason Moser: Yeah. It is clearly a painful time. Again, I want to make sure people understand that. I started out by saying positive vibes only, and of course, you want to do everything you can to try to view things from a glass-half-full perspective. It's really difficult though, and it's difficult for us, too. For you, for me, for those of us, that really do this for a living. I'm right there with you, my portfolio has taken a big hit just like everyone else's. Now, it is a portfolio that I have had for a long time. I've had the good fortune to be able to be introduced to Foolish investing many, many years ago, so I've built a diversified portfolio focused on businesses. Taking that business-first mentality and being an owner of those businesses, and so over time, and I've said this before, the longer you hold these well-diversified portfolios, the easier these stretches are, and this isn't the first bear market that you or I have ever witnessed, and it won't be the last. For some out there listening right now, it is, and it's very understandable that you're feeling some sense of doom.
Some sense of, oh, my God, how is this ever going to recover? The fact of the matter is, that history tells us it's recovered every time. I don't know when, we're not really in the business of market timing, but these markets do recover. It just takes time, and so you keep that in mind. Bear markets absolutely can be painful, but there's some interesting Ned Davis research out there that hopefully puts this in the context. If you look at the last 92 years of market history, bear markets have comprised only about 20.6 of those actual years, and so if you put that into percentages, stocks have been on the rise for 78% of the time.
Overwhelmingly, folks who take the longer view, who continue to invest, who stay invested, benefit from that. You're benefiting from the fact that statistics tell us. The numbers tell us that overall, for the majority of the time, stocks are helping us, not hurting us. Now, that doesn't really do much for you right now at this moment, I know it's painful, but I think you made a good point there. This is a point in time where you have to start looking at some of these opportunities out there and thinking, hey, you know what? Maybe this isn't a bad time to consider putting a little cash to work slowly, and I want to reiterate that because that's what I've been doing myself.
Just small increments, you don't have transaction costs to worry about, so you don't have to worry about putting a certain amount of money to work at any given point in time. I think that really helps. You can take this slowly, and so I would encourage folks to consider, just invest slowly, but this is the time where you need to start really considering putting a little bit of that money to work periodically, whether it's just through dollar-cost averaging, whether it's through your retirement plan where you have money that's contributed every paycheck, continue doing that. Because the numbers tell us, over the long haul, this works out. These markets do recover, it does take time, but these are the times when opportunities do present themselves.
Chris Hill: Just one last thing on the pessimism, because I think this is one of those things that's important for us as investors to remember, is that part of the reason there's so much pessimism is because the people that we pay attention to the most, and that is the executives and their teams leading the companies that we are watching, that we are part owners of the business, the Jamie Dimons of the world, are, I don't want to say he's being pessimistic, by his own admission, he's being very conservative. Part of the reason there's so much pessimism is because companies are coming out with their own guidance, and they're saying, hey, look, we're shoring up our balance sheet. We're ratcheting back our expectations, we don't want to get in a position where we're being overly optimistic because this is not a situation where anyone who does that is going to be rewarded.
Jason Moser: Yeah. I agree with the taking the conservative approach. It is always worth remembering, as bad as it feels that can always get worse. If you look at the current status right now, we're looking at year to date. You've got the Nasdaq down about 30%. You've got the S&P, like we noted, entering bear market territory down 20%, that's not to say it can't get worse. Again, going back to that Ned Davis research, stocks lose 36% on average during a bear market. Now, you contrast that with the fact they gain, on average 114% during a bull market, so clearly, you want to be a part of that bull market. But in order to do that, in order to be a part of that bull market, the cost of doing business, so to speak, is to endure times like these.
Honestly, when you look at that average gain of 114%, you can absolutely outperform that by being opportunistic during times like these, during a bear market. So something worth keeping in mind, but I do absolutely agree, taking the conservative approach, shore up your balance sheet. Cash is a great thing to have right now and you want to put it to work slowly. There is no reason to go all-in because there is a lot going on in the world right now, and there's a lot of stuff that's really out of our control. You hear talk of inflation in the White House, in the Fed, and how can they not control it.
There is a lot of stuff going on in the world and there are a lot of things that are just frankly far out of our control. There are just certain things that are just far out of our control and we don't really have any say-so in the matter. You just have to be able to endure times like these in order to reap the benefits. For folks who are feeling like they're losing a little bit of sleep at night or they just don't feel comfortable in a market like this, this is a great time to consider adding some of those diverse types of index funds or ETFs because that really does help smooth out the bumps along the way.
Chris Hill: I wanted to get your thoughts on DocuSign, and we talked about it on Friday's show. There was a big drop in the stock on Friday after their latest earnings report. Emily Flippen. I'll paraphrase what Emily said, I think I asked her if the stock is down 25 percent is the business 25 percent worse? She basically said this report isn't all that bad, although she did talk about the billings as being a point of worry. This is on a day when the S&P 500 is entering bear market territory. It's not like DocuSign's dropped today, it's against the backdrop of a day where everything else is in the green, but the stock's down another 10% today. As I alluded to earlier, this is one of those businesses that holy cow, the pessimism seems to be really high on this business and I'm wondering what you think of it.
Jason Moser: Well, yeah, the pessimism is high. It was high, not all that long ago, too, right and the stock had recovered a decent bid going into this earnings report, the earnings come out and the stock plummets again back to levels not seen since, I think several months ago, and so you keep that on the perspective there. I'm a DocuSign shareholder, and I've recommended the stock. I continue to be optimistic about it. I'm not selling any of my shares. I think when you look at this quarter, management met its targets first and foremost. That's the standard I always look to first and foremost when I go through these earnings reports. Is management doing what they say they're going to do? In this case, yes, management is doing what they say they're going to do.
I think the market's reaction is rightly so in regard to the billings number, there was a little bit of a revised billings guide that's not great, but it's certainly understandable given the state of the economy and something else called out in the call, management noted the employee attrition. That's not a DocuSign-specific problem, you've got a lot of companies out there today, particularly in this tech space. We know that a lot of these companies, use equity, they use stock-based compensation to bring talent and they try to build up that workforce as they continue to grow. A lot of these companies have witnessed just tremendous pullbacks over the last year, plus they're giving back all those stay-at-home stock gains. DocuSign was one of those companies that really benefited from that tailwind. When DocuSign was closing in on something like $300 a share, whatever it was, it just clearly was way ahead of its skis, it just didn't make a lot of sense.
Now with that said, the business continues to perform very well, but when you look at that billings guidance, you've got higher attrition within the workforce. Part of that is attributed to the great resignation that continues to play out as people go looking for other things. But also employees continue to pursue other options when you bring focus on that promise of equity and net equity tax. You start to see people saying, hey, you know what, maybe I'm going to go somewhere where my compensation is a little bit more guaranteed. What that ultimately does, their pipeline slows down, and that's ultimately what billings comes down to, it's a pipeline thing. It's not to say that DocuSign, the business is suffering, when you look at the actual business itself, it grew revenue 25% from a year ago. It's a full-on subscription business that was up 26% from a year ago. If you look at international revenue up 43%, that makes it now 25% of the total business versus 21% just a year ago.
They're maintaining that net dollar retention rate that was 114% for the quarter, well, within that range that they targeted 112%-119%. They continue to bring big customers, and I think what the customers with greater than $300,000 annualized contract value, that grew 32% from a year ago, there are now 886 of those customers. Then top it off with just this expanding partnership with Microsoft, I think that's a partnership I don't think you want to underestimate given Microsoft's position in the enterprise world, well beyond just consumers, but Microsoft's position in the enterprise world is tremendous. We talk about billings with businesses like these. Billings can often be lumpy, they can be timing-related. They can be short-term noise, they create some opportunities.
I would not look at this billings guide as a sign that the business is in trouble. I think management is taking the sensible, more conservative approach, but they have a very good track record really of growing this business and meeting their goals. They remain confident as they say, that they are on the path to becoming a $5 billion revenue company, which would make it better than two times as big as it is today. I continue to hold my shares regardless of this pullback, and it certainly seems like for folks who are interested, and don't own shares of this company yet, this is a very good business and perhaps this is one of those opportunities it's presenting itself.
Chris Hill: One more thing before I let you go. I view this as a positive, just like on the surface, but also underneath the surface. Coca-Cola is teaming up with Brown-Forman, which is the spirits company behind Jack Daniel's. They're going to be making a Jack-and-Coke cocktail in a can, it'll launch later this year in Mexico, and the plan is to roll it out to other markets, presumably either late this year or into 2023. This is the fourth alcoholic drink in Coke's portfolio. I'm tempted to ask why wasn't this the first [laughs] in their portfolio? But all kidding aside, Jason, I think this is a really interesting development both for the Coca-Cola and Pepsis of the world, but also for the spirits companies. I think this might be the next big wave in the way that hard seltzer was maybe two, or three years ago.
Jason Moser: It feels like it could be. Spirits represent a very resilient market, we see the constant jockeying between beer and wine and spirits and there's always a little bit of an ebb and flow there, but spirits, generally speaking, are very resilient. I do like the idea of partnering up with big brands like Coca-Cola to be able, not only to produce a branded drink that most everybody would be able to recognize, but really also you're just opening up this massive market opportunity, being able to get this ready-made beverage into consumer's hands. This is a very popular drink. I think that it's no accident that you look at a company like Coca-Cola and Brown-Forman and see that they had outperformed the market year to date.
This is a good time for businesses like these and what we've seen, particularly with Coca-Cola, they are examining more ways to present the value proposition to consumers, to get that product into people's hands, whether it's smaller cans, or bigger cans, different size packages. In one way, one more step beyond that is partnerships like this, which combine two very powerful brands, and make it very easy for folks who like this drink to get it in their hands, without necessarily having to make that big investment and I say big, of course, it's relative, but if you want Jack and Coke, you got to go to the liquor store, you got to get to the groceries, you got to do all this stuff to make it happen. This certainly simplifies and so I can see where that would be attractive for fans of the beverage.
Chris Hill: Jason Moser, thanks for being here.
Jason Moser: Thank you.
Chris Hill: Next up we have got a bull versus bear on Meta Platforms. Shares of the business formerly known as Facebook are down 50% this year. Has the stock been beaten up too much, or is Meta Platforms in the bargain ben for perfectly valid reasons? With more, here's Ricky Mulvey.
Ricky Mulvey: Welcome to bear versus bull, the company today we have is Meta, joining us right now, are Nick Rossolillo and Jose Najarro. Good to see you both.
Nick Rossolillo: Good to see you, Ricky. Thanks for having me on today.
Jose Najarro: I'm pretty excited. Thank you for giving us the opportunity to have this showdown.
Ricky Mulvey: Let's start with the bull case. Jose, take it away.
Jose Najarro: First, I want to say the first bullish case that I see for Facebook right now is just the financial strength that they have. Financially, this is a company that has great numbers even with the strong investment push that it's doing right now. Just a quick look at numbers, for example, cash flow, most recent cash flow from operations was about $14 billion versus a 12.2 billion a year ago, so we see some strong growth there. Obviously, that cash flow doesn't really account for some of those capex that it's doing this most recent quarter, but still free cash flow in the most recent quarter was around 8.5 billion versus 7.8 billion a year ago. We can see strong, healthy cash flow coming in from the business. If we take a closer look at that balance sheet, they have roughly about 14.9 billion in cash and cash equivalents and 29 billion in marketable securities.
To top it all off, they have no long-term debt at the moment. We saw that healthy cash flow, that strong balance sheet, and right now in their most recent quarter, they did see revenue growth of about 7%, even with numerous headwinds this company was experiencing. Some of those headwinds were the iOS changes, the e-commerce slowdown supply chain, and the macroeconomics affecting the overall market right now. Personally, I believe that 7% growth was still pretty impressive. If we take a closer look at the second reason, I think this is the eyes continued to be on its platform, and for this being an advertisement-mainly business that is super important. They did show then their most recent quarter family daily active people was 2.87 billion and that was up 6%. Family monthly active people was 3.6 billion and that was also up 6%.
One thing I do feel we hear a lot is Facebook is pretty much one of those dead social platforms, no one uses Facebook anymore. Facebook monthly active users still saw a growth in United States and Canada, even if it was a small number, it just continues to show the strength of their main platform, which is Facebook. Just to give a quick number, 263 million monthly active users in the United States and Canada. This most recent quarter, that was up about 1 million compared to a quarter ago, and up about 4 million compared to a year ago. We're still seeing that growth in users and in one of their most developed markets at the moment. Not only in United States, but they also saw growth overall in Facebook monthly active users, both year over year and quarter over quarter. The other thing on their platform, they are improving their platforms to fend off competition. We have seen a lot of talks of doing things like Facebook Reels, and Instagram Reels. They are moving more into the short-term video, into the long-term videos as well, and incorporating Stories. One thing I am seeing very frequently on the news right now is they are creating new tools to make those creators using the reels, the short videos, and all those stories better.
Most recently they did announce that they are adding things like audio stickers, where creators can interact with their users or with their fans a little bit more. This is, at the end of the day, going to drive more content to their platform. The final reason is probably my favorite reason, and this is their investments in emerging technologies. This is a company that in the next few years is going to be investing in artificial intelligence, in the data center, augmented reality, and virtual reality. First, I just want to show how does artificial intelligence help. First and more importantly, it helps combat the changes of iOS, this is a company now because of those iOS changes is getting fewer data from its users and it's Apple and due to that, it's providing probably lower metrics on its advertisement. With artificial intelligence it can improve that trend, it can improve the advertisement metrics, and in the end, improve the solutions for its customers. The second thing is, that artificial intelligence can help improve suggestions on what users watch or see. Overall improves the experience for the user, improving retention rate, the more time you are in on their platform, the more ads they're able to hit you in with, and the more money they make.
Next, data centers, how are data centers going to help? Again, this improves the experience by investing in data and networking infrastructure. Who wants to go onto Facebook or Instagram or all the other platforms and watch a slow video? With them investing in networking and data centers is going to make sure that, hey, when you're watching a video on their platform is not going to slow down. Again, when you have this improved experience, you're going to also improve the retention rate, with those retention rates, you're also going to see the growth in the advertisements that are being hit. The final one I mentioned was augmented reality and virtual reality. First, I do want to say this is a new form of advertisement, I'd like to believe this is going to be the future of advertising.
One thing, Facebook gets a lot of, I want to say hate for is they try to copy some of their competitors, copy TikTok. This is one of the first times that they are doing their own thing with augmented reality and virtual reality, and I do believe this is going to be the new form of advertisements for some of the big players. The second one is they are designing their own hardware. They're designing the Oculus virtual reality headsets. This is a great move in my opinion because it's going to prevent other players from withholding data. As we saw, one of the biggest weaknesses for Facebook was the iPhone and how they just reduced the data going to the company. If Facebook owns its hardware and it becomes adopted by the consumers, then now Facebook will also be the owner of that data and will be able to strongly advertise and at the end of the day, increase its overall revenues.
Ricky Mulvey: I'm going to cut you off there because we're at five minutes and 30 seconds. Jose Najarro with the bull case. There are going to be a lot of ads in the metaverse, aren't there?
Jose Najarro: Yep, definitely. I think Facebook is going to be a strong player there.
Ricky Mulvey: Little scary. Now with the bear case, Nick Rossolillo.
Nick Rossolillo: I hear you, Jose, those are good reasons to be a bull on Meta or Facebook, whatever we want to call it these days. Coming from a long-term Facebook/Meta shareholder, I've got some serious doubts about this company at this point. Let me break it down for you. User growth in their most important markets, like you, mentioned Jose, the U.S., Canada, also Europe. They're holding onto most of those users, but growth is pretty much tapped out at this point, even in a slight decline in Europe during the first quarter of 2022. And then growth internationally is slowing down as well. Then also in the first quarter of 2022, average revenue per user actually decreased, which led to only 7% revenue growth in the quarter.
That compares to 20% revenue growth in the fourth quarter of 2021. Went from a highflier to basically a post-pandemic pushover in a pretty quick period of time. It gets worse, though, for the second quarter of this year, Meta thinks revenue is going to be 28 billion to 30 billion, which compares to 29 billion last year. We're looking at a possible decrease in revenue year over year, add to that the fact that expenses are going up $87 [billion]-92 billion in full-year expenses this year, that compares to 71 billion last year, about a 23% increase, all in a year where revenue may not even go up beyond 5%. Basically, that means lower profitability.
Operating margins are still pretty good at over 30%, but operating margin has been all over the place the last few years, upwards of 40%, even 50% at times, and now that's in retreat? The big question is why? What's up with Meta? Maybe it's macroeconomics, recession, basically, maybe it's a TikTok issue, maybe it's Apple's device activity tracking changes and transparency, or maybe it's just simply the spending on the metaverse, like you mentioned, Jose. But there is a potential issue as well. Meta categorizes this as reality labs, that's the segment that they report their AR and VR business under. It's on approach to about 3 billion this year in revenue, but about 10 billion in annual spending is expected to help foster this segment. We're talking about a business that's going to be, according to Mark Zuckerberg, a decade or so before we can weigh the merits of this business. It's going to be a while before we can call this a worthwhile investment.
We don't even know what the metaverse is going to look like, I'm fine with that experimental spending. But given Meta's lack of diversification, I wonder if there's maybe some lower-hanging fruit somewhere else that the company could go after, with that 10 billion a year in spending. Speaking of diversification, out of all the things stocks minus Netflix, what's replaced that with Nvidia, replaced the N and FAANG with Nvidia. Out of those companies, Meta's the least diversified as far as revenue streams. I think it might be time to decommission Meta from this exclusive group of tech giants until they can rekindle some growth and prove it's a little bit more of a disruptor versus getting disrupted by some of the other tech giants.
One final point, Jose, you mentioned the balance sheet, 44 billion in cash and equivalents, no debt, that's fantastic. But it compares to 64 billion in cash and equivalents last summer. Where did the cash go? Share repurchases, about 20 billion in share repurchases in the last year. Great, that's fantastic. However, the stock cratered in February. Not exactly money well spent. Basically, to sum it up, Meta is cheap. I'll put that in air quotes, but it's cheap for a pretty good reason. At the moment, this is more looking like a traditional media company with pretty flattish growth and rising expenses, it's profitable, but you can't really categorize it with the other tech giants. I'm just not so sure about this being a resilient growth story, like it has been the last decade since Facebook, Meta's IPO.
Ricky Mulvey: Nick Rossolillo, thank you for the bear side. Jose Najarro, thank you for the bull side. You can decide who made the better argument at Motley Fool Money on Twitter, we'll have a poll up there. Thank you.
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 them, 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.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill has positions in Apple, DocuSign, Microsoft, Nvidia, and PepsiCo Inc. Jason Moser has positions in Apple and DocuSign. Jose Najarro has positions in Meta Platforms, Inc., Microsoft, and Nvidia. Nicholas Rossolillo has positions in Apple, Meta Platforms, Inc., and Nvidia. Ricky Mulvey has positions in Meta Platforms, Inc. and Netflix. The Motley Fool has positions in and recommends Apple, DocuSign, Meta Platforms, Inc., Microsoft, Netflix, Nvidia, and Twitter. The Motley Fool recommends the following options: long January 2024 $60 calls on DocuSign, 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. | We saw that healthy cash flow, that strong balance sheet, and right now in their most recent quarter, they did see revenue growth of about 7%, even with numerous headwinds this company was experiencing. Maybe it's macroeconomics, recession, basically, maybe it's a TikTok issue, maybe it's Apple's device activity tracking changes and transparency, or maybe it's just simply the spending on the metaverse, like you mentioned, Jose. At the moment, this is more looking like a traditional media company with pretty flattish growth and rising expenses, it's profitable, but you can't really categorize it with the other tech giants. | Motley Fool contributors Jose Najarro and Nick Rossolillo take a bull vs. bear approach to the social network. The Motley Fool has positions in and recommends Apple, DocuSign, Meta Platforms, Inc., Microsoft, Netflix, Nvidia, and Twitter. The Motley Fool recommends the following options: long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. | If you look at the last 92 years of market history, bear markets have comprised only about 20.6 of those actual years, and so if you put that into percentages, stocks have been on the rise for 78% of the time. Chris Hill: Just one last thing on the pessimism, because I think this is one of those things that's important for us as investors to remember, is that part of the reason there's so much pessimism is because the people that we pay attention to the most, and that is the executives and their teams leading the companies that we are watching, that we are part owners of the business, the Jamie Dimons of the world, are, I don't want to say he's being pessimistic, by his own admission, he's being very conservative. We're looking at a possible decrease in revenue year over year, add to that the fact that expenses are going up $87 [billion]-92 billion in full-year expenses this year, that compares to 71 billion last year, about a 23% increase, all in a year where revenue may not even go up beyond 5%. | 10 stocks we like better than Meta Platforms, Inc. I don't know when, we're not really in the business of market timing, but these markets do recover. Chris Hill has positions in Apple, DocuSign, Microsoft, Nvidia, and PepsiCo Inc. Jason Moser has positions in Apple and DocuSign. |
20640.0 | 2022-06-17 00:00:00 UTC | Apple Is Betting Big on Sports | AAPL | https://www.nasdaq.com/articles/apple-is-betting-big-on-sports | nan | nan | Apple (NASDAQ: AAPL) recently inked a 10-year deal with Major League Soccer (MLS), reportedly paying a minimum guarantee of $250 million per year to the American soccer league. The deal gives Apple TV+ exclusive global media rights to stream every MLS match.
The move follows a deal with Major League Baseball to stream two regular-season games every Friday night this season. Apple is also the apparent front-runner for the NFL's Sunday Ticket package, and rumors indicate it has already secured those rights as well.
All told, Apple is spending billions on sports rights to fuel the growth of its streaming business.
Is Apple getting good value for its money?
Apple's deal with the MLS is interesting for a couple of reasons. First, the deal is structured as a revenue share with a minimum $250 million guarantee. So if Apple can sell more subscriptions for the MLS package, the league also earns more.
That means the league will likely help push the premium subscription and Apple TV in order to maximize the value of the deal. That's a very interesting strategy from Apple, and it also likely helped it win the bid for the media rights.
The second notable aspect is that games are exempt from local broadcast blackouts. Most leagues are very protective of their television broadcast rights, blacking out local games and pushing fans to subscribe to the cable bundle. Apple's deal will allow local fans to watch their favorite team without a cable subscription.
Apple, unlike some of its competitors, has no financial interest in keeping consumers subscribed to cable. In fact, it may benefit from more cord-cutting. Not paying for cable TV means more room in the budget for streaming services like Apple TV+.
The growing popularity of the MLS could also mean Apple is getting good value for its money. While the MLS surpassed the National Hockey League (NHL) as the fourth-most-popular sports league in the United States last year, the NHL commands $600 million per year for its U.S. media rights alone. Granted, the NHL has more games per season, but Apple's deal allows it to distribute matches internationally (where the MLS is also gaining traction).
Apple will look to cross-promote the MLS service with Apple TV+. Its subscribers will get free access to select games, which could increase the fan base and grow interest in the $4.99-per-month subscription video-on-demand service. Likewise, MLS fans will sign up and access the service through the Apple TV app, giving Apple plenty of opportunities to upsell subscribers.
Winning the game
Sports rights appear to be the next big category for streaming services to go after. Sports have remained one of the big tentpoles of live television programming, keeping consumers subscribed to a cable bundle. But as more consumers cut the cord, sports rights are providing diminishing returns for broadcasters. Meanwhile, they can be a substantial differentiator for a streaming service with the plethora of new competitors.
Even Netflix (NASDAQ: NFLX), which long eschewed the idea of streaming live sports, is starting to change its tune on the matter. There's no doubt the competition is having at least some impact on its subscriber numbers, which declined in the first quarter. The company sees a push into live programming as a way to keep subscribers engaged and reduce churn. Indeed, a four-to-six-month season of regular broadcasts has a much higher chance of keeping members as subscribers than a drama or comedy series that people could binge-watch in one weekend.
Teaming up with popular sports leagues like the MLS, MLB, and NFL can also be a great promotional tool for a streaming service like Apple TV+. No matter how a consumer watches the games (on television, live, or streamed), Apple can get its branding in front of the consumer with a relevant message. That kind of ad integration could prove extremely valuable for pushing sign-ups (as well as other Apple products).
Apple will spend billions of dollars on sports rights in the coming years. The earlier it gets in and the longer the terms of these deals, the better value Apple will likely receive. Sports rights are only increasing in value. While some investors might look at the prices it's paying and get sticker shock, the potential value these deals bring to the streaming service is worth making the bet.
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Adam Levy has positions in Apple and Netflix. The Motley Fool has positions in and recommends Apple and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) recently inked a 10-year deal with Major League Soccer (MLS), reportedly paying a minimum guarantee of $250 million per year to the American soccer league. Indeed, a four-to-six-month season of regular broadcasts has a much higher chance of keeping members as subscribers than a drama or comedy series that people could binge-watch in one weekend. Teaming up with popular sports leagues like the MLS, MLB, and NFL can also be a great promotional tool for a streaming service like Apple TV+. | Apple (NASDAQ: AAPL) recently inked a 10-year deal with Major League Soccer (MLS), reportedly paying a minimum guarantee of $250 million per year to the American soccer league. Most leagues are very protective of their television broadcast rights, blacking out local games and pushing fans to subscribe to the cable bundle. Sports have remained one of the big tentpoles of live television programming, keeping consumers subscribed to a cable bundle. | Apple (NASDAQ: AAPL) recently inked a 10-year deal with Major League Soccer (MLS), reportedly paying a minimum guarantee of $250 million per year to the American soccer league. Apple will look to cross-promote the MLS service with Apple TV+. Likewise, MLS fans will sign up and access the service through the Apple TV app, giving Apple plenty of opportunities to upsell subscribers. | Apple (NASDAQ: AAPL) recently inked a 10-year deal with Major League Soccer (MLS), reportedly paying a minimum guarantee of $250 million per year to the American soccer league. Most leagues are very protective of their television broadcast rights, blacking out local games and pushing fans to subscribe to the cable bundle. Apple, unlike some of its competitors, has no financial interest in keeping consumers subscribed to cable. |
20641.0 | 2022-06-17 00:00:00 UTC | Apple Stock: Bull vs. Bear | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-bull-vs.-bear-0 | nan | nan | Apple (NASDAQ: AAPL) ranks high among the most popular companies in the world. Its flagship product, the iPhone, is one of the most successful tech-based devices of all time.
That popularity has helped make Apple stock successful and in demand for more than a decade now. But is the stock still a buy? There are undoubtedly opinions on both sides.
Let's look at both sides of the argument and see if we can determine whether the bull case or the bear case wins the day on Apple stock.
Bull case: Innovation spanning decades
The decades of proven innovation are at the core of my bull case for Apple. The company has developed multiple iconic products that have generated billions of dollars in sales, and that ability is attractive to investors. The ability to keep coming up with something new that consumers want suggests that Apple can keep the revenue train rolling even when sales of its current lineup start to lose steam (something that is not yet the case with its current lineup).
Annual revenue has gone from $156 billion a decade ago to $365 billion in the latest fiscal year. That growth boosted annual operating income from $55 billion to $109 billion over the same timeframe. The various iterations of the iPhone have fueled much of that surge and show no significant signs of slowing down.
In Apple's most recent quarter, sales of the iPhone (now in its 13th iteration) increased from $47.9 billion in the prior year's quarter to $50.6 billion. The most recent update included the latest 5G technology, spurring higher-than-average upgrades from older models.
Moreover, the popularity of the iPhone has allowed Apple to build a robust services business that complements the pioneering smartphone. The company boasts a whopping 825 million service subscribers, an increase of 165 million from last year. Its lineup includes Apple Music, Apple TV+, iCloud, Apple Fitness, and more. Note the gross margin on its services segment is 72.6%, while that of its products is 36.4%.
Those 825 million subscribers are not only providing high-margin revenue to Apple, but are also prime candidates to buy its latest products. Once customers enter the Apple ecosystem and customize their products and services to their liking, they'll likely stick around long term.
Bear case: Heavy dependence on iPhone
The bear case concedes that Apple is a tremendously successful innovator with decades of proof. However, the case against investing in Apple centers around its iPhone dependence. While Apple has done an excellent job creating sought-after consumer electronics like the iPod, iPad, AirPods, Apple Watch, etc., it's still largely dependent on the iPhone.
In its most recent quarter, the iPhone comprised 52% of the company's overall sales. That's not even including all the attachments that go along with it. The risk is that if Apple doesn't continue its iPhone success, revenue growth could stall or even reverse. Similarly, if another business creates a more attractive consumer electronic that unseats the iPhone, it could be disastrous for Apple.
There are hints of wearable glasses that could be capable of everything a smartphone can do and more. Virtual-reality headsets are gaining in popularity alongside the metaverse. Innovation is unpredictable. For Apple to rely so heavily on one product for 52% of its sales adds a layer of risk to the business.
The bulls win out
Overall, the bull case carries more weight. Admittedly, there's a risk in Apple's dependence on the iPhone. That being said, with its decades-long history of creating multiple innovative products, Apple stands a reasonable chance of pivoting to the next popular thing when it comes to light.
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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 (NASDAQ: AAPL) ranks high among the most popular companies in the world. The company has developed multiple iconic products that have generated billions of dollars in sales, and that ability is attractive to investors. Moreover, the popularity of the iPhone has allowed Apple to build a robust services business that complements the pioneering smartphone. | Apple (NASDAQ: AAPL) ranks high among the most popular companies in the world. In Apple's most recent quarter, sales of the iPhone (now in its 13th iteration) increased from $47.9 billion in the prior year's quarter to $50.6 billion. Bear case: Heavy dependence on iPhone The bear case concedes that Apple is a tremendously successful innovator with decades of proof. | Apple (NASDAQ: AAPL) ranks high among the most popular companies in the world. Bull case: Innovation spanning decades The decades of proven innovation are at the core of my bull case for Apple. Its lineup includes Apple Music, Apple TV+, iCloud, Apple Fitness, and more. | Apple (NASDAQ: AAPL) ranks high among the most popular companies in the world. But is the stock still a buy? In Apple's most recent quarter, sales of the iPhone (now in its 13th iteration) increased from $47.9 billion in the prior year's quarter to $50.6 billion. |
20642.0 | 2022-06-17 00:00:00 UTC | 2 Warren Buffett Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-and-hold-forever-1 | nan | nan | There's a reason individual investors look to investing guru Warren Buffett for advice, and it's as simple as his outstanding long-term gains. His holding company, Berkshire Hathaway, has massively outperformed the market over the past 30 years.
BRK.A data by YCharts
As you can see in the chart above, Berkshire's gains over the broader market grow over time, which is why keeping high-conviction stocks for a long period is such as an important element of a strong investment portfolio.
Even Buffett sells stocks sometimes. He closed out a long-term position in Costco Wholesale in 2020, and he trimmed his position in Apple. But he has said that his favorite holding period is "forever," and his portfolio stays close to intact from quarter to quarter. And while individual investors shouldn't necessarily try to copy his exact moves, it makes sense to see which Buffett stocks could enhance your portfolio.
Two major Buffett holdings, Amazon (NASDAQ: AMZN) and Coca-Cola (NYSE: KO), could be a great addition to anyone's portfolio. Let's see why.
No peers in e-commerce
Amazon is the largest e-commerce company in the world by far. According to Statista, it accounts for around half of all U.S. e-commerce volume. Product sales fell slightly year over year in the 2022 first quarter after a 44% increase last year, and costs ballooned as a result of inflation, increased wages, and supply chain issues. But management is closing down some of the added infrastructure it built to handle the extra demand last year, and as it gets costs under control and the market balances out, it has a long growth runway ahead.
Prime members continue to be a significant growth generator; the company added millions of them in the first quarter. As they engage with Amazon and rely on it for everything from diapers to patio furniture, Amazon will continue to maintain its hold on e-commerce. It's also working on improvements in delivery time, making it even more essential and harder to compete with in this way.
With all the challenges facing retail today, Amazon has a pressure valve in Amazon Web Services (AWS). AWS is still posting fabulous growth with a 37% increase in revenue in the first quarter as well as a 55% increase in operating income. That picked up some of the slack from operating losses in the other segments. AWS is developing new technology in an increasingly competitive environment for cloud computing, and it's winning over new clients as well as inking deals for expanded partnerships with clients such as MongoDB.
The e-commerce market is expected to continue growing, and Amazon is well-positioned to keep its top spot and widen its presence. It also has AWS to pad sales and help with profitability along the way, and it's entering new businesses such as healthcare and physical grocery stores. This is a no-brainer forever stock that should reward shareholders for many years.
Dividends and security are a great combination
Coca-Cola isn't known as a great dividend stock just because of its high yield. It's as reliable as any dividend gets, which becomes important in tough times. Other companies suspended their dividends, such as Walt Disney, which still hasn't reinstated it. Coca-Cola management made it clear that keeping the dividend was a priority despite declining sales, and it raised it during that time as well. In fact, the company has raised its dividend annually for the past 60 years, making it a Dividend King with one of the longest streaks of dividend raises that exists. The stock typically yields around 3%.
KO Dividend data by YCharts
After posting declines for several quarters in the early stages of the pandemic, Coke's sales growth has returned with a vengeance. Net revenue increased 16% in the first quarter (ended April 1) to $10.5 billion, and earnings per share increased 23% to $0.64. That was despite inflationary pressures and the company halting operations in Russia.
Volume was up in all segments, not just the away-from-home business that suffered when people were staying home during the lockdown phase of the pandemic. Management restructured for improved efficiencies when sales were decreasing, and that has led to an overall stronger business even now that it's eased up.
As the largest beverage company in the world, with plenty of cash coming in, it's able to pour money into growth ventures even as it pays its dividend, keeping its top spot. For safe growth and a strong dividend, it's hard to beat Coca-Cola stock.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, MongoDB, and Walt Disney. The Motley Fool recommends the following options: 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 $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. | BRK.A data by YCharts As you can see in the chart above, Berkshire's gains over the broader market grow over time, which is why keeping high-conviction stocks for a long period is such as an important element of a strong investment portfolio. But management is closing down some of the added infrastructure it built to handle the extra demand last year, and as it gets costs under control and the market balances out, it has a long growth runway ahead. As the largest beverage company in the world, with plenty of cash coming in, it's able to pour money into growth ventures even as it pays its dividend, keeping its top spot. | KO Dividend data by YCharts After posting declines for several quarters in the early stages of the pandemic, Coke's sales growth has returned with a vengeance. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, MongoDB, and Walt Disney. The Motley Fool recommends the following options: 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 $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. | In fact, the company has raised its dividend annually for the past 60 years, making it a Dividend King with one of the longest streaks of dividend raises that exists. See the 10 stocks *Stock Advisor returns as of June 2, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool recommends the following options: 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 $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. | BRK.A data by YCharts As you can see in the chart above, Berkshire's gains over the broader market grow over time, which is why keeping high-conviction stocks for a long period is such as an important element of a strong investment portfolio. AWS is still posting fabulous growth with a 37% increase in revenue in the first quarter as well as a 55% increase in operating income. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Costco Wholesale, MongoDB, and Walt Disney. |
20643.0 | 2022-06-17 00:00:00 UTC | SNAP Likely to Roll Out Paid Subscription Feature Snapchat+ | AAPL | https://www.nasdaq.com/articles/snap-likely-to-roll-out-paid-subscription-feature-snapchat | nan | nan | Snap Inc. SNAP, the parent company of the photo messaging app, Snapchat, is reportedly doing early internal testing for a new subscription service called Snapchat+ that would give subscribers access to exclusive and pre-release features, per The Verge Report.
According to screenshots and information posted on Twitter by app researcher Alessandro Paluzzi, subscribers on Snapchat+ will be able to pin friends to the top of their list as #1 BFF, gain access to exclusive icons, show a special badge on their profile, and also see how many friends have re-watched their Stories.
Snapchat+ would cost 4.59 euros for a one-month subscription or 45.99 euros for one year, with a discount for those who subscribe to a semi-annual or annual plan, according to the screenshots Paluzzi posted on Twitter.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snapchat+ Likely to Aid Snap’s Declining Revenues
Snapchat+ is one way through which the company is looking to get more revenues amid economic challenges, supply-chain disruptions and inflation, which may continue to affect revenue growth and advertising demand.
The move toward a subscription-based business model may be the result of App Tracking Transparency, a feature introduced by Apple AAPL in iOS 14 that requires apps to ask users before tracking their data. Companies like Snap and Meta META have admitted that Apple’s new guideline policies have been affecting their revenues, which are largely based on advertisements.
Snapchat, in particular, cited changes to iOS as a reason for missed revenue targets and has said that it will slow down hiring this year. Snap has added a number of features, including the Tab feature on Friends and Discover to make its Snapchat platform more attractive to users and advertisers.
Moreover, this Zacks Rank #3 (Hold) company’s transition to an automated or programmatic auction of Snap Ads is driving its advertising revenues. The company’s advertising products include Snap Ads and Sponsored Creative Tools like Sponsored Lenses and Sponsored Geofilters. Moreover, Snapchat’s new conversion tracking tool, Snap Pixel, is also gaining traction. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In first-quarter 2022, Snap’s daily active users (DAUs) grew 18% to 332 million year on year. By introducing new subscription plans, these companies expect to offset losses in advertising revenues by charging for access to exclusive features that won’t be available to free users.
Snapchat is not the only social network that has been working on subscription plans. Last year, Twitter TWTR launched its Twitter Blue subscription service that also unlocked additional features for $2.99 per month. More recently, Telegram also confirmed that it has plans to introduce a Premium subscription with extra features later this month, although the pricing remains unclear.
Meta-owned Instagram is also testing the same subscription plans but for creators only, as of now. Instagram expects that with subscriptions, creators will be able to develop deeper connections with their most engaged followers and grow their recurring monthly income by giving subscribers access to exclusive content and benefits.
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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 move toward a subscription-based business model may be the result of App Tracking Transparency, a feature introduced by Apple AAPL in iOS 14 that requires apps to ask users before tracking their data. Apple Inc. (AAPL): Free Stock Analysis Report Moreover, this Zacks Rank #3 (Hold) company’s transition to an automated or programmatic auction of Snap Ads is driving its advertising revenues. | Apple Inc. (AAPL): Free Stock Analysis Report The move toward a subscription-based business model may be the result of App Tracking Transparency, a feature introduced by Apple AAPL in iOS 14 that requires apps to ask users before tracking their data. Twitter, Inc. (TWTR): Free Stock Analysis Report | The move toward a subscription-based business model may be the result of App Tracking Transparency, a feature introduced by Apple AAPL in iOS 14 that requires apps to ask users before tracking their data. Apple Inc. (AAPL): Free Stock Analysis Report SNAP, the parent company of the photo messaging app, Snapchat, is reportedly doing early internal testing for a new subscription service called Snapchat+ that would give subscribers access to exclusive and pre-release features, per The Verge Report. | The move toward a subscription-based business model may be the result of App Tracking Transparency, a feature introduced by Apple AAPL in iOS 14 that requires apps to ask users before tracking their data. Apple Inc. (AAPL): Free Stock Analysis Report SNAP, the parent company of the photo messaging app, Snapchat, is reportedly doing early internal testing for a new subscription service called Snapchat+ that would give subscribers access to exclusive and pre-release features, per The Verge Report. |
20644.0 | 2022-06-17 00:00:00 UTC | Regulator calls for Big Tech privacy cases to be handled by EU watchdog | AAPL | https://www.nasdaq.com/articles/regulator-calls-for-big-tech-privacy-cases-to-be-handled-by-eu-watchdog | nan | nan | By Foo Yun Chee
BRUSSELS, June 17 (Reuters) - Cross-border Big Tech privacy cases should be handled by the EU watchdog rather than national agencies, the head of the bloc's data protection watchdog said on Friday as he lamented the poor enforcement of landmark rules adopted four years ago.
The rules known as the General Data Protection Regulation (GDPR) have drawn criticism over the costs of compliance and long-running investigations with few decisions.
The Irish regulator, which has oversight of Google GOOGL.O, Meta FB.O, Apple AAPL.O, Microsoft MSFT.O and Twitter TWTR.N, has in particular come under fire for its slow pace of enforcement.
One solution could be to hand over big cases to the European Data Protection Board (EDPB) whose members are national privacy regulators and the European Data Protection Supervisor (EDPS) which oversees EU institutions, EDPS head Wojciech Wiewiorowski said.
"I myself share views of those who believe we still do not see sufficient enforcement, in particular against Big Tech," he told a conference.
"At a certain moment, a pan-European data protection enforcement model is going to be a necessary step to ensure real and consistent high-level protection of fundamental rights to data protection and privacy across the European Union," Wiewiorowski said.
He said this could mean that key investigations, based on a certain threshold, would be done at a central level, in essence the EDPB, and subject to direct scrutiny of Europe's top court.
Empowering the EDPB to take on Big Tech cases directly would mean changing GDPR rules, a move which the European Commission is unlikely to do under the current leadership because of insufficient time, a European Commission official told Reuters.
(Reporting by Foo Yun Chee; Editing by Alison Williams)
((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. | The Irish regulator, which has oversight of Google GOOGL.O, Meta FB.O, Apple AAPL.O, Microsoft MSFT.O and Twitter TWTR.N, has in particular come under fire for its slow pace of enforcement. By Foo Yun Chee BRUSSELS, June 17 (Reuters) - Cross-border Big Tech privacy cases should be handled by the EU watchdog rather than national agencies, the head of the bloc's data protection watchdog said on Friday as he lamented the poor enforcement of landmark rules adopted four years ago. The rules known as the General Data Protection Regulation (GDPR) have drawn criticism over the costs of compliance and long-running investigations with few decisions. | The Irish regulator, which has oversight of Google GOOGL.O, Meta FB.O, Apple AAPL.O, Microsoft MSFT.O and Twitter TWTR.N, has in particular come under fire for its slow pace of enforcement. By Foo Yun Chee BRUSSELS, June 17 (Reuters) - Cross-border Big Tech privacy cases should be handled by the EU watchdog rather than national agencies, the head of the bloc's data protection watchdog said on Friday as he lamented the poor enforcement of landmark rules adopted four years ago. The rules known as the General Data Protection Regulation (GDPR) have drawn criticism over the costs of compliance and long-running investigations with few decisions. | The Irish regulator, which has oversight of Google GOOGL.O, Meta FB.O, Apple AAPL.O, Microsoft MSFT.O and Twitter TWTR.N, has in particular come under fire for its slow pace of enforcement. By Foo Yun Chee BRUSSELS, June 17 (Reuters) - Cross-border Big Tech privacy cases should be handled by the EU watchdog rather than national agencies, the head of the bloc's data protection watchdog said on Friday as he lamented the poor enforcement of landmark rules adopted four years ago. One solution could be to hand over big cases to the European Data Protection Board (EDPB) whose members are national privacy regulators and the European Data Protection Supervisor (EDPS) which oversees EU institutions, EDPS head Wojciech Wiewiorowski said. | The Irish regulator, which has oversight of Google GOOGL.O, Meta FB.O, Apple AAPL.O, Microsoft MSFT.O and Twitter TWTR.N, has in particular come under fire for its slow pace of enforcement. The rules known as the General Data Protection Regulation (GDPR) have drawn criticism over the costs of compliance and long-running investigations with few decisions. One solution could be to hand over big cases to the European Data Protection Board (EDPB) whose members are national privacy regulators and the European Data Protection Supervisor (EDPS) which oversees EU institutions, EDPS head Wojciech Wiewiorowski said. |
20645.0 | 2022-06-17 00:00:00 UTC | Buy, Sell, or Hold SoFi Stock After Apple’s Announcement? | AAPL | https://www.nasdaq.com/articles/buy-sell-or-hold-sofi-stock-after-apples-announcement | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When markets staged a late-month rally in May, SoFi Technologies (NASDAQ:SOFI) joined it. SoFi stock stalled at the 50-day moving average. This is a technical resistance where selling pressure ended the attempted breakout. Apple’s (NASDAQ:AAPL) aggressive promotion of Apple Pay last week spooked SoFi investors. The technology giant already offers convenient monthly payment options. Apple will not only charge zero interest, but it will also forgive customers who do not pay back. Furthermore, the credit rating for those customers will not fall because Apple will not report the non-payment.
Apple’s ambitions to increase adoption of Apple Pay casts doubt on SoFi, a fintech.
Ticker Company Current Price
SOFI SoFi Technologies, Inc. $5.77
Fintech Sell-Off Drags SoFi Stock Lower
Apple’s BNPL announcement shocked investors exposed to credit services and fintech. Last week, PayPal (NASDAQ:PYPL), Block (NYSE:SQ), Affirm Holdings (NASDAQ:AFRM) and Upstart Holdings (NASDAQ:UPST) fell along with SoFi. Markets are adjusting for the substantial competitive risks ahead.
Credit balances financially stretched consumers. They have too much debt. They will need time to pay back the amount owed. BNPL will become a growing market. Before Apple announced the offering, markets thought that fintech would have an edge in the market. They bid shares of Affirm for over $176 late last year. PayPal stock traded as high as $310.16 in the last year before markets. Soon, investors realized faced a sharp slowdown in the electronic payment supplier’s core business.
SoFi Has No Moat
The bears are betting big against SoFi. The short float is 18% as negative investors believe SoFi’s business lacks a moat. To outflank established financial institutions like Wells Fargo (NYSE:WFC) or Bank of America (NYSE:BAC), SoFi needs above-average customer growth. As market conditions tighten, it will have higher marketing costs. For example, it must offer higher incentives and offer little to no service fees.
7 Long-Term Stocks That Never Go Out of Style
SoFi’s aggressive incentives will likely attract customers who are struggling financially. Conversely, banks have an established infrastructure to service new and existing customers. For example, they have staff to provide customer support in the branch or over the phone.
SoFi is among the many fintech firms with limited customer support services. Customers who need to talk to a service representative must do so online or through email. The response could take days.
Reduce SoFi From Here
Apple disrupted the fintech market with BNPL. It is willing to forgive customers who do not pay back, albeit only once. Still, customers enjoy that comfort in exchange for using Apple Pay.
Once attached to Apple Pay, customers have one less reason to sign up for SoFi’s services. Markets are preparing for the severe competition that SoFi faces from here.
On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Buy, Sell, or Hold SoFi Stock After Apple’s Announcement? 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 (NASDAQ:AAPL) aggressive promotion of Apple Pay last week spooked SoFi investors. Soon, investors realized faced a sharp slowdown in the electronic payment supplier’s core business. 7 Long-Term Stocks That Never Go Out of Style SoFi’s aggressive incentives will likely attract customers who are struggling financially. | Apple’s (NASDAQ:AAPL) aggressive promotion of Apple Pay last week spooked SoFi investors. Ticker Company Current Price SOFI SoFi Technologies, Inc. $5.77 Fintech Sell-Off Drags SoFi Stock Lower Apple’s BNPL announcement shocked investors exposed to credit services and fintech. Last week, PayPal (NASDAQ:PYPL), Block (NYSE:SQ), Affirm Holdings (NASDAQ:AFRM) and Upstart Holdings (NASDAQ:UPST) fell along with SoFi. | Apple’s (NASDAQ:AAPL) aggressive promotion of Apple Pay last week spooked SoFi investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When markets staged a late-month rally in May, SoFi Technologies (NASDAQ:SOFI) joined it. Ticker Company Current Price SOFI SoFi Technologies, Inc. $5.77 Fintech Sell-Off Drags SoFi Stock Lower Apple’s BNPL announcement shocked investors exposed to credit services and fintech. | Apple’s (NASDAQ:AAPL) aggressive promotion of Apple Pay last week spooked SoFi investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When markets staged a late-month rally in May, SoFi Technologies (NASDAQ:SOFI) joined it. Before Apple announced the offering, markets thought that fintech would have an edge in the market. |
20646.0 | 2022-06-17 00:00:00 UTC | US STOCKS-Futures rebound after rout but recession worries weigh | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-rebound-after-rout-but-recession-worries-weigh | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.57%, S&P 0.81%, Nasdaq 1.10%
June 17 (Reuters) - U.S. stock index futures bounced back on Friday from a brutal Wall Street selloff this week after the Federal Reserve's largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC have both plunged 6% so far this week, with the former shedding nearly $2 trillion in this week's selloff alone.
The Fed on Wednesday raised its key rate by 75 basis points to tame decades-high inflation, and officials outlined a faster pace of rate hikes. The Bank of England and the Swiss National Bank also raised borrowing costs, adding to worries of a global economic downturn.
"Even the most ardent buy-the-dipper in the equity space is starting to realize inflation is a threat, with central banks prepared to hike the world into a slowdown and possible recession to get on top of it," said Jeffrey Halley, senior market analyst at OANDA.
Fed Chair Jerome Powell is scheduled to speak at a conference on the "International Roles of the U.S. Dollar" at 8:45 a.m. ET.
The S&P 500 has slumped about 23% this year and recently confirmed it was in bear market territory, or down 20% from its record closing high. The Dow is also on the cusp of confirming its own bear market.
Mega-cap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained about 1% each in premarket trading after a hammering on Thursday.
The expiration of monthly options contracts is expected to add to the volatility ahead of the Juneteenth market holiday on Monday.
At 06:49 a.m. ET, Dow e-minis 1YMcv1 were up 172 points, or 0.57%, S&P 500 e-minis EScv1 were up 29.75 points, or 0.81%, and Nasdaq 100 e-minis NQcv1 were up 123.25 points, or 1.1%.
U.S. shares of Alibaba Group Holding Ltd 9988.HK, BABA.N jumped 10% after Reuters reported China's central bank has accepted an application by Ant Group, an affiliate of the Chinese e-commerce behemoth, to set up a financial holding company.
United States Steel Corp X.N rose 7.3% after posting an upbeat second-quarter profit forecast.
S&P 500 market value over the past 12 monthshttps://tmsnrt.rs/39uLBJU
(Reporting by Anisha Sircar in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Anisha.Sircar@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. | Mega-cap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained about 1% each in premarket trading after a hammering on Thursday. Futures up: Dow 0.57%, S&P 0.81%, Nasdaq 1.10% June 17 (Reuters) - U.S. stock index futures bounced back on Friday from a brutal Wall Street selloff this week after the Federal Reserve's largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession. "Even the most ardent buy-the-dipper in the equity space is starting to realize inflation is a threat, with central banks prepared to hike the world into a slowdown and possible recession to get on top of it," said Jeffrey Halley, senior market analyst at OANDA. | Mega-cap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained about 1% each in premarket trading after a hammering on Thursday. Futures up: Dow 0.57%, S&P 0.81%, Nasdaq 1.10% June 17 (Reuters) - U.S. stock index futures bounced back on Friday from a brutal Wall Street selloff this week after the Federal Reserve's largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession. ET, Dow e-minis 1YMcv1 were up 172 points, or 0.57%, S&P 500 e-minis EScv1 were up 29.75 points, or 0.81%, and Nasdaq 100 e-minis NQcv1 were up 123.25 points, or 1.1%. | Mega-cap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained about 1% each in premarket trading after a hammering on Thursday. Futures up: Dow 0.57%, S&P 0.81%, Nasdaq 1.10% June 17 (Reuters) - U.S. stock index futures bounced back on Friday from a brutal Wall Street selloff this week after the Federal Reserve's largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession. "Even the most ardent buy-the-dipper in the equity space is starting to realize inflation is a threat, with central banks prepared to hike the world into a slowdown and possible recession to get on top of it," said Jeffrey Halley, senior market analyst at OANDA. | Mega-cap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained about 1% each in premarket trading after a hammering on Thursday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.57%, S&P 0.81%, Nasdaq 1.10% June 17 (Reuters) - U.S. stock index futures bounced back on Friday from a brutal Wall Street selloff this week after the Federal Reserve's largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession. |
20647.0 | 2022-06-17 00:00:00 UTC | 65% of Warren Buffett's Portfolio Is Invested in These 4 Stocks | AAPL | https://www.nasdaq.com/articles/65-of-warren-buffetts-portfolio-is-invested-in-these-4-stocks | nan | nan | Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) have for years done an excellent job of creating shareholder value, particularly through the company's $314 billion-plus equities portfolio. One of Buffett's tips for the investing community is to go in big when you see a good opportunity.
Buffett is actually not a big fan of diversification, having famously said that it is a "protection against ignorance" and "makes little sense if you know what you're doing." This theme is quite evident in Berkshire's portfolio, which is heavily concentrated among just a handful of names. Even right now with all of the market volatility, nearly 65% of Buffett and Berkshire's portfolio is composed of these four stocks.
Apple: 39%
For those that follow Buffett, it should come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest position in Berkshire's portfolio, making up more than a third. Berkshire began buying Apple in 2016 and now owns more than 911 million shares valued at more than $121.7 billion.
One reason Buffett loves Apple is because of the company's durable cash-generating business. In the company's most recent quarter, Apple had more than $28 billion of operating cash flow and a profit of more than $25 billion. For the fiscal year 2021, Apple generated more than $104 billion of operating cash flow. This has enabled Apple to buy back a lot of stock, which we know Buffett loves. Apple has now repurchased more than $467 billion of its stock over the past decade.
Apple has also created one of the world's most enviable brands with products like the iPhone, and there are more than 1.8 billion active Apple devices. This kind of brand power is particularly helpful in times of inflation because consumers are so loyal that Apple can pass on rising costs to consumers. All of these reasons help explain why Apple stock has appreciated almost 280% over the last five years.
Bank of America: 10.4%
Buffett knows the banking sector incredibly well and has long been an investor in large bank stocks. Interestingly, as Buffett and Berkshire were selling other large bank stocks like JPMorgan Chase, Goldman Sachs, and Wells Fargo during the early months of the pandemic, it was buying Bank of America (NYSE: BAC). Berkshire plowed more than $2 billion into the stock in 12 consecutive trading days in August 2020. Berkshire now owns just under 12% of shares outstanding and could be allowed to purchase up to nearly 25% of the stock, according to the Federal Reserve.
Bank of America is a huge beneficiary of rising interest rates and will see net interest income, the profits banks make on loans, securities, and cash after funding those assets, soar as the Fed continues to hike rates. Bank of America has also greatly improved its deposit base, which is now composed of even more sticky, low-cost retail deposits that will reprice slower as rates go up.
The bank has also successfully built out its investment banking and trading operations, which are now among the dominant players in the industry. Although underwriting activity for events like initial public offerings is way down, all of this market volatility will help Bank of America's trading businesses. Bank of America is also planning to keep expenses unchanged this year, which would be a great accomplishment amid rising inflation.
Chevron: 8.2%
Buffett and Berkshire have had a bit of a mixed relationship with Chevron (NYSE: CVX). Berkshire first bought the stock in 2020, then sold some of it in 2021, and then bought significantly more toward the end of 2021 and in the first quarter of this year. Overall, Berkshire now owns roughly 159.2 million shares of Chevron valued at more than $26.1 billion, making it a top position.
Clearly, Buffett got much more interested in U.S. oil stocks as Russia's invasion of Ukraine played out and as the cost of oil exploded to more than $120 per barrel at times. Chevron recently traded at all-time highs but has since sold off a bit. Earlier this year, the company raised its free cash flow projections and share- repurchase plans.
There is certainly debate about which direction oil prices could head in the near and long term, but Chevron has said it can cover its capital return aspirations with the price of oil below $50 per barrel. The company has paid a dividend for 35 straight years and currently has an attractive annual dividend yield of roughly 3.4%.
American Express: 7%
The credit card and payments company American Express (NYSE: AXP) is another one of those brands that Buffett absolutely loves and has admired over the years because of the intense customer loyalty it commands. Buffett has owned American Express since the 1960s.
Last July, AmEx raised the annual subscription fee for its platinum card from $550 to $695. Since then, the company has still seen strong card growth, adding a record 3 million new card accounts in the first quarter of 2022, 68% of which were new fee-based cards such as the platinum card.
Credit card companies can do well with rising interest rates because they can charge higher interest on purchase balances. However, credit card companies can also struggle with high inflation if it slows consumer spending or if inflation tips the economy into a recession and loan losses rise. Still, American Express has one of the best brands in the industry, and Buffett and Berkshire have ridden out many recessions holding the stock.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: 39% For those that follow Buffett, it should come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest position in Berkshire's portfolio, making up more than a third. Although underwriting activity for events like initial public offerings is way down, all of this market volatility will help Bank of America's trading businesses. Overall, Berkshire now owns roughly 159.2 million shares of Chevron valued at more than $26.1 billion, making it a top position. | Apple: 39% For those that follow Buffett, it should come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest position in Berkshire's portfolio, making up more than a third. American Express: 7% The credit card and payments company American Express (NYSE: AXP) is another one of those brands that Buffett absolutely loves and has admired over the years because of the intense customer loyalty it commands. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Apple: 39% For those that follow Buffett, it should come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest position in Berkshire's portfolio, making up more than a third. Interestingly, as Buffett and Berkshire were selling other large bank stocks like JPMorgan Chase, Goldman Sachs, and Wells Fargo during the early months of the pandemic, it was buying Bank of America (NYSE: BAC). See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Apple: 39% For those that follow Buffett, it should come as no surprise to hear that the consumer tech giant Apple (NASDAQ: AAPL) is the largest position in Berkshire's portfolio, making up more than a third. Even right now with all of the market volatility, nearly 65% of Buffett and Berkshire's portfolio is composed of these four stocks. Berkshire began buying Apple in 2016 and now owns more than 911 million shares valued at more than $121.7 billion. |
20648.0 | 2022-06-17 00:00:00 UTC | Is Trending Stock Apple Inc. (AAPL) a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-trending-stock-apple-inc.-aapl-a-buy-now-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 -5.3%, compared to the Zacks S&P 500 composite's -8.3% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 10.7%. 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
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.14 per share, indicating a change of -12.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $6.11 for the current fiscal year indicates a year-over-year change of +8.9%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.63 indicates a change of +8.6% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +117.6%.
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 $82.44 billion for the current quarter points to a year-over-year change of +1.2%. The $394.45 billion and $420.11 billion estimates for the current and next fiscal years indicate changes of +7.8% and +6.5%, 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
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
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Apple Inc. (AAPL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report Over the past month, shares of this maker of iPhones, iPads and other products have returned -5.3%, compared to the Zacks S&P 500 composite's -8.3% change. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast 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. | 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. |
20649.0 | 2022-06-17 00:00:00 UTC | Pre-Market Most Active for Jun 17, 2022 : REV, TQQQ, BABA, SQQQ, NIO, QQQ, JD, CCL, AAPL, NOK, ERIC, RLX | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-jun-17-2022-%3A-rev-tqqq-baba-sqqq-nio-qqq-jd-ccl-aapl-nok-eric | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 87.67 to 11,215.24. The total Pre-Market volume is currently 41,684,992 shares traded.
The following are the most active stocks for the pre-market session:
Revlon, Inc. (REV) is +1.01 at $2.96, with 12,200,667 shares traded. REV's current last sale is 34.82% of the target price of $8.5.
ProShares UltraPro QQQ (TQQQ) is +0.77 at $22.63, with 5,647,909 shares traded., following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is +11.52 at $112.97, with 2,447,990 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is -1.9501 at $64.14, with 2,289,231 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is +1.03 at $20.21, with 1,459,619 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +3.07 at $274.46, with 1,313,872 shares traded., following a 52-week high recorded in prior regular session.
JD.com, Inc. (JD) is +6 at $68.01, with 1,023,549 shares traded. As reported by Zacks, the current mean recommendation for JD is in the "buy range".
Carnival Corporation (CCL) is +0.3 at $9.05, with 1,012,766 shares traded., following a 52-week high recorded in prior regular session.
Apple Inc. (AAPL) is +1.2399 at $131.30, with 693,863 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Nokia Corporation (NOK) is +0.1 at $4.68, with 529,398 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Ericsson (ERIC) is +0.06 at $7.36, with 462,470 shares traded. ERIC's current last sale is 53.53% of the target price of $13.75.
RLX Technology Inc. (RLX) is +0.09 at $2.49, with 433,304 shares traded. RLX's current last sale is 165.89% of the target price of $1.501.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +1.2399 at $131.30, with 693,863 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is +0.77 at $22.63, with 5,647,909 shares traded., following a 52-week high recorded in prior regular session. | Apple Inc. (AAPL) is +1.2399 at $131.30, with 693,863 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is +0.77 at $22.63, with 5,647,909 shares traded., following a 52-week high recorded in prior regular session. | Apple Inc. (AAPL) is +1.2399 at $131.30, with 693,863 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is +0.77 at $22.63, with 5,647,909 shares traded., following a 52-week high recorded in prior regular session. | Apple Inc. (AAPL) is +1.2399 at $131.30, with 693,863 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 87.67 to 11,215.24. |
20650.0 | 2022-06-17 00:00:00 UTC | Want $1,000 in Passive Income? Buy 1,084 Shares of This Warren Buffett Stock | AAPL | https://www.nasdaq.com/articles/want-%241000-in-passive-income-buy-1084-shares-of-this-warren-buffett-stock | nan | nan | Apple (NASDAQ: AAPL) accounts for 43% of Warren Buffett's holdings through Berkshire Hathaway, which makes it his largest position by a wide margin. Currently, Apple's dividend yield sits at just 0.71%, but an investment of $141,000 -- or 1,084 shares at the current price -- would still generate $1,000 in passive income each year.
More importantly, investors have good reason to believe the quarterly payout will continue to grow. Additionally, Apple should benefit from several catalysts in the coming years, which leaves room for share-price appreciation.
Here's why this Buffett stock is a buy.
The world's most valuable brand
In 2022, Brand Finance and Kantar recognized Apple as the world's most valuable brand, and both reports cited its diverse offerings of hardware and services as a key differentiator. Unlike Android devices, Apple devices run closed-source operating systems, like iOS on the iPhone, creating a user experience that can't be duplicated by third-party vendors. To that end, the company commands significant pricing power.
In the first quarter, Apple ranked second in global smartphone shipments, capturing 18% market share, but it easily took the top spot in the U.S., with 50% market share.
Apple has also leveraged its brand authority to build consumer loyalty across its lineup of Macs, iPads, and Wearables. In fact, its installed base of active devices hit a new all-time high across all majority product categories and geographies in the last quarter, according to CFO Luca Maestri. That positions Apple's burgeoning services business for rapid growth.
Accelerating profitability
In recent years, Apple has expanded the scope of its services business to more effectively monetize its massive user base. Services revenue soared 17% in the most recent quarter, easily outpacing the 7% growth in product revenue. Currently, advertising, cloud storage, and App Store sales are the main contributors, but the segment also includes payment services like Apple Pay and the Apple Card, and subscription services like Apple TV+ and Apple Fitness+.
Apple's focus on services is about more than growing the top line. Device sales tend to be cyclical, rising and falling based on product release cycles, but services revenue is more consistent and comes with much higher margins. In fact, the gross margin on Apple services was 72.6% in the most recent quarter, nearly double the 36.4% gross margin on its other products.
To that end, Apple is becoming increasingly profitable.
METRIC
Q2 2019
Q2 2022
CAGR
Revenue (TTM)
$259 billion
$386 billion
14%
Net income (TTM)
$57 billion
$102 billion
21%
Data source: YCharts. TTM = trailing 12 months. CAGR = compound annual growth rate.
Apple has spent over $200 billion on share repurchases in the last three years, reducing the number of outstanding shares by nearly 13%. As a result, diluted earnings per share has grown at 27% per year over that time frame, outpacing growth in net income.
Similarly, Apple has upped its dividend payout at an annualized pace of nearly 8% over the last five years, returning even more capital to shareholders.
Ripe for the picking
Apple has demonstrated its capacity for innovation on several occasions, and the company could deliver another game-changing device or two in the coming years. Specifically, a report from Bloomberg suggests that Apple could launch a mixed reality headset in 2023, followed by augmented reality glasses in 2024 or 2025.
Currently, Apple stock trades at 21.1 times earnings. That may not be cheap, but it's cheaper than its three-year average of 27.4 times sales. More importantly, Apple is aggressively repurchasing shares, and its services business is expanding rapidly. Those trends should keep its bottom line growing quickly for years to come.
As a final thought, Warren Buffett is undoubtedly one of the greatest investors of our time, and his massive stake in Apple suggests high conviction. That's why this dividend-paying growth stock is a smart buy.
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) accounts for 43% of Warren Buffett's holdings through Berkshire Hathaway, which makes it his largest position by a wide margin. In fact, its installed base of active devices hit a new all-time high across all majority product categories and geographies in the last quarter, according to CFO Luca Maestri. Device sales tend to be cyclical, rising and falling based on product release cycles, but services revenue is more consistent and comes with much higher margins. | Apple (NASDAQ: AAPL) accounts for 43% of Warren Buffett's holdings through Berkshire Hathaway, which makes it his largest position by a wide margin. Services revenue soared 17% in the most recent quarter, easily outpacing the 7% growth in product revenue. Revenue (TTM) $259 billion $386 billion 14% Net income (TTM) $57 billion $102 billion 21% Data source: YCharts. | Apple (NASDAQ: AAPL) accounts for 43% of Warren Buffett's holdings through Berkshire Hathaway, which makes it his largest position by a wide margin. Currently, advertising, cloud storage, and App Store sales are the main contributors, but the segment also includes payment services like Apple Pay and the Apple Card, and subscription services like Apple TV+ and Apple Fitness+. Apple has spent over $200 billion on share repurchases in the last three years, reducing the number of outstanding shares by nearly 13%. | Apple (NASDAQ: AAPL) accounts for 43% of Warren Buffett's holdings through Berkshire Hathaway, which makes it his largest position by a wide margin. Here's why this Buffett stock is a buy. Services revenue soared 17% in the most recent quarter, easily outpacing the 7% growth in product revenue. |
20651.0 | 2022-06-17 00:00:00 UTC | 2 Cheap Tech Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/2-cheap-tech-stocks-to-buy-right-now-4 | nan | nan | Everyone likes a deal. The months-long sell-off that led to the current bear market has resulted in many stocks trading at valuations that would be considered cheap in a normal market environment.
However, just because a stock is down doesn't necessarily mean it's a buy. As Warren Buffett famously said, "Only when the tide goes out do you discover who's been swimming naked." Put another way, some companies' stocks are trading at a discount for a reason.
Handled properly, though, a bear market does present savvy long-term investors with generational buying opportunities, as long as they pick strong businesses that have what it takes to keep growing. Let's take a look at two comparatively cheap tech stocks that I think are worth buying now and holding for the long run.
1. Amazon
With a price-to-sales (P/S) multiple of 2.2, you'd have to go back to 2016 to find a time that Amazon (NASDAQ: AMZN) was trading this cheaply. While that alone isn't a reason to buy, there are a few other reasons that Amazon is worth buying now.
Amazon reported its Q1 2022 earnings recently and revenue was up only 7.3% to $116 billion. While that's a very low year-over-year growth rate for the company, it's also coming off a Q1 2021 where revenue grew 44%. Over the last two years, revenue has increased 54%, which is strong two-year growth.
More important for long-term investors is the rapid growth of Amazon Web Services (AWS), which was up 37% year over year in Q1 and 34% annually over the last two years. AWS now accounts for 16% of Amazon's overall revenue, up from 13% in the year-ago quarter.
Amazon is already the leader in cloud infrastructure, but the total market was estimated to be $380 billion in 2021. Amazon had $62 billion in AWS revenue in 2021, showing the vast market still available to capture.
2. Apple
It may be difficult to believe that one of the largest companies in the world could be considered cheap, but that's where we find ourselves with Apple (NASDAQ: AAPL). With a price-to-earnings (P/E) ratio of 21.5, Apple stock is actually below the S&P 500's P/E of 24.1.
For a company trading below the market's average valuation, it's putting up above-average results. Apple's revenue in Q2 of fiscal 2022 (ended March 26) was $97 billion (a Q2 record), and it was up 9% year over year. All but one of its product categories saw growth, and the company generated over $25 billion in free cash flow.
Apple is using this cash to reward shareholders. In addition to its dividend, Apple has been buying back stock and has reduced its shares outstanding by 22% over the past five years.
While most investors know Apple because of its products, the company's services segment has quietly become its second-largest revenue generator after the iPhone. The Services segment, which consists of products like iCloud, Apple Music, and other subscriptions, now accounts for more than 20% of total revenue, up from 19% in the year-ago quarter.
Services revenue is also high margin, which has helped gross margin improve from 42.5% to 43.8% over the past year. As investors, this helps instill confidence that the profitability and cash generation is here to stay.
Why are these a buy now?
It could be argued that Amazon and Apple are so big and mature as businesses that their best days of price appreciation are behind them. There may have been a stronger case for that when valuations were near all-time highs. At today's prices, I think there are still plenty of upsides for investors from here.
Additionally, with inflation at 40-year highs and uncertainty about the economy in the near term, companies that are cash flow positive are great anchors in a portfolio. Neither of these companies will need to access the debt markets as interest rates rise, and both have the track record and market positioning to weather any economic storm.
There may be higher-growth tech stocks out there, but few will also provide the downside protection as these two will. That's why I think they're both stocks to buy right now.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeff Santoro has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple It may be difficult to believe that one of the largest companies in the world could be considered cheap, but that's where we find ourselves with Apple (NASDAQ: AAPL). Handled properly, though, a bear market does present savvy long-term investors with generational buying opportunities, as long as they pick strong businesses that have what it takes to keep growing. The Services segment, which consists of products like iCloud, Apple Music, and other subscriptions, now accounts for more than 20% of total revenue, up from 19% in the year-ago quarter. | Apple It may be difficult to believe that one of the largest companies in the world could be considered cheap, but that's where we find ourselves with Apple (NASDAQ: AAPL). The months-long sell-off that led to the current bear market has resulted in many stocks trading at valuations that would be considered cheap in a normal market environment. Handled properly, though, a bear market does present savvy long-term investors with generational buying opportunities, as long as they pick strong businesses that have what it takes to keep growing. | Apple It may be difficult to believe that one of the largest companies in the world could be considered cheap, but that's where we find ourselves with Apple (NASDAQ: AAPL). More important for long-term investors is the rapid growth of Amazon Web Services (AWS), which was up 37% year over year in Q1 and 34% annually over the last two years. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! | Apple It may be difficult to believe that one of the largest companies in the world could be considered cheap, but that's where we find ourselves with Apple (NASDAQ: AAPL). All but one of its product categories saw growth, and the company generated over $25 billion in free cash flow. That's why I think they're both stocks to buy right now. |
20652.0 | 2022-06-17 00:00:00 UTC | What’s Next for Big Tech Stocks After the Disappointing H122? | AAPL | https://www.nasdaq.com/articles/whats-next-for-big-tech-stocks-after-the-disappointing-h122 | nan | nan | The supply shortages, macro headwinds, and resurgence of the coronavirus in China weighed on the shares of the big tech companies. Notably, shares of Apple, Amazon, and Alphabet are down about 27%, 38%, and 27%, respectively, on a year-to-date basis.
While these large tech stocks have witnessed a pullback, rate hikes and fear of recession add uncertainty to their future trajectory. Amid the uncertainty, let’s look at what TipRanks’ proprietary tools and analysts’ recommendations reveal about the future of these big tech companies.
Apple (NASDAQ: AAPL)
Apple continues to benefit from the ongoing demand for its products. However, management warned that supply constraints and industry-wide silicon shortages could have a negative impact of $4 billion to $8 billion on its top line in Q3. Meanwhile, COVID-led challenges in China and adverse currency movement could remain a drag.
While Apple faces short-term headwinds, its stock has received 21 Buy and six Hold recommendations. Moreover, the average Apple price target of $186.33 indicates 43.4% upside potential over the next 12 months. New product launches and Apple’s faster M2 chip could support its growth.
Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Caxton Associates’ Andrew Law, and Hirtle Callaghan & Co’s Ranji H. Nagaswami increased their holdings in AAPL stock in the last quarter. Apple stock also has positive indicators from TipRanks’ investors and bloggers. Overall, AAPL stock has an Outperform Smart Score of 9 out of 10.
Amazon (NASDAQ: AMZN)
The slowdown in e-commerce growth, inflationary cost pressure, and the weak near-term outlook are why Amazon stock is down. However, its solid competitive positioning in the cloud and e-commerce market keeps analysts bullish.
AMZN stock has received 36 Buy, one Hold, and one Sell recommendations for a Strong Buy consensus rating. Further, the average Amazon price target of $178.66 implies 72.4% upside potential.
TipRanks’ Hedge Fund Activity tool for AMZN shows that several hedge fund managers, including First Pacific Advisors’ Richard Atwood, have increased their holdings in AMZN stock. It’s worth noting that TipRanks’ investors are also optimistic about AMZN stock, and 8% of these investors have raised their holding in one month. All in all, AMZN stock has an Outperform Smart Score of 8 out of 10.
Alphabet (NASDAQ: GOOGL)
Macro challenges, adverse currency fluctuations, tough year-over-year comparisons, and pressure on YouTube’s ad growth took a toll on Alphabet stock. However, strength in cloud and network advertising augurs well for growth.
GOOGL stock sports a Strong Buy consensus rating on TipRanks, based on 30 unanimous buy recommendations. Moreover, the average Alphabet price target of $3,212.72 implies 51.6% upside potential.
Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Chilton Investment Co’s Richard Chilton, and several other hedge fund managers have increased their holdings in GOOGL stock. Furthermore, GOOGL stock also has positive indicators from TipRanks’ investors and bloggers. GOOGL stock has an Outperform Smart Score of 9 out of 10.
Bottom Line
While these big tech companies face near-term headwinds, the positive indicators from analysts, hedge fund managers, financial bloggers, and TipRanks’ investors point to a healthy future ahead.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) Apple continues to benefit from the ongoing demand for its products. Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Caxton Associates’ Andrew Law, and Hirtle Callaghan & Co’s Ranji H. Nagaswami increased their holdings in AAPL stock in the last quarter. Overall, AAPL stock has an Outperform Smart Score of 9 out of 10. | Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Caxton Associates’ Andrew Law, and Hirtle Callaghan & Co’s Ranji H. Nagaswami increased their holdings in AAPL stock in the last quarter. Apple (NASDAQ: AAPL) Apple continues to benefit from the ongoing demand for its products. Overall, AAPL stock has an Outperform Smart Score of 9 out of 10. | Apple (NASDAQ: AAPL) Apple continues to benefit from the ongoing demand for its products. Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Caxton Associates’ Andrew Law, and Hirtle Callaghan & Co’s Ranji H. Nagaswami increased their holdings in AAPL stock in the last quarter. Overall, AAPL stock has an Outperform Smart Score of 9 out of 10. | Apple (NASDAQ: AAPL) Apple continues to benefit from the ongoing demand for its products. Looking at hedge fund activity, Bridgewater Associates’ Ray Dalio, Caxton Associates’ Andrew Law, and Hirtle Callaghan & Co’s Ranji H. Nagaswami increased their holdings in AAPL stock in the last quarter. Overall, AAPL stock has an Outperform Smart Score of 9 out of 10. |
20653.0 | 2022-06-17 00:00:00 UTC | Looking for the Next FAANG Stocks? 4 Growth Stocks to Buy Now and Hold Forever | AAPL | https://www.nasdaq.com/articles/looking-for-the-next-faang-stocks-4-growth-stocks-to-buy-now-and-hold-forever | nan | nan | The FAANG stocks dramatically outperformed the market over the past decade. Netflix led the way with a 1,750% return, followed by Amazon and Alphabet with returns of 847% and 651%. Finally, Apple and Meta Platforms delivered gains of 535% and 438%.
All those companies benefited from industry leadership, strong revenue growth, and a massive market opportunity, and there's a good chance the next FAANG stocks will share those traits. With that in mind, the STAR stocks could deliver market-crushing returns in the coming decades.
1. Shopify
Shopify (NYSE: SHOP) provides software and services that allow merchants to manage businesses across physical and digital channels, including direct to consumer (D2C) websites. That differentiates it from marketplace operators like Amazon. D2C models afford merchants greater control over the buyer experience, which can help them build lasting customer relationships.
Shopify has become a key player in the commerce industry. Its platform powers over 2 million businesses, and it ranks as the leading e-commerce software vendor as measured by market presence. Perhaps more impressively, Shopify powered 10.3% of e-commerce sales in the U.S. last year, more than any other retailer except Amazon.
The company's strong competitive position has translated into solid financial results.
METRIC
Q1 2020
Q1 2022
CAGR
Revenue (TTM)
$1.7 billion
$4.8 billion
67%
Free cash flow (TTM)
($107 million)
$254 million
N/A
Data source: YCharts. TTM = trailing-12-months. CAGR = compound annual growth rate.
Online retail sales totaled $4.9 trillion last year, but that figure will climb as e-commerce takes share from traditional retail. That puts Shopify in front of a big opportunity. Management is working to strengthen its market presence by expanding internationally, engaging buyers through its mobile app, extending payments services to non-Shopify merchants, and building a fulfillment network to enable next-day delivery.
If Shopify successfully executes on those initiatives, it could be one of the world's most valuable companies a decade or two down the road. That would likely mean market-crushing returns for patient investors.
2. Tesla
Tesla (NASDAQ: TSLA) has revolutionized the auto industry with its direct sales model, semiconductor expertise, and battery cell technology. In the first quarter, Tesla once again ranked as the leader in electric car sales, capturing 15.5%market share. Better yet, its relentless pursuit of manufacturing efficiency is paying off. It posted an industry-leading operating margin of 14.6% in third-quarter 2021, and that figure rose to 19.2% in Q1 2022.
Financially, Tesla is firing on all cylinders.
METRIC
Q1 2020
Q1 2022
CAGR
Revenue (TTM)
$26 billion
$62.2 billion
55%
Free cash flow (TTM)
$992 million
$6.9 billion
164%
Data source: YCharts. TTM = trailing-12-months. CAGR = compound annual growth rate.
Tesla aims to grow vehicle deliveries by 50%per year, and it should benefit from several near-term catalysts, including increased production capacity from new factories in Germany and Texas, and the debut of the Cybertruck and Semi. However, CEO Elon Musk sees its largest opportunities in artificial intelligence and robotics.
Tesla has a robotaxi slated for production in 2024, and Musk says full self-driving (FSD) technology will ultimately be the primary profit engine for the car business. Once its FSD software is ready, Tesla will launch an autonomous ride-hailing service, entering a market that could generate $2 trillion in annual profits by 2030, according to Ark Invest.
Tesla also plans to build an autonomous humanoid robot that Musk believes could be more valuable than its car business. Production could start as early as next year. If Tesla achieves its ambitions, it could reshape the world in the coming decades.
3. Airbnb
Airbnb (NASDAQ: ABNB) has disrupted the travel industry with its asset-light business model. By sourcing rental properties from hosts in tens of thousands of cities, its business model is more cost-efficient than traditional hotels. Airbnb can onboard new hosts (and add new listings) in minutes, with little expense, and its platform offers a greater variety of lodging options for guests.
Despite facing significant headwinds at the pandemic's onset, Airbnb has rebounded quickly. Its free cash flow margin of over 40% is particularly noteworthy.
METRIC
Q1 2020
Q1 2022
CAGR
Revenue (TTM)
$4.8 billion
$6.6 billion
17%
Free cash flow (TTM)
($765 million)
$2.8 billion
N/A%
Data source: SEC filings, YCharts. TTM = trailing-12-months. CAGR = compound annual growth rate.
Thanks to recent innovations like flexible search parameters and listing categories (like "treehouse" or "castles"), Airbnb is evolving into a recommendation engine. Its platform can offer ideas for people who are flexible on where and when they travel. It's also working to disrupt the tourism industry by enabling guests to book experiences while traveling.
In the past year, Airbnb's gross booking value was $53.8 billion, a fraction of its $3.4 trillion addressable market. If the company continues to innovate, this growth stock could generate monster returns.
4. Roku
Roku (NASDAQ: ROKU) is the most popular streaming platform in the U.S., Canada, and Mexico. It accounted for 31% of global streaming time in Q1, nearly doubling the market share of the next closest competitor, Amazon Fire TV. It owes that success to brand authority and the growing collection of free programming (including original content) on its ad-supported streaming service, The Roku Channel.
Thanks to that competitive edge, Roku has become a key player in the rapidly growing digital ad industry.
METRIC
Q1 2020
Q1 2022
CAGR
Revenue (TTM)
$1.2 billion
$2.9 billion
53%
Free cash flow (TTM)
($54.5 million)
$183 billion
N/A
Data source: YCharts. TTM = trailing-12-months. CAGR = compound annual growth rate.
Roku is well positioned to maintain its momentum. Connected TV ad spend in the U.S. will reach $100 billion by 2030, up from $21 billion in 2021, according to BMO Capital Markets. Just as Google built its ad supremacy by positioning itself as the gateway to the internet, Roku could achieve the same success as the gateway to streaming entertainment.
Roku also recently announced shoppable ads for retailers, a service that will leverage its payments platform (Roku Pay) to enable consumer purchases directly through ads on the platform. To that end, Roku could have a sizable digital payments business in a decade or two, in addition to a digital ad empire. That's why this growth stock is a buy.
10 stocks we like better than Shopify
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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 Airbnb, Inc., Amazon, Roku, Shopify, and Tesla. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Roku, Shopify, and Tesla. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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. | All those companies benefited from industry leadership, strong revenue growth, and a massive market opportunity, and there's a good chance the next FAANG stocks will share those traits. Management is working to strengthen its market presence by expanding internationally, engaging buyers through its mobile app, extending payments services to non-Shopify merchants, and building a fulfillment network to enable next-day delivery. Tesla aims to grow vehicle deliveries by 50%per year, and it should benefit from several near-term catalysts, including increased production capacity from new factories in Germany and Texas, and the debut of the Cybertruck and Semi. | Revenue (TTM) $26 billion $62.2 billion 55% Free cash flow (TTM) $992 million $6.9 billion 164% Data source: YCharts. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Roku, Shopify, and Tesla. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. | Revenue (TTM) $26 billion $62.2 billion 55% Free cash flow (TTM) $992 million $6.9 billion 164% Data source: YCharts. Revenue (TTM) $4.8 billion $6.6 billion 17% Free cash flow (TTM) ($765 million) $2.8 billion The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Roku, Shopify, and Tesla. | Revenue (TTM) $26 billion $62.2 billion 55% Free cash flow (TTM) $992 million $6.9 billion 164% Data source: YCharts. If the company continues to innovate, this growth stock could generate monster returns. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Roku, Shopify, and Tesla. |
20654.0 | 2022-06-17 00:00:00 UTC | Russia's No.2 bourse SPB to offer Hong Kong shares, host IPO | AAPL | https://www.nasdaq.com/articles/russias-no.2-bourse-spb-to-offer-hong-kong-shares-host-ipo | nan | nan | June 17 (Reuters) - SPB Exchange, Russia's second-largest bourse, will host its first initial public offering (IPO) by the end of the summer and plans to offer its clients the ability to trade around 1,000 Hong Kong-listed shares next year, its CEO Roman Goryunov said.
IPO activity gained pace in Russia in 2021 and at least 10 firms had been planning listings in 2022 before Feb. 24 when Moscow despatched troops in Ukraine, triggering Western sanctions that have hurt Russia's financial sector.
SPB Exchange plans to start trading rouble-denominated shares in Russia's Arctic diamond miner Almar by the end of the summer and offer the shares to qualified investors only, Goryunov said in an interview with Reuters.
"Generally, we see the (IPO) potential of hundreds of companies. There is a catastrophic shortage of issuers in Russia. I believe that the current situation gives the Russian market a chance to demonstrate its ability to provide capital to companies," Goryunov said.
SPB Exchange, which specialises in foreign shares, will begin trading in 12 securities whose primary listing is on the Hong Kong Stock Exchange (HKEX) on June 20, initially providing access to exchange infrastructure for brokers only to carry out trial operations.
Plans are in place to expand the list of Hong Kong–based securities to 200 by the end of 2022 and 1,000 at some point in 2023, SPB Exchange said in a statement.
"We believe this is part of SPB's global issuer programme and is not something done in collaboration with HKEX," a HKEx spokesman told Reuters.
Goryunov said the bourse has been preparing to offer trading in Hong Kong shares for more than two years and has around other 10 jurisdictions on its radar.
"Clearly there is an excessive amount of foreign currency (in Russia) and demand for diversification. The Chinese market is huge. The possibilities that it has are much wider than in any other alternative jurisdictions," Goryunov said.
SPB Exchange is opening the door to the East after it said in late May it would transfer up to 14% of U.S.-listed shares that its clients possess to a non-trading account, citing restrictions imposed by Euroclear on Russia.
This implies investors that used to trade U.S. stocks via SPB Exchange will retain their ownership rights but will lose access to some of their holdings of U.S. stocks, including blue chips such as Apple AAPL.O or Tesla TSL.O.
Tinkoff, one of Russia's leading brokerages, said it had engaged lawyers to protect the interests and rights of its clients.
Goryunov said there was no specific solution ready to resolve the issue.
"Market participants together with the regulator are pondering hard... and are taking certain actions. But for now, unfortunately, it is impossible to say that there is a clear and understandable algorithm for how the situation will be resolved."
(Reporting by Reuters; editing by Jason Neely)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This implies investors that used to trade U.S. stocks via SPB Exchange will retain their ownership rights but will lose access to some of their holdings of U.S. stocks, including blue chips such as Apple AAPL.O or Tesla TSL.O. Plans are in place to expand the list of Hong Kong–based securities to 200 by the end of 2022 and 1,000 at some point in 2023, SPB Exchange said in a statement. Goryunov said the bourse has been preparing to offer trading in Hong Kong shares for more than two years and has around other 10 jurisdictions on its radar. | This implies investors that used to trade U.S. stocks via SPB Exchange will retain their ownership rights but will lose access to some of their holdings of U.S. stocks, including blue chips such as Apple AAPL.O or Tesla TSL.O. June 17 (Reuters) - SPB Exchange, Russia's second-largest bourse, will host its first initial public offering (IPO) by the end of the summer and plans to offer its clients the ability to trade around 1,000 Hong Kong-listed shares next year, its CEO Roman Goryunov said. SPB Exchange, which specialises in foreign shares, will begin trading in 12 securities whose primary listing is on the Hong Kong Stock Exchange (HKEX) on June 20, initially providing access to exchange infrastructure for brokers only to carry out trial operations. | This implies investors that used to trade U.S. stocks via SPB Exchange will retain their ownership rights but will lose access to some of their holdings of U.S. stocks, including blue chips such as Apple AAPL.O or Tesla TSL.O. June 17 (Reuters) - SPB Exchange, Russia's second-largest bourse, will host its first initial public offering (IPO) by the end of the summer and plans to offer its clients the ability to trade around 1,000 Hong Kong-listed shares next year, its CEO Roman Goryunov said. SPB Exchange plans to start trading rouble-denominated shares in Russia's Arctic diamond miner Almar by the end of the summer and offer the shares to qualified investors only, Goryunov said in an interview with Reuters. | This implies investors that used to trade U.S. stocks via SPB Exchange will retain their ownership rights but will lose access to some of their holdings of U.S. stocks, including blue chips such as Apple AAPL.O or Tesla TSL.O. I believe that the current situation gives the Russian market a chance to demonstrate its ability to provide capital to companies," Goryunov said. SPB Exchange, which specialises in foreign shares, will begin trading in 12 securities whose primary listing is on the Hong Kong Stock Exchange (HKEX) on June 20, initially providing access to exchange infrastructure for brokers only to carry out trial operations. |
20655.0 | 2022-06-17 00:00:00 UTC | France's Le Maire says tax deal 'difficult' but will try again | AAPL | https://www.nasdaq.com/articles/frances-le-maire-says-tax-deal-difficult-but-will-try-again | nan | nan | LUXEMBOURG, June 17 (Reuters) - French Finance Minister Bruno Le Maire said he would try to convince sceptical nations to agree on a corporate tax deal at a meeting in Luxembourg on Friday, but he acknowledged that reaching an agreement was "very difficult".
An EU deal had been expected on Friday after Poland dropped its opposition to setting a minimum corporate tax of 15% on big multinationals, officials said, but Hungary emerged as a last-minute hurdle.
The EU talks are meant to turn into law a global reform of corporate taxation, which was agreed last October by nearly 140 countries.
Le Maire made the tax deal a key goal of the six-month French presidency of the EU, which ends in two weeks, but recognised that political hurdles had emerged.
"We still hope to reach a deal today, but it is very difficult," Le Maire told reporters before the meeting of finance ministers.
He declined to make direct comments about Hungary's position, but he underlined that all technical issues had been long solved, implying the stalemate was caused by political reasons.
Poland and Hungary have been at odds with the European Commission, which has held up their receipt of COVID-19 recovery fund money over questions about their stance on the rule of law and other EU values.
Earlier in June the Commission approved payments to Poland, whereas EU recovery funds for Hungary remain frozen.
The overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google.
The reform was originally intended to be applied in 2023, but its implementation has now been pushed back to 2024 .
The Biden administration is also struggling to pass legislation that would implement the global minimum tax deal.
(Reporting by Francesco Guarascio @fraguarascio, Editing by William Maclean)
((Francesco.Guarascio@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 overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google. An EU deal had been expected on Friday after Poland dropped its opposition to setting a minimum corporate tax of 15% on big multinationals, officials said, but Hungary emerged as a last-minute hurdle. Le Maire made the tax deal a key goal of the six-month French presidency of the EU, which ends in two weeks, but recognised that political hurdles had emerged. | The overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google. LUXEMBOURG, June 17 (Reuters) - French Finance Minister Bruno Le Maire said he would try to convince sceptical nations to agree on a corporate tax deal at a meeting in Luxembourg on Friday, but he acknowledged that reaching an agreement was "very difficult". An EU deal had been expected on Friday after Poland dropped its opposition to setting a minimum corporate tax of 15% on big multinationals, officials said, but Hungary emerged as a last-minute hurdle. | The overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google. LUXEMBOURG, June 17 (Reuters) - French Finance Minister Bruno Le Maire said he would try to convince sceptical nations to agree on a corporate tax deal at a meeting in Luxembourg on Friday, but he acknowledged that reaching an agreement was "very difficult". An EU deal had been expected on Friday after Poland dropped its opposition to setting a minimum corporate tax of 15% on big multinationals, officials said, but Hungary emerged as a last-minute hurdle. | The overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google. LUXEMBOURG, June 17 (Reuters) - French Finance Minister Bruno Le Maire said he would try to convince sceptical nations to agree on a corporate tax deal at a meeting in Luxembourg on Friday, but he acknowledged that reaching an agreement was "very difficult". Le Maire made the tax deal a key goal of the six-month French presidency of the EU, which ends in two weeks, but recognised that political hurdles had emerged. |
20656.0 | 2022-06-17 00:00:00 UTC | 3 Best Tech Stocks for Inflation in 2022 | AAPL | https://www.nasdaq.com/articles/3-best-tech-stocks-for-inflation-in-2022 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Inflation, inflation, inflation. That’s all we seem to hear about these days as the CPI report has become more important than the jobs report and as the Federal Reserve takes the center stage on a monthly basis. The stock market has been hit hard and tech stocks have paid the biggest price.
In fact, the Nasdaq composite has now suffered a peak-to-trough decline of 33% — worse than the 32.1% decline we saw amid the Covid-19 panic.
Most companies are feeling some sort of pressure in their business. Whether it’s supply-chain related for a company like Apple (NASDAQ:AAPL) or ad-related like it is for Snap (NYSE:SNAP). For non-tech businesses, those pressures can be even worse.
However, not every company is feeling the pinch. There are a handful of tech stocks that are navigating this storm quite well, as demand continues to bolster revenue and drive profits. You wouldn’t know if you looked at the stock prices, as they have been buried along with everything else.
7 Long-Term Stocks That Never Go Out of Style
But for investors who listen to the conference calls and parse through the financial statements, this reality is clear as day. Let’s look at them now.
Ticker Company Current Price
CRM Salesforce, Inc. $159.85
PANW Palo Alto Networks, Inc. $466.31
ESTC Elastic N.V. $61.62
Tech Stocks Bucking Inflation: Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.com
Salesforce (NYSE:CRM) reported strong earnings on May 31, which allowed its stock to rally about 10% in the following session. The company delivered a top- and bottom-line beat and grew sales 24% year over year.
Considering that Salesforce also delivered a top- and bottom-line beat and boosted its guidance last quarter, I never felt that the stock deserved to fall 50% from peak to trough. For what it’s worth, guidance was also strong last quarter.
Yet it’s what management said on the conference call that should have everyone’s attention. From Co-CEO Marc Benioff:
I can tell you that our business — you can see this in the Q1 numbers, can’t you, is incredibly healthy…We’re carefully watching the economic data. I know all of you are doing that as well. And so far, we’re just not seeing any material impact from the broader economic world that all of you are in.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
I really liked Palo Alto Networks (NASDAQ:PANW) earlier this year, because it was one of the only tech stocks bucking the bear market. Eventually though, it got swallowed up in the sell-off.
While its better-than-expected earnings helped snap it out of its downtrend, it still hasn’t recovered a bulk of its losses. That said, business is still going strong, as revenue grew by 29% year over year.
From CEO Nikesh Arora:
I don’t want to be way too optimistic, but the fact that we were able to tide over that pandemic moment as an industry to be fair in cybersecurity, I’m less worried about it right now given what’s going on in the environment…you’re seeing way more security awareness and concern more than I’ve ever seen.
Tech Stocks Bucking Inflation: Elastic N.V. (ESTC)
Source: Tada Images / Shutterstock.com
Lastly, we have Elastic (NASDAQ:ESTC). With its $6.25 billion market capitalization, Elastic is eight times smaller than Palo Alto Networks and just a fraction the size of Salesforce. Yet, that doesn’t mean it’s one of tech stocks we should ignore.
In fact, quite the opposite. On June 1, the company delivered an earnings and revenue beat while the latter grew roughly 35% year over year. Guidance was strong too. Not only are we hearing that business is good from these tech stocks, but we’re also seeing it in the results.
From COO and CFO Janesh Moorjani:
Turning to the outlook for fiscal 2023. We believe our products are core to our customer success, which helps us build a healthy business that performs consistently through both, upswings and downturns. To be clear, we have not seen any broader macroeconomic impact in our business.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Best Tech Stocks for Inflation in 2022 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. | Whether it’s supply-chain related for a company like Apple (NASDAQ:AAPL) or ad-related like it is for Snap (NYSE:SNAP). 7 Long-Term Stocks That Never Go Out of Style But for investors who listen to the conference calls and parse through the financial statements, this reality is clear as day. Considering that Salesforce also delivered a top- and bottom-line beat and boosted its guidance last quarter, I never felt that the stock deserved to fall 50% from peak to trough. | Whether it’s supply-chain related for a company like Apple (NASDAQ:AAPL) or ad-related like it is for Snap (NYSE:SNAP). Ticker Company Current Price CRM Salesforce, Inc. $159.85 PANW Palo Alto Networks, Inc. $466.31 ESTC Elastic N.V. $61.62 Tech Stocks Bucking Inflation: Salesforce (CRM) Source: Bjorn Bakstad / Shutterstock.com Salesforce (NYSE:CRM) reported strong earnings on May 31, which allowed its stock to rally about 10% in the following session. Palo Alto Networks (PANW) Source: Sundry Photography / Shutterstock.com I really liked Palo Alto Networks (NASDAQ:PANW) earlier this year, because it was one of the only tech stocks bucking the bear market. | Whether it’s supply-chain related for a company like Apple (NASDAQ:AAPL) or ad-related like it is for Snap (NYSE:SNAP). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation, inflation, inflation. Ticker Company Current Price CRM Salesforce, Inc. $159.85 PANW Palo Alto Networks, Inc. $466.31 ESTC Elastic N.V. $61.62 Tech Stocks Bucking Inflation: Salesforce (CRM) Source: Bjorn Bakstad / Shutterstock.com Salesforce (NYSE:CRM) reported strong earnings on May 31, which allowed its stock to rally about 10% in the following session. | Whether it’s supply-chain related for a company like Apple (NASDAQ:AAPL) or ad-related like it is for Snap (NYSE:SNAP). The stock market has been hit hard and tech stocks have paid the biggest price. Considering that Salesforce also delivered a top- and bottom-line beat and boosted its guidance last quarter, I never felt that the stock deserved to fall 50% from peak to trough. |
20657.0 | 2022-06-17 00:00:00 UTC | POLL-Taiwan May export orders seen just about returning to growth | AAPL | https://www.nasdaq.com/articles/poll-taiwan-may-export-orders-seen-just-about-returning-to-growth | nan | nan | For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
Orders median forecast +0.3% y/y (prior month -5.5%)
Data due Monday, June 20, 4:00 p.m. (0800 GMT)
TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China.
The median forecast from a poll of 11 economists expects export orders to rise 0.3% from a year ago. Forecasts ranged from a contraction of 3% to an expansion of 6.7%.
The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
The government has predicted May orders to be in a range of a fall of 1.1% and an expansion of 1.7% from a year earlier.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O.
The data for May will be released on Monday.
(Poll compiled by Anant Chandak and Carol Lee; Reporting by Ben Blanchard; Editing by Rashmi Aich)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The median forecast from a poll of 11 economists expects export orders to rise 0.3% from a year ago. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. Forecasts ranged from a contraction of 3% to an expansion of 6.7%. |
20658.0 | 2022-06-17 00:00:00 UTC | Wall Street set to crawl higher under shadow of recession fears | AAPL | https://www.nasdaq.com/articles/wall-street-set-to-crawl-higher-under-shadow-of-recession-fears | nan | nan | By Anisha Sircar and Devik Jain
June 17 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a brutal selloff triggered by the Federal Reserve and other major central banks raising interest rates heightened recession fears.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC have plunged 6% so far this week, with the former shedding nearly $2 trillion in this week's selloff.
Stubbornly high inflation has spooked equities in recent weeks as investors adapt to the end of the era of cheap money and worry about price pressures taking a toll on corporate profits and economic growth.
The Fed on Wednesday raised its key rate by 75 basis points and officials outlined a faster pace of rate hikes. The Bank of England and the Swiss National Bank also raised borrowing costs.
"The markets will not stabilize until there is a sense that moves by the Fed and other central banks are going to be successful in not only tamping down inflation, but trying to prevent a global recession," said Kenny Polcari, managing partner at Kace Capital Advisors.
"I don't think it's another 2007 event. But based on all the stimulus that every central bank around the world has provided and now that they're starting to take the candy away from the candy jar, investors are going to react violently."
Meanwhile, Fed Chair Jerome Powell reiterated the central bank's focus on bringing back inflation to its 2% target while speaking at a conference on the "International Roles of the U.S. Dollar".
The S&P 500 has slumped about 23% this year and recently confirmed it was in bear market territory, or down 20% from its record closing high. The Dow is also on the cusp of confirming a bear market.
Trading is expected to remain volatile, also due to the expiration of monthly and quarterly options contracts ahead of the Juneteenth market holiday on Monday.
At 08:26 a.m. ET (1226 GMT), Dow e-minis 1YMcv1 were up 225 points, or 0.75%, S&P 500 e-minis EScv1 were up 35.25 points, or 0.96%, and Nasdaq 100 e-minis NQcv1 were up 131.5 points, or 1.18%.
On Friday, megacap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained 1% in premarket trading after getting hammered in the previous session.
U.S. shares of Alibaba Group Holding Ltd 9988.HK, BABA.N jumped 11.4% after Reuters reported China's central bank has accepted an application by Ant Group to set up a financial holding company.
United States Steel Corp X.N rose 6.4% after posting an upbeat second-quarter profit forecast.
Adobe Inc ADBE.O fell 3.6% after the software firm's third-quarter and full-year revenue forecasts fell short of Wall Street estimates.
S&P 500 market value over the past 12 monthshttps://tmsnrt.rs/39uLBJU
(Reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Anisha.Sircar@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. | On Friday, megacap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained 1% in premarket trading after getting hammered in the previous session. By Anisha Sircar and Devik Jain June 17 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a brutal selloff triggered by the Federal Reserve and other major central banks raising interest rates heightened recession fears. Stubbornly high inflation has spooked equities in recent weeks as investors adapt to the end of the era of cheap money and worry about price pressures taking a toll on corporate profits and economic growth. | On Friday, megacap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained 1% in premarket trading after getting hammered in the previous session. By Anisha Sircar and Devik Jain June 17 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a brutal selloff triggered by the Federal Reserve and other major central banks raising interest rates heightened recession fears. U.S. shares of Alibaba Group Holding Ltd 9988.HK, BABA.N jumped 11.4% after Reuters reported China's central bank has accepted an application by Ant Group to set up a financial holding company. | On Friday, megacap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained 1% in premarket trading after getting hammered in the previous session. By Anisha Sircar and Devik Jain June 17 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a brutal selloff triggered by the Federal Reserve and other major central banks raising interest rates heightened recession fears. "The markets will not stabilize until there is a sense that moves by the Fed and other central banks are going to be successful in not only tamping down inflation, but trying to prevent a global recession," said Kenny Polcari, managing partner at Kace Capital Advisors. | On Friday, megacap firms Apple Inc AAPL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O gained 1% in premarket trading after getting hammered in the previous session. By Anisha Sircar and Devik Jain June 17 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a brutal selloff triggered by the Federal Reserve and other major central banks raising interest rates heightened recession fears. Stubbornly high inflation has spooked equities in recent weeks as investors adapt to the end of the era of cheap money and worry about price pressures taking a toll on corporate profits and economic growth. |
20659.0 | 2022-06-16 00:00:00 UTC | Did the Fed’s Commitment to Fight Inflation Just Start a New Bull Market? | AAPL | https://www.nasdaq.com/articles/did-the-feds-commitment-to-fight-inflation-just-start-a-new-bull-market | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Yesterday was a big day for the stock market. After the Federal Reserve hiked interest rates by a jumbo 75 basis points, stocks took off like a rocket. The Dow added 300 points and the Nasdaq rose about 2.5%. Our core Innovation Investor stocks did even better. Our whole portfolio popped about 5%. And our two new Buys — issued on Tuesday — each climbed more than 6% yesterday.
The rally may seem counterintuitive.
Indeed, the Federal Reserve hiked interest rates by the most it has at a single meeting since 1994. Fed Chair Jerome Powell also said another huge move is likely in July. Higher interest rates mean slower economic growth. Slower economic growth means lower stocks, no?
Not really. It’s a bit more complex than that. In fact, what the Fed did yesterday was actually very bullish, not bearish. It sets the stage for a meaningful stock market recovery over the next few months.
Here’s why.
Bye-Bye, Inflation
Until yesterday, the Federal Reserve has been playing “nice guy” in regard to inflation. Unfortunately, inflation didn’t respect the nice guy. So, the Fed decided to put on its “tough guy” hat.
It hiked rates 75 basis points and said another 75-basis-point hike is on the table for July. The last time — and, indeed, only other time in history — it pulled off back-to-back 75-bps hikes was in 1980-81.
Make no mistake. What the Fed did yesterday was almost unprecedented. It was as aggressive a move as it has ever made.
In a vacuum, that’s bad news for stocks because higher rates theoretically mean lower growth, which means lower stock prices. But we don’t live in a vacuum. We live in a world dominated by — and crippled by — inflation.
Inflation (not the Fed) is the driver behind recent stock market declines. The central bank didn’t start hiking rates until March 2022. This current market selloff started well before that, in November 2021. What was happening then? Inflation rates, which were supposed to cool, kept soaring!
It’s all about inflation these days. When it gets under control, stocks will rebound. So long as inflation remains out-of-control, stocks will keep falling.
Hike More Now to Hike Less Later
Over the past few months, the Fed’s actions didn’t provide much support to help calm inflation. Quarter-point hikes don’t do much when you’re starting at zero and inflation is above 8%. But 75-basis-point hikes do a lot. And when strung together, they should pack a powerful enough punch to stomp out inflation.
In other words, the Fed finally proved yesterday that it’s ready to fight inflation with all its might. Sure, it’s going to take a lot of rate hikes and some economic cooling to get the job done. But stocks can live with that temporary economic slowdown so long as it results in inflation going away.
As a result, what the Fed did yesterday could set the stage for a meaningful stock market recovery.
Indeed, yesterday’s decision was so bullish for the stock market because the Fed essentially relayed that it’s hiking more now to hike less later.
Specifically, members indicated a target interest rate of 3.4% by the end of 2022 and 3.8% by the end 2023. That implies continued hiking into the end of 2023.
But its same summary of economic projections showed a target interest rate of just 3.4% in 2024. That means the Federal Reserve is actually expecting to cut rates in 2024!
In other words, the Fed’s saying it’ll hike rates aggressively to an above-neutral rate in 2022-23 to stomp out inflation. And once it’s cooled, the central bank plans to cut interest rates back to a neutral level.
If things play out like that, stocks will be just fine. The Federal Reserve is hiking more now to hike less later — and even cut later. The implication is that inflation will not become embedded. Higher rates will not become the new norm, and the stock market will rebound.
That’s very bullish!
Lower Long-Term Yields
The last and arguably most important implication of yesterday’s decision is that Treasury yields have likely topped out.
A spiking 10-year has been the bane of stocks all year, mostly because higher bond yields mean lower equity valuations. So long as yields keep surging, stocks will keep falling.
But the Fed’s newfound commitment to aggressive rate-hikes will hopefully stomp out inflation in 2023 before it becomes embedded. If all goes to plan, then the Fed’s target interest rate should top out around 3.4%.
Historically, the 10-year usually tops out at levels largely in-line with the maximum target interest rate in a rate-hike cycle. If that proves to be 3.4% in the current cycle, then the 10-year yield has topped out and is ready to pull back.
If yields do retreat on confidence that the Fed will get inflation under control, stocks should rise on the back of multiple expansion.
It’s a very bullish setup.
The Final Word on the Inflation Fight
The Fed is now fully committed to the fight against inflation. That means the odds of the U.S. economy getting inflation under control over the next 12 months just increased substantially.
To be sure, inflation still isn’t cooling. Stocks likely won’t stage a huge rebound until inflation does calm down. But the Fed’s now in the ring with both boxing gloves. And we find it very likely inflation gets stomped out in the second half of the year. If it does, stocks will soar.
At the end of the day, though, we aren’t too concerned about inflation, the Fed, or even a recession.
These things happen. Economies boom. Then they bust. Then they boom again. Inflation comes and goes. The Fed hikes and cuts. It’s all part of the cycle of capitalism.
What really matters is that every bear market eventually turns into a bull market. And those who buy high-quality stocks in bear markets and wait for a bull market to and carry them higher make fortunes.
The key, then, to beating a bear market is to simply find high-quality stocks, buy and hold.
That’s what we’re doing in our flagship Innovation Investor research service. We’re ignoring the macroeconomic noise because it’s temporary and will pass. In the meantime, it’s giving us the opportunity to buy fantastic companies at fire-sale prices. And it’s allowing us to create a portfolio of stocks that should soar 5X-plus over the next five years.
One such company is a tiny tech stock that we’ve pegged as Apple’s (Nasdaq:AAPL) next big supplier. It’s a company that 99% of investors have never heard of. But it has an inside route to helping Apple make its biggest and best product yet.
Find out more about the company that represents the investment opportunity of a lifetime.
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 Did the Fed’s Commitment to Fight Inflation Just Start a New Bull Market? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One such company is a tiny tech stock that we’ve pegged as Apple’s (Nasdaq:AAPL) next big supplier. A spiking 10-year has been the bane of stocks all year, mostly because higher bond yields mean lower equity valuations. If yields do retreat on confidence that the Fed will get inflation under control, stocks should rise on the back of multiple expansion. | One such company is a tiny tech stock that we’ve pegged as Apple’s (Nasdaq:AAPL) next big supplier. Higher interest rates mean slower economic growth. Slower economic growth means lower stocks, no? | One such company is a tiny tech stock that we’ve pegged as Apple’s (Nasdaq:AAPL) next big supplier. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Yesterday was a big day for the stock market. Indeed, yesterday’s decision was so bullish for the stock market because the Fed essentially relayed that it’s hiking more now to hike less later. | One such company is a tiny tech stock that we’ve pegged as Apple’s (Nasdaq:AAPL) next big supplier. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Yesterday was a big day for the stock market. Indeed, yesterday’s decision was so bullish for the stock market because the Fed essentially relayed that it’s hiking more now to hike less later. |
20660.0 | 2022-06-16 00:00:00 UTC | Why Meta, Amazon, and Apple Are Falling Today | AAPL | https://www.nasdaq.com/articles/why-meta-amazon-and-apple-are-falling-today | nan | nan | What happened
Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve's decision to raise the federal funds rate by 75 basis points yesterday.
The tech-heavy Nasdaq Composite fell 3.7% this morning, and the tech giants followed suit, with Meta losing 4.8%, Amazon down 4.2%, and Apple falling 3.5%.
So what
The Fed is laser focused on bringing down inflation, which is at a 40-year high, but investors across all sectors are worried that aggressive rate hikes will slow the economy down too much and potentially even cause a recession.
Image source: Getty Images.
Those fears were magnified after the Fed's significant interest rate increase yesterday, which was its largest rate increase since 1994.
After an initial positive response to the rate hike in yesterday's afternoon trading, investors are now growing increasingly concerned that the Federal Reserve will have to continue making elevated rate hikes throughout this year in order to tame inflation.
Meta, Amazon, and Apple investors may be latching on to comments made by Fed chairman Jerome Powell, who said yesterday that "from the perspective of today, either a 50-basis-point or a 75-basis-point increase seems most likely at our next meeting." Though Powell said he doesn't expect 75-basis-point hikes to be common.
While stocks across all sectors have fallen lately, technology stocks have especially taken it on the chin as some investors flee high-growth investments and look for safer places to put their money.
Meta, Amazon, and Apple investors, in particular, are likely worried that a potentially slowing economy could hurt Meta's advertising business, while Amazon and Apple shareholders may be focusing on supply chain problems, rising material and shipping costs, and the potential for consumer demand for products to slow down in the months ahead.
Now what
While Meta, Amazon, and Apple shareholders are right to keep a close eye on the Fed's moves and consider how the rake hikes could affect the economy, they should also try to keep a long-term perspective on their investments.
All of these companies have plenty of cash on hand to weather an economic storm, and they've already proved that they can withstand uncertain circumstances and adjust some of their business strategies, as they had to during the height of the pandemic.
That doesn't mean that the stocks Meta, Amazon, and Apple won't have more turbulent times ahead, but it's worth remembering that keeping a five-year timeline (or longer) on your investments is the best way to keep yourself from overreacting while others are panicking.
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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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve's decision to raise the federal funds rate by 75 basis points yesterday. So what The Fed is laser focused on bringing down inflation, which is at a 40-year high, but investors across all sectors are worried that aggressive rate hikes will slow the economy down too much and potentially even cause a recession. Meta, Amazon, and Apple investors may be latching on to comments made by Fed chairman Jerome Powell, who said yesterday that "from the perspective of today, either a 50-basis-point or a 75-basis-point increase seems most likely at our next meeting." | What happened Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve's decision to raise the federal funds rate by 75 basis points yesterday. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Meta Platforms, Inc. | What happened Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve's decision to raise the federal funds rate by 75 basis points yesterday. Meta, Amazon, and Apple investors, in particular, are likely worried that a potentially slowing economy could hurt Meta's advertising business, while Amazon and Apple shareholders may be focusing on supply chain problems, rising material and shipping costs, and the potential for consumer demand for products to slow down in the months ahead. See the 10 stocks *Stock Advisor returns as of June 2, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | What happened Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve's decision to raise the federal funds rate by 75 basis points yesterday. So what The Fed is laser focused on bringing down inflation, which is at a 40-year high, but investors across all sectors are worried that aggressive rate hikes will slow the economy down too much and potentially even cause a recession. 10 stocks we like better than Meta Platforms, Inc. |
20661.0 | 2022-06-16 00:00:00 UTC | 2 Simple Reasons to Buy Apple Stock | AAPL | https://www.nasdaq.com/articles/2-simple-reasons-to-buy-apple-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The recent market meltdown has been tough on tech stocks, and Apple (NASDAQ:AAPL) is not the only one that suffered. Apple hasn’t had as steep a ride as some stocks, but some things remain out of its control. AAPL stock is down 24% year to date.
It isn’t the company’s performance that has led to the dip. Despite reporting record quarterly revenue, AAPL stock was down. Its services revenue stands at an all-time high, and hardware sales have recorded massive numbers.
Apple will continue this trend, and I would like to look at this dip as a chance to add to your position. AAPL stock is down 8% over the past month and is trading at $135 today. Add the stock to your portfolio for long-term gains.
AAPL Apple $135.43
Finance Industry, Here Comes Apple
At the annual Worldwide Developers Conference, tech giant Apple announced that it will launch a BNPL service. Apple recently announced that it will handle the lending for its buy now, pay later service and it will not depend on any financial service companies.
7 Tempting Tech Stocks to Pull the Trigger on Now
Apple Financing LLC will be providing the services and it will remain separate from Apple’s core business. This move will enable users to make a purchase through Apple Pay and pay the amount in equal installments.
It’s a strong push towards finances in the future. This could only be the beginning for Apple. With its offering to finance, you do not need to head to any third party to make your purchase. The feature will launch in the US first and will be expanded to other countries later. This is also a strong move to increase sales and attract new customers.
More than anything, this is the first step of Apple entering the finance space and there could be more in the future.
A Solution to the Chip Shortage
We have seen several tech companies suffer due to the global chip shortage, and it looks like Apple wants to be better prepared for another shortage in the future. The company is looking to build more of its own chips in-house. This will give better control over the supply and allow efficient hardware integration.
Building its own chips will allow Apple to continue to work without any interruption and meet the manufacturing targets. According to Bloomberg, the company is working on a new office to replace components that it sources from Skyworks and Broadcom. It is making every move to expand the use of in-house chips, and this will work as a shield in case of supply chain issues in the future.
The Bottom Line on AAPL Stock
AAPL stock might not be recession-proof, but it is a safe stock compared to many others. The company suffered due to China’s lockdowns, but the country seems to be easing them now. Despite several issues, Apple has managed to report stellar results and has launched new products. It is already on the path of making Apple purchases easier and managing the chips in-house. Apple could have more events in the second half, of the year and the numbers could be even better.
Katy Huberty, a Morgan Stanley analyst has an “overweight” rating for the stock with a target price of $195. The analyst cited that the WWDC keynote was as large as expected and it shows that Apple’s innovation is working at full throttle.
The recent pullback makes it a great opportunity to own AAPL stock for the long term.
On the date of publication, Vandita Jadeja 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 2 Simple Reasons to Buy 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 The recent market meltdown has been tough on tech stocks, and Apple (NASDAQ:AAPL) is not the only one that suffered. AAPL stock is down 24% year to date. Despite reporting record quarterly revenue, AAPL stock was down. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The recent market meltdown has been tough on tech stocks, and Apple (NASDAQ:AAPL) is not the only one that suffered. Despite reporting record quarterly revenue, AAPL stock was down. AAPL stock is down 24% year to date. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The recent market meltdown has been tough on tech stocks, and Apple (NASDAQ:AAPL) is not the only one that suffered. AAPL Apple $135.43 Finance Industry, Here Comes Apple At the annual Worldwide Developers Conference, tech giant Apple announced that it will launch a BNPL service. AAPL stock is down 24% year to date. | AAPL stock is down 24% year to date. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The recent market meltdown has been tough on tech stocks, and Apple (NASDAQ:AAPL) is not the only one that suffered. Despite reporting record quarterly revenue, AAPL stock was down. |
20662.0 | 2022-06-16 00:00:00 UTC | Does Apple’s Future Lie in Advertising? J.P. Morgan Thinks So | AAPL | https://www.nasdaq.com/articles/does-apples-future-lie-in-advertising-j.p.-morgan-thinks-so | nan | nan | In a topsy-turvy market for tech stocks, Apple (AAPL) shares are down with the rest of the growth stocks this year (down ~27% since 2022 began).
However, according to J.P. Morgan analyst Samik Chatterjee, Apple is poised to outperform the market over the next 12 months -- to not only regain its highs of earlier this year, but to surpass them, and rise as high as $200 a share -- 54% more than Apple stock costs today.
Chatterjee laid out his thoughts on this score on Thursday, in a note on the subject of advertising spend and mobile ad growth at Apple. As the analyst writes: "Global advertisement spends are increasingly moving towards digital mediums, and mobile advertisement is expected to grow from $288 bn in 2021 to over $400 bn by 2024." Not all this money will go to Apple, of course. But with an installed base of more than one billion iPhone users worldwide, and generally well-heeled, Western consumer-users residing in the United States and Europe to boot -- the kind advertisers love to target -- Chatterjee argues that Apple is "better positioned than most other companies to benefit from this secular trend" of mobile advertising growth.
Currently, explains Chatterjee, Apple's advertising efforts are limited to selling no more than "one ad per search in the App Store." But this is only the beginning of what's available to Apple. There's at least the potential, argues the analyst, for Apple to take advantage of its huge installed base of iPhones by targeting ads on its own applications, as well as third-party applications, and managing the delivery of these ads for its clients.
How big is this opportunity for Apple? It could be worth as much as $6 billion in incremental revenue by 2025, says the analyst, and once Apple starts down this road, Chatterjee believes the company could grow its advertising revenues "at a robust double-digit pace" in years past 2025.
Now consider those numbers for a moment: A $400 billion market opportunity -- and Apple only claiming $6 billion of it -- works out to a projection of a mere 1.5% of total global mobile advertising market share. This is not any kind of wild, far-fetched claim that Chatterjee is making. It's actually both realistic and possibly even conservative, should Apple decide to capitalize upon its potential.
In the near term, Chatterjee continues to expect Apple to be content with mid-to-upper single digit revenue growth from now through 2024 (with earnings growing a bit faster than that -- 8% to 10%). But over the longer term, Chatterjee believes that the likely growth in advertising revenue will help to support 10% overall long-term annual revenue growth at Apple -- and presumably, even faster profits growth. (See AAPL 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. | In a topsy-turvy market for tech stocks, Apple (AAPL) shares are down with the rest of the growth stocks this year (down ~27% since 2022 began). (See AAPL 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. Chatterjee laid out his thoughts on this score on Thursday, in a note on the subject of advertising spend and mobile ad growth at Apple. | In a topsy-turvy market for tech stocks, Apple (AAPL) shares are down with the rest of the growth stocks this year (down ~27% since 2022 began). (See AAPL 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. Chatterjee laid out his thoughts on this score on Thursday, in a note on the subject of advertising spend and mobile ad growth at Apple. | In a topsy-turvy market for tech stocks, Apple (AAPL) shares are down with the rest of the growth stocks this year (down ~27% since 2022 began). (See AAPL 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. However, according to J.P. Morgan analyst Samik Chatterjee, Apple is poised to outperform the market over the next 12 months -- to not only regain its highs of earlier this year, but to surpass them, and rise as high as $200 a share -- 54% more than Apple stock costs today. | In a topsy-turvy market for tech stocks, Apple (AAPL) shares are down with the rest of the growth stocks this year (down ~27% since 2022 began). (See AAPL 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. Now consider those numbers for a moment: A $400 billion market opportunity -- and Apple only claiming $6 billion of it -- works out to a projection of a mere 1.5% of total global mobile advertising market share. |
20663.0 | 2022-06-16 00:00:00 UTC | After Hours Most Active for Jun 16, 2022 : IBN, IXUS, AAPL, CMCSA, QQQ, AMZN, MSFT, DNA, ELAN, UBER, GOLD, WFC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-16-2022-%3A-ibn-ixus-aapl-cmcsa-qqq-amzn-msft-dna-elan-uber | nan | nan | The NASDAQ 100 After Hours Indicator is up 9.68 to 11,137.25. The total After hours volume is currently 98,082,576 shares traded.
The following are the most active stocks for the after hours session:
ICICI Bank Limited (IBN) is unchanged at $17.11, with 3,661,846 shares traded. As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
iShares Core MSCI Total International Stock ETF (IXUS) is unchanged at $56.38, with 3,561,745 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.3001 at $130.36, with 3,411,659 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Comcast Corporation (CMCSA) is +0.18 at $38.09, with 3,253,686 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is +0.78 at $272.17, with 2,834,373 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is +0.26 at $103.92, with 2,068,001 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Microsoft Corporation (MSFT) is +0.35 at $245.32, with 1,861,302 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Ginkgo Bioworks Holdings, Inc. (DNA) is unchanged at $2.32, with 1,820,469 shares traded. As reported by Zacks, the current mean recommendation for DNA is in the "buy range".
Elanco Animal Health Incorporated (ELAN) is unchanged at $20.28, with 1,714,746 shares traded., following a 52-week high recorded in today's regular session.
Uber Technologies, Inc. (UBER) is +0.04 at $20.51, with 1,450,457 shares traded., following a 52-week high recorded in today's regular session.
Barrick Gold Corporation (GOLD) is +0.0299 at $20.06, with 1,409,144 shares traded. GOLD's current last sale is 68.7% of the target price of $29.2.
Wells Fargo & Company (WFC) is unchanged at $37.65, with 1,190,253 shares traded. As reported by Zacks, the current mean recommendation for WFC 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 +0.3001 at $130.36, with 3,411,659 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares Core MSCI Total International Stock ETF (IXUS) is unchanged at $56.38, with 3,561,745 shares traded., following a 52-week high recorded in today's regular session. | Apple Inc. (AAPL) is +0.3001 at $130.36, with 3,411,659 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares Core MSCI Total International Stock ETF (IXUS) is unchanged at $56.38, with 3,561,745 shares traded., following a 52-week high recorded in today's regular session. | Apple Inc. (AAPL) is +0.3001 at $130.36, with 3,411,659 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares Core MSCI Total International Stock ETF (IXUS) is unchanged at $56.38, with 3,561,745 shares traded., following a 52-week high recorded in today's regular session. | Apple Inc. (AAPL) is +0.3001 at $130.36, with 3,411,659 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 9.68 to 11,137.25. |
20664.0 | 2022-06-16 00:00:00 UTC | Apple Stock Is Still a Good Long-Term Growth Investment | AAPL | https://www.nasdaq.com/articles/apple-stock-is-still-a-good-long-term-growth-investment | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. On Jan. 3, the company briefly hit a $3 trillion valuation — the first publicly traded company to do so. However, the macroeconomic factors that have hammered tech growth stocks this year have not spared Apple. Oil tops iPhones in this economy. At this point, AAPL stock is down more than 26% since the start of the year. The situation is bad enough that Bloomberg wrote the risk of a recession makes the company’s ability to maintain a $2 trillion market capitalization (cap) seem to be “looking wobbly.”
Illustrating the growing concern that a recession will cut consumer spending, Deutsche Bank recently cut its price target for AAPL stock from $200 to $175.
Given the situation with Apple stock and the red flags being raised about the impact of a potential recession on Apple, is now really the time to be buying AAPL stock? The reality is that shareholders may indeed be in for further volatility. However, shares are relatively cheap and AAPL has proven to be a performer when it comes to long-term growth.
Ticker Company Price
AAPL Apple Inc. $129.75
Consumers Can’t Get Enough of Apple
Apple is in an enviable position. Sales of smartphones and PCs may be softening, but Apple continues to perform strongly. Apple’s iPhones are top-sellers, consistently putting the company in second place overall globally. While global PC sales began to shrink again after two years of pandemic-fueled growth, Apple has seen its Mac sales continue to grow.
7 Tempting Tech Stocks to Pull the Trigger on Now
The company’s Services division is seeing tremendous, sustained growth. Apple Music subscriptions, App Store sales, Apple Pay, and others have turned Services into a revenue machine. In the last quarter, Services accounted for 20% of the company’s revenue. However, as InvestorPlace contributor Bret Kenwell recently pointed out, it’s not just the revenue. Services has a whopping 72.6% gross margin. It now accounts for a third of Apple’s gross profit.
If you’re worried about consumers cutting back on spending, they are more likely to put off buying a $1,500 MacBook than they are to cancel a $9.99 subscription to Apple Music or to stop using Apple Pay. Services become a cushion against the possibility of a recession putting a damper on consumer spending.
In addition, ongoing supply chain issues have meant Apple has been unable to meet demand for months. Apple Chief Executive Officer Tim Cook said shortages cost the company an estimated $6 billion in the fourth quarter of 2021. The new MacBook Air was announced last week, but won’t be available to pre-order for weeks due to factory closures in China. This backlog of demand may have a mitigating effect on the impact of a recession.
Deutsche Bank Cuts Price Target, But Maintains Buy Rating
It’s worth taking note of a recent analyst move regarding Apple stock. Earlier this week it was reported that Deutsche Bank analyst Sidney Ho cut his price target for AAPL from $200 to $175. However, he kept his rating for AAPL stock as a “buy.” Additionally, that $175 price target implies around 32% upside.
In other words, economic storm clouds may have an impact on both consumer and enterprise information technology computer spending. But the impact is not expected to be bad for Apple and it may well be short-lived. In the longer term, new hardware releases, including an anticipated AR headset, old favorites like the iPhone, and Services will continue to power this company’s stock for long-term growth.
Bottom Line: Should You Buy AAPL Stock?
If you are nervous about what moves like the Federal Reserve’s historic 0.75% rate hike will do to consumer spending and the stock market, you may not have the appetite for a tech stock right now.
However, despite the challenges of 2022, including the risk to dipping below a $2 trillion market cap, AAPL stock is a proven performer. It maintains a “B” rating in my Portfolio Grader. Over the long-term, it is highly likely to deliver strong growth. It may no longer be the world’s most valuable company, but it remains the world’s most valuable brand.
Apple stock remains a solid buy for your growth portfolio, especially at its current discounted price.
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 Is Still a Good Long-Term Growth Investment 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 Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. At this point, AAPL stock is down more than 26% since the start of the year. The situation is bad enough that Bloomberg wrote the risk of a recession makes the company’s ability to maintain a $2 trillion market capitalization (cap) seem to be “looking wobbly.” Illustrating the growing concern that a recession will cut consumer spending, Deutsche Bank recently cut its price target for AAPL stock from $200 to $175. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. The situation is bad enough that Bloomberg wrote the risk of a recession makes the company’s ability to maintain a $2 trillion market capitalization (cap) seem to be “looking wobbly.” Illustrating the growing concern that a recession will cut consumer spending, Deutsche Bank recently cut its price target for AAPL stock from $200 to $175. At this point, AAPL stock is down more than 26% since the start of the year. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. Given the situation with Apple stock and the red flags being raised about the impact of a potential recession on Apple, is now really the time to be buying AAPL stock? Ticker Company Price AAPL Apple Inc. $129.75 Consumers Can’t Get Enough of Apple Apple is in an enviable position. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. The situation is bad enough that Bloomberg wrote the risk of a recession makes the company’s ability to maintain a $2 trillion market capitalization (cap) seem to be “looking wobbly.” Illustrating the growing concern that a recession will cut consumer spending, Deutsche Bank recently cut its price target for AAPL stock from $200 to $175. At this point, AAPL stock is down more than 26% since the start of the year. |
20665.0 | 2022-06-16 00:00:00 UTC | 3 Things About Twitter That Smart Investors Know | AAPL | https://www.nasdaq.com/articles/3-things-about-twitter-that-smart-investors-know | nan | nan | Twitter (NYSE: TWTR) set ambitious growth targets during its analyst day presentation last February. The social media company claimed it could grow its monetizable daily active users (mDAUs) from 192 million at the end of 2020 to over 315 million by the end of 2023, and more than double its annual revenue from $3.7 billion in 2020 to "over $7.5 billion" in 2023.
Those goals initially impressed investors, but CEO Jack Dorsey's abrupt resignation last November cast a dark cloud over those plans. His successor, Parag Agrawal, was also a controversial pick because he once declared that Twitter's role was "not to be bound by the First Amendment."
Image source: Getty Images.
That controversy eventually drove Tesla (NASDAQ: TSLA) CEO Elon Musk to launch a hostile bid for the entire company for $44 billion in late April. Twitter eventually accepted the deal, but Musk subsequently accused the company of inflating its user numbers with bot and spam accounts.
As a result, the deal remains in limbo and Twitter's stock trades more than 40% below Musk's "best and final" offer of $54.20 a share. But for now, smart investors should keep in mind three other things about the company that might eventually affect the outcome of this messy deal.
1. Twitter has repeatedly struggled to count its users
Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. Back in 2014, the company admitted that "up to approximately 8.5%" of its active users were likely bots that "automatically contacted our servers for regular updates without any discernible additional user-initiated action."
In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Up until that point, Twitter had been counting those automated queries as "active" users. It lost another 1 million MAUs after Apple's iOS update temporarily broke its password encryption system.
In 2019, Twitter replaced its MAUs, which had been declining, with mDAUs to emphasize its growth in monetizable users. But during its first-quarter report this April, the company admitted that it had accidentally counted multiple accounts that were linked to a single user as separate DAUs for the past three years. It said that this miscalculation only reduced its total mDAUs by less than 2 million, but it sowed even more doubts about its ability to consistently measure its core audience.
In its first-quarter report in May, Twitter said fewer than 5% of its mDAUs were "false or spam accounts." Musk is disputing that claim, and the acquisition will likely remain on ice until that argument is resolved.
2. Its data licensing business is controversial
Twitter generates most of its revenue from ads, but its data licensing business (now known as its "subscription and other" segment) still accounted for 8% of its top line in its latest quarter.
This business licenses a "firehose" of public tweets to large customers for analytics purposes. However, some of its applications are highly controversial.
High-frequency trading (HFT) firms use that firehose to power their rapid-fire trades, which likely contributed to several "flash crashes" in recent years. Media outlets often use its firehose to follow recent events, but weak fact-checking standards can lead to the proliferation of fake news.
The Saudi Arabian government has also reportedly used that firehose to hunt down and persecute dissidents, which should raise some concerns about the Saudi prince Al Waleed bin Talal Al Saud being Twitter's second-largest shareholder after Elon Musk. In a stunning move earlier this month, Twitter also granted Musk full access to its entire firehose to address his concerns about bots and fake accounts.
3. It recently paid huge litigation fees
Twitter lost nearly $1 billion to lawsuits over the past year. Last September, it agreed to pay $809.5 million to investors in a class action lawsuit related to some goals it set back in 2014.
At the time, Twitter claimed it could reach over 550 million MAUs in the "intermediate" term and more than 1 billion MAUs over a "longer term." However, it only reached 321 million in MAUs in the fourth quarter of 2018 before it discarded the metric altogether in the first quarter of 2019. That massive settlement was the main reason it posted a net loss of $221 million in fiscal 2021.
This May, Twitter agreed to pay $150 million to settle a privacy lawsuit with the Department of Justice (DOJ) and Federal Trade Commission (FTC). The company had been sued for "unintentionally" using its users' phone numbers and email addresses to craft targeted ads.
These settlements probably won't throttle Twitter's long-term growth, but they highlight the company's tendency to overpromise and underdeliver while making careless and costly mistakes.
Twitter still faces a lot of problems
It might be tempting to buy the stock as an arbitrage play right now, but it faces a lot of near-term challenges. If Musk eventually walks away, Twitter could continue to struggle to expand its audience and stay relevant in the maturing social media market as a recession looms on the horizon.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Tesla, and Twitter. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. That controversy eventually drove Tesla (NASDAQ: TSLA) CEO Elon Musk to launch a hostile bid for the entire company for $44 billion in late April. These settlements probably won't throttle Twitter's long-term growth, but they highlight the company's tendency to overpromise and underdeliver while making careless and costly mistakes. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. The social media company claimed it could grow its monetizable daily active users (mDAUs) from 192 million at the end of 2020 to over 315 million by the end of 2023, and more than double its annual revenue from $3.7 billion in 2020 to "over $7.5 billion" in 2023. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Twitter eventually accepted the deal, but Musk subsequently accused the company of inflating its user numbers with bot and spam accounts. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. |
20666.0 | 2022-06-16 00:00:00 UTC | 2 Reasons to Keep Purchasing Apple Stock During the Bear Market | AAPL | https://www.nasdaq.com/articles/2-reasons-to-keep-purchasing-apple-stock-during-the-bear-market | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) is a solid investment. It is one of the most valuable companies in the world, and it has been at the top of its game for many years now. Purchasing AAPL stock, therefore, becomes a no-brainer.
Apple is a company that only produces high-quality products. Its products are well designed and have features that make them stand out. Apple’s stock price has also been very stable, which means it’s a good investment for anyone who wants to invest in technology.
Apple consistently strives to provide the best products and services to its customers with what they want. It also focuses on innovative technologies and gives people more opportunities by testing many different solutions. With Apple’s stock consistently rising, investing in a company like this is never a bad idea. The only thing worth noting is the timing.
AAPL stock has been hit hard in the past six months, with a 19% drop during the worst market in the last five years. Despite its healthy fundamentals, it has not been spared from the recent dismal market conditions.
However, for the aggressive investor, the time to strike is nigh. Plus, you have two things to consider. First, Apple is looking to become a financial services company and is making aggressive moves to back its goals. The other thing that investors can look forward to is a potential stock split. The markets are still buzzing from the Amazon stock split. Therefore, you can expect similar action here as well.
All in all, AAPL stock remains a buy.
Ticker Company Current Price
AAPL Apple Inc. $130.91
Apple Is Flexing Its Financial Muscle
Millions of people are using a smartphone every day. Apple has held this position for several years, the market leader in smartphone sales.
However, over the years, the company is quietly transforming itself into a financial services juggernaut. As part of its overall ambitions, Apple has coordinated the lending system for its new buy now, pay later service and won’t shift that to the financial sector.
Apple is expanding its focus on financial work with products such as credit checks and loans. This adds a new level of responsibility that differentiates them from other businesses. Goldman Sachs (NYSE:GS) collaborates with Apple on payment delivery methods. Apple believes that its new service, which allows for a monthly or recurring payment, will simplify things and simplify for those who don’t want to use credit cards.
7 Unstoppable Stocks to Own in 2022
Apple will execute credit checks when an individual applies for its Pay Later Service. This holds for all Apple Pay applications and has been implemented to protect the user and Apple from potential fraud. Apple won’t do anything to embarrass previous owners or obliterate the credit scores of current users. They also don’t plan on reporting missed payments to credit bureaus.
Apple has been making moves to consolidate financial services. They are also getting closer with their users and integrating them more deeply into their ecosystem. This strategy may result in a new push given the capabilities of their app, especially considering its various functions.
WWDC22 Brings Great News for Apple Investors
Apple has been one of the most innovative companies in the last decade and has grown because of its unique approach and growth. Investors also tend to give it some added momentum.
Investors have always been looking for new information regarding Apple, and its product launches as it’s such a large company. On June 6, Apple released a preview of its upcoming operating systems at the Apple Worldwide Developers Conference. It showcased new iPhone, iPad, and Mac features that will be available soon. Next month, Apple will be releasing new laptops with improved M2 processors in the market. One is the MacBook Air, and the other is the MacBook Pro.
Earlier this year, Apple held its spring product launch event, introducing a lower-cost model of its 5G iPhone today. The new phone will join Apple’s second-generation 5G-enabled smartphones that debuted last year.
In addition, the rumors say that Apple plans to release a headset for virtual and augmented reality soon, which could contribute to the company’s continued success.
Finally, the word on the street is that Apple is working on an electric car. Some rumors about Apple also indicate that the company is preparing a self-driving vehicle that will not require a driver.
In summary, as ace investor Louis Navellier and the InvestorPlace research staff articulated, “the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying.”
Never a Bad Time to Buy AAPL Stock
Apple has an outstanding innovation and success record, making it one of the best investments for long-term growth potential.
The tech giant ensures that it provides investors with sufficient reasons to allocate capital towards this one. It is continuously making significant improvements while remaining competitive in the market. Hence, invest in Apple without any fear.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 2 Reasons to Keep Purchasing Apple Stock During the Bear Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In summary, as ace investor Louis Navellier and the InvestorPlace research staff articulated, “the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying.” Never a Bad Time to Buy AAPL Stock Apple has an outstanding innovation and success record, making it one of the best investments for long-term growth potential. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a solid investment. Purchasing AAPL stock, therefore, becomes a no-brainer. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a solid investment. In summary, as ace investor Louis Navellier and the InvestorPlace research staff articulated, “the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying.” Never a Bad Time to Buy AAPL Stock Apple has an outstanding innovation and success record, making it one of the best investments for long-term growth potential. Purchasing AAPL stock, therefore, becomes a no-brainer. | Ticker Company Current Price AAPL Apple Inc. $130.91 Apple Is Flexing Its Financial Muscle Millions of people are using a smartphone every day. In summary, as ace investor Louis Navellier and the InvestorPlace research staff articulated, “the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying.” Never a Bad Time to Buy AAPL Stock Apple has an outstanding innovation and success record, making it one of the best investments for long-term growth potential. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a solid investment. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a solid investment. In summary, as ace investor Louis Navellier and the InvestorPlace research staff articulated, “the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying.” Never a Bad Time to Buy AAPL Stock Apple has an outstanding innovation and success record, making it one of the best investments for long-term growth potential. Purchasing AAPL stock, therefore, becomes a no-brainer. |
20667.0 | 2022-06-16 00:00:00 UTC | Company News for Jun 16, 2022 | AAPL | https://www.nasdaq.com/articles/company-news-for-jun-16-2022 | nan | nan | Nucor Corp.’s NUE shares surged 2.4% after the company gave strong guidance for the ensuing second-quarter profits on strong steel demand.
Shares of The Boeing Co. BA climbed 9.5% after the test flights of its 737 MAX plane conducted by China Southern Airlines Co Ltd. For the first time since March.
Hertz Global Holdings Inc. HTZ shares climbed 5.1% after the company announced $2 billion share buyback program.
Shares of Apple Inc. AAPL rose 2% after the company announced Major League Soccer would be exclusively available on Apple TV starting in 2023.
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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. | Shares of Apple Inc. AAPL rose 2% after the company announced Major League Soccer would be exclusively available on Apple TV starting in 2023. Apple Inc. (AAPL): Free Stock Analysis Report Shares of The Boeing Co. BA climbed 9.5% after the test flights of its 737 MAX plane conducted by China Southern Airlines Co Ltd. For the first time since March. | Shares of Apple Inc. AAPL rose 2% after the company announced Major League Soccer would be exclusively available on Apple TV starting in 2023. Apple Inc. (AAPL): Free Stock Analysis Report Hertz Global Holdings Inc. HTZ shares climbed 5.1% after the company announced $2 billion share buyback program. | Apple Inc. (AAPL): Free Stock Analysis Report Shares of Apple Inc. AAPL rose 2% after the company announced Major League Soccer would be exclusively available on Apple TV starting in 2023. The Boeing Company (BA): Free Stock Analysis Report | Shares of Apple Inc. AAPL rose 2% after the company announced Major League Soccer would be exclusively available on Apple TV starting in 2023. Apple Inc. (AAPL): Free Stock Analysis Report Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. |
20668.0 | 2022-06-16 00:00:00 UTC | US STOCKS-Wall Street slammed as recession worries mount | AAPL | https://www.nasdaq.com/articles/wall-street-slammed-as-recession-worries-mount | nan | nan | By Shreyashi Sanyal and Sruthi Shankar
June 16 (Reuters) - U.S. stock indexes tumbled on Thursday, with growth shares bearing the brunt of the selloff, after the Federal Reserve's largest rate increase since 1994 to combat decades-high inflation fanned worries of a recession.
All of the 11 major S&P sectors fell in morning trade. Energy .SPNY and consumer discretionary .SPLRCD sectors were the top losers, down 4.2% and 3.6%, respectively.
Mega-cap growth firms Amazon.com AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O slid between 2.5% and 6%, also pressured by rising U.S. Treasury yields.
By 09:56 a.m. ET, all the Dow components were in the red, while 496 constituents of S&P 500 index .SPX fell.
The benchmark index snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase matched market expectations.
Equities have been under pressure for most of the year on growing worries about surging inflation and higher borrowing costs, with the central bank's latest projection of a slowing U.S. economy and rising unemployment in the coming months only fueling those concerns.
"We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Ltd.
Wells Fargo said the odds of a recession now stand at more than 50%, following the Fed decision.
The S&P 500 .SPX is down 22.6% year-to-date and is in a bear market as investors grapple with a sharp slowdown in growth. The Nasdaq Composite .IXIC and the S&P 500 indexes were set to mark their 10th weekly decline in the past 11 weeks.
"Technically, the market remains weak," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"The Fed rally is fading as investors question the central bank's ability to orchestrate a soft landing. The bear market is in full force still and yet to reach a level where stocks can comfortably bounce off of."
At 9:56 a.m. ET, the Dow Jones Industrial Average .DJI was down 692.04 points, or 2.26%, at 29,976.49, the S&P 500 .SPX was down 105.57 points, or 2.79%, at 3,684.42, and the Nasdaq Composite .IXIC was down 355.94 points, or 3.21%, at 10,743.21.
Among major U.S. banks, Morgan Stanley MS.N led losses with a 4% slide.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 31.51 points.
Declining issues outnumbered advancers for a 15.15-to-1 ratio on the NYSE and for a 7.14-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 78 new lows, while the Nasdaq recorded three new highs and 400 new lows.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Additional reporting by Medha Singh; Editing by Anil D'Silva and Sriraj Kalluvila)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mega-cap growth firms Amazon.com AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O slid between 2.5% and 6%, also pressured by rising U.S. Treasury yields. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes tumbled on Thursday, with growth shares bearing the brunt of the selloff, after the Federal Reserve's largest rate increase since 1994 to combat decades-high inflation fanned worries of a recession. The benchmark index snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase matched market expectations. | Mega-cap growth firms Amazon.com AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O slid between 2.5% and 6%, also pressured by rising U.S. Treasury yields. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes tumbled on Thursday, with growth shares bearing the brunt of the selloff, after the Federal Reserve's largest rate increase since 1994 to combat decades-high inflation fanned worries of a recession. The benchmark index snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase matched market expectations. | Mega-cap growth firms Amazon.com AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O slid between 2.5% and 6%, also pressured by rising U.S. Treasury yields. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes tumbled on Thursday, with growth shares bearing the brunt of the selloff, after the Federal Reserve's largest rate increase since 1994 to combat decades-high inflation fanned worries of a recession. The benchmark index snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase matched market expectations. | Mega-cap growth firms Amazon.com AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Tesla Inc TSLA.O slid between 2.5% and 6%, also pressured by rising U.S. Treasury yields. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes tumbled on Thursday, with growth shares bearing the brunt of the selloff, after the Federal Reserve's largest rate increase since 1994 to combat decades-high inflation fanned worries of a recession. All of the 11 major S&P sectors fell in morning trade. |
20669.0 | 2022-06-16 00:00:00 UTC | A Look at the Real Estate Market | AAPL | https://www.nasdaq.com/articles/a-look-at-the-real-estate-market | nan | nan | In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss:
DocuSign's (NASDAQ: DOCU) 25% drop.
Target's (NYSE: TGT) bold moves.
Stitch Fix (NASDAQ: SFIX) continuing to struggle.
Vail Resorts (NYSE: MTN) benefiting from relaxed Covid restrictions.
The latest from Campbell Soup, Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), and more.
Matt Argersinger, who leads investing on The Motley Fool's Mogul and Real Estate Winners services, discusses the current state of the housing market, how a potential recession may affect real estate, and his interest in an alternative asset class: vintage comic books.
Emily and Ron share two stocks on their radar: Bilibili and Airbnb.
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 June 10, 2022.
Chris Hill: It's the Motley Fool Money radio show. I'm Chris Hill and I'm joined by Motley Fool Senior Analyst Emily Flippen and Ron Gross. Good to see you both.
Ron Gross: How are you doing, Chris?
Emily Flippen: Hi, Chris.
Chris Hill: We've got the latest headlines from Wall Street. We'll get an update on housing and real estate from Matt Argersinger. As always, we've got a couple of stocks on our radar. But we begin with the big macro. Inflation hit a 40-year high on Friday as the Consumer Price Index Report showed prices rising 8.6% year-over-year. The reaction from investors was swift, with the Dow, Nasdaq and S&P 500 all falling to end the week down each around 5%. Ron, for consumers, we're seeing higher prices on groceries and gas. What does this mean for investors?
Ron Gross: Boy, my screen is filled with red today. Friday, stocks got slammed on this news, which perhaps shouldn't be too surprising, a much hotter than expected number. As you said, consumers are definitely feeling the pinch. Fuel oil up over 106% over the past year. Everyday foods like cereal, eggs, double-digit percentage increases. Housing costs skyrocketed. Make matters worse, we've got real wages declining 0.6% from April, declining 3% on a 12-month basis. As you said, for sure, consumers are feeling it.
On the investing side, markets widely expect the Fed to keep raising rates, interest rates, short-term interest rates. They have to try to combat that inflation. The Fed will try to engineer what's called a soft landing by raising those rates, bringing inflation down, but not driving us into a significant recession. That is not an easy thing to do. Many economists, market strategists already predicting a recession. JPMorgan's Jamie Dimon said we should brace for an economic hurricane. For regular long-term investors like us, I think you can look at your portfolio to make sure you're happy with your allocations. More speculative or weaker companies can may be be sold off to raise a bit of cash. But for the most part, I think we stick with the mantra of not trying to time the market, and you can even buy into the market when stocks are lower. But I think we do have to understand the times could be tough for a while, so make sure you don't have cash in the stock market that you'll need over the next three years.
Chris Hill: Let's get to some of the companies making headlines this week. Earlier in the week, DocuSign announced an expanded partnership with Microsoft. But after the closing bell on Thursday, DocuSign's first quarter results were worse than Wall Street was expecting and shares on Friday fell 25%. Emily, is it really that bad?
Emily Flippen: Well, DocuSign shareholders are already intimately familiar with the pain that Ron was talking about. It's been happening to them for a long time now, and I am, by the way, included in that group. I will say, though, that maybe this is a controversial opinion. This quarter really wasn't that bad for DocuSign. Earnings did miss expectations. They only earned an adjusted %0.38 per share instead of the $0.46 expected. But revenue beat expectations, rising 25% year-over-year, and revenue was the big question mark for DocuSign. People were concerned about the top line slowing down as a result of the pandemic waning and competition in the e-signature business heating up.
But the unexpected costs that have weighed on the bottom line were, again, surprising to the market in this most recent quarter, which is why I think we're seeing the stock pull back as much as it is. I will also say, though, I say the quarter is not bad. My concerns to DocuSign are much longer-term in nature, which is around their billings. Their billings guidance, despite being decent for the next quarter, is showing a significant slowdown heading into the next year, and that translates directly into top-line growth. If we're getting into single-digit numbers here for revenue growth in DocuSign, the stock may still have further to fall.
Chris Hill: I mentioned the expanded partnership with Microsoft that was announced earlier in the week. Do you think there's a chance that could be a prelude to an acquisition by Microsoft? Like you, I'm a DocuSign shareholder. I'm not looking to sell my shares, and I'm not looking necessarily for the company to be bought. But it wouldn't be the first time in the company's history that Microsoft partnered up with someone just so they could get a closer look and eventually buy them somewhere down the line.
Emily Flippen: Well, I do think Microsoft could be getting what is a dominant player in the e-signatures business, but more importantly, a growing player in the contract life-cycle management business for a pretty attractive price, if that's where they're headed with this. I will say, though, that I think maybe it's selling DocuSign a little short here, and regulators may have concerns with the dominating presence that DocuSign does have in e-signatures as a potential regulatory concern.
Chris Hill: Target's latest quarterly report was something of a disaster, but CEO Brian Cornell and his team are not sitting still. This week, Target announced it was going to clear out inventory by offering discounts, and the company also announced it is increasing its quarterly dividend 20%. Ron, I got to say, I like the boldness that they are showing here.
Ron Gross: I completely agree here, Chris. The stock is down 42% from its 52-week high, and times are tough and mistakes were made, especially on the merchandising side here. But I really like what CEO Brian Cornell is doing. Just for context, a couple of weeks ago, Target explained that it had a merchandise problem. It had overordered big, bulky home goods like patio furniture, TVs, and kitchen appliances. Those are costly to shift. They take up a lot of room and shipping containers. They also take up a lot of room in costly warehouses. Inventory was up 43%. The company issued weak guidance and the stock got whacked, appropriately so, but perhaps maybe it was overdone a bit there.
Earlier this week, they went on furthermore, they warned further of a more severe profit drop than they originally thought and they would have to cancel orders with vendors and offer discounts to clear out unwanted goods, ripping off the Band-Aid, getting this done so it doesn't continue to impact the back half of the year. They now expect operating margins of just 2% in the second quarter. The second quarter is going to be a mess. We just have to understand that. The company did try to mitigate some of the damage of this news, also sent a strong signal to the market, as you mentioned, announcing a 20% increase in the dividend. That yield is now 2.8%. Shares are only trading at 16 times forward earnings. I'm a Target shareholder. I will likely look to add to my position. I like what they're doing.
Chris Hill: Let's face it, if you need some patio furniture or a new TV, it sounds like the sales are happening at Target near you.
Ron Gross: Obviously, a lot of people have been in the market for those products for the last year and a half and perhaps now not so much.
Chris Hill: The struggles continue at Stitch Fix. The company announced it is laying off 4% of its employees. They cut their guidance and posted a bigger loss in the latest quarter than was expected. Shares of Stitch Fix falling on Friday and hitting a new all-time low, Emily.
Emily Flippen: Stitch Fix and DocuSign, I have all the painful stories today. It's not fun for Stitch Fix shareholders, either. Similar to DocuSign, this has been going on for a long time now. Since pre-departure of their former CEO and founder Katrina Lake, their net loss is $0.72 per share, and the most recent quarter was significantly higher than their $0.18 per share lost last year. Revenue did fall 8% to under $500 million. Customers also fell 5%. Stitch Fix's market cap is now below $700 million.
I do think that there is a price at which investors should be interested in this business because it does have a viable business model, but they're realizing that we're just not going to be the future of fashion and we don't need to have corporate overhead to act as such. So they are in cost-cutting mode right now, laying off, as you mentioned, 4% of their workforce, largely their corporate salaried workforce, trying to cut costs and figure out a streamlined level of efficiency for their business. The silver lining here is that their average revenue per client rose to over $550 per customer. That's driven incrementally by those direct purchases to their Freestyle platform. So they clearly have some active, engaged, and loyal customers. They should focus on streamlining operations to become profitable again and focusing on retaining those high-value customers over the long term.
Chris Hill: If someone were to come in and make a bid for a business like Stitch Fix, where would you expect them to come in terms of industry? Because I could see the case for larger company that is already in the retail space, already in the fashion space. But I could see this being an add-on acquisition for a larger tech company that wouldn't necessarily be an obvious candidate.
Emily Flippen: I actually struggle to see any buyer for this business, to be frank. I don't mean that against Stitch Fix in particular, but against the industry that they're in. We saw Nordstrom try to do something very similar with Trunk Club. Nordstrom was arguably in a good position to do so because they had that premium brand awareness that Stitch Fix never really had, and even they struggled to do it with their loyal customer base. I think ultimately, they need to figure out a direction. Are they algorithms? Are they niche stylist? Are they an e-commerce operation? They never had that direction. Until they have that direction, I don't see anyone coming in and buying them.
Chris Hill: Netflix needs help with an advertising platform, but is buying Roku the answer? We'll discuss that after the break, so stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here with Emily Flippen and Ron Gross. Third-quarter results for Vail Resorts were better than expected. The resort operator benefited from COVID restrictions being relaxed and more people actually going outside. Emily, skiing season is over, it kind of looks like Vail did pretty well.
Emily Flippen: Who knew there were so many skiers? I imagine a lot of investors did, but prior to looking at this report, I did not know how popular it was. And I will say, this is a business that I think has obviously benefited from the lockdowns and the easing of the pandemic but also executes at a really high level. Revenue rose over 30% year-over-year in this quarter, largely driven by people returning, like you said, to the ski resorts. But not just typical peak season pass holders, which we saw pick up again this quarter, and we saw them able to raise prices on those season passes as well, showing a bit of pricing power, but they also had off-peak users as well.
So they're almost, you could argue, getting in a new type of clientele that's looking to just do anything in this environment, get out a bit more. They also raised the guidance as a result of this quarter -- and to top it all off, talk about moves in the right direction, they're also raising wages for hourly employees to help with staffing needs. I do have to wonder when I think about the future for Vail Resorts, what happens when international travel picks back up? Because we're seeing reports out today that the Biden administration is lifting requirements for international travelers to come back with negative COVID tests, which some could argue would be an opportunity for people to take vacations, whereas they were taking domestically, maybe moving internationally. I wonder what happens to demand over, say, the midterm in that case, but I will say this is a business that knows how to execute very effectively.
Chris Hill: Also when we talk about moats, the idea that any business in any industry has a moat, one way you can have a moat is a high barrier to entry. And when your business is essentially owning mountains, it's not like we're building more mountains. So it's a little bit of a moat for Vail Resorts, isn't it?
Emily Flippen: [laughs] You can definitely argue that, although I will say, the limiting factor here is a demand to be on an icy mountain. As you may know, that's not exactly my top-tier vacation. But for other people, if the icy mountain works for you, then more power to Vail Resorts.
Ron Gross: I'm with you, Emily.
Chris Hill: Campbell Soup's third-quarter profits rose 18% and the company raised guidance for the full fiscal year. Looks like, among other things, Campbell's is getting their supply chain worked out as well.
Ron Gross: Yeah, this is a strong report. Shares are only down 10% from their 52-week high, which, unfortunately, that's a pretty big win, that they've held up pretty nicely here. As you mentioned, sales were up, the demand for products remained strong, and consumption up 4% compared to the prior year and up 14% on a three-year basis. As you mentioned, they are improving their supply chain and they've been able to put forth price increases, which helped to mitigate gross margin pressure. Gross margins actually increased 90 basis points, thanks to those price increases in the supply chain productivity. That is not a common thing to see currently in the retail space or the food space. Very interesting. In addition to that, they were able to cut marketing and selling expenses by 7%.
So you take the higher gross margins, the lower operating expenses, that leads you to an operating income increase of 23% or adjusted earnings per share increase of 37%. Pretty good. Raised full-year 2022 net sales guidance, but they only reaffirmed their earnings guidance because I think they're being conservative about how inflation could continue to pressure margins. They have a major cost-cutting initiative in place. They've achieved $840 million so far of total savings. This company yields a 3.2% dividend yield. That's a nice chunk of change for a pretty stable company only trading at 16, 16.5 times forward earnings. It's not going to knock the cover off the ball, it's not a high-tech company. But it's a nice, stable company that you could feel comfortable owning.
Chris Hill: Multiple reports this week that Netflix may be sizing up Roku as an acquisition target. Part of the thinking is that Roku's ad platform could help Netflix as it prepares to offer an ad-supported plan. Emily, Netflix has said they don't want to build their own ad platform. So I assumed that they would just partner with someone rather than look to make a big acquisition. You're a Roku shareholder, how do you feel about this report?
Emily Flippen: Didn't we all assume that, and I can sum up my feelings with a quick sentence, which is this is a good deal for Netflix but a very bad deal for Roku. As a Roku shareholder, if this were to move forward, which I don't think it will, even if these rumors are substantiated, I would be very disappointed with Roku in part because I think Roku's best days are likely still ahead of it and I think interest from Netflix would be a very big testament to the power of Roku's CTV ad tech, which is what Netflix would be after in making this acquisition. You could argue that they would also be interested in using something like the Roku Channel to tease potential Netflix shows, maybe an episode or two, to drive somebody to get a premium Netflix subscription.
But given how saturated they are in terms of the subscription market, for Netflix, this is all about driving free cash flow, which they've typically hemorrhaged in the past. Roku sizes up pretty generous free cash flow, so that could be an addition for Netflix. But again, Roku, the reason why it's so attractive to me as a shareholder is not just an interesting founder-led business, but it's agnostic to the streaming platforms that it hosts, and investment or acquisition by a business like Netflix would take away a lot of the attractiveness of Roku.
Ron Gross: Emily, I don't mean to put you on the spot, but from a Netflix shareholder perspective, shares were $700, we're now at $185. Is it an interest to you at that price?
Emily Flippen: I would actually really be excited if I was a Netflix shareholder. Again, as I said, this is a free cash flow positive business. Keeping things just as they are, this would give you some free cash flow that Netflix could play around with, and give them access to the single largest streaming platform in the United States. A lot of good things out of this for Netflix. Again, I doubt it gets anywhere, though.
Chris Hill: Earlier this week, Amazon split their stock 20-for-1, and Shopify shareholders approved a 10-for-1 split, as Alphabet prepares for their own 20-for-1 stock split in July. It begs the question, Ron, should more companies be considering this? Is there a downside to splitting the stock? I know we say all the time: "Oh, the stock split doesn't really matter. The pizza is the same size, whether you cut it in four slices or eight." But I don't know, it seems like there is actual upside to splitting your stock.
Ron Gross: It does appear that way, which make you scratch your head a little bit because theoretically, as you said, there shouldn't be a change, the market cap remains the same, the amount you own in dollar terms stays the same. But there is no real downside, and there does appear to be at least a few things we can point to that could be on the upside. For example, a split can increase liquidity of a company. Now for a stock like Amazon, it was plenty liquid in the first place, so it doesn't have an impact there, but it could for some smaller companies. It can also make it easier to distribute shares to employees.
For Amazon as an example, when it was trading at $2,200 a share, that would've had to be a minimum grant to an employee. That's a big number. Now they can grant somebody shares at $110, so it makes equity available to a wider group of employees. Also, a lower stock price can make you eligible for inclusion in an index, specifically the Dow Jones Industrial Average. Being in that index creates demand for the stock as ETFs, exchange-traded funds, that track the index go in to buy shares because they must buy shares to continue to track that index. So there are some things that can create demand for a stock or make a split attractive, and there's very little downside as I can see.
Chris Hill: Ron Gross, Emily Flippen, we will see you later on in the show. Up next, Matt Argersinger has got the latest on housing, real estate, and a lot more. So stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Chris Hill, time to check in on the real estate market with Matt Argersinger. He's the lead investor for Millionacres, the Motley Fool's real estate investing service. He joins me now from his home in Virginia. Matty, thanks for being here.
Matt Argersinger: Hey, thanks for having me, Chris.
Chris Hill: Let's start with residential housing. Where are we now? Because it seems like in certain parts of the country, we're actually seeing prices drop. We're seeing people who are selling their homes drop their prices a little bit. Is that depending on the region or are you seeing a trend here?
Matt Argersinger: No, I think it's a trend and I'm talking to a guy who is in the middle of trying to sell one of his rental properties in D.C. It's pretty slow. It's pretty slow, Chris. We haven't cut our price yet. But I'm seeing that in not only the D.C. area, but I'm seeing it across the board. I think I saw some data the other day that something like five percent of new listings on Zillow over the past month have seen price drops of at least 5, 10%. That's big. I mean, we haven't seen something like that in years, certainly not in this housing cycle. I think it has a lot to do with rising mortgage rates. The fact that home prices have appreciated so much so that the point where your average home buyers now looking at a monthly payment that's anywhere from 20, 30% higher than where it was just a year ago. That's sticker shock. We have sticker shock a lot with this economy, at the gas pump, the grocery store, but certainly in the housing market we're seeing it, too. I've talked to a few brokers and it's not so much that there's less demand for housing. It's really just, "Hey, I want to step back. I don't have that FOMO [fear of missing out] that I had several months ago where I have to buy a house or I'm never going to buy one." It's like, "I'm going to step back. I'm going to see how these interest rates sell out, see if these price drops keep coming through, and then decide what to do in terms of buying a house," and I think that's just what it is. It's a lot of buyers are cautious out there. They recognize that maybe the market's tipped in their favor a little bit, and so they can afford to be a little cautious.
Chris Hill: You and I have talked previously about really what happened with the homebuilding companies in the wake of the Great Recession and how if they were overbuilding before 2008, they course-corrected and maybe even possibly overcorrected that to the point where we're just building a lot fewer new homes as a nation than we were, let's call it, 14, 15 years ago. Does this cooling off of home prices, if this continues for a few months, maybe even for the rest of the year, if you're a homebuilding company, are you happy about this? I'm assuming there's some sort of happy medium where there's demand, but there's not so much demand that they're not able to keep up with thing. Of course, you look at things like the cost of lumber, the cost of raw materials, obviously that factors into it as well.
Matt Argersinger: Right. The scars from the financial crisis of 12, 13 years ago run deep for a lot of homebuilders. They did overbuild in that period, and I think you're right. I think they overcorrected over the last 10 or so years and they underbuilt, and that was because they were concerned about running into those same issues that they had back in the prior housing recession. They were a lot more cautious about where they bought land and how long they held that land. A lot of homebuilders I follow these days, it's not so much that they are in a position of worry. I mean, I think they know the demand is there. I think they are in a position to just protect their margins, and that's what they've been doing. They've slowly worked through their backlog. They're trying to optimize for what they're seeing in the construction markets and the input markets, labor costs, and they're making the decisions cautiously about where to actually build the house and how far to get into their backlog. They are accepting less bookings these days. I look at the homebuilding market, homebuilding industry, and I see a lot of very cheap stocks, to be frank. But also a situation where they're probably not going to be able to grow as fast as you'd like to see, given the demand that there is in the housing market because of all the other pressures on the supply side. So for them, I think it's a muddle-through period. I think as an investor, you can look at that and probably see some opportunities, if you're willing to take a little bit of a longer-term view. But I almost think that the homebuilders are in a position of strength because they can choose to move a little cautiously. Again, protect those margins, not jump in where there might be issues with costs, and that's what they're doing.
Chris Hill: Do you think as a group, the homebuilding companies and therefore the homebuilding stocks, do you think these are better run companies than they were 15 years ago? Maybe I shouldn't say better run. I'm not looking to call out any CEOs or leadership or anything like that. I guess I'm just wondering if they are more efficiently run and they are run in a smarter way, and the comparison that leaps to mind for me is the airline industry. That for anyone who has gotten on an airplane in the last 6 to 12 months, good luck finding an empty seat. The airlines seemed like, as a group, they are just better in terms of their capacity and how many routes they're running. They're willing to annoy customers a little bit by bumping them off a flight because what they don't want is flights that are nearly empty. So I'm wondering if that applies to the homebuilders as well.
Matt Argersinger: Absolutely. Again, I think there are a lot of lessons learned in the prior crisis and I don't know, Chris, if you've tried to refinance a home or buy a home, get a mortgage in the last, say, 7, or 8, 10 years. It's really hard. I think a lot of homebuilders are applying that same kind of strenuous credit tests to the buyers of their homes. That in a way has forced them to be a lot more cautious about the people they are selling homes for, where they're building homes. You have a lot of homebuilders nowadays that instead of buying huge tracts of land like they used to in the past, anticipating demand, they are buying option contracts on land or they're just buying land in places they know they already have a lot of demand signing those contracts. Again, it's all about caution. In a way, I think the homebuilders have probably been too cautious. I think they probably regret being that way and not taking as much advantage of this prior housing boom over the last few years that they could have. But I think right now they're saying to themselves, "Hey, we're actually in a good spot here. We didn't overleverage ourselves, overextend ourselves like we did in the prior crisis. So coming out of this, we're going to be in OK shape, even if we didn't take as much advantage of the prior boom that we could have."
Chris Hill: There is increasing speculation in all corners of the financial media about the prospects of a recession in the United States. I'm not asking you to look into your crystal ball and make a prediction about whether or not that's going to happen. What I am going to ask you is, does history give us any guide as to what a recession means for the real estate industry, the housing industry, particularly on the residential side?
Matt Argersinger: I feel like every recession is different, and the way housing responds to it, if I think way back, of course, I wasn't a conscious investor back in the day, but I remember in the late '80s, early '90s, the savings and loan crisis, which in part was a little bit of real estate recession and it took a lot of years for real estate to recover from that recession. You didn't see that so much during the dot-com crash, that kind of recession. You certainly saw it in the '07, '08 financial crisis, which in a way real estate played a huge part of that. It took a lot of years to come out of that one. This one I'm not so sure. I think if we are entering a recession, I don't think the housing market is one of those areas of the market that's going to be hit too hard. I mean, again, there is that humongous demand/supply imbalance that is still there. Even though the housing prices have risen, interest rates are higher, there are millions of people who would rather own a house than be renting, or living with their parents, or whatever they might be doing at the moment. I think that demand is not going to go away. It's very demographically driven. If we do hit a recession, whatever that looks like, I think it's other factors that are going to be hit harder than the housing market in this particular time.
Chris Hill: Stepping back from housing and real estate, you've been investing for a long time. Maybe not since the late '80s, but you've been investing for a long time. When you look at the market, particularly the year that we have had, all the talk around interest rates, growth stocks taking a really big hit, particularly over the last six months. What is your thought about the current state of the market and what investors might be looking at over the next 6 to 12 months?
Matt Argersinger: I think it's going to be tough, Chris. And I'm an optimist. I mean, I wouldn't be an investor if I wasn't. But I do think investors are facing something. You and I are facing something as investors that we haven't faced in our entire lifetime, which is a situation where the economy is in decent shape but could be heading to recession, inflation is as highest in 40 years, and you have a Federal Reserve that, for the first time in I think 40 years, is not there to kind of say, "Hey, we're going to be here, if things get really tough." If the economy turns down, if asset prices declined further, they've always been there, if you think the last several recessions or several crises that we've been through. They don't have the ability, they don't have the levers to pull that they've had in the past, and I think that presents a little bit of an interesting scenario for investors. I'm not saying things are going to fall off the table here, but I mean, the Fed hasn't really even begun its tightening, its reduction in its bond portfolio. I think that starts within days. We haven't even had that. We've had a Fed that choreographed what it wants to do with credit markets and to bring inflation down. But we're not in it yet. I feel like as much as the market has anticipated things by driving valuations down across the board, and it's not just technology stocks, I've seen real estate stock get hit, I've seen financial stocks get hit, retail. But I don't know if we've actually been through the worst of it yet. So I think if you're an investor out there, if you think now there are bargains out there, well, maybe think about being a little more patient. I'm not saying we're heading into some abyss, but I do think it's possible that asset prices get even lower and there might be even more opportunities for the patient investor.
Chris Hill: Last thing before I let you go. Earlier in the week, someone posted a poll on Twitter, kind of an interesting thought exercise for stock investors, and it was about alternative asset classes. The poll was simply like, which one would you rather invest in? It was sort of an esoteric group of choices for alternative asset classes. It was things like luxury watches, and art, and wine and that sort of thing. I don't know if you voted in the poll, but I saw you responded to the poll and you just wrote vintage comic books, which I love as an answer, but it also reminded me as someone who follows you on Twitter, most of your Twitter game is about investing and real estate and housing. But every once in a while, you post a picture of a vintage comic book that I assume you own. We've known each other a long time. Every time I see that, I think to myself, "I need to ask Matt about that because I don't think we've ever talked about this." [laughs] So I'll just use the show as an opportunity to ask, Matt, how long have you been interested in this, and do you actually look at vintage comic books? Is that something you do for enjoyment, or is that something that you actually think of as an alternative investment that if someone came along and offered you the right price, you would part ways with some of your collection?
Matt Argersinger: Yeah. It's a great question. I mean, I've been collecting comic books since I was probably 10 years old, [laughs] long time. It didn't occur to me that they were a real asset class until maybe it was 10 years ago I looked in and studied the price history of comic books. It's extraordinary, Chris, if you really look at the data and see the growth in some of the issues out there. Of course, you've got to remember, we've also had the rise of Marvel Studios over the last 10 years. Movies that have propelled a lot of these characters into the limelight. Just as an example, when I was growing up, characters like The Avengers, and Iron Man, and Doctor Strange, those are some of the lamest characters [laughs] in the comic book universe. But today, everyone loves those characters. So what you've seen is some of the older issues of those comic books, say, from the '60s, '70s, '80s even have soared in value as people have come to recognize these characters as pop culture icons in a way. Yeah, I enjoy comic books. I used to read them. I don't read them as much these days. I'm more of a collector. But if you look at comic books from the '60s and '70s, earlier if you're very wealthy, they present some very interesting opportunities. They're rare. I mean, first appearance issues of major characters and good condition are very rare. The values, if you go to places like Heritage Auctions or eBay, you can see books that were probably $100 10 years ago, now they are well into the thousands of dollars. I think investors are just discovering this asset class, and who knows? Maybe it's a bubble and I'm just getting swept into that myself, but I think there are a lot of opportunities.
Chris Hill: If you want to read more from Matt Argersinger and his team, you can go to Millionacres.com. If you want to get the occasional vintage comic book image, follow him on Twitter. Matty, thanks so much for being here.
Matt Argersinger: All right. Thanks, Chris.
Chris Hill: Up next, Emily Flippen and Ron Gross return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against. So don't buy or sell stocks based solely on what your hear. Welcome back to Motley Fool Money. Chris Hill here once again with Emily Flippen and Ron Gross. You can hear this show every weekend on radio stations across America. If you radio folks want even more, you can listen and follow to the Motley Fool Money podcast seven days a week on your favorite podcast platform: Apple, Spotify, Stitcher, iHeart, Amazon Music. Wherever you get your podcasts, please listen and follow Motley Fool Money, and while you're there, check out David Gardner's Rule Breaker Investing podcast as well. Time to get to the stocks on our radar, our man behind the glass, Steve Broido, is going to hit you with a question. Emily Flippen, you're up first, what are you looking at this week?
Emily Flippen: I'm looking at Bilibili this week. That ticker is BILI. You've probably heard me talk about this company before. They're a Chinese video streaming service. You can imagine it as a mix between a business like YouTube as well as a premium streaming service. But they dropped this week after earnings, although the stock is naturally flat. Despite the revenue growing 30%, daily average users growing 32%. Losses were greater than expected in part due to the lockdowns across the country. The reason why it's on my radar is because I actually think this is a solid business that if you can see through the dark clouds in front of it, it's probably a long-term stock to hold. The average time spent by daily active users on this site was 95 minutes per day. That's the highest in Bilibili's history. The number of paying users and the ratio of paying users to active users is also the highest they've ever been. They're working on reducing losses, sales and marketing decreasing 30 percent quarter-over-quarter. So I think this business is going to be rapidly approaching some sort of adjusted profitability and it's probably one the investors should keep on the radar.
Chris Hill: Steve, question about Bilibili?
Steve Broido: Sure. When you're dealing with a company in a country like China, how do you know that all these numbers that they were throwing out there are accurate? They certainly aren't part of the U.S. system.
Emily Flippen: Well, a track record does help, and Bilibili does have a decent track record of reporting what seems to be effective numbers. But you never really know. They are audited by PwC [PricewaterhouseCoopers], so they are audited by international auditors. But fraud obviously can happen anywhere, but especially in China, there's no independent auditing. So you are taking it with an element of faith and a grain of salt.
Chris Hill: Ron Gross, what's on your radar this week?
Ron Gross: A stock that I bought earlier this year at higher prices, of course, is Airbnb, ABNB is the ticker, considering adding to my position at these prices. Obviously, they operate an online vacation and travel renting lodging platform, operate in more than 220 countries around the world at this point. In the most recent quarter, reported over 102 million nights and experiences booked that surpasses pre-pandemic levels, represents a 59% year-over-year increase, generated $1.2 billion in free cash flow. They continue to innovate. They recently rolled out what they're calling the biggest change in the decade. The update includes new ways for guests to search on Airbnb by category, to find places that maybe they wouldn't have been able to find otherwise. They do have about $2 billion in debt. That seems to be OK here, but that's definitely something we should keep an eye on. We also have to keep an eye on the big boys like Marriott stepping into this space and seeing what that will have to do to the market share of Airbnb. But I like it here.
Chris Hill: Steve, question about Airbnb?
Steve Broido: With fuel prices being what they are and knowing that a lot of people that go to an Airbnb are driving there, does that hit them, clip their wings a little bit?
Ron Gross: It would have to. Anytime people get in the car and costs are higher than normal, they would maybe stay another night or even put off a potential trip. So that's something to consider for sure.
Chris Hill: What do you want to add to your watch list, Steve?
Steve Broido: I think I'm going Airbnb. [laughs]
Chris Hill: Ron Gross, Emily Flippen, thanks so much for being here.
Ron Gross: Thanks, Chris.
Emily Flippen: Thanks, Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Steve Broido. 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 Airbnb, Inc., Amazon, Apple, DocuSign, JPMorgan Chase, Microsoft, Shopify, and Target. Emily Flippen has positions in Airbnb, Inc., Bilibili, DocuSign, Roku, Shopify, Spotify Technology, and Zillow Group (C shares). Matthew Argersinger has positions in Airbnb, Inc., Amazon, DocuSign, Netflix, Roku, Shopify, Stitch Fix, Vail Resorts, and Zillow Group (A shares). Ron Gross has positions in Airbnb, Inc., Amazon, Apple, Marriott International, Microsoft, and Target. Steve Broido has positions in Amazon, Apple, DocuSign, Microsoft, Netflix, Roku, Shopify, and Spotify Technology. The Motley Fool has positions in and recommends Airbnb, Inc., Amazon, Apple, DocuSign, Microsoft, Netflix, Roku, Shopify, Spotify Technology, Stitch Fix, Target, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Bilibili, Marriott International, and Vail Resorts and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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. | Earlier this week, they went on furthermore, they warned further of a more severe profit drop than they originally thought and they would have to cancel orders with vendors and offer discounts to clear out unwanted goods, ripping off the Band-Aid, getting this done so it doesn't continue to impact the back half of the year. Ron Gross: It does appear that way, which make you scratch your head a little bit because theoretically, as you said, there shouldn't be a change, the market cap remains the same, the amount you own in dollar terms stays the same. Chris Hill: You and I have talked previously about really what happened with the homebuilding companies in the wake of the Great Recession and how if they were overbuilding before 2008, they course-corrected and maybe even possibly overcorrected that to the point where we're just building a lot fewer new homes as a nation than we were, let's call it, 14, 15 years ago. | Matt Argersinger, who leads investing on The Motley Fool's Mogul and Real Estate Winners services, discusses the current state of the housing market, how a potential recession may affect real estate, and his interest in an alternative asset class: vintage comic books. The Motley Fool has positions in and recommends Airbnb, Inc., Amazon, Apple, DocuSign, Microsoft, Netflix, Roku, Shopify, Spotify Technology, Stitch Fix, Target, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Bilibili, Marriott International, and Vail Resorts and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. | Matt Argersinger, who leads investing on The Motley Fool's Mogul and Real Estate Winners services, discusses the current state of the housing market, how a potential recession may affect real estate, and his interest in an alternative asset class: vintage comic books. Chris Hill: Do you think as a group, the homebuilding companies and therefore the homebuilding stocks, do you think these are better run companies than they were 15 years ago? Matt Argersinger: I feel like every recession is different, and the way housing responds to it, if I think way back, of course, I wasn't a conscious investor back in the day, but I remember in the late '80s, early '90s, the savings and loan crisis, which in part was a little bit of real estate recession and it took a lot of years for real estate to recover from that recession. | A lot of good things out of this for Netflix. Chris Hill: Do you think as a group, the homebuilding companies and therefore the homebuilding stocks, do you think these are better run companies than they were 15 years ago? I mean, I wouldn't be an investor if I wasn't. |
20670.0 | 2022-06-16 00:00:00 UTC | Pre-Market Most Active for Jun 16, 2022 : TQQQ, SQQQ, QQQ, NIO, BABA, AAPL, RDBX, UBS, TJX, AMZN, CCL, F | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-jun-16-2022-%3A-tqqq-sqqq-qqq-nio-baba-aapl-rdbx-ubs-tjx-amzn-ccl | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -231.47 to 11,362.3. The total Pre-Market volume is currently 65,750,926 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -1.53 at $23.37, with 10,053,732 shares traded. This represents a 3.77% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +3.7312 at $62.90, with 4,786,935 shares traded. This represents a 123.45% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is -5.79 at $277.01, with 3,668,910 shares traded. This represents a 1.34% increase from its 52 Week Low.
NIO Inc. (NIO) is -0.69 at $19.42, with 1,753,737 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Alibaba Group Holding Limited (BABA) is -3.95 at $104.08, with 1,508,504 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Apple Inc. (AAPL) is -2.45 at $132.98, with 1,490,504 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Redbox Entertainment Inc. (RDBX) is +1.89 at $12.85, with 1,383,136 shares traded. RDBX's current last sale is 642.5% of the target price of $2.
UBS AG (UBS) is -0.47 at $15.77, with 1,265,700 shares traded. As reported by Zacks, the current mean recommendation for UBS is in the "buy range".
TJX Companies, Inc. (The) (TJX) is -0.23 at $57.40, with 1,183,734 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2023. The consensus EPS forecast is $0.98. As reported by Zacks, the current mean recommendation for TJX is in the "buy range".
Amazon.com, Inc. (AMZN) is -2.92 at $104.75, with 918,837 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Carnival Corporation (CCL) is -0.3 at $9.54, with 828,765 shares traded. CCL's current last sale is 47.7% of the target price of $20.
Ford Motor Company (F) is -0.32 at $11.95, with 821,145 shares traded. F's current last sale is 70.29% of the target price of $17.
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 -2.45 at $132.98, with 1,490,504 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +3.7312 at $62.90, with 4,786,935 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -2.45 at $132.98, with 1,490,504 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range". | Apple Inc. (AAPL) is -2.45 at $132.98, with 1,490,504 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 65,750,926 shares traded. | Apple Inc. (AAPL) is -2.45 at $132.98, with 1,490,504 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 NIO is in the "buy range". |
20671.0 | 2022-06-16 00:00:00 UTC | US STOCKS-Futures slide on rising recession fears | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-slide-on-rising-recession-fears | nan | nan | By Shreyashi Sanyal and Medha Singh
June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession.
Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 3% each in premarket trading, with Nasdaq 100 futures .NQcv1 plunging by a similar margin.
The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. It also projected a slowing economy and rising unemployment in the coming months in the face of the worst inflation in 40 years.
"We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Limited.
Following the Fed meeting, Wells Fargo said the odds of a recession now stand at more than 50%.
The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England hiked borrowing costs by quarter of a percentage point.
The S&P 500 .SPX is down 20.5% year-to-date and is in a bear market as investors grapple with a sharp slowdown in growth. The Nasdaq Composite .IXIC and the S&P 500 indexes were set to mark their 10th weekly decline in past 11 weeks.
At 6:40 a.m. ET, Dow e-minis 1YMcv1 were down 601 points, or 1.96%, S&P 500 e-minis EScv1 were down 91.25 points, or 2.41%, and Nasdaq 100 e-minis NQcv1 were down 330.75 points, or 2.84%.
On the equities front, Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide.
Twitter Inc TWTR.N firmed 2.6% ahead of Elon Musk's meeting with its employees after a report said he was expected to reiterate his desire to own the social media company.
(Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru; Additional reporting by Sruthi Shankar; Editing by Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 3% each in premarket trading, with Nasdaq 100 futures .NQcv1 plunging by a similar margin. "We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Limited. Twitter Inc TWTR.N firmed 2.6% ahead of Elon Musk's meeting with its employees after a report said he was expected to reiterate his desire to own the social media company. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 3% each in premarket trading, with Nasdaq 100 futures .NQcv1 plunging by a similar margin. By Shreyashi Sanyal and Medha Singh June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession. The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 3% each in premarket trading, with Nasdaq 100 futures .NQcv1 plunging by a similar margin. By Shreyashi Sanyal and Medha Singh June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession. ET, Dow e-minis 1YMcv1 were down 601 points, or 1.96%, S&P 500 e-minis EScv1 were down 91.25 points, or 2.41%, and Nasdaq 100 e-minis NQcv1 were down 330.75 points, or 2.84%. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 3% each in premarket trading, with Nasdaq 100 futures .NQcv1 plunging by a similar margin. The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. "We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Limited. |
20672.0 | 2022-06-16 00:00:00 UTC | US STOCKS-Futures slump as recession fears loom | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-slump-as-recession-fears-loom | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 2%, S&P 2.5%, Nasdaq 3%
June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session's rally, as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades.
Rate-sensitive growth stocks took the biggest beating, with Nasdaq 100 futures slumping about 3%.
The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. It also projected a slowing economy and rising unemployment in the coming months in the face of worst inflation in 40 years, raising risk of a downgrade to U.S. corporate profit in third and fourth quarter.
"The Fed is now painting a central scenario that is getting much closer to a hard landing," Deutsche strategist Jim Reid wrote in a note.
Post Fed meeting Wells Fargo said the odds of a recession now stand at more than 50%.
With inflation hitting double digits, central banks globally are adopting an aggressive stance to tame soaring prices.
The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England looked set to raise borrowing costs later in the day.
The S&P 500 is down 22.2% year-to-date and is in a bear market as investors grapple with a sharp slowdown in growth and its impact on company earnings.
At 5:09 a.m. ET, Dow e-minis 1YMcv1 were down 610 points, or 1.99%, S&P 500 e-minis EScv1 were down 94.75 points, or 2.5%, and Nasdaq 100 e-minis NQcv1 were down 354.5 points, or 3.05%.
Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O lost more than 3% each in premarket trading, while Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O lost more than 3% each in premarket trading, while Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide. It also projected a slowing economy and rising unemployment in the coming months in the face of worst inflation in 40 years, raising risk of a downgrade to U.S. corporate profit in third and fourth quarter. "The Fed is now painting a central scenario that is getting much closer to a hard landing," Deutsche strategist Jim Reid wrote in a note. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O lost more than 3% each in premarket trading, while Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide. Futures down: Dow 2%, S&P 2.5%, Nasdaq 3% June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session's rally, as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades. Rate-sensitive growth stocks took the biggest beating, with Nasdaq 100 futures slumping about 3%. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O lost more than 3% each in premarket trading, while Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide. Futures down: Dow 2%, S&P 2.5%, Nasdaq 3% June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session's rally, as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades. The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England looked set to raise borrowing costs later in the day. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O lost more than 3% each in premarket trading, while Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 2%, S&P 2.5%, Nasdaq 3% June 16 (Reuters) - U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session's rally, as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades. |
20673.0 | 2022-06-16 00:00:00 UTC | Netflix (NFLX) Renews Korean Drama Sweet Home for Seasons 2 & 3 | AAPL | https://www.nasdaq.com/articles/netflix-nflx-renews-korean-drama-sweet-home-for-seasons-2-3 | nan | nan | Netflix NFLX is bringing back its hit Korean urban fantasy action series Sweet Home for two more seasons. Lee Eung-bok, who directed the first season of Sweet Home, is also set to helm the K-drama’s new seasons.
Based on the 2017 webtoon of the same name, Sweet Home follows high school student Hyun-soo and his neighbors as they try to survive in a world where humans are turned into monsters.
The stars of Season 1, including leads Song Kang and Lee Jin-uk, will return for the new seasons, along with Lee Si-young, Ko Min-si and Park Kyu-young.
In addition to the show’s original cast, the upcoming seasons will also introduce characters played by Yoo Oh-seong (My Country: The New Age), Oh Jung-se (It’s Okay to Not Be Okay), Kim Moo-yeol (Juvenile Justice) and former B1A4 member Jung Jin-young.
When Season 1 landed on Netflix in 2020, its terrifying monsters and clever storytelling set a new benchmark in the creature-feature genre, winning rave reviews from fans. The series went on to win international awards such as the 2021 Asian Academy Creative Awards (AACA) and the 3rd Asia Contents Awards.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix Stock Lags Industry Year to Date
In the year-to-date period, Netflix’s shares have tumbled 70.1% compared with the Zacks Broadcast Radio and Television industry’s and the Zacks Consumer Discretionary sector’s declines of 56.3% and 34%, 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.
Other Streaming Services in Focus
Disney DIS is benefiting from the growing popularity of Disney+ due to its strong content portfolio and a much cheaper bundle offering compared with its peers.
In the last-reported quarter, Disney’s streaming services exceeded a total subscription of 205 million, a quarterly net increase of 9.2 million, driven by Disney+. As of Apr 2, 2022, Disney+ had 137.7 million paid subscribers.
Paramount Global’s PARA Paramount+ has been witnessing subscriber growth, driven by an expanding content portfolio. Paramount+ hosts a portfolio of more than 2,500 movies and 30,000 TV episodes, including content on popular franchises such as Star Trek and SpongeBob.
Apple’s AAPL Apple TV+ is gaining a solid reputation, with Ted Lasso winning multiple Emmy Awards and CODA winning three Academy Awards. Apple TV+’s Academy Award win over primary streaming competitor, Netflix’s The Power of the Dog. The win has boosted its position in the streaming industry as a serious competitor.
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 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.
Squid Game is also in the headlines after it was revealed that the megahit series will be made into an actual real-life game where 456 competitors will be competing for an enormous cash prize of $4.56 million.
Other Asian originals lined up for renewals include the Japanese fantasy series Alice in Borderland, India’s true crime drama Delhi Crime and various reality series from across the region, such as Indian Matchmaking, Singles Inferno and Love is Blind Japan.
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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 Apple TV+ is gaining a solid reputation, with Ted Lasso winning multiple Emmy Awards and CODA winning three Academy Awards. Apple Inc. (AAPL): Free Stock Analysis Report In addition to the show’s original cast, the upcoming seasons will also introduce characters played by Yoo Oh-seong (My Country: The New Age), Oh Jung-se (It’s Okay to Not Be Okay), Kim Moo-yeol (Juvenile Justice) and former B1A4 member Jung Jin-young. | Apple Inc. (AAPL): Free Stock Analysis Report Apple’s AAPL Apple TV+ is gaining a solid reputation, with Ted Lasso winning multiple Emmy Awards and CODA winning three Academy Awards. The Walt Disney Company (DIS): Free Stock Analysis Report | Apple’s AAPL Apple TV+ is gaining a solid reputation, with Ted Lasso winning multiple Emmy Awards and CODA winning three Academy Awards. Apple Inc. (AAPL): Free Stock Analysis Report The series went on to win international awards such as the 2021 Asian Academy Creative Awards (AACA) and the 3rd Asia Contents Awards. | Apple’s AAPL Apple TV+ is gaining a solid reputation, with Ted Lasso winning multiple Emmy Awards and CODA winning three Academy Awards. Apple Inc. (AAPL): Free Stock Analysis Report Netflix NFLX is bringing back its hit Korean urban fantasy action series Sweet Home for two more seasons. |
20674.0 | 2022-06-16 00:00:00 UTC | US STOCKS-Wall Street set to slide on rising recession fears | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-slide-on-rising-recession-fears | nan | nan | By Shreyashi Sanyal and Sruthi Shankar
June 16 (Reuters) - U.S. stock indexes were on track for sharp declines on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession.
Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 2% each in premarket trading, with the Nasdaq 100 futures NQcv1 plunging by a similar margin.
The S&P 500 index .SPX snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase met market expectations.
Equities have been under pressure for most of the year on growing worries about surging inflation and higher borrowing costs, with the central bank's latest projection of a slowing economy and rising unemployment in the coming months only adding to those concerns.
"We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Limited.
Following the Fed meeting, Wells Fargo said the odds of a recession now stand at more than 50%.
The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England increased borrowing costs by quarter of a percentage point.
The S&P 500 .SPX is down 20.5% year-to-date and is in a bear market as investors grapple with a sharp slowdown in growth. The Nasdaq Composite .IXIC and the S&P 500 indexes were set to mark their 10th weekly decline in past 11 weeks.
"Technically the market remains weak," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"The Fed rally is fading as investors question the central bank's ability to orchestrate a soft landing. The bear market is in full force still and yet to reach a level where stocks can comfortably bounce off of."
At 08:31 a.m. ET, Dow e-minis 1YMcv1 were down 467 points, or 1.52%, S&P 500 e-minis EScv1 were down 70 points, or 1.85%, and Nasdaq 100 e-minis NQcv1 were down 250.75 points, or 2.16%.
On the equities front, Morgan Stanley MS.N led losses among major U.S. banks with a 2% slide.
Twitter Inc TWTR.N firmed 1.5% ahead of Elon Musk's meeting with its employees after a report said he was expected to reiterate his desire to own the social media company.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Additional reporting by Medha Singh; Editing by Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 2% each in premarket trading, with the Nasdaq 100 futures NQcv1 plunging by a similar margin. The S&P 500 index .SPX snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase met market expectations. Equities have been under pressure for most of the year on growing worries about surging inflation and higher borrowing costs, with the central bank's latest projection of a slowing economy and rising unemployment in the coming months only adding to those concerns. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 2% each in premarket trading, with the Nasdaq 100 futures NQcv1 plunging by a similar margin. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes were on track for sharp declines on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession. The S&P 500 index .SPX snapped a five-session losing streak on Wednesday after the Fed's 75 basis point rate increase met market expectations. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 2% each in premarket trading, with the Nasdaq 100 futures NQcv1 plunging by a similar margin. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes were on track for sharp declines on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession. "We view it as increasingly likely that a recession and higher unemployment will be necessary to tame inflation: with such a gloomy macro picture looming over the markets," said Geir Lode, head of global equities at Federated Hermes Limited. | Mega-cap firms Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 2% each in premarket trading, with the Nasdaq 100 futures NQcv1 plunging by a similar margin. By Shreyashi Sanyal and Sruthi Shankar June 16 (Reuters) - U.S. stock indexes were on track for sharp declines on Thursday, with growth shares taking the biggest hit, after the Federal Reserve's biggest rate increase since 1994 to tame rising prices fanned worries of a recession. Equities have been under pressure for most of the year on growing worries about surging inflation and higher borrowing costs, with the central bank's latest projection of a slowing economy and rising unemployment in the coming months only adding to those concerns. |
20675.0 | 2022-06-15 00:00:00 UTC | Why You Want the Companies You Own to Have Big Moats | AAPL | https://www.nasdaq.com/articles/why-you-want-the-companies-you-own-to-have-big-moats | nan | nan | In this podcast, Motley Fool senior analyst Asit Sharma discusses:
Meta Platforms (NASDAQ: META) bouncing back from its recent lows.
PayPal's (NASDAQ: PYPL) strong first-quarter revenue and lowered guidance for the full fiscal year.
The growing strength of ServiceNow's (NYSE: NOW) cloud business.
Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss some ways to identify businesses with moats and share some stocks that know how to protect themselves.
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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Chris Hill: [MUSIC] We like big moats and we cannot lie. Investors can't deny. I'm not singing the rest of this, we got too much to get to on this episode. Motley Fool Money starts now. I'm Chris Hill, joining me is Motley Fool Senior Analyst, Asit Sharma. Thanks for being here.
Asit Sharma: Chris, thank you for having me.
Chris Hill: Jason Moser and Matt Frankel are going to be here later in the show to talk about moats, also known as one of the biggest advantages that business can have. But we're going to check in on the latest from PayPal and ServiceNow, let's start with Meta Platforms. Shares hit a 52-week low on Wednesday. Today, shares are up more than 10 percent off of that low because of a first-quarter report that wasn't perfect, but it definitely had bright spots. Meta Platforms seeing a rise in both active daily users and revenue per user. What stood out to you?
Asit Sharma: Chris, for me, I think what stood out was made for TV Disney movie element in this earnings report. By that, I mean, in some Disney movies of old, you had the crazy tinker as genius farther who would spend part of the family's budget on stuff for his creations. Then at some point, the mom would step in and say, hey, we've got to send the kids to camp this summer. You can't keep pouring money into this, we've got to make it through the month. I think this was Meta Platforms realizing that as much as they want to invest in the metaverse, they can't go all-in. They dialed back their projected expenses for this year and this gives shareholders some confidence that the company will drop a little bit more money to the bottom line, I will just point out, in this quarter, Meta had $28 billion in total revenue. Now, how do that Reality Labs, which is right now, the expression of the metaverse where all the big money is being poured into that had around 700 million in revenue? It had three billion dollars odd in expenses. I don't want to call this a money pit, it's an investment. The payoff is uncertain, it's indefinite in the future. Having Facebook pullback, having Meta pullback the spend for this year gives investors a little bit of confidence that this is still an organization that's being run with the intent to provide them some returns.
Chris Hill: Stark contrast to what we saw three months ago when the stock fell 26 percent in a single day off of their previous earnings report. You refer to something that I think is important for any business, for shareholders of any company, which is not that we necessarily want to see management teams just tale telling to whatever Wall Street wants. But there is a certain level of transparency that it behooves companies to share. The more companies can communicate this is where we're going, the more likely investors are going to get on board for that trip. I think, as you indicated, Mark Zuckerberg and his team indicating, we're dialing this back a little bit. We're still headed to the metaverse we're still going in that direction. But we're going to pull back to spend just a little bit.
Asit Sharma: I agree, Chris. At the end of the day, investors want to understand the game plan. In many cases, we, as investors, will punish a company less if we're not thrilled with a game plan, but at least we know what it is versus having that black box and just seeing the results come out quarter-after-quarter and then having to extrapolate. You don't want to do the hard work, you want management to tell you exactly what the plan is. In this case, I think it's good. Going back to your first point, just having the average daily users pop back up a little bit was comforting because you never know in this very competitive space, a crack in user growth could be a temporary thing, but it could signal something deeper and more permanent. Here, we see with Facebook, you had an increase of six percent year-over-year in their families daily active people, similar increase in family monthly active people. That gave shareholders a bit more comfort that OK we can go on with business as usual, this is still a growth story.
Chris Hill: Last thing, and then we can move on. It's always worth remembering this is an advertising business for whatever anyone's perception of Facebook, Instagram, the value proposition, privacy, all of those things. Remember, that at the end of the day, this is a business that makes its money off of advertising and they do a really, really good job of serving their customers.
Asit Sharma: If this company solely focused on advertising, it would have this unimpeded path to growth still for several years out in the future. That's how strong this business is. It's good for them to signal that we are taking care of that core business because that is where the margin comes from, that's where the profits come from to invest in the metaverse and these forward-looking projects.
Chris Hill: PayPal's first quarter revenue was higher than Wall Street was expecting, but they cut guidance for the full fiscal year. PayPal's guidance for Q2 was pretty weak. I am surprised, therefore, that shares of PayPal are up three, four percent this morning, I get that the stock has been cut in half since the beginning of the year, so it's off of a lower point than it was. I almost hate to ask this question, but I'm going to ask it anyway. Because it [laughs] speaks to a way of looking at investing that I don't invest this way and I know you don't invest this way, but when you look at the stock moving up off of this quarter and this guidance, I'm left wondering, is this an indication that shares of PayPal have hit the bottom? I'm not trying to time the bottom, I don't believe in that sort of thing. I don't know, these were not amazing results and this was certainly not great guidance.
Asit Sharma: It's a legitimate question to ask, Chris. I don't want to time PayPal either, I'm a shareholder, but I'm interested in knowing if the investment community has said enough in the stock was down what, 55 percent before this report, year-to-date and it's not a great report, I can't figure it out either. It looks to me like there's some bargain hunting going on. Potentially, investors are looking at rejiggering the growth stories, realistic expectations going forward and thinking to themselves, hey, they could accelerate in a few quarters, so this might not be a bad place to add some shares. Those who've been on the sidelines maybe see this as a little bit of settling. But I got to point out here, something funny happened on the way to world domination. PayPal of this quarter is not the PayPal of four quarters ago. I think this has something to do with the fact that there are many more specialist businesses that are attacking PayPal from various sides.
Chris Hill: They also announced they're going to be shutting their offices in San Francisco. Again, I think for all of the challenges this business has encountered, some of which are self-inflicted, I think it continues to be one of the most interesting businesses to watch for the rest of this year, both in terms of their ability to bounce back, but also just decisions like that. Obviously, part and parcel of a decision like that is, hey, we think this can save us money because I don't know if you've been to San Francisco, but the real estate is cheap.
Asit Sharma: Yeah. This is funny, Chris, because it's under-grids the point I was just making while also pointing out something good about management as your illuminating care, so they happen that they're closing the office that run Xoom, with an X, this is a money transfer business, money remittance business that competes with a lot of different players. One of those is a company called Wise which is now public as of a year or two ago, you can buy the trades in London. Wise just attacks this one thing that PayPal is very good at which is sending money abroad and working with multiple currencies, but they are a lot cheaper. They don't have to compete with PayPal over that whole platform. PayPal is looking to do a few things here. I totally agree with you, they're trying to get out of high rent district, they're trying to give employees a little bit more flexibility, and they're looking at the cost structure in this one part of the payment space they play in saying, hey, we need to be more competitive with this company because investors can choose just to buy Wise which is a more specialized company. In a lot of fronts, it's an interesting decision, it's simultaneously speaks to the difficulties they are having in the marketplace, but to management's agility, and Chris, decision-making that we've seen out of Dan Schulman for a number of years now.
Chris Hill: ServiceNow might be the most under the radar $100 billion company in America. ServiceNow's first-quarter results were great. You tell me, because is on the Service, it looks like this was their best quarter for growth in a couple of years.
Asit Sharma: Yeah, I love your description. Under the radar, most investors, I think, have a passing familiarity with ServiceNow. It's not a name that comes to mind when you ask the average retail investor to name their top five software-as-a-service stocks, but they're a juggernaut. They help big enterprises get more efficient with business process automation with workflow improvement and I think that, for me, ServiceNow, because they are so under the radar and underrated, they remind me of a certain type of tennis player. So I grew up in the small rural town, Chris, and there were three courts we could use spread across the town. One of them stood in the shadow of these tall pine trees, there was a time capsule nearby that someone had put like in the early 20th century. As kids, we literally had to play in the fall on top of pine leaves. We would skate around and I learned many life lessons there. One of the biggest being, be aware of the two-handed backhand specialist. If you've ever played tennis, you've met this player. It's the backend player who can hit the ball from anywhere on the core if it comes to their backend. It's two handed so it's powerful, it's precise, and because they always want you to hit to their backend, they have a pretty good forehand too which redirects you to getting back to that ball, and they never seem to lose. They're never going to floor you with their virtuosic but they're going to return every ball. ServiceNow has a direct salesforce team that is extremely focused, they're extremely aggressive in getting enterprise business long-term contracts at that. If you look at the metrics they reported today, sales were great. They rose, I think, 26 percent year-over-year, but the rate at which they added contracts over one million dollars, that grew at a rate of 41 percent year-over-year. They added 52 contracts in excess of a million bucks. Not a glamorous company but very dogged in the right space and I think this is yet another testament to their ability to execute.
Chris Hill: I never thought I was going to get a tennis analogy from anyone other than Bill Barker, so thank you for that. Let's wrap up on this, ServiceNow, PayPal, Meta Platforms, of these street companies, which are obviously doing very different things, which one do you think has the biggest mount?
Asit Sharma: Well, I'll go with ServiceNow not because of recency bias because it's the one we just talked about. But if we looked really briefly at Facebook, as you mentioned, they've got such a great advertising business but they understand that that also is only as good as the reach of their platforms which are prone any day to a new TikTok emerging, so they're trying to disrupt their own business building out their place in the Metaverse for that reason. They understand that moat is not as wise as it used to be. PayPal, as we've mentioned, they focus on both the merchant side and the customer side. They're really broad, they've got to compete against Square, Wise, which I mentioned, just a plethora of different payment specialists, so their moat is eroding overtime, Venmo is maturing. You look at ServiceNow, theirs is real simple, we're going to be the best at sitting across the table from the customers we do business with and convincing them to buy our product for another 3-5 years and we're going to hit the biggest companies in the world. It's not an unassailable moat. [MUSIC] Moats are never meant to be unassailable, therefore, the aggressor to try to figure out how to cross, but of the three companies, I think theirs is the clearest one to see on the ground today. That could change in a few quarters but I will give the price to ServiceNow.
Chris Hill: Asit Sharma, great talking to you, thanks for being here.
Asit Sharma: So much fun. Thanks, Chris.
Chris Hill: How do you know if a business has truly established a moat around it? To discuss that and share some stocks that know how to protect themselves, here's Matt Frankel and Jason Moser.
Jason Moser: Hey, Matt. It's great to catch-up again, everything going well for you in the family down there in South Carolina?
Matt Frankel: It is, but I am excited to get out of town this weekend to go to Omaha.
Jason Moser: I heard you were making a little trip and it feels that our topic today is quite appropriate given that you're making the pilgrimage to Omaha this weekend for the Berkshire Hathaway Annual Meeting. It's a really cool experience. I had the opportunity to go one year, I know you'll enjoy it. With that in mind, we're talking about moats today and how they pertain to investing. So with that in mind, let's just start with the most basic question, what do we mean when we say moat?
Matt Frankel: For individual stock investors, a moat is more important than looking at industry growth, market size, things like that because if you're focusing on an individual company, you need to find a company that has competitive advantages that are enough to keep its market share growing, to keep its profitability high no matter what the economy does or anything like that which is especially important in inflation and in rising rates and things like that. A moat is any company that has a durable competitive advantage that should protect its profitability and market share for the foreseeable future.
Jason Moser: It feels like for all of the great qualities that are moat can offer for investors, it's a word we hear a lot. We hear of the criticism of the company don't have any moat. Well, I think the point I've always tried to make is finding a moat is something very special. You don't see companies with just moats all around so when you find one, it really isn't essentially it. I think one of my favorite quotes really paints a good picture. There's Warren Buffett when he said I quote, "A good business is like a strong castle with a deep moat around it, I want sharks in the moat, I want it untouchable," and I think that really conveys exactly what you were saying there, just it's a durable competitive advantage that really it's very difficult to disrupt. But with that said, it's not something that every business possesses, really, only very few truly do, and over time, they can become assailable. I think that technology has really changed the game in a lot of ways for some businesses. But let's talk about businesses with moat, some of the companies you feel like possess moats today that investors should be keeping their eyes on.
Matt Frankel: Yeah. So a moat can take a bunch of different forms. Just to run down a few before I launch into a few companies, a powerful brand name. Think of a company that's synonymous with its industry. For example, you don't say I am going to search for something on the Internet, you say I'm going to Google it.
Jason Moser: Yes.
Matt Frankel: Google would be accompanied with a brand-based moat, I would say.
Jason Moser: Charlie Munger loves that. I think he's always said, what's his quote? He said, I don't think I've seen a business with a wider moat or something like that. [laughs]
Matt Frankel: Right. Amazon, which put the name above its stock, dominant scale, its name is synonymous with e-commerce for the most part and not only that it has cost advantages which is another form a moat can take because it has a massive distribution and shipping network that literally no other company can match.
Jason Moser: Yeah.
Matt Frankel: There are other forms of moats, there's a cash moat. This is what Buffett aims to achieve. This is why Berkshire has, I think, what, a $140 billion of cash on its balance sheet. Because no matter what happens in the economy, that cash not only will help Berkshire from going out of business, but gives them the flexibility to scoop up weaker competitors and gain market share. So that's another form of a moat superior products. Look at the iPhone. The iPhone is such a superior product that Apple can charge pretty much whatever it wants for it. So which allows higher margins, it keeps loyal customers. It's sucks people into their ecosystem. It's just a great all around product. The biggest Buffett stock there is is Apple, for that reason, because it's a very high moat business.
Jason Moser: Well, and I think intellectual property too is another one that we often talk about, IP, and that ranges from businesses in entertainment to technology to manufacturing. But intellectual property can be extremely valuable because it is unique, it's typically protected. I mean, it's often very difficult to replicate. It feels like, I don't know if you feel this way, but I do agree with you. I think that a brand name can be moat. It feels like it is a moat that is potentially more salable than the others just because there's the opportunity for leadership to bungled things. They can make a mess things up and they can tarnish the brands, so to speak. Sometimes you can recover from that. Other times maybe it's not quite so easy.
Matt Frankel: I love the intellectual property point. It's not just tech companies that applies to, one of Buffett's above its older stocks, Coca-Cola. It has some of the other things I mentioned. The name is synonymous with the industry known pulls up to a drive through and orders a Pepsi. No one says can I have a large coke? It's got that massive distribution network in pricing power, but how valuable do you think Coca-Cola's recipe is? That's a piece of intellectual property that is a big moat to that business because it's not just that they have that brand name, but their product taste better. Ask Buffett, he'll tell you the same thing. [laughs] Intellectual property is the only reason the BlackBerry Corporation didn't go bankrupt because of the iPhones dominance. It's because they have so many patents in their portfolio and own so much of their intellectual property that they were able to stay alive even though their market share went away. Intel is another great example of a company with a ton of intellectual property that gives it a big moat. They're the most commonly used processor by computer makers and they own the patents to so much of their technology that it prevents more than one or two other competitors from even competing for their market share.
Jason Moser: You could also look at businesses and think, well, they have more than one moat too. In some ways, I mean, if we look at Disney as an example, I mean, Disney obviously has a tremendous advantage in that intellectual property, but that intellectual property serves many different purposes, and the theme park side of that business is obviously a crucial part of it. Just the physical nature of that theme park side of the business, that's a very, very difficult thing to replicate. All of the news that's going on right now with Florida and the governor there, back-and-forth, and people are saying, Disney to just pick up and leave Florida. You know what, it's not quite that easy. [laughs] They've spent decades building out this massive presence there, that physical infrastructure, that physical presence is very difficult to disrupt. So you can find companies actually that have multiple moats, I'd say.
Matt Frankel: Disney World's like the size of Rhode Island, you can't just pick it up and move it.
Jason Moser: No.
Matt Frankel: You're right. There are companies with multiple moats, like some of the ones I mentioned, Coca-Cola, distribution network is superior. That gives a cost advantages. It's got pricing power because of that brand name. It's got intellectual property because of its recipes. The name is synonymous with its industry. Apple has several different competitive moats. Berkshire itself has several different competitive moats. They sell a product that people need and have brand recognition. GEICO. Can you name a company more recognizable in the auto industry space than GEICO?
Jason Moser: No. Might be Progressive.
Matt Frankel: Might be a distant second. Even within the business, there's a lot of different competitive moats. Utilities. Utilities have near monopoly in the areas they operate. A ton of competitive moats in the utility business. Just a ton of different competitive moats and you're right, companies are not limited to just one.
Jason Moser: What are some of the things just as it for investors that are looking to identify moats. I mean, I feel like we've hit on this, but if there's something in particular, part of your process, something that you use as a starting point in order to try to find business that has moat, like identifying that motor, their metrics, or are there things that you look for in order to be able to really ascertain, yeah, this business has a moat or no, it doesn't.
Matt Frankel: I can name two screening factors that will help you narrow down to like five percent of the companies in the market. One, how did the earnings holdup during tough times? If earnings continue to grow during, say, the financial crisis or during any recession, that's number 1. Number 2, companies that have a decade plus history of growing their market share every year. If a company can continuously grow its market share, especially at a competitive industry like technology or consumer products or things like that, if a company can continuously grow its market share, like Amazon continues to do, that's a great way to narrow down companies with wide moats.
Jason Moser: Well, it makes a lot of sense to me, Matt, and it's always great catching up with you. Safe travels this weekend. Are you going to be providing any real-time coverage while you're there? How can we follow the Matt Frankel Berkshire experience?
Matt Frankel: I will be on The Morning Show for two hours the following Monday to do a recap, and I will be live tweeting at the event while questions are going on, that's pretty much the best way to follow me @TMFMathGuy.
Jason Moser: [MUSIC] @TMFMathGuy. Follow him, keep up to speed with what's going on in Omaha this weekend for the Berkshire Hathaway Annual Meeting. Matt, enjoy it. I'm sure you'll have a blast.
Matt Frankel: Thanks, Jason. Always good to be here.
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. Asit Sharma has positions in Coca-Cola, PayPal Holdings, and Walt Disney. Chris Hill has positions in Amazon, Apple, PayPal Holdings, and Walt Disney. Jason Moser has positions in Amazon, Apple, PayPal Holdings, and Walt Disney. Matthew Frankel, CFP® has positions in Berkshire Hathaway (B shares), PayPal Holdings, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., PayPal Holdings, ServiceNow, Inc., and Walt Disney. The Motley Fool recommends BlackBerry and recommends the following options: 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 $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. | They dialed back their projected expenses for this year and this gives shareholders some confidence that the company will drop a little bit more money to the bottom line, I will just point out, in this quarter, Meta had $28 billion in total revenue. Potentially, investors are looking at rejiggering the growth stories, realistic expectations going forward and thinking to themselves, hey, they could accelerate in a few quarters, so this might not be a bad place to add some shares. Amazon, which put the name above its stock, dominant scale, its name is synonymous with e-commerce for the most part and not only that it has cost advantages which is another form a moat can take because it has a massive distribution and shipping network that literally no other company can match. | In this podcast, Motley Fool senior analyst Asit Sharma discusses: Meta Platforms (NASDAQ: META) bouncing back from its recent lows. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., PayPal Holdings, ServiceNow, Inc., and Walt Disney. The Motley Fool recommends BlackBerry and recommends the following options: 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 $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 senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss some ways to identify businesses with moats and share some stocks that know how to protect themselves. Matt Frankel: For individual stock investors, a moat is more important than looking at industry growth, market size, things like that because if you're focusing on an individual company, you need to find a company that has competitive advantages that are enough to keep its market share growing, to keep its profitability high no matter what the economy does or anything like that which is especially important in inflation and in rising rates and things like that. If a company can continuously grow its market share, especially at a competitive industry like technology or consumer products or things like that, if a company can continuously grow its market share, like Amazon continues to do, that's a great way to narrow down companies with wide moats. | Chris Hill: Jason Moser and Matt Frankel are going to be here later in the show to talk about moats, also known as one of the biggest advantages that business can have. There's Warren Buffett when he said I quote, "A good business is like a strong castle with a deep moat around it, I want sharks in the moat, I want it untouchable," and I think that really conveys exactly what you were saying there, just it's a durable competitive advantage that really it's very difficult to disrupt. If a company can continuously grow its market share, especially at a competitive industry like technology or consumer products or things like that, if a company can continuously grow its market share, like Amazon continues to do, that's a great way to narrow down companies with wide moats. |
20676.0 | 2022-06-15 00:00:00 UTC | UK music subscriptions in decline as households seek savings | AAPL | https://www.nasdaq.com/articles/uk-music-subscriptions-in-decline-as-households-seek-savings | nan | nan | By James Davey
LONDON, June 16 (Reuters) - Britons cancelled over 1 million music subscriptions in the first quarter as a worsening cost of living crisis forced them to make savings, industry data showed on Thursday.
Pessimism in British households has hit unprecedented levels, as wages struggle to keep pace with inflation that reached a 40-year high of 9% in April and is heading for double digits.
That is forcing many to eke out savings from household budgets.
Market researcher Kantar said 37% of UK consumers cited wanting to save money as the reason they cancelled music subscriptions in a market dominated in recent years by platforms such as Spotify SPOT.N, Apple AAPL.O and Amazon AMZN.O.
"The rising cancellation rates of music subscriptions is evidence that British households are starting to prioritise the spending of their disposable income," Kantar said.
It noted that in Britain, subscriptions are dropping the fastest amongst younger consumers, with the percentage of under 35s having access to a music subscription dropping from 57.0% to 53.5% year-on-year.
Kantar said penetration of total individuals who have access to at least one music subscription was 39.5% of British adults in the first quarter of 2022, down from 39.7% in the previous quarter.
That compares with an unchanged 48.8% in the United States and 36.6% in Germany, up from 35.9%.
In April, Kantar reported that Britons were cancelling television and film subscription services.
To cut costs, Britons are also trading down in both stores and products, switching from mainstream supermarkets to discounters and from branded to lower priced private label products.
They are also cutting back on fuel purchases as they reduce the number of car journeys they make and cancelling repair warranties on domestic appliances.
Poundland owner Pepco PCOP.WA said last week Britons were even reining in spending on essential items.
(Reporting by James Davey; Editing by Emelia Sithole-Matarise)
((james.davey@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. | Market researcher Kantar said 37% of UK consumers cited wanting to save money as the reason they cancelled music subscriptions in a market dominated in recent years by platforms such as Spotify SPOT.N, Apple AAPL.O and Amazon AMZN.O. By James Davey LONDON, June 16 (Reuters) - Britons cancelled over 1 million music subscriptions in the first quarter as a worsening cost of living crisis forced them to make savings, industry data showed on Thursday. Pessimism in British households has hit unprecedented levels, as wages struggle to keep pace with inflation that reached a 40-year high of 9% in April and is heading for double digits. | Market researcher Kantar said 37% of UK consumers cited wanting to save money as the reason they cancelled music subscriptions in a market dominated in recent years by platforms such as Spotify SPOT.N, Apple AAPL.O and Amazon AMZN.O. By James Davey LONDON, June 16 (Reuters) - Britons cancelled over 1 million music subscriptions in the first quarter as a worsening cost of living crisis forced them to make savings, industry data showed on Thursday. In April, Kantar reported that Britons were cancelling television and film subscription services. | Market researcher Kantar said 37% of UK consumers cited wanting to save money as the reason they cancelled music subscriptions in a market dominated in recent years by platforms such as Spotify SPOT.N, Apple AAPL.O and Amazon AMZN.O. By James Davey LONDON, June 16 (Reuters) - Britons cancelled over 1 million music subscriptions in the first quarter as a worsening cost of living crisis forced them to make savings, industry data showed on Thursday. "The rising cancellation rates of music subscriptions is evidence that British households are starting to prioritise the spending of their disposable income," Kantar said. | Market researcher Kantar said 37% of UK consumers cited wanting to save money as the reason they cancelled music subscriptions in a market dominated in recent years by platforms such as Spotify SPOT.N, Apple AAPL.O and Amazon AMZN.O. By James Davey LONDON, June 16 (Reuters) - Britons cancelled over 1 million music subscriptions in the first quarter as a worsening cost of living crisis forced them to make savings, industry data showed on Thursday. Pessimism in British households has hit unprecedented levels, as wages struggle to keep pace with inflation that reached a 40-year high of 9% in April and is heading for double digits. |
20677.0 | 2022-06-15 00:00:00 UTC | Best Stocks To Buy In A Recession? 3 Cyclical Stocks To Watch | AAPL | https://www.nasdaq.com/articles/best-stocks-to-buy-in-a-recession-3-cyclical-stocks-to-watch | nan | nan | Are These Top Cyclical Stocks On Your Watchlist This Week?
As investors wonder why are stocks up today, cyclical stocks could be worth considering in the stock market now. Why? Well for investors looking to buy on the dip, cyclicals would be a go-to now. After all, with a blazing hot economy and the Federal Reserve’s latest policy decision due today, the sector would be under pressure. Regarding the latter, investors will likely be watching closely to see how much the Fed will be raising its benchmark interest rate. Following soaring consumer and producer price figures from May, there are growing mentions of a 75 basis point increase. Should this be the case, it would mark a first since 1994.
All in all, even as the Federal Reserve looks to address inflation, cyclical firms continue to power forward. Take energy industry goliath BP (NYSE: BP) for instance. As of today, the company is acquiring a 40.5% stake in the Asian Renewable Energy Hub (AREH). Through its latest move, BP notes that it will oversee major parts of the development of the project. Also, BP believes it could “be one of the largest renewables and green hydrogen hubs in the world.”
On the whole, other oil industry titans such as Exxon Mobil (NYSE: XOM) are also gaining momentum as oil prices rise. So much so, that even President Joe Biden recently highlighted the need for such firms to bolster their oil refinery output. At the same time, you also have firms like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) actively optimizing their consumer discretionary offerings as well. Both of which are expanding their streaming portfolios with new types of content. Should all this have you keen on cyclical stocks, here are three more to know in the stock market today.
Cyclical Stocks To Watch Today
Baidu Inc. (NASDAQ: BIDU)
QUALCOMM, Inc. (NASDAQ: QCOM)
Snowflake Inc. (NYSE: SNOW)
Baidu Inc.
First off today, we have the global technology corporation Baidu. In short, the company specializes in internet services and artificial intelligence (AI). In fact, it is one of the few firms in the world that offers a comprehensive AI stack. Its infrastructure includes AI chips, a deep learning framework, fundamental AI capabilities, and an open AI platform. Baidu also integrates cutting-edge AI capabilities into its goods and services, as well as unique application cases.
Today, Baidu is in talks to sell its controlling stake in iQIYI (NASDAQ: IQ) a Chinese video streaming service firm. During the COVID-19 lockdowns, China’s online video market boomed, and iQIYI became one of the largest players in China’s video streaming market. Baidu, which owns 53% of iQIYI and more than 90% of its shareholder voting rights, plans to sell all its holdings. In total, the deal could value all of iQIYI at about $7 billion.
This divestment plan is made so that Baidu can focus more on developing its AI and autonomous driving units. Last week, JIDU, an electric vehicle company backed by Baidu, released a concept “robocar”. Xia Yiping, the chief executive officer of JIDU, said, “The transition to this new era is marked by the shift of driving power from humans to AI, with robocars ultimately achieving self-generating progress led by AI.” Following all of this, would you be watching BIDU stock?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Open Higher As Investors Brace For Fed Decision; DWAC Stock Rallies After Statement On Cooperating With The SEC
Qualcomm Inc.
Following that, we have Qualcomm, a cyclical company that creates semiconductors, software, and services related to wireless technology. In fact, it is a global leader in developing and commercializing foundational technologies that are used in today’s wireless products. It also licenses its intellectual property portfolio, which includes certain patent rights to manufacture and use certain wireless products. Today, the company won its bid to topple a $1 billion antitrust fine from the European Union.
In detail, it was alleged that Qualcomm has been pressuring Apple to only buy its 4G chips, after judges said regulators made a series of blunders in their case. The 2018 fine on the company came after years of scrutiny from the EU. The commission says that it will carefully study the judgment and its implications. It will also reflect on its possible options moving forward. QCOM stock is up by over 1.7% on today’s opening bell in light of this piece of news.
On Monday, the company also announced that it has acquired Cellwize Wireless Technologies, a leader in mobile network automation and management. This acquisition will help accelerate Qualcomm as a leader in 5G Radio Access Networks (RAN) innovation and adoption. Cellwize’s 5G network deployment, automation, and management software platform capabilities will also further strengthen the company’s infrastructure solutions to fuel the digital transformation of industries, power the connected intelligent edge, and support the growth of the cloud economy. Given this piece of information, is QCOM stock worth investing in right now?
Source: TD Ameritrade TOS
Snowflake Inc.
Last on this list, we have the cloud computing-based warehousing company Snowflake. The company provides a cloud-based data storage and analytics service, named as the Data Cloud. In summary, it is a network of thousands of organizations mobilizing data seamlessly across public clouds as data consumers, providers, and service providers. Accordingly, Snowflake provides services to the government, financial services, education, and technology sector among others.
Recently, analysts at Canaccord Genuity Group upgraded Snowflake from a Hold rating to a Buy rating. Analyst David Hynes Jr. says that he raised his rating to Buy and also kept his price target of $185 for Snowflake. Following its financial results of the first quarter of 2023, the company’s revenue for the quarter was $422.4 million, representing 85% year-over-year growth. In the meantime, product revenue of $394.4 million in the first quarter, representing 84% year-over-year growth. Its net revenue retention rate was 174% as of April 30, 2022. In particular, the company now has 6,322 total customers and 206 customers with trailing 12-month product revenue greater than $1 million.
Yesterday, the company announced that it is expanding native Python support and data access to advance programmability in its Data Cloud. These new enhancements will help data scientists, data engineers, and application developers to improve productivity. Snowflake’s latest innovations bring Python to the forefront, with the launch of Snowpark for Python, now in public preview, and a native integration with Streamlit for rapid application development and iteration. Considering the positive outlook, do you have SNOW stock on your watchlist?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the same time, you also have firms like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) actively optimizing their consumer discretionary offerings as well. Xia Yiping, the chief executive officer of JIDU, said, “The transition to this new era is marked by the shift of driving power from humans to AI, with robocars ultimately achieving self-generating progress led by AI.” Following all of this, would you be watching BIDU stock? Cellwize’s 5G network deployment, automation, and management software platform capabilities will also further strengthen the company’s infrastructure solutions to fuel the digital transformation of industries, power the connected intelligent edge, and support the growth of the cloud economy. | At the same time, you also have firms like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) actively optimizing their consumer discretionary offerings as well. Cyclical Stocks To Watch Today Baidu Inc. (NASDAQ: BIDU) QUALCOMM, Inc. (NASDAQ: QCOM) Snowflake Inc. (NYSE: SNOW) Baidu Inc. First off today, we have the global technology corporation Baidu. Its infrastructure includes AI chips, a deep learning framework, fundamental AI capabilities, and an open AI platform. | At the same time, you also have firms like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) actively optimizing their consumer discretionary offerings as well. As investors wonder why are stocks up today, cyclical stocks could be worth considering in the stock market now. Cyclical Stocks To Watch Today Baidu Inc. (NASDAQ: BIDU) QUALCOMM, Inc. (NASDAQ: QCOM) Snowflake Inc. (NYSE: SNOW) Baidu Inc. First off today, we have the global technology corporation Baidu. | At the same time, you also have firms like Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX) actively optimizing their consumer discretionary offerings as well. Cyclical Stocks To Watch Today Baidu Inc. (NASDAQ: BIDU) QUALCOMM, Inc. (NASDAQ: QCOM) Snowflake Inc. (NYSE: SNOW) Baidu Inc. First off today, we have the global technology corporation Baidu. On Monday, the company also announced that it has acquired Cellwize Wireless Technologies, a leader in mobile network automation and management. |
20678.0 | 2022-06-15 00:00:00 UTC | 3 Oversold Blue-Chip Stocks to Buy Before They Rebound | AAPL | https://www.nasdaq.com/articles/3-oversold-blue-chip-stocks-to-buy-before-they-rebound | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue-chip stocks offer exposure to the world’s biggest and most well-financed corporations. They are industry titans with a history of surviving recessions and weathering economic storms.
But that doesn’t mean they’re immune to downturns. We’re witnessing one of the biggest thrashings on record, and it’s creating opportunities for those willing to look past the pain. Below I’ll reveal three of the best blue-chip stocks to buy before the recovery.
And make no mistake, a rebound is coming that will bring rich rewards to those willing to plant seeds now. Remember, the financial market’s advance is permanent, and the declines are temporary. We could argue that a recession has already been priced in at this point in the cycle. The average S&P 500 stock has already fallen 30%, and the average Nasdaq and Russell 2000 component has been cut in half.
While not every company will regain its old highs, these blue-chip beauties eventually will. And that makes them rousing buys at these deeply discounted prices.
Ticker Company Price
WMT Walmart $118.65
DIS Disney $95.88
AAPL Apple $134.41
Blue-Chip Stocks: Walmart (WMT)
Source: The thinkorswim® platform from TD Ameritrade
Drawdown from the Highs: -26%
The last Walmart (NYSE:WMT) earnings report was disastrous, and Wall Street decided to bake in a slowdown in one fell swoop. The scalping shaved one-quarter of the company’s value, and after an oversold bounce, we’ve returned to the lows.
7 Unstoppable Stocks to Own in 2022
Given the treacherous market backdrop and the fact that the S&P 500 just tumbled 10% in a single week, it’s going to be challenging to build a bullish case on any of today’s picks based on the technicals.
So I won’t.
If you’re buying, it’s based on the company’s fundamental strength combined with the damage that’s already been baked in. WMT stock is down 26% from the highs, and its earnings estimates haven’t fallen near as much. Thus, its P/E ratio has shrunk, making it a cheaper bet. You’re also getting paid a 1.9% dividend while waiting for the inevitable recovery.
Walt Disney (DIS)
Source: The thinkorswim® platform from TD Ameritrade
Drawdown from the Highs: -54%
For a blue-chip stock as old and storied as Walt Disney (NYSE:DIS), you might imagine a company that offers stability and lower beta. Unfortunately, DIS stock has been anything but. It’s gotten cut in half twice over the past three years. With the advent of Disney+, the Street started treating it as a high-growth stock. And while that seemed like a godsend following the pandemic when growth was in vogue, it’s causing severe trouble on the way down.
Indeed DIS stock is suffering alongside the fallout in other streaming-related companies like Netflix (NASDAQ:NFLX), Roku (NASDAQ:ROKU), and Warner Bros Discovery (NASDAQ:WBD). But now that prices are back to where they were in 2015, I think Disney has largely been de-risked. You rarely get a chance to acquire the Mouse House this far off the highs.
Blue-Chip Stocks: Apple (AAPL)
Source: The thinkorswim® platform from TD Ameritrade
Drawdown from the Highs: -27%
As the heavyweight champion of all public companies, Apple (NASDAQ:AAPL) demands a spot among any list of blue-chip stocks to buy during bear markets. The creator of all i-Things has proven its staying power over the past few decades and continued to defy skeptics and naysayers. Even if Apple’s growth rate slows, its fortress of a balance sheet will give it a long runway to continue rewarding shareholders with increasing dividends and share buybacks.
7 Nasdaq Stocks to Buy and Hold Forever
If you want to fine-tune your entry, you can wait for the price trend to turn higher first. It is oversold at nearly 30% off the highs but could fall further before the rubber band finally snaps back. For now, it would need to climb back above $150 to reverse the daily trend. We’ll likely form a lower resistance zone that provides a quicker entry over the coming weeks.
On the date of publication, Tyler Craig 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 3 Oversold Blue-Chip Stocks to Buy Before They 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. | Ticker Company Price WMT Walmart $118.65 DIS Disney $95.88 AAPL Apple $134.41 Blue-Chip Stocks: Walmart (WMT) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -26% The last Walmart (NYSE:WMT) earnings report was disastrous, and Wall Street decided to bake in a slowdown in one fell swoop. Blue-Chip Stocks: Apple (AAPL) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -27% As the heavyweight champion of all public companies, Apple (NASDAQ:AAPL) demands a spot among any list of blue-chip stocks to buy during bear markets. 7 Unstoppable Stocks to Own in 2022 Given the treacherous market backdrop and the fact that the S&P 500 just tumbled 10% in a single week, it’s going to be challenging to build a bullish case on any of today’s picks based on the technicals. | Ticker Company Price WMT Walmart $118.65 DIS Disney $95.88 AAPL Apple $134.41 Blue-Chip Stocks: Walmart (WMT) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -26% The last Walmart (NYSE:WMT) earnings report was disastrous, and Wall Street decided to bake in a slowdown in one fell swoop. Blue-Chip Stocks: Apple (AAPL) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -27% As the heavyweight champion of all public companies, Apple (NASDAQ:AAPL) demands a spot among any list of blue-chip stocks to buy during bear markets. Walt Disney (DIS) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -54% For a blue-chip stock as old and storied as Walt Disney (NYSE:DIS), you might imagine a company that offers stability and lower beta. | Ticker Company Price WMT Walmart $118.65 DIS Disney $95.88 AAPL Apple $134.41 Blue-Chip Stocks: Walmart (WMT) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -26% The last Walmart (NYSE:WMT) earnings report was disastrous, and Wall Street decided to bake in a slowdown in one fell swoop. Blue-Chip Stocks: Apple (AAPL) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -27% As the heavyweight champion of all public companies, Apple (NASDAQ:AAPL) demands a spot among any list of blue-chip stocks to buy during bear markets. Walt Disney (DIS) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -54% For a blue-chip stock as old and storied as Walt Disney (NYSE:DIS), you might imagine a company that offers stability and lower beta. | Ticker Company Price WMT Walmart $118.65 DIS Disney $95.88 AAPL Apple $134.41 Blue-Chip Stocks: Walmart (WMT) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -26% The last Walmart (NYSE:WMT) earnings report was disastrous, and Wall Street decided to bake in a slowdown in one fell swoop. Blue-Chip Stocks: Apple (AAPL) Source: The thinkorswim® platform from TD Ameritrade Drawdown from the Highs: -27% As the heavyweight champion of all public companies, Apple (NASDAQ:AAPL) demands a spot among any list of blue-chip stocks to buy during bear markets. Below I’ll reveal three of the best blue-chip stocks to buy before the recovery. |
20679.0 | 2022-06-15 00:00:00 UTC | Apple Stock: Plenty of Catalysts Could Fuel a Rebound | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-plenty-of-catalysts-could-fuel-a-rebound | nan | nan | Apple (AAPL) stock has sagged lower alongside the rest of the market amid a renewed fear of rate hikes, inflation, and a coming economic slowdown. While the macro picture has gotten a lot weaker in recent months, one can't help but notice that Apple has pulled the curtain on many disruptive innovations.
Some of these innovations are more than just intriguing concepts. They're potential cash cows that could fuel the next leg of earnings growth.
Even if the U.S. economy is bound to fall into a recession in 2023, Apple has a lot of catalysts up its sleeves that could offset economic pressures on the horizon. Simply put, Apple is innovating at a rapid pace, and it's this innovation that will help the firm make a huge splash in the fintech and enterprise segments.
Indeed, Apple has recognized where there's economic profit to be had. With such powerful network effects on its side, Apple can out-innovate rivals in an efficient manner. Now, Apple may not be a first-mover, but it is a firm that knows how to reinvent things remarkably well.
Apple's Hardware, Software, and Services Businesses Could Offset Recessionary Headwinds
As the company doubles down on financial services, with Apple Pay Later (or Pay in Four), Apple Tap to Pay, and even a possible hardware subscription service, we could witness the next era of the company's Services push.
Under CEO Tim Cook, Apple is fully-focused on delivering the best hardware, software, and services. It's the Services segment that's shined and what could be key to Apple's next round of multiple expansion.
As Services growth ramps up, hardware and software are not about to slow down.
On the hardware front, the big mixed-reality headset could be as little as a year away from launch. The exciting project, which has been years under development, was recently demoed to the board.
WWDC 2022 also showcased amazing new innovations on the software front, with iOS 16 and macOS Ventura. Also, unveiling its M2 chip and a redesign on its Macbook Air. Indeed, Apple is not slowing down.
As Apple puts the finishing touches on its headset, in what could represent the biggest hardware innovation since iPhone, it could prove hard to keep Apple stock in the $130-140 range through 2023.
There are a lot of services, software, and hardware catalysts to look forward to over the medium term with Apple. For that reason, I remain bullish on the stock, even as it continues following broader markets to multi-year lows.
Also worth noting, on TipRanks, AAPL stock receives a Smart Score rating of 9 out of 10, indicating that there is high potential for the stock to outperform the broader market.
Waiting on That Apple VR Headset
Aside from jaw-dropping "One More Thing" new product reveals, Apple's hardware and software innovations have been quite iterative in recent years. They haven't been able to garner as much excitement as the Apple of old.
Looking ahead, Apple's headset is something to get excited about. Still, global supply-chain issues could delay the launch date further. Many expect the VR/AR headset will be unveiled in early 2023.
Given that nothing official has been announced, and future COVID-19 supply disruptions could be in the cards, don't be so surprised to see the headset moved out to mid-to-late 2023. As challenges in the supply chain are ironed out, Apple is sure to polish its headset such that it stands out relative to the likes of what currently exists on the market today.
Beyond the headset, Apple Car rumors are still out there. Still, such a nascent product may be more than five years away.
In the meantime, Apple investors need other catalysts to get excited about. With the recent services unveiled, I think the company has a lot of new profit drivers that can keep earnings moving higher.
Apple Isn't Done Innovating in Services
Apple's Services push has been rewarded with a valuation multiple expansion over the years. As Apple pushes deeper into fintech while improving its footing in Enterprise Services, the company essentially has its foot in the door of new lucrative markets.
The company has its disruptor hat on and could evolve to become a leader in financial technology and pressure incumbent fintech firms well after this market sell-off concludes.
Further, the enterprise business may also give Apple's Services segment a nice jolt. As the company beckons in corporate customers with its M-series hardware and Apple Business Essentials IT service, the enterprise space appears to be a field ripe for disruption.
Given that the Mac is distancing itself from PCs with its incredible M-series chips and better integration with other hardware offerings, Apple seems to have set the stage to make a big move into the enterprise business. Indeed, Apple may be viewed as a consumer products company, but it's not afraid to explore new realms.
Wall Street's Take
Turning to Wall Street, AAPL stock comes in as a Strong Buy. Out of 27 analyst ratings, there are 21 Buy recommendations and six Hold recommendations.
The average Apple price target is $186.33, implying upside potential of 37.7%. Analyst price targets range from a low of $157.00 per share to a high of $210.00 per share.
The Bottom Line on Apple
Apple is the original disruptor and is not about to slow down, even as the economy does. If anything, Apple is setting itself up to take share as times get tough with software, hardware, and services innovations.
Sure, the market has soured on Apple recently, but with so many medium-term catalysts, it's hard to be a seller here.
Disclosure
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) stock has sagged lower alongside the rest of the market amid a renewed fear of rate hikes, inflation, and a coming economic slowdown. Also worth noting, on TipRanks, AAPL stock receives a Smart Score rating of 9 out of 10, indicating that there is high potential for the stock to outperform the broader market. Wall Street's Take Turning to Wall Street, AAPL stock comes in as a Strong Buy. | Apple (AAPL) stock has sagged lower alongside the rest of the market amid a renewed fear of rate hikes, inflation, and a coming economic slowdown. Also worth noting, on TipRanks, AAPL stock receives a Smart Score rating of 9 out of 10, indicating that there is high potential for the stock to outperform the broader market. Wall Street's Take Turning to Wall Street, AAPL stock comes in as a Strong Buy. | Apple (AAPL) stock has sagged lower alongside the rest of the market amid a renewed fear of rate hikes, inflation, and a coming economic slowdown. Also worth noting, on TipRanks, AAPL stock receives a Smart Score rating of 9 out of 10, indicating that there is high potential for the stock to outperform the broader market. Wall Street's Take Turning to Wall Street, AAPL stock comes in as a Strong Buy. | Apple (AAPL) stock has sagged lower alongside the rest of the market amid a renewed fear of rate hikes, inflation, and a coming economic slowdown. Also worth noting, on TipRanks, AAPL stock receives a Smart Score rating of 9 out of 10, indicating that there is high potential for the stock to outperform the broader market. Wall Street's Take Turning to Wall Street, AAPL stock comes in as a Strong Buy. |
20680.0 | 2022-06-15 00:00:00 UTC | Apple Stock Is Strong … Almost to a Fault | AAPL | https://www.nasdaq.com/articles/apple-stock-is-strong-...-almost-to-a-fault | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The equity markets have struggled since last Thursday. The main concern is the Federal Reserve decision that’s coming today. From high to low, the S&P 500 lost 10% in four sessions. Great companies like Apple (NASDAQ:AAPL) stock suffered even more. Today my message is about cautious optimism. I like the outlook that AAPL stock has, but I fear the temporary risk it could pose to the markets.
There is absolutely nothing wrong with Apple from a fundamental perspective. The company still sells out of every gadget it makes, and at a premium price. Moreover, its customers love them, so they don’t mind paying extra. Financially, Apple is as strong as they get. But despite all of that positivity, there’s still possible reason for concern.
Here’s a closer look at what investors might expect from AAPL stock in the coming days.
Ticker Company Current Price
AAPL Apple $134
AAPL Stock’s Potential Red Flag
Source: Charts by TrendSpider
The company’s strength is actually raising a bit of a red flag. After this correction, the S&P came within 9% of its pre-pandemic crash site. Remember that back then, that was an all-time high. AAPL stock, on the other hand, is still 38% above its same watermark. That is an unusual discrepancy that will likely need to normalize.
On its own, I don’t worry about the stock falling apart. But it could correct if the trigger is external. Stocks don’t trade in a vacuum, so any global event can set them off. A similar risk also lies in Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). These companies are also two giants that are too far above their pre-pandemic highs.
7 Cryptos on Red Alert As the Bear Market May Be Upon Us
I am not picking on the big ones, because Amazon (NASDAQ:AMZN) was already 8% below its February 2020 highs today. Salesforce (NYSE:CRM) is even worse — down 16%. There are more big companies like this. In fact, the iShares Russell 2000 ETF (NYSEARCA:IWM) closed the distance too. (That’s a basket of 2,000 stocks).
Therefore, the message here is that we could have two scenarios. The first is positive, which suggests that Apple is correct at holding its ground. If that’s the case, then the market will follow it higher, and the bottom is near for this correction. The second is bearish because it suggests that AAPL stock will fall 20% to match the markets. MSFT and GOOGL will follow too, and take the S&P the rest of the way (down 10%).
Investing in Apple Today
My gut says that the first scenario is more likely than second. Therefore, you can count me on the bullish side. An important part of being successful with the stock market is to see the potential potholes. Planning for the worst case doesn’t mean I’m rooting for it. Often the biggest losses come from blind sides, where investors didn’t look around for all possible scenarios. As such, consider this a mild warning about the worst case scenario that not many people are discussing.
Today the Federal Reserve tells us their next moves on policy monetary policy. They will move the markets and the outcome is a coin flip. It is possible that they will continue to raise rates, even if it breaks the economy. Meanwhile, their rhetoric so far has been enough to have caused a recession on Wall Street. If they continue to be this combative, I guess they can break it completely.
A green shoot comes from the fact that most experts have already laid out the doom scenarios. When everyone is watching the road, we are less likely to crash. What Apple stock investors do from here depends on their time frame.
Those who were looking to engage with new positions should only take partial ones to start. Meanwhile, waiting out the overall market jitters seems like a reasonable course of action for the rest. Options traders have dozens of ways they can trade with more confidence. They are worth investigating, so let that’s another tactic to consider.
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 Apple Stock Is Strong … Almost to a Fault 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 Current Price AAPL Apple $134 AAPL Stock’s Potential Red Flag Source: Charts by TrendSpider The company’s strength is actually raising a bit of a red flag. Great companies like Apple (NASDAQ:AAPL) stock suffered even more. I like the outlook that AAPL stock has, but I fear the temporary risk it could pose to the markets. | Great companies like Apple (NASDAQ:AAPL) stock suffered even more. Ticker Company Current Price AAPL Apple $134 AAPL Stock’s Potential Red Flag Source: Charts by TrendSpider The company’s strength is actually raising a bit of a red flag. I like the outlook that AAPL stock has, but I fear the temporary risk it could pose to the markets. | Great companies like Apple (NASDAQ:AAPL) stock suffered even more. Ticker Company Current Price AAPL Apple $134 AAPL Stock’s Potential Red Flag Source: Charts by TrendSpider The company’s strength is actually raising a bit of a red flag. I like the outlook that AAPL stock has, but I fear the temporary risk it could pose to the markets. | Great companies like Apple (NASDAQ:AAPL) stock suffered even more. I like the outlook that AAPL stock has, but I fear the temporary risk it could pose to the markets. Here’s a closer look at what investors might expect from AAPL stock in the coming days. |
20681.0 | 2022-06-15 00:00:00 UTC | TQQQ, REK: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/tqqq-rek%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 ProShares UltraPro QQQ, which added 17,300,000 units, or a 4.2% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 1.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares Short Real Estate, which added 350,000 units, for a 38.9% increase in outstanding units.
VIDEO: TQQQ, REK: 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. | Among the largest underlying components of TQQQ, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 1.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares Short Real Estate, which added 350,000 units, for a 38.9% increase in outstanding units. VIDEO: TQQQ, REK: 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 ProShares UltraPro QQQ, which added 17,300,000 units, or a 4.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares Short Real Estate, which added 350,000 units, for a 38.9% increase in outstanding units. VIDEO: TQQQ, REK: 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 ProShares UltraPro QQQ, which added 17,300,000 units, or a 4.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares Short Real Estate, which added 350,000 units, for a 38.9% increase in outstanding units. VIDEO: TQQQ, REK: 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 ProShares UltraPro QQQ, which added 17,300,000 units, or a 4.2% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 1.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares Short Real Estate, which added 350,000 units, for a 38.9% increase in outstanding units. |
20682.0 | 2022-06-15 00:00:00 UTC | US STOCKS-Growth stocks lift Wall Street ahead of Fed's rate decision | AAPL | https://www.nasdaq.com/articles/us-stocks-growth-stocks-lift-wall-street-ahead-of-feds-rate-decision | nan | nan | By Anisha Sircar and Devik Jain
June 15 (Reuters) - Wall Street's main indexes climbed more than 1% on Wednesday, boosted by gains in beaten-down growth and financial stocks, with investors waiting to see how high the Federal Reserve would raise interest rates at its policy meeting to quell inflation.
Ten of the 11 major S&P sectors advanced in early trading, with nine of them up more than 1%. Leading the pack were consumer discretionary .SPLRCD and financials .SPSY, which rose 1.6% and 1.7%, respectively.
The energy .SPNY sector was the lone decliner, dropping 0.5%.
Market heavyweights Apple Inc AAPL.O, Meta Platforms META.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O added between 1.3% and 2.5%.
Traders are almost fully pricing in a 75 basis point hike from the Fed, up from 8.2% a week ago, according to CME's FedWatch Tool. Such a big hike would lift the Fed's short-term target policy rate to a range of 1.5% and 1.75%.
The central bank will release its statement at 2 p.m. ET (1800 GMT), with a press briefing by Fed Chair Jerome Powell expected at 2:30 p.m. ET.
"The Fed is going to go 75 basis points and attempt to talk very hawkish to try to regain control of the narrative, and when it's all over, investors will breathe a sigh of relief," said Zach Hill, head of portfolio strategy at Horizon Investments.
"But the medium-term (market) outlook is the Fed wanting to tighten financial conditions and so that means lower equity valuations."
Worries about surging inflation, higher borrowing costs and rising challenges to economic growth have walloped global equities this year.
The benchmark S&P 500 index on Monday marked a more than 20% decline from its record closing high on Jan. 3, confirming it has been in a bear market, according to a commonly used definition.
Data showed U.S. retail sales unexpectedly fell 0.3% in May as motor vehicle purchases declined amid shortages, and record high gasoline prices pulled spending away from other goods.
Economists polled by Reuters had forecast retail sales gaining 0.2% last month.
At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was up 315.84 points, or 1.04%, at 30,680.67, the S&P 500 .SPX was up 48.12 points, or 1.29%, at 3,783.60, and the Nasdaq Composite .IXIC was up 179.38 points, or 1.66%, at 11,007.73.
Goldman Sachs GS.N rose 2.4% to lead gains among the big banks.
Nucor Corp NUE.N jumped 4.6% after it forecast upbeat current-quarter profit on strong steel demand.
Boeing Co BA.N surged 4.7% after China Southern Airlines Co Ltd 600029.SS this week conducted test flights with a 737 MAX plane for the first time since March, in a sign the jet's return in China could be nearing as demand rebounds.
Advancing issues outnumbered decliners by a 5.79-to-1 ratio on the NYSE and by a 3.81-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded seven new highs and 77 new lows.
(Reporting by Anisha Sircar, Devik Jain and Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((Anisha.Sircar@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. | Market heavyweights Apple Inc AAPL.O, Meta Platforms META.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O added between 1.3% and 2.5%. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes climbed more than 1% on Wednesday, boosted by gains in beaten-down growth and financial stocks, with investors waiting to see how high the Federal Reserve would raise interest rates at its policy meeting to quell inflation. "The Fed is going to go 75 basis points and attempt to talk very hawkish to try to regain control of the narrative, and when it's all over, investors will breathe a sigh of relief," said Zach Hill, head of portfolio strategy at Horizon Investments. | Market heavyweights Apple Inc AAPL.O, Meta Platforms META.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O added between 1.3% and 2.5%. Economists polled by Reuters had forecast retail sales gaining 0.2% last month. The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded seven new highs and 77 new lows. | Market heavyweights Apple Inc AAPL.O, Meta Platforms META.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O added between 1.3% and 2.5%. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes climbed more than 1% on Wednesday, boosted by gains in beaten-down growth and financial stocks, with investors waiting to see how high the Federal Reserve would raise interest rates at its policy meeting to quell inflation. Data showed U.S. retail sales unexpectedly fell 0.3% in May as motor vehicle purchases declined amid shortages, and record high gasoline prices pulled spending away from other goods. | Market heavyweights Apple Inc AAPL.O, Meta Platforms META.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O added between 1.3% and 2.5%. Ten of the 11 major S&P sectors advanced in early trading, with nine of them up more than 1%. Data showed U.S. retail sales unexpectedly fell 0.3% in May as motor vehicle purchases declined amid shortages, and record high gasoline prices pulled spending away from other goods. |
20683.0 | 2022-06-15 00:00:00 UTC | US STOCKS-Wall Street set to open higher ahead of Fed's rate decision | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-higher-ahead-of-feds-rate-decision | nan | nan | By Anisha Sircar and Devik Jain
June 15 (Reuters) - Wall Street's main indexes were set for higher open on Wednesday led by gains in beaten-down growth and bank stocks, with investors waiting to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting.
Traders are almost fully pricing in a 75 basis point hike from the Fed, up from 8.2% a week ago, according to CME's FedWatch Tool. Such a big hike would lift the Fed's short-term target policy rate to a range of 1.5% and 1.75%.
The central bank will release its statement at 2 p.m. ET (1800 GMT), with a press briefing by Fed Chair Jerome Powell expected at 2:30 p.m. ET.
"The Fed is going to go 75 basis points and attempt to talk very hawkish to try to regain control of the narrative, and when it's all over, investors will breathe a sigh of relief," said Zach Hill, head of portfolio strategy at Horizon Investments.
"But the medium-term outlook is the Fed wants to tighten financial conditions and so that means lower equity valuations."
Worries about surging inflation, higher borrowing costs and rising challenges to economic growth have walloped global equities this year.
Data showed U.S. retail sales unexpectedly fell 0.3% in May as motor vehicle purchases declined amid shortages, and record high gasoline prices pulled spending away from other goods.
Economists polled by Reuters had forecast retail sales gaining 0.2%.
The benchmark S&P 500 index on Monday marked a more than 20% decline from its most recent record high, confirming a bear market began on Jan. 3, according to a commonly used definition.
At 8:55 a.m. ET, Dow e-minis 1YMcv1 were up 217 points, or 0.71%, S&P 500 e-minis EScv1 were up 37 points, or 0.99%, and Nasdaq 100 e-minis NQcv1 were up 150 points, or 1.33%.
Market heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms META.O and Alphabet Inc GOOGL.O, gained between 1.3% and 1.6% in premarket trading.
JPMorgan Chase & Co JPM.N rose 1.3% to lead gains among the big banks.
U.S. shares of Baidu Inc BIDU.O rose 3.8% after Reuters reported the Chinese internet search engine giant is in talks to sell its controlling stake in iQIYI Inc IQ.O in a deal that could value iQIYI at about $7 billion.
Qualcomm QCOM.O firmed 2% after winning its fight against a 997 million euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago.
Hertz Global Holdings Inc HTZ.O climbed 6% after the rental car company announced a new $2 billion share buyback program.
(Reporting by Anisha Sircar, Devik Jain and Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
((Anisha.Sircar@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. | Market heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms META.O and Alphabet Inc GOOGL.O, gained between 1.3% and 1.6% in premarket trading. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes were set for higher open on Wednesday led by gains in beaten-down growth and bank stocks, with investors waiting to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting. "The Fed is going to go 75 basis points and attempt to talk very hawkish to try to regain control of the narrative, and when it's all over, investors will breathe a sigh of relief," said Zach Hill, head of portfolio strategy at Horizon Investments. | Market heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms META.O and Alphabet Inc GOOGL.O, gained between 1.3% and 1.6% in premarket trading. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes were set for higher open on Wednesday led by gains in beaten-down growth and bank stocks, with investors waiting to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting. Traders are almost fully pricing in a 75 basis point hike from the Fed, up from 8.2% a week ago, according to CME's FedWatch Tool. | Market heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms META.O and Alphabet Inc GOOGL.O, gained between 1.3% and 1.6% in premarket trading. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes were set for higher open on Wednesday led by gains in beaten-down growth and bank stocks, with investors waiting to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting. "The Fed is going to go 75 basis points and attempt to talk very hawkish to try to regain control of the narrative, and when it's all over, investors will breathe a sigh of relief," said Zach Hill, head of portfolio strategy at Horizon Investments. | Market heavyweights Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms META.O and Alphabet Inc GOOGL.O, gained between 1.3% and 1.6% in premarket trading. By Anisha Sircar and Devik Jain June 15 (Reuters) - Wall Street's main indexes were set for higher open on Wednesday led by gains in beaten-down growth and bank stocks, with investors waiting to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting. Traders are almost fully pricing in a 75 basis point hike from the Fed, up from 8.2% a week ago, according to CME's FedWatch Tool. |
20684.0 | 2022-06-15 00:00:00 UTC | Which Fintech Stock Could Emerge Stronger from the Recent Selloff? | AAPL | https://www.nasdaq.com/articles/which-fintech-stock-could-emerge-stronger-from-the-recent-selloff | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Soaring inflation, high interest rates and geopolitical tensions continue to drag down the broader market, most particularly growth stocks. Last week’s U.S. inflation data further spooked investors as the Consumer Price Index rose 8.6% year-over-year in May, marking the highest increase since December 1981. Several financial technology (fintech) stocks, which benefited from pandemic tailwinds, are now deep in the red as investors are concerned about the impact of an impending recession and a slowdown in consumer discretionary spending.
Also, rising competition in the fintech space is worrisome, with start-ups to tech giants like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) trying to grab growth opportunities in the digital payments space.
7 Unstoppable Stocks to Own in 2022
Amid these macro headwinds and increasing competition, using the TipRanks Stock Comparison tool, I placed the following stocks against each other to pick the fintech stock that could deliver higher returns following the recent selloff:
Ticker Company Price
PYPL PayPal Holdings $73.13
SQ Block $62.62
SOFI SoFi Technologies $5.93
Fintech Stocks: PayPal Holdings (PYPL)
Source: JHVEPhoto / Shutterstock.com
Fintech giant PayPal (NASDAQ:PYPL) lowered its full-year guidance citing further deterioration in the macro environment, global uncertainty amid the Ukraine-Russia war, incremental inflation, as well as supply chain pressures and normalized e-commerce spending following the reopening of the economy.
That said, PayPal is optimistic about its growth prospects and is focusing on driving higher engagement among its existing customer base while continuing to add higher-value accounts.
PayPal continues to offer innovative solutions to drive more transactions on its platform. The company recently announced that its U.S. users will now be able to transfer cryptocurrencies between PayPal and other wallets and exchanges. It is also focusing on its Venmo peer-to-peer payment service, which now has around 83 million U.S. accounts.
Recently, Mizuho Securities analyst Dan Dolev revealed that his firm’s proprietary survey indicated that Venmo and Apple Pay users have a strong appetite to utilize tap-to-pay if Apple opens up its Near Field Communication (NFC) to Venmo. The analyst estimates that this feature could present a 15% to 20% revenue upside and nearly 10% total payment volume gain for Venmo.
Pointing to Apple’s recently announced tap-to-pay partnership with Block (NYSE:SQ), Dolev feels that the chances of Apple gradually opening up its NFC to Venmo are “potentially on the rise.” Dolev has a “buy” rating on PayPal with a price target of $120.
Overall, PayPal scores a “strong buy” consensus rating based on 26 “buys,” five “holds,” and one “sell.” The average PayPal price target of $127.07 implies 73.45% upside potential from current levels.
Block (SQ)
Source: Sergei Elagin / Shutterstock
Block (NYSE:SQ), formerly known as Square, comprises Cash App, the company’s peer-to-peer payments system, and Square, an ecosystem focused on sellers. The company changed its name last year to reflect its growth beyond its sellers business to lucrative areas like blockchain. With the acquisition of Afterpay earlier this year, Block added a “buy now, pay later” platform to its offerings.
Block’s first-quarter results missed analysts’ expectations due to a decline in Bitcoin (BTC-USD) revenue. However, Cash App delivered solid performance in the quarter. Excluding contributions from Afterpay, Cash App’s first-quarter gross profit grew 17%.
Block revealed that the monthly engagement on Cash App was the strongest in March. It was driven by solid adoption of its banking products, including the Cash App card. Additionally, the company’s commentary about its business in April was positive, with gross profit (excluding Afterpay) expected to grow over 15% for Cash App, as well as Square.
Last month, Truist Financial (NYSE:TFC) analyst Andrew Jeffrey cut his price target for Block stock to $145 from $165 to reflect reduced valuations, but maintained his “buy” rating. Jeffrey believes that the company’s business model, total addressable market, and growth trajectory are not well understood, offering an opportunity for long-term growth investors to buy the stock.
Jeffrey opines that Block can emerge as one of the world’s most prominent fintechs, rivaling Visa (NYSE:V).
7 Nasdaq Stocks to Buy and Hold Forever
All in all, Block earns a “strong buy” consensus rating with 28 “buys” and six “holds.” At $144.48, the average Block price target suggests 130.65% upside potential from current levels.
Fintech Stocks: SoFi Technologies (SOFI)
Source: Michael Vi / Shutterstock
SoFi (NASDAQ:SOFI) is a lending and financial services platform that won a national bank charter earlier this year through the acquisition of Golden Pacific. Operating as a bank could enhance SoFi’s profitability, as it can use member deposits to fund loans rather than borrowing money from other financial institutions at a higher rate. Also, SoFi can now hold loans on its balance sheet for longer periods, which means it can earn more interest.
Despite better-than-anticipated first-quarter revenue and a narrower loss, SoFi’s shares have plunged massively due to macro headwinds and President Joe Biden’s administration’s decision to extend the federal student loan payment moratorium to Aug. 31, 2022.
Following the first-quarter results, Piper Sandler analyst Kevin Barker upgraded SoFi to a “buy” from a “hold,” but lowered the price target to $10 from $12. Pointing to the recent sell-off in the stock, the analyst feels that the market is “over-discounting” SoFi, with the company poised to deliver a “significant ramp” in earnings before interest, tax, depreciation and amortization in the second half of 2022 and into 2023.
Barker expects notable earnings momentum in 2023 and 2024 driven by a rapid growth in deposits, the expiration of the student loan moratorium, and revenue growth in the financial services segment.
Overall, the Street is cautiously optimistic on SoFi, with a “moderate buy” consensus rating based on seven “buys” and four “holds.” The average SoFi price target of $10.23 implies 72.66% upside potential from current levels.
Conclusion
Shares of PayPal, Block, and SoFi have declined 61.75%, 51%, and 54.6% year-to-date, respectively. These fintech stocks might continue to be under pressure over the near term due to macro headwinds.
7 Great Dividend Stocks Under $25
Wall Street analysts are currently treading cautiously with regard to SoFi, while they are more optimistic on PayPal and Block. On the basis of higher upside potential from current levels, Block currently seems to be the better pick.
On the date of publication, Sirisha Bhogaraju 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.
Sirisha Bhogaraju has over 15 years of experience in financial research. She has written in-depth research reports and covered companies across various sectors, with a primary focus on the consumer sector. Sirisha has a master’s degree in finance.
The post Which Fintech Stock Could Emerge Stronger from the Recent Selloff? 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. | Also, rising competition in the fintech space is worrisome, with start-ups to tech giants like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) trying to grab growth opportunities in the digital payments space. Last month, Truist Financial (NYSE:TFC) analyst Andrew Jeffrey cut his price target for Block stock to $145 from $165 to reflect reduced valuations, but maintained his “buy” rating. Despite better-than-anticipated first-quarter revenue and a narrower loss, SoFi’s shares have plunged massively due to macro headwinds and President Joe Biden’s administration’s decision to extend the federal student loan payment moratorium to Aug. 31, 2022. | Also, rising competition in the fintech space is worrisome, with start-ups to tech giants like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) trying to grab growth opportunities in the digital payments space. 7 Unstoppable Stocks to Own in 2022 Amid these macro headwinds and increasing competition, using the TipRanks Stock Comparison tool, I placed the following stocks against each other to pick the fintech stock that could deliver higher returns following the recent selloff: Ticker Company Price PYPL PayPal Holdings $73.13 SQ Block $62.62 SOFI SoFi Technologies $5.93 Fintech Stocks: PayPal Holdings (PYPL) Source: JHVEPhoto / Shutterstock.com Fintech giant PayPal (NASDAQ:PYPL) lowered its full-year guidance citing further deterioration in the macro environment, global uncertainty amid the Ukraine-Russia war, incremental inflation, as well as supply chain pressures and normalized e-commerce spending following the reopening of the economy. Overall, PayPal scores a “strong buy” consensus rating based on 26 “buys,” five “holds,” and one “sell.” The average PayPal price target of $127.07 implies 73.45% upside potential from current levels. | Also, rising competition in the fintech space is worrisome, with start-ups to tech giants like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) trying to grab growth opportunities in the digital payments space. 7 Unstoppable Stocks to Own in 2022 Amid these macro headwinds and increasing competition, using the TipRanks Stock Comparison tool, I placed the following stocks against each other to pick the fintech stock that could deliver higher returns following the recent selloff: Ticker Company Price PYPL PayPal Holdings $73.13 SQ Block $62.62 SOFI SoFi Technologies $5.93 Fintech Stocks: PayPal Holdings (PYPL) Source: JHVEPhoto / Shutterstock.com Fintech giant PayPal (NASDAQ:PYPL) lowered its full-year guidance citing further deterioration in the macro environment, global uncertainty amid the Ukraine-Russia war, incremental inflation, as well as supply chain pressures and normalized e-commerce spending following the reopening of the economy. 7 Nasdaq Stocks to Buy and Hold Forever All in all, Block earns a “strong buy” consensus rating with 28 “buys” and six “holds.” At $144.48, the average Block price target suggests 130.65% upside potential from current levels. | Also, rising competition in the fintech space is worrisome, with start-ups to tech giants like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) trying to grab growth opportunities in the digital payments space. 7 Unstoppable Stocks to Own in 2022 Amid these macro headwinds and increasing competition, using the TipRanks Stock Comparison tool, I placed the following stocks against each other to pick the fintech stock that could deliver higher returns following the recent selloff: Ticker Company Price PYPL PayPal Holdings $73.13 SQ Block $62.62 SOFI SoFi Technologies $5.93 Fintech Stocks: PayPal Holdings (PYPL) Source: JHVEPhoto / Shutterstock.com Fintech giant PayPal (NASDAQ:PYPL) lowered its full-year guidance citing further deterioration in the macro environment, global uncertainty amid the Ukraine-Russia war, incremental inflation, as well as supply chain pressures and normalized e-commerce spending following the reopening of the economy. Pointing to Apple’s recently announced tap-to-pay partnership with Block (NYSE:SQ), Dolev feels that the chances of Apple gradually opening up its NFC to Venmo are “potentially on the rise.” Dolev has a “buy” rating on PayPal with a price target of $120. |
20685.0 | 2022-06-15 00:00:00 UTC | Why the Fed Could Save the Markets Today (But Might Not) | AAPL | https://www.nasdaq.com/articles/why-the-fed-could-save-the-markets-today-but-might-not | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today is a big day for the stock market. We’ll hear from the U.S. Federal Reserve for the first time since last week’s shockingly hot inflation print.
Source: Shutterstock
Make no mistake. What the Fed says today will determine stocks’ trajectory over the next month. A more hawkish-than-expected Fed commentary will accelerate the current market selloff. And a more dovish-than-expected Fed will turn this selloff into a face-melting rebound.
So… which will we get — a friendly, market-saving Jerome Powell, or a hawkish, stock-crushing one?
I think we’ll get the former. And that’s why I think stocks could be due for a strong near-term bounce starting today.
Hawkish Expectations for the Federal Reserve
Going into today’s FOMC press conference, stocks are fully loaded for a maximally hawkish Fed.
For starters, the market has dropped about 10% since last Friday’s inflation print. And stocks have plunged into a bear market. Clearly, stock investors are preparing for the worst.
Meanwhile, bond investors even more scared. The 10-year has surged about 40 basis points since the print, bringing it to its highest level in 11 years. More remarkably, the 2-year has risen even more. And this has caused a drastic flattening of the yield curve that only tends to happen during aggressive rate-hike cycles.
In the futures market, it’s more of the same. A week ago, no one thought a 75-basis-point hike from this Federal Reserve meeting was on the table. Today, the futures market is virtually guaranteeing it with a 96% chance.
In other words, from stocks to bonds to the futures market, all are bracing for a maximally hawkish Fed today.
That makes for good odds that the Federal Reserve under-delivers on the hawkishness and sounds more dovish than expected. If so, we could see a huge post-Fed bounce in markets that starts today and lasts for a few weeks.
Powell Doesn’t Like Surprises
One of the reasons we believe the Fed won’t provide a hawkish surprise today is because Jerome Powell, the committee’s chair, hates surprises.
He’s been the Fed chair for years now. During his tenure, he’s consistently preached one thing — communication. That is, he firmly believes in providing open communication to the markets so as to appropriately telegraph Fed policy decisions ahead of time and not provide any surprises or shocks.
He’s adamant on this. To that end, we find it very hard to believe he’ll “shock” the markets with more hawkish-than-expected commentary today.
He and fellow members have been consistently preaching 50-basis-point hikes at both the June and July meetings. Clearly, the Federal Reserve will likely hike 75 basis points today and guide to a potential 75-basis-point hike in July. So, that’s already two “shocks” that it plans to deliver today.
Do you think the guy who hates surprising the markets will really deliver more than two today? Unlikely.
Instead, he’ll likely do exactly what the market is expecting and hike 75 basis points. He’ll say another 75-bip hike is on the table for July and that the committee will look at the data. Then he’ll leave the door open for bigger rate hikes in the last few meetings of the year.
If he does that, then today’s meeting could shape up to be a “sell-the-rumor, buy-the-news” event. And we should get a post-Fed relief rally in stocks.
The Final Word on the Federal Reserve
The central bank could come out and shock the world today with a 100-basis-point hike. We find it unlikely. But it’s certainly possible.
But at the end of the day, it doesn’t really matter if it hikes 50, 75 or 100 basis points. What it’s trying to do is get inflation under control, and eventually, it will. Once it does, stocks will start to rise again.
During bear markets, you have to do your best to see the forest through the trees. Bear markets happen. And so do recessions. They’re a part of economic cycles.
But it pays to remember that every bear market eventually turns into a bull market. And those who buy high-quality stocks in bear markets and wait for a bull market to carry them higher will make fortunes.
The key, then, to beating a bear market is to simply find those high-quality stocks, buy and hold.
That’s what we’re doing in our flagship Innovation Investor research service. We’re ignoring the macroeconomic noise. It’s temporary and will pass. In the meantime, it’s giving us the opportunity to buy truly fantastic companies at fire-sale prices. And it’s allowing us to create a portfolio of stocks that should soar 5X-plus over the next five years.
One such company is a tiny tech stock that we’ve pegged as Apple’s (NASDAQ:AAPL) next big supplier. It’s a company that 99% of investors have never heard of. But it has an inside route to helping Apple make its biggest and best product yet.
Find out more about the company that represents the investment opportunity of a lifetime.
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 the Fed Could Save the Markets Today (But Might Not) 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. | One such company is a tiny tech stock that we’ve pegged as Apple’s (NASDAQ:AAPL) next big supplier. We’ll hear from the U.S. Federal Reserve for the first time since last week’s shockingly hot inflation print. The key, then, to beating a bear market is to simply find those high-quality stocks, buy and hold. | One such company is a tiny tech stock that we’ve pegged as Apple’s (NASDAQ:AAPL) next big supplier. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today is a big day for the stock market. Powell Doesn’t Like Surprises One of the reasons we believe the Fed won’t provide a hawkish surprise today is because Jerome Powell, the committee’s chair, hates surprises. | One such company is a tiny tech stock that we’ve pegged as Apple’s (NASDAQ:AAPL) next big supplier. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today is a big day for the stock market. In other words, from stocks to bonds to the futures market, all are bracing for a maximally hawkish Fed today. | One such company is a tiny tech stock that we’ve pegged as Apple’s (NASDAQ:AAPL) next big supplier. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today is a big day for the stock market. We’ll hear from the U.S. Federal Reserve for the first time since last week’s shockingly hot inflation print. |
20686.0 | 2022-06-15 00:00:00 UTC | Top Stock Market News For Today June 15, 2022 | AAPL | https://www.nasdaq.com/articles/top-stock-market-news-for-today-june-15-2022 | nan | nan | Stock Market Futures Inch Higher Ahead Of Upcoming Fed Interest Rate Hike
U.S. stock futures are cautiously rising today as investors keep a close eye on the Federal Reserve. This would be the case as central bank policymakers will be providing an update on their interest rate raising plans. After all, the Fed’s latest policy meeting is set to end today. The market appears to be predicting a 75 basis point rate increase. But one thing remains certain. Namely, volatility and uncertainty will remain key themes in the stock market moving forward.
Providing some commentary on all this is Paul Ashworth, the chief North America economist at Capital Economics. He writes, “The Fed’s previous plan to hike by 50bp [basis points] at the meetings in June and July and then revert to 25bp increases in the fall was always dependent on inflation showing signs of cooling.” Ashworth also notes, “Instead, the monthly gains in core CPI accelerated back to 0.6% in both April and May, suggesting that price pressures are broadening.” In fact, even producer prices continue to gain at near-record paces. Just yesterday, the Producer Price Index gained by 10.8% year-over-year. While considering all of this, here is how the major U.S. index futures are doing now. As of 6:15 a.m. ET, the Dow, S&P 500, and Nasdaq futures are rising by 0.41%, 0.57%, and 0.71% respectively.
Nio Gains Momentum Ahead Of Latest ES7 SUV Launch Event
Among the key names to look out for today could be Nio (NYSE: NIO). On the whole, this Chinese electric vehicle (EV) firm appears to be coming into focus ahead of its latest launch event. In detail, Nio is set to host its latest product launch event before today’s opening bell. Notably, a major highlight of the upcoming event would be the launch of Nio’s all-electric ES7 SUV. Because of all this, NIO stock saw gains of over 16% during intraday trading yesterday. Moreover, the company’s shares are currently extending these gains in today’s pre-market hours.
For those unaware, the ES7, according to official Chinese government filings, is a medium-large five-seat SUV. Also in the documents, it will come in five versions boasting varying full-charge ranges. This would include ranges of between 440km and 620km with the option for additional battery packs boasting a capacity of up to 100kWh. Also worth mentioning, the ES7 will also feature a swappable battery. Ideally, this could appeal to consumers looking to cut down their EV charge times significantly.
Furthermore, most would also be anticipating new updates regarding the 2022 models of Nio’s main EVs. Among the major cyclical refreshes would be its ES6, EC6, and ES8 models respectively. All in all, Nio continues to power forward even in the face of COVID-related lockdowns impacting production. With Nio set to launch one of its biggest events of the year, NIO stock could be worth considering today.
Source: TradingView
[Read More] 5 Hospitality Stocks For Your Summer 2022 Watchlist
Moderna Two-Dose Vaccine Receives Recommendation From FDA Advisory Panel For Use In Children Ages 6 to 17
On the biotech front, Moderna (NASDAQ: MRNA) appears to be gaining attention in thestock market today For the most part, this follows a new update on its two-dose Covid vaccine. As of yesterday, the U.S. Food and Drug Administration‘s (FDA) committee of independent immunization experts is recommending Moderna’s shot regimen for children between the ages of 6 to 17. Accordingly, this would be a positive development for the company. It follows the previous request for authorization from Moderna from over a year ago in early June 2021. Ideally, this will see a full authorization from the FDA later this week.
Getting into the specifics, the FDA committee unanimously voted to greenlight the shots. This would potentially provide younger demographics with better access to the vaccine in general. Not to mention, Moderna also remains hard at work, optimizing its Covid vaccine. Just last week, the company revealed positive clinical data regarding its Omicron-containing booster candidate. According to Moderna, the booster shot boasts a “superior antibody response” toward the fast-spreading variant. With Moderna seemingly firing on all cylinders, it would not surprise me to see investors eyeing MRNA stock now.
Source: TradingView
[Read More] 4 Top Financial Stocks To Watch In June 2022
Apple Scores 10-Year Streaming Deal With Major League Soccer
Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. This ranges from its latest software and hardware upgrades to key updates on its services. Speaking of services, Apple’s push on the streaming front is becoming increasingly apparent now. As of yesterday, the company currently has a 10-year streaming deal with the Major League Soccer (MLS) association. Primarily, Apple’s streaming service, Apple TV+ would be the main division to benefit from this.
Through the current agreement, Apple TV+ will be the only platform where MLS fans can watch matches uninterrupted. According to the company, Apple TV+ subscribers will have access to select patches. Furthermore, Apple will be offering a separate MLS subscription package for fans eager to watch all the matches live. In the larger scheme of things, this would serve to further strengthen Apple’s push toward the sports streaming space. As such, AAPL stock could continue to receive attention in thestock market todayas well.
Source: TradingView
[Read More] Best Gaming Stocks To Buy For 2022? 5 To Watch
Trump-Backed Digital World Acquisitions Sees Turbulence As SEC Expands Probe Of Company And Musk Addresses Twitter Employees
In other news, shares of Donald Trump’s social media firm Digital World Acquisition (NASDAQ: DWAC) are experiencing volatility. Overall, this is likely a result of several key market headwinds weighing in on its growth prospects. To begin with, it is important to note that DWAC stock is essentially representative of Trump’s Truth Social (TS) platform. Because of this, mentions of Trump or other social media firms gaining ground on TS would impact the company’s shares.
In particular, the SEC is reportedly expanding its ongoing probe of DWAC now. According to an 8-K filing from DWAC, the SEC issued a new subpoena looking into the combination of Trump Media & Technology Group and DWAC. Besides, news of Tesla (NASDAQ: TSLA) CEO Elon Musk speaking to Twitter (NYSE: TWTR) employees would be among the major factors to consider. For some context, this would be the case as Musk has expressed interest in allowing Trump to rejoin Twitter following his ban last year. Safe to say, all this would put DWAC stock in the stock market headlines today.
Source: TradingView
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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. | Source: TradingView [Read More] 4 Top Financial Stocks To Watch In June 2022 Apple Scores 10-Year Streaming Deal With Major League Soccer Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. As such, AAPL stock could continue to receive attention in thestock market todayas well. He writes, “The Fed’s previous plan to hike by 50bp [basis points] at the meetings in June and July and then revert to 25bp increases in the fall was always dependent on inflation showing signs of cooling.” Ashworth also notes, “Instead, the monthly gains in core CPI accelerated back to 0.6% in both April and May, suggesting that price pressures are broadening.” In fact, even producer prices continue to gain at near-record paces. | Source: TradingView [Read More] 4 Top Financial Stocks To Watch In June 2022 Apple Scores 10-Year Streaming Deal With Major League Soccer Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. As such, AAPL stock could continue to receive attention in thestock market todayas well. Stock Market Futures Inch Higher Ahead Of Upcoming Fed Interest Rate Hike U.S. stock futures are cautiously rising today as investors keep a close eye on the Federal Reserve. | Source: TradingView [Read More] 4 Top Financial Stocks To Watch In June 2022 Apple Scores 10-Year Streaming Deal With Major League Soccer Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. As such, AAPL stock could continue to receive attention in thestock market todayas well. Nio Gains Momentum Ahead Of Latest ES7 SUV Launch Event Among the key names to look out for today could be Nio (NYSE: NIO). | Source: TradingView [Read More] 4 Top Financial Stocks To Watch In June 2022 Apple Scores 10-Year Streaming Deal With Major League Soccer Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. As such, AAPL stock could continue to receive attention in thestock market todayas well. Stock Market Futures Inch Higher Ahead Of Upcoming Fed Interest Rate Hike U.S. stock futures are cautiously rising today as investors keep a close eye on the Federal Reserve. |
20687.0 | 2022-06-15 00:00:00 UTC | L3Harris in talks to buy Israeli spyware firm NSO - reports | AAPL | https://www.nasdaq.com/articles/l3harris-in-talks-to-buy-israeli-spyware-firm-nso-reports | nan | nan | JERUSALEM, June 15 (Reuters) - U.S. defence contractor L3Harris LHX.N is in talks to buy Israeli spyware firm NSO Group, U.S. and Israeli media reported, citing sources with knowledge of the deal.
The deal is yet to be finalised and needs to be approved by Israel, the U.S. and L3Harris’ board of directors, according to the joint report by Haaretz, The Washington Post and The Guardian, and confirms parts of a report published in Intelligence Online this week.
It noted that The White House is concerned that any deal with to buy the Israeli firm’s hacking tools would raise serious counterintelligence and security concerns.
NSO declined to comment on the reports.
The surveillance firm, which makes the Pegasus software, has been in the spotlight after revelations its tools had been used by governments and other agencies to spy on people’s cellphones. NSO has said its technology helps catch criminals.
NSO lost many of its existing customers when the U.S. Commerce Department in November banned the company.
The reports said that if approved, the deal could see NSO removed from the banned list – either directly, or by having its assets bought by L3Harris, which will only work with the United States and its allies.
In January, NSO had told Reuters it was in talks with a number of U.S. funds over "various financial moves", confirming media reports that it was discussing a sale of its assets.
Apple AAPL.O is among those to have sued NSO, saying it violated U.S. laws by breaking into the software installed on iPhones.
Microsoft Corp MSFT.O, Facebook parent Meta Platforms Inc FB.O, Google parent Alphabet Inc GOOGL.O and Cisco Systems Inc CSCO.O have also criticised NSO or taken legal action.
(Reporting by Steven Scheer, Editing by Louise Heavens)
((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.thomsonreuters.com@reuters.net; Twitter: @StevenMScheer))
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 is among those to have sued NSO, saying it violated U.S. laws by breaking into the software installed on iPhones. The surveillance firm, which makes the Pegasus software, has been in the spotlight after revelations its tools had been used by governments and other agencies to spy on people’s cellphones. The reports said that if approved, the deal could see NSO removed from the banned list – either directly, or by having its assets bought by L3Harris, which will only work with the United States and its allies. | Apple AAPL.O is among those to have sued NSO, saying it violated U.S. laws by breaking into the software installed on iPhones. JERUSALEM, June 15 (Reuters) - U.S. defence contractor L3Harris LHX.N is in talks to buy Israeli spyware firm NSO Group, U.S. and Israeli media reported, citing sources with knowledge of the deal. It noted that The White House is concerned that any deal with to buy the Israeli firm’s hacking tools would raise serious counterintelligence and security concerns. | Apple AAPL.O is among those to have sued NSO, saying it violated U.S. laws by breaking into the software installed on iPhones. JERUSALEM, June 15 (Reuters) - U.S. defence contractor L3Harris LHX.N is in talks to buy Israeli spyware firm NSO Group, U.S. and Israeli media reported, citing sources with knowledge of the deal. The reports said that if approved, the deal could see NSO removed from the banned list – either directly, or by having its assets bought by L3Harris, which will only work with the United States and its allies. | Apple AAPL.O is among those to have sued NSO, saying it violated U.S. laws by breaking into the software installed on iPhones. JERUSALEM, June 15 (Reuters) - U.S. defence contractor L3Harris LHX.N is in talks to buy Israeli spyware firm NSO Group, U.S. and Israeli media reported, citing sources with knowledge of the deal. The deal is yet to be finalised and needs to be approved by Israel, the U.S. and L3Harris’ board of directors, according to the joint report by Haaretz, The Washington Post and The Guardian, and confirms parts of a report published in Intelligence Online this week. |
20688.0 | 2022-06-15 00:00:00 UTC | 2 Growth Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-growth-stocks-to-buy-and-hold-forever-2 | nan | nan | It has been a terrible year for the stock market so far thanks to multiple headwinds ranging from geopolitical instability in Europe to rising interest rates to surging inflation. These factors (and others) have all contributed to the S&P 500 being down about 22% from highs set in January.
Growth stocks have been hit even harder, with a 36.7% slide in the tech-heavy Nasdaq-100 Technology Sector index that contains several fast-growing companies. With the S&P 500 entering bear market territory and analysts expecting the stock market to slide further, it won't be surprising to see stocks of fast-growing companies head lower. A market sell-off is worrying, but it can also help long-term investors buy shares of some solid companies on the cheap and set their portfolios up for long-term gains.
Apple (NASDAQ: AAPL) and Palo Alto Networks (NASDAQ: PANW) are two such potential growth plays that seem worth buying and holding for a long time following their steep declines in 2022. Let's see why.
1. Apple
Apple doesn't appear to be a growth stock at first, as the tech giant's revenue in the second quarter of fiscal 2022 (which ended on March 26) had increased just 9% year over year. However, the company had generated $97 billion in revenue during the quarter, which means that Apple already has a huge revenue base, and growing that base substantially would require a major catalyst.
For instance, the company has generated $221 billion in revenue in the first half of the current fiscal year. Analysts expect Apple to clock $394 billion in revenue in fiscal 2022, which would be an 8% increase over last year's $366 billion. So a $30 billion increase in Apple's top line during a year doesn't look like much, given its massive revenue base.
However, there are a few catalysts that could help Apple increase its revenue substantially in the long run and help make it a growth stock worth holding on to. The services business is one such catalyst, as it is growing at a faster pace than Apple's overall revenue.
Apple has generated $39.3 billion in revenue from its services business in the first half of fiscal 2022, an increase of 20% over the prior-year period. The segment's growth has outpaced the 8% increase in the company's product revenue in the first half of the fiscal year. Apple's huge installed base of devices, at 1.8 billion as of January, is a key reason why the services business could keep growing at a terrific pace for a long time to come.
Apple's installed base is expected to exceed 2 billion by the end of 2022. This huge installed base means Apple has a massive pool of users to whom it can sell services such as music, gaming, cloud storage, TV, and fitness, among others. Morgan Stanley had estimated that services could become a $100 billion business for Apple in terms of annual revenue by 2023, and the company seems on its way to hitting that mark at its current pace of growth.
What's more, Apple is reportedly taking steps to ensure that its installed user base grows further, which would lead to an increase in both product and services revenue in the long run. The tech giant is expected to launch a mixed-reality headset next year that would be able to switch between augmented reality (AR) and virtual reality (VR), giving Apple another avenue to serve content to users.
Similarly, Apple is reportedly working on a self-driving car that could be announced by 2025. This would unlock another massive opportunity for the company, with analysts predicting that an entry into self-driving cars could help Apple double its top line and market capitalization in the long run.
All this indicates that Apple could very well turn out to be a growth stock in the long run, as it is looking to disrupt nascent markets with its rumored product development moves. And with the stock trading at just 21 times trailing earnings as compared to the Nasdaq-100's multiple of 26, buying and holding Apple for the long run looks like a smart thing to do.
2. Palo Alto Networks
The cybersecurity industry is growing at a nice clip, which benefits Palo Alto Networks. This is evident from the company's recent results, with its fiscal 2022 third-quarter revenue jumping 29% year over year to $1.4 billion. Palo Alto's adjusted net income for the quarter had also increased 30% year over year to $1.79 per share.
The healthy demand for Palo Alto's offerings allowed the company to raise its full-year outlook once again. The company expects to finish the year with a 29% increase in revenue to $5.49 billion, while billings -- which refers to Palo Alto's potential revenue from subscriptions, support, and product sales -- are expected to jump between 30% and 31% this year to $7.1 billion.
More importantly, solid demand for Palo Alto's offerings is evident from the company's remaining performance obligations, which increased a whopping 40% year over year to $6.9 billion last quarter. This metric refers to the total value of customer contracts for which Palo Alto is yet to provide services, so it is yet to invoice those amounts to customers and recognize revenue from the same.
The big jump in Palo Alto's remaining performance obligations last quarter -- which outpaced its actual revenue growth -- points toward healthy revenue growth in the future. Palo Alto has generated $5.17 billion in revenue in the trailing 12 months, and remaining performance obligations indicate that it is well on its way to growing its top line at a nice clip going forward.
Additionally, Palo Alto could sustain its terrific growth for years to come. That's because the global cybersecurity market is expected to clock a compound annual growth rate of 13.4% through 2029 and hit $376 billion in revenue. Palo Alto is well placed to take advantage of this secular growth, as it controlled nearly 19% of the cybersecurity market a year ago, making it the top player in this space.
Management pointed out on the latest earnings conference call that Palo Alto is consolidating its market share and expects to sustain its gains. More specifically, Palo Alto ended 2021 with a 27% share of the market for cybersecurity appliances, while its share of virtual firewalls was up to 34.5% from 28.4% at the end of 2020.
With Palo Alto stock trading at 9 times sales this year as compared to last year's multiple of 12, investors have an opportunity to buy this cybersecurity stock at a relatively cheap valuation and set their portfolios up for long-term gains, considering the massive opportunity it is sitting on.
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Harsh Chauhan has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Palo Alto Networks. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Palo Alto Networks (NASDAQ: PANW) are two such potential growth plays that seem worth buying and holding for a long time following their steep declines in 2022. This huge installed base means Apple has a massive pool of users to whom it can sell services such as music, gaming, cloud storage, TV, and fitness, among others. This would unlock another massive opportunity for the company, with analysts predicting that an entry into self-driving cars could help Apple double its top line and market capitalization in the long run. | Apple (NASDAQ: AAPL) and Palo Alto Networks (NASDAQ: PANW) are two such potential growth plays that seem worth buying and holding for a long time following their steep declines in 2022. More importantly, solid demand for Palo Alto's offerings is evident from the company's remaining performance obligations, which increased a whopping 40% year over year to $6.9 billion last quarter. The big jump in Palo Alto's remaining performance obligations last quarter -- which outpaced its actual revenue growth -- points toward healthy revenue growth in the future. | Apple (NASDAQ: AAPL) and Palo Alto Networks (NASDAQ: PANW) are two such potential growth plays that seem worth buying and holding for a long time following their steep declines in 2022. Apple Apple doesn't appear to be a growth stock at first, as the tech giant's revenue in the second quarter of fiscal 2022 (which ended on March 26) had increased just 9% year over year. The company expects to finish the year with a 29% increase in revenue to $5.49 billion, while billings -- which refers to Palo Alto's potential revenue from subscriptions, support, and product sales -- are expected to jump between 30% and 31% this year to $7.1 billion. | Apple (NASDAQ: AAPL) and Palo Alto Networks (NASDAQ: PANW) are two such potential growth plays that seem worth buying and holding for a long time following their steep declines in 2022. Apple Apple doesn't appear to be a growth stock at first, as the tech giant's revenue in the second quarter of fiscal 2022 (which ended on March 26) had increased just 9% year over year. So a $30 billion increase in Apple's top line during a year doesn't look like much, given its massive revenue base. |
20689.0 | 2022-06-15 00:00:00 UTC | Apple Stock Is Worth Buying, Regardless of the WWDC Event | AAPL | https://www.nasdaq.com/articles/apple-stock-is-worth-buying-regardless-of-the-wwdc-event | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock has been looking a bit vulnerable, but not many tech stocks aren’t at the moment. The company is fresh off its Worldwide Developer conference (WWDC) event, where it announced iOS 16, new MacBooks and others. Yet shares remain unconvinced, with AAPL stock currently 27% below its all-time high.
The truth is, Apple’s annual WWDC event is far from a make-or-break situation when it comes to owning the stock. Market participants can trade around the event, but investors should not base their case on it.
The event is simple. It’s where Apple unveils its new operating systems and sometimes drops a new product refresh. It’s not meant to be a huge catalyst for the stock, although it can be at times when it has to do with its Services unit, payments or something else that spurs new growth.
The reality is that Apple is a stock to own — regardless of its WWDC event. Here’s why.
Ticker Company Price
AAPL Apple $132.30
The Services Business Is “Moving the Needle”
When it comes to big companies like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and especially Apple, critics like to explain how product ABC or XYZ “won’t move the needle.” That’s to say, as these companies have become so large, new products really are unlikely to meaningfully change the story for the company — at first.
7 Nasdaq Stocks to Buy and Hold Forever
That’s not to say Apple shouldn’t make AirPods or the Apple Watch. However, they pale in comparison to what Services has become.
In the early days of Services, Apple bears spun this enormous catalyst as a negative. Because Apple generated so much revenue from iPhone, iPads, Macs and other hardware, they thought this Services revenue was certain not to generate anything of substance.
The bears have been wrong on virtually all accounts — but particularly when it came to margins.
Last quarter, Services revenue topped $19.8 billion. That’s significant in itself, representing about 20% of Apple’s total revenue. But it’s the profitability that separates Services from Apple’s Products business.
Apple’s Products business sports gross margin of 36.3%, which isn’t bad for a hardware business. However, the Services unit weighs in with a whopping 72.6% gross margin — double the Products gross margin. While Services may make up one-fifth of total revenue, it makes up one-third of gross profit.
The bears’ latest argument has become valuation. However, the Services unit can also fight back against that argument. Last quarter, Products revenue grew 6.5% year over year, while Services grew 17.2%. Services is twice as profitable as Products and is growing revenue almost three times as fast.
As that relates to valuation, the margin and growth of Services justifies a higher premium for AAPL stock. That’s exactly how and why the company reached a $3 trillion valuation earlier this year.
Does That Mean AAPL Stock Won’t Fall Further?
Click to Enlarge
Source: Chart courtesy of TrendSpider
While Services is now a crown jewel at Apple — joining its iPhone and other money-makers — it does not mean AAPL stock will be spared in the stock market decline. We’re currently engulfed in a bear market and that means logic can go out the window — long-term positives are ignored due to short-term fears.
Inflation, supply chain problems, geopolitical issues and a hawkish Federal Reserve are all issues for the market at the moment. These situations can improve, but that may take time, and all the while, stocks are vulnerable.
Apple may be of the higher-quality holdings out there, but that doesn’t mean it won’t get hit with the rest of the market.
When we look at the valuation — under 23 times this year’s earnings estimate — it’s not that bad for what we’re getting. Admittedly, analysts only expect mid-single-digit revenue growth this year and just under 10% earnings growth in 2023. Still, at a time where the world seems to be falling apart, Apple’s still growing and its most profitable business segment is growing even faster.
Further, it has a fortress balance sheet and two constant buyers: Itself and Warren Buffett.
Apple recently announced a renewed $90 billion buyback plan, while Buffett buys every dip he can.
As for the chart, let’s see if the stock can reclaim the key $150 mark. That’s the Q1 low and if reclaimed, it could put more upside in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Apple Stock Is Worth Buying, Regardless of the WWDC Event 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. | As that relates to valuation, the margin and growth of Services justifies a higher premium for AAPL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been looking a bit vulnerable, but not many tech stocks aren’t at the moment. Yet shares remain unconvinced, with AAPL stock currently 27% below its all-time high. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been looking a bit vulnerable, but not many tech stocks aren’t at the moment. Ticker Company Price AAPL Apple $132.30 The Services Business Is “Moving the Needle” When it comes to big companies like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and especially Apple, critics like to explain how product ABC or XYZ “won’t move the needle.” That’s to say, as these companies have become so large, new products really are unlikely to meaningfully change the story for the company — at first. Yet shares remain unconvinced, with AAPL stock currently 27% below its all-time high. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been looking a bit vulnerable, but not many tech stocks aren’t at the moment. Ticker Company Price AAPL Apple $132.30 The Services Business Is “Moving the Needle” When it comes to big companies like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and especially Apple, critics like to explain how product ABC or XYZ “won’t move the needle.” That’s to say, as these companies have become so large, new products really are unlikely to meaningfully change the story for the company — at first. Click to Enlarge Source: Chart courtesy of TrendSpider While Services is now a crown jewel at Apple — joining its iPhone and other money-makers — it does not mean AAPL stock will be spared in the stock market decline. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been looking a bit vulnerable, but not many tech stocks aren’t at the moment. Does That Mean AAPL Stock Won’t Fall Further? Yet shares remain unconvinced, with AAPL stock currently 27% below its all-time high. |
20690.0 | 2022-06-15 00:00:00 UTC | Here Are All 16 Stocks Warren Buffett Has Bought Since 2022 Began | AAPL | https://www.nasdaq.com/articles/here-are-all-16-stocks-warren-buffett-has-bought-since-2022-began | nan | nan | When Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett buys a stock, Wall Street and investors wisely pay close attention. That's because riding the Oracle of Omaha's coattails has been a very profitable strategy for decades.
Since taking the reins as CEO in 1965, Buffett has overseen the creation of more than $645 billion in value for shareholders, as well as delivered an aggregate return on the company's Class A shares (BRK.A) of 3,641,613%. This works out to a 20.1% average annual return over 57 years, and is effectively double the annualized total return of the benchmark S&P 500, including dividends, over the same stretch.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Here's the full rundown of what Buffett has been buying
Aside from Berkshire Hathaway's annual shareholder meeting and the letter Buffett writes to shareholders each year, the most-anticipated event is the company's quarterly 13F filing with the Securities and Exchange Commission (SEC). A 13F gives investors an under-the-hood look at what the most successful money managers bought, sold, and held in the most-recent quarter. It's a required filing by money managers with at least $100 million in assets under management.
With all three of the major U.S. stock indexes entering correction territory or a bear market in the first quarter, Buffett and his investment team were quite busy. More than $50 billion in Berkshire's available capital has been put to work since the year began. Based on the company's mid-May 13F filing, as well as other SEC filings, Buffett has overseen the purchase of the following 16 stocks since 2022 began:
HP (NYSE: HPQ): 120,952,818 shares
Chevron (NYSE: CVX): 120,933,081
Paramount Global (NASDAQ: PARA): 68,947,760
Citigroup (NYSE: C): 55,155,797
Activision Blizzard (NASDAQ: ATVI): 49,657,101
Ally Financial (NYSE: ALLY): 8,969,420
Celanese (NYSE: CE): 7,880,998
Occidental Petroleum (NYSE: OXY): 5,887,618
Formula One Group (NASDAQ: FWON.K): 5,603,705
Floor & Décor (NYSE: FND): 3,936,291
Apple (NASDAQ: AAPL): 3,787,856
McKesson (NYSE: MCK): 2,921,975
General Motors (NYSE: GM): 2,045,847
Markel (NYSE: MKL): 420,293
RH (NYSE: RH): 353,453
Berkshire Hathaway: 2,005 BRK.A shares and 6,824,671 BRK.B shares
Value stocks are a Buffett specialty
If there's one prevailing theme with the vast majority of Buffett's buying activity through the first five months and change of 2022, it's that value is paramount (no pun intended given the purchase of shares of Paramount). Buying highly profitable, time-tested businesses at a discount has been the Oracle of Omaha's priority.
For instance, Berkshire Hathaway took a greater-than-11% stake in personal computing and printing solutions company HP. The growth heyday for HP has long since passed. But it remains exceptionally profitable and is valued at roughly eight times forecast earnings for this year and 2023. Consumer and enterprise demand for PCs doesn't vacillate much, which makes HP a relatively safe bet in a volatile market.
The same can be said for auto giant General Motors, which is trading at just five times Wall Street's forecast earnings for this year. Despite numerous headwinds, such as supply chain disruptions caused by the COVID-19 pandemic, General Motors looks to have a sizable growth runway thanks to the industry's ongoing shift to electric vehicles (EVs). GM plans to invest $35 billion in EVs, autonomous vehicles, and batteries through the midpoint of the decade.
Image source: Getty Images.
Banks and energy stocks are back in focus
It's no secret that the Buffett aligns Berkshire Hathaway's portfolio to take advantage of cyclical upswings in the U.S. and global economy. After all, economic expansions last disproportionately longer than recessions. This is why banks and energy stocks have been popular buys for Buffett in 2022.
Although it's possibly the least-loved money-center bank, Buffett and his team piled into Citigroup during the first quarter. While Citi does have international headwinds and has faced its fair share of litigation, the company also happens to be one of the cheapest relative to book value among big-bank stocks. With higher interest rates on the horizon, banks are set to enjoy a windfall of added net interest income from outstanding variable-rate loans.
As for energy stocks, Buffett's enormous bets on Chevron and Occidental Petroleum likely signify his expectation that oil and natural gas prices will remain elevated for some time. A lack of upstream investment during the pandemic, coupled with supply disruption tied to Russia's invasion of Ukraine, should allow integrated oil and gas companies like Chevron and Occidental to reap the rewards of multidecade highs for oil and natural gas.
There can never be enough Apple
Buffett's buying activity to begin 2022 also included adding more Apple shares. As of the end of last week, Apple made up a whopping 38.2% of Berkshire's invested assets.
Buffett views Apple as one of Berkshire's pillars and value determinants. It's also a company that checks all the appropriate boxes in his eyes. It has an extremely well-known brand, as well as highly loyal customer base, and its innovation has driven the company to successively higher sales and profits. As of the first quarter, Counterpoint Research notes that the iPhone accounted for half of all smartphone share in the United States.
But Apple is also a company in transition. CEO Tim Cook is overseeing an operating shift that places added emphasis on subscription services. As subscription revenue grows into a larger percentage of total sales, Apple should benefit from higher margins, an even more loyal customer base, and less revenue lumpiness associated with product replacement cycles.
I'd also be remiss if I didn't point out that Apple has repurchased nearly $500 billion worth of its common stock since the beginning of 2013. Having a sizable capital return program is an easy way to get on Buffett's good side.
Buffett's favorite company is, arguably, his own
But perhaps the least surprising Buffett buy of all -- and one you won't find in the 13F filing -- is that of his own company. Berkshire Hathaway's first-quarter results show that Buffett and his right-hand man, Charlie Munger, oversaw the repurchase of 2,005 Class A shares and more than 6.8 million Class B shares.
Following more than a half-decade without any stock buybacks, Buffett and Munger have had a field day since Berkshire's board of directors changed the necessary parameters for share repurchases. Since mid-July 2018, over $61 billion worth of Berkshire Hathaway stock has been bought back.
As a reminder, repurchasing stock often has a positive impact on the value of a company's remaining shares. If a company's net income is steady or growing over time, having fewer shares outstanding should result in higher earnings per share. Thus, share buybacks can make a company appear more attractive on a valuation basis.
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Citigroup and Ally are advertising partners of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Markel, and RH. The Motley Fool recommends McKesson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Based on the company's mid-May 13F filing, as well as other SEC filings, Buffett has overseen the purchase of the following 16 stocks since 2022 began: HP (NYSE: HPQ): 120,952,818 shares Chevron (NYSE: CVX): 120,933,081 Paramount Global (NASDAQ: PARA): 68,947,760 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 49,657,101 Ally Financial (NYSE: ALLY): 8,969,420 Celanese (NYSE: CE): 7,880,998 Occidental Petroleum (NYSE: OXY): 5,887,618 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 Apple (NASDAQ: AAPL): 3,787,856 McKesson (NYSE: MCK): 2,921,975 General Motors (NYSE: GM): 2,045,847 Markel (NYSE: MKL): 420,293 Despite numerous headwinds, such as supply chain disruptions caused by the COVID-19 pandemic, General Motors looks to have a sizable growth runway thanks to the industry's ongoing shift to electric vehicles (EVs). Banks and energy stocks are back in focus It's no secret that the Buffett aligns Berkshire Hathaway's portfolio to take advantage of cyclical upswings in the U.S. and global economy. | Based on the company's mid-May 13F filing, as well as other SEC filings, Buffett has overseen the purchase of the following 16 stocks since 2022 began: HP (NYSE: HPQ): 120,952,818 shares Chevron (NYSE: CVX): 120,933,081 Paramount Global (NASDAQ: PARA): 68,947,760 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 49,657,101 Ally Financial (NYSE: ALLY): 8,969,420 Celanese (NYSE: CE): 7,880,998 Occidental Petroleum (NYSE: OXY): 5,887,618 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 Apple (NASDAQ: AAPL): 3,787,856 McKesson (NYSE: MCK): 2,921,975 General Motors (NYSE: GM): 2,045,847 Markel (NYSE: MKL): 420,293 When Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett buys a stock, Wall Street and investors wisely pay close attention. The Motley Fool recommends McKesson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Based on the company's mid-May 13F filing, as well as other SEC filings, Buffett has overseen the purchase of the following 16 stocks since 2022 began: HP (NYSE: HPQ): 120,952,818 shares Chevron (NYSE: CVX): 120,933,081 Paramount Global (NASDAQ: PARA): 68,947,760 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 49,657,101 Ally Financial (NYSE: ALLY): 8,969,420 Celanese (NYSE: CE): 7,880,998 Occidental Petroleum (NYSE: OXY): 5,887,618 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 Apple (NASDAQ: AAPL): 3,787,856 McKesson (NYSE: MCK): 2,921,975 General Motors (NYSE: GM): 2,045,847 Markel (NYSE: MKL): 420,293 Berkshire Hathaway: 2,005 BRK.A shares and 6,824,671 BRK.B shares Value stocks are a Buffett specialty If there's one prevailing theme with the vast majority of Buffett's buying activity through the first five months and change of 2022, it's that value is paramount (no pun intended given the purchase of shares of Paramount). The Motley Fool recommends McKesson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Based on the company's mid-May 13F filing, as well as other SEC filings, Buffett has overseen the purchase of the following 16 stocks since 2022 began: HP (NYSE: HPQ): 120,952,818 shares Chevron (NYSE: CVX): 120,933,081 Paramount Global (NASDAQ: PARA): 68,947,760 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 49,657,101 Ally Financial (NYSE: ALLY): 8,969,420 Celanese (NYSE: CE): 7,880,998 Occidental Petroleum (NYSE: OXY): 5,887,618 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 Apple (NASDAQ: AAPL): 3,787,856 McKesson (NYSE: MCK): 2,921,975 General Motors (NYSE: GM): 2,045,847 Markel (NYSE: MKL): 420,293 Berkshire Hathaway CEO Warren Buffett. That's right -- they think these 10 stocks are even better buys. |
20691.0 | 2022-06-15 00:00:00 UTC | FOCUS-The Saudi investment king who no longer rules alone | AAPL | https://www.nasdaq.com/articles/focus-the-saudi-investment-king-who-no-longer-rules-alone | nan | nan | By Hadeel Al Sayegh and Saeed Azhar
DUBAI, June 15 (Reuters) - The prince who's the international face of Saudi business may no longer be able to call all the shots.
For years, Prince Alwaleed bin Talal, Saudi Arabia's self-styled Warren Buffett, has made hundreds of millions of dollars by investing in companies from Citigroup C.N to Uber UBER.N to Twitter TWTR.N with almost complete autonomy.
Now, his Kingdom Holding 4280.SE investment firm counts Saudi Arabia's Public Investment Fund (PIF) as a minority shareholder and the powerful sovereign wealth fund is unlikely to sit on the sidelines, sources familiar with the matter said.
The wealth fund, which is at the heart of Crown Prince Mohammed bin Salman's ambitious plan to diversify the Saudi economy, will want Kingdom Holding's investment committee to have more power over decision making than in the past, two sources with knowledge of Kingdom's business told Reuters
"(PIF) will want to be an active investor," said a sovereign wealth fund investor in the Gulf. "The investment committee of Kingdom Holding is essentially Alwaleed, and I can't imagine the PIF being at the whims of the prince."
The PIF, Kingdom Holding, Prince Alwaleed and his spokesman all declined to comment when contacted by Reuters about what PIF's minority stake would mean for future investments.
Alwaleed, 67, had long kept a tight grip on Kingdom's shares, owning all but 5% traded on the Saudi stock market until PIF purchased a 16.87% stake for $1.5 billion last month.
The deal came more than four years after Prince Alwaleed was swept up in an anti-corruption drive ordered by the Crown Prince and held for nearly three months at Riyadh's Ritz-Carlton along with scores of royals, senior officials and businessmen.
Most detainees were released after reaching financial settlements and Prince Alwaleed said in March 2018 that he had struck a confidential and secret deal with the government.
It was not clear whether the PIF purchase was related to the settlement. A spokesman for Prince Alwaleed, the grandson of Saudi Arabia's first king Abdulaziz and Lebanon's first prime minister Riad Al Solh, has said it was purely a business deal.
The PIF deal was struck at Kingdom Holding's lowest share price this year, with no premium. Bankers who usually work with the PIF or Alwaleed were not engaged for this deal, two sources familiar with the matter said.
'CHANGE OF TACK'
The Saudi state took direct controlling stakes in the businesses of some Saudi entrepreneurs detained in 2017, including the Binladen construction group and media company MBC, as part of the settlements securing their release.
Analysts said, however, that the intervention in Kingdom Holding marked a shift in strategy by the Saudi government, as the other stakes are being held by the Ministry of Finance (MoF) rather than the wealth fund.
"It is an indication of a change of tack," said James Swanston, Middle East and North Africa economist at Capital Economics. "With PIF now holding the stake, it may now be seen more as an investment opportunity."
The PIF's role is to earn enough income through investments to develop new sectors in the Saudi economy whereas the Ministry of Finance is more the guardian of day-to-day spending and is much less strategic or interested in risk, said Jim Krane, research fellow at Rice University's Baker Institute.
Alwaleed's investment style has focused on new opportunities that could be very lucrative but carry risk, as well as looking at undervalued assets, said one of the sources with knowledge of Kingdom's business.
"The PIF is essentially buying a stake in Prince Alwaleed's successful investing track record. As long as Alwaleed demonstrates he can still pick winners, Saudis will benefit," said Jim Krane, author of "Energy Kingdoms: Oil and Political Survival in the Persian Gulf."
Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s and he was an early investor in Apple AAPL.O.
The prince and Kingdom also made a joint investment of $300 million in Twitter in 2011 and he raised his stake in 2015. Last month, he agreed to roll a stake now worth $1.89 billion into Elon Musk's takeover deal, rather than cashing out.
SUCCESSION
While PIF's move may affect Prince Alwaleed's room for manoeuvre, Kingdom Holding will benefit from the sovereign wealth fund's political and financial clout when it comes to dealmaking, the two sources close to Kingdom said.
Since becoming a more active investor in 2015, the sovereign wealth fund has taken some bold steps to raise its profile in the world of business and sport.
It took a $3.5 billion stake in Uber before its listing, invested $45 billion in Softbank's inaugural technology fund, bought 80% of British soccer club Newcastle United last year and has disrupted the world of golf with its new LIV league.
The PIF now manages more than $600 billion of assets though its investment record has been mixed.
It made a huge profit from investing in electric vehicle maker Lucid LCID.O before it listed, but its Softbank investment has been more volatile as rising rates and geopolitical instability whiplashed high-growth tech stocks.
The wealth fund is backing the Crown Prince's mega projects in his Vision 2030 economic diversification plan.
Property consultant Knight Frank estimates projects to develop Saudi Arabia's nascent tourism industry and other sectors, which includes building a vast futuristic green city called NEOM for $500 billion, are worth over $1 trillion.
But Riyadh has struggled as many foreign investors as hoped and the PIF could benefit from Alwaleed's relations with key players in the hotel industry thanks to stakes in Four Seasons as well as the Fairmont, Raffles and Swissotel chains.
Despite his high-profile image, Alwaleed has kept close to his roots. He often heads deep into the Saudi desert, where he spends time with guests and meets tribesmen and their families.
The fact his son Khaled bin Alwaleed has forged his own path, investing in technology, real estate, food manufacturing and vegan chains through his KBW Ventures and KBW Investments, has raised the question of succession, three sources said.
One source from the world of finance said PIF could propose a candidate to be groomed by the prince as a successor.
"You take the prince out of the equation, and it's just a Saudi investment holding company," the person said. "I don't think many of these deals would have been done without him."
($1 = 3.7518 riyals)
(Reporting by Hadeel al Sayegh and Saeed Azhar; Editing by David Clarke)
((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s and he was an early investor in Apple AAPL.O. For years, Prince Alwaleed bin Talal, Saudi Arabia's self-styled Warren Buffett, has made hundreds of millions of dollars by investing in companies from Citigroup C.N to Uber UBER.N to Twitter TWTR.N with almost complete autonomy. The PIF's role is to earn enough income through investments to develop new sectors in the Saudi economy whereas the Ministry of Finance is more the guardian of day-to-day spending and is much less strategic or interested in risk, said Jim Krane, research fellow at Rice University's Baker Institute. | Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s and he was an early investor in Apple AAPL.O. Now, his Kingdom Holding 4280.SE investment firm counts Saudi Arabia's Public Investment Fund (PIF) as a minority shareholder and the powerful sovereign wealth fund is unlikely to sit on the sidelines, sources familiar with the matter said. While PIF's move may affect Prince Alwaleed's room for manoeuvre, Kingdom Holding will benefit from the sovereign wealth fund's political and financial clout when it comes to dealmaking, the two sources close to Kingdom said. | Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s and he was an early investor in Apple AAPL.O. Now, his Kingdom Holding 4280.SE investment firm counts Saudi Arabia's Public Investment Fund (PIF) as a minority shareholder and the powerful sovereign wealth fund is unlikely to sit on the sidelines, sources familiar with the matter said. The wealth fund, which is at the heart of Crown Prince Mohammed bin Salman's ambitious plan to diversify the Saudi economy, will want Kingdom Holding's investment committee to have more power over decision making than in the past, two sources with knowledge of Kingdom's business told Reuters "(PIF) will want to be an active investor," said a sovereign wealth fund investor in the Gulf. | Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s and he was an early investor in Apple AAPL.O. The wealth fund, which is at the heart of Crown Prince Mohammed bin Salman's ambitious plan to diversify the Saudi economy, will want Kingdom Holding's investment committee to have more power over decision making than in the past, two sources with knowledge of Kingdom's business told Reuters "(PIF) will want to be an active investor," said a sovereign wealth fund investor in the Gulf. "With PIF now holding the stake, it may now be seen more as an investment opportunity." |
20692.0 | 2022-06-15 00:00:00 UTC | Qualcomm wins court fight against $1 bln EU antitrust fine | AAPL | https://www.nasdaq.com/articles/qualcomm-wins-court-fight-against-%241-bln-eu-antitrust-fine | nan | nan | By Foo Yun Chee
LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O.
The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads.
The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow.
"A number of procedural irregularities affected Qualcomm's rights of defence and invalidate the Commission's analysis of the conduct alleged against Qualcomm," judges said.
The EU competition enforcer can appeal on matters of law to the EU Court of Justice (CJEU), Europe's highest.
The case is T-235/18.
($1 = 0.9532 euros)
(Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan)
((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 LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((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 LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((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 LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The case is T-235/18. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((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 LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads. The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow. |
20693.0 | 2022-06-15 00:00:00 UTC | China COVID controls makes Apple supplier Pegatron "emphasise" expansion elsewhere | AAPL | https://www.nasdaq.com/articles/china-covid-controls-makes-apple-supplier-pegatron-emphasise-expansion-elsewhere | nan | nan | By Sarah Wu
TAIPEI, June 15 (Reuters) - China's recent lockdowns to control the spread of COVID-19 have made Apple Inc AAPL.O iPhone assembler Pegatron Corp 4938.TW "emphasise" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday.
In April, Taiwan-headquartered Pegatron suspended operations at its Shanghai and Kunshan plants in China due to strict COVID-19 protocols, impacting production and deliveries. China has since lifted those restrictions.
However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to "emphasise" its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei.
"We faced COVID controls for two months. We couldn't have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation of our production capacity."
In recent years, Pegatron has sought to expand its footprint in Southeast Asia and North America.
Chairman T.H. Tung added that their customers had "different reasons" for setting up factories in Vietnam, India and Mexico.
"But one shared factor is the ability to reduce concentration in Shanghai, Suzhou, Chongqing," Tung said, adding that recruiting staff in China has become increasingly difficult over the past seven to eight years.
Tung said that with the COVID pandemic easing globally, China coming out of its lockdowns to control the coronavirus and the electronics industry's peak season coming later in the year, the rest of 2022 should be much better for the company.
"Combining these factors, I expect the second half of the year to be better, or a lot better, than quarter two."
Taiwanese firm Foxconn 2317.TW, the world's largest contract electronics maker which also assembles iPhones, last month predicted more stable supply in the second half of 2022.
(Reporting by Sarah Wu; Editing by Robert Birsel)
((S.Wu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Sarah Wu TAIPEI, June 15 (Reuters) - China's recent lockdowns to control the spread of COVID-19 have made Apple Inc AAPL.O iPhone assembler Pegatron Corp 4938.TW "emphasise" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday. We couldn't have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation of our production capacity." "But one shared factor is the ability to reduce concentration in Shanghai, Suzhou, Chongqing," Tung said, adding that recruiting staff in China has become increasingly difficult over the past seven to eight years. | By Sarah Wu TAIPEI, June 15 (Reuters) - China's recent lockdowns to control the spread of COVID-19 have made Apple Inc AAPL.O iPhone assembler Pegatron Corp 4938.TW "emphasise" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday. However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to "emphasise" its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei. We couldn't have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation of our production capacity." | By Sarah Wu TAIPEI, June 15 (Reuters) - China's recent lockdowns to control the spread of COVID-19 have made Apple Inc AAPL.O iPhone assembler Pegatron Corp 4938.TW "emphasise" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday. However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to "emphasise" its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei. Tung said that with the COVID pandemic easing globally, China coming out of its lockdowns to control the coronavirus and the electronics industry's peak season coming later in the year, the rest of 2022 should be much better for the company. | By Sarah Wu TAIPEI, June 15 (Reuters) - China's recent lockdowns to control the spread of COVID-19 have made Apple Inc AAPL.O iPhone assembler Pegatron Corp 4938.TW "emphasise" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday. However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to "emphasise" its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei. We couldn't have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation of our production capacity." |
20694.0 | 2022-06-15 00:00:00 UTC | Apple TV App To Present All MLS Matches, Beginning 2023 | AAPL | https://www.nasdaq.com/articles/apple-tv-app-to-present-all-mls-matches-beginning-2023 | nan | nan | (RTTNews) - Apple Inc. has entered into a collaboration with Major League Soccer or MLS, in a historic first for a major professional sports league. Beginning in 2023, Apple TV app will be the exclusive provider of all live MLS matches around the world for 10 years.
New York City -based MLS is a fast-growing soccer league, featuring 29 clubs throughout the United States and Canada with players representing 82 countries.
From early 2023 through 2032, MLS fans can watch all MLS, Leagues Cup, and select MLS NEXT Pro and MLS NEXT matches in Apple TV app. They need to subscribe to a new MLS streaming service, available exclusively through the app.
The MLS content on the Apple TV app will be available across all devices where the app can be found, including iPhone, iPad, Mac, Apple TV 4K, Apple TV HD, as well as tv.apple.com.
Further, the app can also be available at Samsung, LG, Panasonic, Sony, TCL, VIZIO, and other smart TVs; Amazon Fire TV and Roku devices; PlayStation and Xbox gaming consoles; Chromecast with Google TV; and Comcast Xfinity.
Along with all of the live match content, the service will provide fans a new weekly live match whip-around show to present an exciting goal or save, as well as game replays, highlights, analysis, and other original programming.
The live and on-demand MLS content will provide in-depth, behind-the-scenes views of the players and clubs. Apple TV+ subscribers can also watch a broad selection of MLS and Leagues Cup matches, including some of the biggest matchups, at no additional cost, with a limited number of matches available for free.
As an added benefit, access to the new MLS streaming service will be included as part of MLS full-season ticket packages.
At launch, all MLS and Leagues Cup matches will include announcers calling the action in English and Spanish. Further, all matches involving Canadian teams will be available in French.
Don Garber, MLS's commissioner, said, "Apple is the perfect partner to further accelerate the growth of MLS and deepen the connection between our clubs and their fans. Given Apple's ability to create a best-in-class user experience and to reach fans everywhere, it'll be incredibly easy to enjoy MLS matches anywhere, whether you're a super fan or casual viewer."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Beginning in 2023, Apple TV app will be the exclusive provider of all live MLS matches around the world for 10 years. New York City -based MLS is a fast-growing soccer league, featuring 29 clubs throughout the United States and Canada with players representing 82 countries. At launch, all MLS and Leagues Cup matches will include announcers calling the action in English and Spanish. | Beginning in 2023, Apple TV app will be the exclusive provider of all live MLS matches around the world for 10 years. From early 2023 through 2032, MLS fans can watch all MLS, Leagues Cup, and select MLS NEXT Pro and MLS NEXT matches in Apple TV app. Apple TV+ subscribers can also watch a broad selection of MLS and Leagues Cup matches, including some of the biggest matchups, at no additional cost, with a limited number of matches available for free. | From early 2023 through 2032, MLS fans can watch all MLS, Leagues Cup, and select MLS NEXT Pro and MLS NEXT matches in Apple TV app. The MLS content on the Apple TV app will be available across all devices where the app can be found, including iPhone, iPad, Mac, Apple TV 4K, Apple TV HD, as well as tv.apple.com. Apple TV+ subscribers can also watch a broad selection of MLS and Leagues Cup matches, including some of the biggest matchups, at no additional cost, with a limited number of matches available for free. | Beginning in 2023, Apple TV app will be the exclusive provider of all live MLS matches around the world for 10 years. From early 2023 through 2032, MLS fans can watch all MLS, Leagues Cup, and select MLS NEXT Pro and MLS NEXT matches in Apple TV app. The live and on-demand MLS content will provide in-depth, behind-the-scenes views of the players and clubs. |
20695.0 | 2022-06-15 00:00:00 UTC | Why Netflix Might Make a Tempting Acquisition Target | AAPL | https://www.nasdaq.com/articles/why-netflix-might-make-a-tempting-acquisition-target | nan | nan | Netflix (NASDAQ: NFLX) has had a challenging 2022 so far. The company reported a loss of 200,000 subscribers in its fiscal first quarter, and it expects to drop another 2 million in Q2. This exodus of subscribers comes as the company's stock price has declined. Netflix's shares are currently trading around the $180 mark, far below the peak of approximately $690 per share in late October 2021. Adding to the woes, Goldman Sachs has downgraded Netflix to sell, citing concerns about a potential recession.
Regardless, Netflix still has over 220 million subscribers, making it the biggest subscription video-on-demand (SVOD) service in the world. For other tech companies with deep enough pockets, this alone could make Netflix an attractive takeover target -- especially to those looking to move further into the subscription services arena.
Image source: Getty Images.
Netflix has a plan
Netflix has acknowledged its challenges, and it's working to stem subscriber losses. The streamer is openly considering a cheaper ad-supported tier, and it's testing a new pricing model in some Latin America countries, charging users slightly more if they share their accounts with other households. Notably, Netflix has identified another area of potential growth: Gaming.
Netflix launched its mobile games hub in November 2021, and while the company has not broken out download numbers, it's certainly bullish about the prospect of games becoming a key part of its service. During Netflix's Q1earnings call Chief Operating Officer and Chief Product Officer Greg Peters described gaming as "a top-level priority" for the firm, noting that games linked to Netflix Originals are being viewed as a way to "drive more people to sign up for [the service]."
SVOD and subscription gaming are converging
Netflix is not the only company offering on-demand video content and game downloads. Amazon has operated its Prime Video service since 2006, and most recently got into cloud gaming with Luna. Elsewhere, Apple has Apple TV+ and its Arcade platform. It's not an enormous leap of imagination to consider how Netflix and its library of original content could be absorbed into an Amazon Prime subscription or Apple One bundle.
Of course, one thing that might prevent Amazon or Apple from kicking the tires on a Netflix acquisition would be the looming possibility of regulators impeding such a deal. In 2011, AT&T and T-Mobile tried to merge, only for the arrangement to be flattened by both the U.S. Department of Justice (DOJ) and the Federal Communications Commission. And though any such tie-up in the streaming space would likely not be a straight comparison, the DOJ cited the threat to consumer choice when it went after the deal between AT&T and T-Mobile.
Still, while Netflix, Amazon, and Apple are all getting into the games business, two of the biggest names in that universe -- Microsoft and Sony -- are not active in the SVOD space.
Microsoft operates subscription-based game service Xbox Cloud Gaming, as well as offering movie and TV show rentals and purchases via its online store. Sony has on-demand subscription cloud gaming offering PS Now, and in the past it has also let PlayStation customers rent and buy content through its in-console store. It even once had an over-the-top TV service dubbed PlayStation Vue.
With this in mind, a tech giant keen to bolster its subscription offerings might conceivably start eyeing Netflix as a takeover target. And with the streamer's current P/E ratio sitting around 16 -- compares to a five-year average of 115 -- it might only take a few more rough quarters before a takeover offer appears.
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Fool contributor Tom Wilton has business dealings with Netflix, but holds no financial position in any companies mentioned. 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, Microsoft, and Netflix. The Motley Fool recommends T-Mobile US 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. | For other tech companies with deep enough pockets, this alone could make Netflix an attractive takeover target -- especially to those looking to move further into the subscription services arena. The streamer is openly considering a cheaper ad-supported tier, and it's testing a new pricing model in some Latin America countries, charging users slightly more if they share their accounts with other households. Sony has on-demand subscription cloud gaming offering PS Now, and in the past it has also let PlayStation customers rent and buy content through its in-console store. | SVOD and subscription gaming are converging Netflix is not the only company offering on-demand video content and game downloads. Sony has on-demand subscription cloud gaming offering PS Now, and in the past it has also let PlayStation customers rent and buy content through its in-console store. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Netflix. | During Netflix's Q1earnings call Chief Operating Officer and Chief Product Officer Greg Peters described gaming as "a top-level priority" for the firm, noting that games linked to Netflix Originals are being viewed as a way to "drive more people to sign up for [the service]." SVOD and subscription gaming are converging Netflix is not the only company offering on-demand video content and game downloads. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Fool contributor Tom Wilton has business dealings with Netflix, but holds no financial position in any companies mentioned. | SVOD and subscription gaming are converging Netflix is not the only company offering on-demand video content and game downloads. Microsoft operates subscription-based game service Xbox Cloud Gaming, as well as offering movie and TV show rentals and purchases via its online store. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Netflix. |
20696.0 | 2022-06-15 00:00:00 UTC | EU court rejects $1 bln EU antitrust fine against Qualcomm | AAPL | https://www.nasdaq.com/articles/eu-court-rejects-%241-bln-eu-antitrust-fine-against-qualcomm | nan | nan | LUXEMBOURG, June 15 (Reuters) - Europe's second top court on Wednesday scrapped a 997-million-euro ($1.05 billion) EU antitrust fine imposed on U.S. chipmaker Qualcomm QCOM.O four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O.
The General Court said there was a number of procedural irregularities which affected Qualcomm's rights of defence and invalidated the European Commission's analysis of the conduct alleged against the company.
The European Commission said the anti-competitive practice took place from 2011 to 2016.
The case is T-235/18.
($1 = 0.9532 euros)
(Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout;)
((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. | LUXEMBOURG, June 15 (Reuters) - Europe's second top court on Wednesday scrapped a 997-million-euro ($1.05 billion) EU antitrust fine imposed on U.S. chipmaker Qualcomm QCOM.O four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court said there was a number of procedural irregularities which affected Qualcomm's rights of defence and invalidated the European Commission's analysis of the conduct alleged against the company. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout;) ((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. | LUXEMBOURG, June 15 (Reuters) - Europe's second top court on Wednesday scrapped a 997-million-euro ($1.05 billion) EU antitrust fine imposed on U.S. chipmaker Qualcomm QCOM.O four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court said there was a number of procedural irregularities which affected Qualcomm's rights of defence and invalidated the European Commission's analysis of the conduct alleged against the company. The European Commission said the anti-competitive practice took place from 2011 to 2016. | LUXEMBOURG, June 15 (Reuters) - Europe's second top court on Wednesday scrapped a 997-million-euro ($1.05 billion) EU antitrust fine imposed on U.S. chipmaker Qualcomm QCOM.O four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court said there was a number of procedural irregularities which affected Qualcomm's rights of defence and invalidated the European Commission's analysis of the conduct alleged against the company. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout;) ((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. | LUXEMBOURG, June 15 (Reuters) - Europe's second top court on Wednesday scrapped a 997-million-euro ($1.05 billion) EU antitrust fine imposed on U.S. chipmaker Qualcomm QCOM.O four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court said there was a number of procedural irregularities which affected Qualcomm's rights of defence and invalidated the European Commission's analysis of the conduct alleged against the company. The European Commission said the anti-competitive practice took place from 2011 to 2016. |
20697.0 | 2022-06-14 00:00:00 UTC | Apple (AAPL) Likely to Launch Its VR Headset in Early 2023 | AAPL | https://www.nasdaq.com/articles/apple-aapl-likely-to-launch-its-vr-headset-in-early-2023 | nan | nan | Apple AAPL is anticipated to launch its much-awaited virtual reality headsets in Q2 2023. Per analyst Ming-Chi Kuo, the VR headsets will be launched a bit later than initially expected due to the Shanghai lockdown that interrupts its development.
Many different suppliers are readying themselves to take a significant stake in Apple’s new bet to delve into AR. Apple is expected to use Sony’s SONY MicroOLED display for the first units to be produced, per 9to5Mac.
Apple has been working with Sony for a couple of years to develop the display that will feature high image quality in a small and lightweight design. However, another company vying for this spot is LG Display. LG Display is expected to have ordered deposition equipment to make MicroOLED displays from Sunic System. This will help LG Display manufacture the MicroOLED panel for Apple’s VR headset.
Apple’s mixed reality headset is its the most anticipated product that is expected to help the company diversify its sources of revenues. This is expected to impact Apple’s share price positively in the long haul.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
What’s in Store for Apple’s Stock in 2022?
Apple’s revenue-generating abilities have been impacted negatively due to coronavirus-induced supply-chain disruptions, silicon scarcity across industry and the ongoing Russia-Ukraine conflict.
Further, Apple did not provide any revenue guidance for the third quarter of fiscal 2022 due to uncertainty created by the macroeconomic volatility and geopolitical tensions.
Apple expects COVID-induced supply chain disruptions and the industry-wide silicon shortage to hurt top-line growth by $4-$8 billion. Unfavorable forex is also expected to hurt revenues by 300 basis points (bps).
Apple has halted operations in Russia, which is expected to hurt top-line growth. Also, due to the global rising inflation, customers have pulled back on their purchases. This will impact Apple’s shares negatively, as it did to its FAAMG peers — Meta Platforms META and Microsoft (MSFT).
Apple, which currently carries Zacks Rank #3 (Hold), has seen its stock lose 25.7% in the year-to-date period compared with the Zacks Computer - Mini computers industry and Zacks Computer and Technology sectors’ declines of 25.2% and 32.2%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta has also seen its stock lose 50.9% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 53.4%.
Microsoft shares have lost 27.7% in the year-to-date period compared with the Zacks Computer - Software industry’s decline of 29.8%.
However, as Apple forays into the AR space, solid anticipation for the company’s mixed reality headsets and AR glasses is expected to drive the demand for the products. Per Bloomberg, the metaverse market, globally, is expected to reach $800 billion by 2024, which will create an alternate revenue source for Apple, thus impacting shareholders’ wealth creation positively.
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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 AAPL is anticipated to launch its much-awaited virtual reality headsets in Q2 2023. Apple Inc. (AAPL): Free Stock Analysis Report Apple has been working with Sony for a couple of years to develop the display that will feature high image quality in a small and lightweight design. | Apple AAPL is anticipated to launch its much-awaited virtual reality headsets in Q2 2023. Apple Inc. (AAPL): Free Stock Analysis Report Apple, which currently carries Zacks Rank #3 (Hold), has seen its stock lose 25.7% in the year-to-date period compared with the Zacks Computer - Mini computers industry and Zacks Computer and Technology sectors’ declines of 25.2% and 32.2%, respectively. | Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL is anticipated to launch its much-awaited virtual reality headsets in Q2 2023. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote What’s in Store for Apple’s Stock in 2022? | Apple AAPL is anticipated to launch its much-awaited virtual reality headsets in Q2 2023. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s mixed reality headset is its the most anticipated product that is expected to help the company diversify its sources of revenues. |
20698.0 | 2022-06-14 00:00:00 UTC | Warren Buffett donates $4 billion to charity | AAPL | https://www.nasdaq.com/articles/warren-buffett-donates-%244-billion-to-charity | nan | nan | By Jonathan Stempel and Manya Saini
June 14 (Reuters) - Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire's pledge to give away nearly all of his net worth.
Berkshire Hathaway Inc BRKa.N, which Buffett has run since 1965, said the donation comprises about 14.4 million of its Class B shares, whose closing price on Tuesday was $277.64.
Eleven million shares will go to the Bill & Melinda Gates Foundation, and 1.1 million will go to the Susan Thompson Buffett Foundation, named for Buffett's late first wife.
Another 770,000 shares will also go to each of three charities run by Buffett's children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation.
Since 2006, the 91-year-old Buffett has donated more than half of his Berkshire shares, with the donations worth about $45.5 billion at the time they were made.
Despite the donations, Buffett still owns approximately 16% of Berkshire and controls about one-third of its voting power.
Both percentages have been fairly stable in recent years because Berkshire has aggressively repurchased its own stock.
Buffett has built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N.
He and Bill Gates also pioneered "The Giving Pledge," where more than 200 people like Michael Bloomberg, Larry Ellison, Carl Icahn, Elon Musk and Mark Zuckerberg committed at least half their fortunes to philanthropy.
(Reporting by Jonathan Stempel in New York and Manya Saini in Bengaluru; Editing by Vinay Dwivedi and Cynthia Osterman)
((Manya.Saini@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. | Buffett has built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel and Manya Saini June 14 (Reuters) - Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire's pledge to give away nearly all of his net worth. He and Bill Gates also pioneered "The Giving Pledge," where more than 200 people like Michael Bloomberg, Larry Ellison, Carl Icahn, Elon Musk and Mark Zuckerberg committed at least half their fortunes to philanthropy. | Buffett has built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel and Manya Saini June 14 (Reuters) - Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire's pledge to give away nearly all of his net worth. Eleven million shares will go to the Bill & Melinda Gates Foundation, and 1.1 million will go to the Susan Thompson Buffett Foundation, named for Buffett's late first wife. | Buffett has built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel and Manya Saini June 14 (Reuters) - Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire's pledge to give away nearly all of his net worth. Eleven million shares will go to the Bill & Melinda Gates Foundation, and 1.1 million will go to the Susan Thompson Buffett Foundation, named for Buffett's late first wife. | Buffett has built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel and Manya Saini June 14 (Reuters) - Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire's pledge to give away nearly all of his net worth. Eleven million shares will go to the Bill & Melinda Gates Foundation, and 1.1 million will go to the Susan Thompson Buffett Foundation, named for Buffett's late first wife. |
20699.0 | 2022-06-14 00:00:00 UTC | What Target Is Getting Right | AAPL | https://www.nasdaq.com/articles/what-target-is-getting-right | nan | nan | In this podcast, Motley Fool senior analyst Tim Beyers discusses:
CEO Brian Cornell taking a head-on approach to dealing with Target's (NYSE: TGT) inventory problems.
Prepping for getting the all-important back-to-school and holiday shopping seasons right.
The unveiling of Apple's (NASDAQ: AAPL) newest features (including chips).
Ripple effects from Apple Pay getting into the "buy now, pay later" space.
Prospects for an Apple VR headset in 2023.
Additionally, host Alison Southwick and retirement expert Robert Brokamp discuss how you can "recession-prep" your investments and your mindset.
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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Chris Hill: We've got some takeaways from Apple's big event and some thoughts on Target's latest announcement. Motley Fool Money starts now. I'm Chris Hill. I'm joined today by Motley Fool senior analyst Tim Beyers. Thanks for being here.
Tim Beyers: Thanks for having me, Chris. Fully caffeinated, ready to go.
Chris Hill: We're going to get to Apple in a second, but we got to start with Target. Those who might have missed it did not have a great earnings season. Target [laughs] came out in their most recent earnings report. Brian Cornell said, "We got the inventory wrong," and the stock took a big hit. Target came out today and basically said, "Here's how we're going to fix this. We're going to take a short-term hit and we're going to clear out our inventory." In related news, for anyone listening who is looking for patio furniture, or maybe a new flat-screen TV or some household appliances, you might want to check your local Target because it really seems [laughs] like there are a lot of things that are about to go on sale.
Tim Beyers: Everything must go, Chris. Everything must go.
Chris Hill: That's what it reminded me of, the old-school commercial. We made a mistake with our inventory and now we have to clear it out and we're passing the savings onto you, except this appears to be actually happening for real with Target.
Tim Beyers: Our loss is your gain. It does remind me of a 1970s Crazy Eddie ad. Go look those up if you don't know what I'm talking about. Let's hit some of the numbers. Target is estimating in the upcoming quarter an operating margin of around 2%. Not great, especially when the average operating margin is closer to 5%. By the end of the year, Target says closer to 6%, so they do feel like they're going to clear this out but boy is there a lot of inventory to clear out here Chris, $15.1 billion would a B, inventory as of April 30th. That was up 43% over the same year-ago period. So really not great. However, this is not just a Target problem, Chris.
What's interesting to me about this, is it's not a big macro, but it's big macro adjacent because this is not the only company that has been talking about inventory gluts. Walmart's been talking about inventory gluts. Lots of retail has been talking about inventory gluts. By the way, I think of the last time I was on the show, Chris, one of our lead stories was some guidance that had been updated within a month of the previous guidance and that was Snap and it was dramatic. We were talking about positive EBITDA and then all of a sudden we're talking about negative EBITDA, that was Snap.
Now Target, they said not a great quarter, but they had not taken the operating margins down. Now they've taken them down into territory we have not seen yet. The way I look at this Chris, Target is going to have to not just clear out inventory, they're going to have to rationalize and start replanning stores for what consumers really want. It is a signal that the consumer's buying patterns and desires have changed and Target is not ready for that yet and neither are a lot of other retailers here. It makes me wonder who's going to miss next.
Chris Hill: That is absolutely a thought I had earlier today when I was digesting this news because I think you're right, we're going to see this from other retailers. In terms of Target itself, I like this movie. I like that Cornell and his team are basically saying we're ripping the Band-Aid off right now, we're going to take this hit. By the way, the stock is only down about 2% or 3% which indicates to me that the sell-off that we saw in the stock, in the week of their earnings, I don't want to say it was overdone, but maybe it was almost completely done. Because absent that, the announcement this morning is something that could've sent the stock down 10%-15%. Again, I like they're ripping you off the Band-Aid now in part so that they can get ready for the two most important seasons of the year if you're a retailer, and that's back-to-school and then the holidays at the end of the year.
Tim Beyers: No doubt. I think this also reflects that Target delivered sweet and sour news. They just delivered the sour first, but here's the sweet news. On the back end of the year, they do say, Chris, that they're going to get to that 6% operating margin. I think that drawdown or at least the lack of drawdown is a reflection that there is some belief that they will be able to do that because they are ripping off the Band-Aid. Let's be clear if they do pull that off and they come up with an operating margin that is better than they historically do, if they do recover to that level, it's going to be an awfully good fourth quarter for Target. It's bad news but to your point, it could also be very good news if they do this well.
Chris Hill: The last thing I'll say before we move on to Apple, is I mentioned the sales of household items, patio furniture, etc. You look at shares of Target, the job Brian Cornell has done running this company for eight years now. This very much looks like a stock on sale for perfectly valid reasons. I don't look at what has happened to Target's stock as irrational. I view it as completely rational but if you think they're going to right the ship in the second half of this year leading into 2023, you could come up with worse entry points for the stock than this.
Tim Beyers: Hey, you know what, you can get paid to do it to a 2.24% dividend yield right now. The odds of them cutting that dividend, I think, are very low, Chris, so completely agree with you. This is a well-run business, it's a great brand. People are not going to stop shopping at Target, if they do rationalize the stores and fix the inventory problems, you're going to get paid for a pretty nice return.
Chris Hill: Apple held its Worldwide Developer Conference yesterday. What was your headline for the event? Because we can get into a couple of the nuts and bolts, but I really hope nobody went into this event hoping for some massive reveal because there wasn't one. I mean, maybe it's setting up for something big coming in 2023 but what was your headline for yesterday's event from Apple?
Tim Beyers: This is really interesting that you say that because I would say I disagree. I don't disagree, but I recognize that my geekish enthusiasm for this is because I have geekish enthusiasm for things like really fast chips and the M2 is here, which is my hemline and I think, my goodness, that looks like a crazy good chip. I'm recognizing now as we're talking about this, Chris, that the things I'm excited about are the things that nobody [laughs] except for people who really care about this stuff, really care about, but it does have practical implications. Let's get into what those things are.
The M2 chip does make the MacBook Air a highly attractive computer from my perspective here, it's going to start at $1,199. This is the new MacBook Air. It's also the 13-inch new MacBook Pro, and they will be based on the M2 chip. The M2 chip in my opinion here, Chris, I mean, it just looks amazing. It's a slightly larger chip, but it has a much better power profile. There's some really interesting stuff here. It's an 18% faster CPU, 35% more powerful GPU, 40% faster neural engine, 50% more memory bandwidth. Essentially what's happening here, is the M2 chip is designed basically on a smaller form factor, I should say, to deliver more compute power in a more efficient way, such that it is consuming less power and it can be very useful in a small form factor, like the MacBook Air.
I find this really interesting, it's also just geeky fascinating to me that this is a chip that's made at the 5-nanometer level, or I should say nanometer level and Apple has been ahead in this area where they are producing chips and the most advanced processes to deliver real, I would say, if not the best, one of the best combinations of performance and power and you're going to see it in the new machines. The only question for me, Chris, is, how is Apple going to manage some of the supply chain constraints such that we're going to see in stores, the new Airs, the new MacBook Pros, so they're going to be able to get enough equipment to actually be able to put this on the shelves but boy, does it look compelling.
Chris Hill: I don't disagree with anything you just said. I'm just saying if you're working in the marketing department of Apple...
Tim Beyers: Of course, right.
Chris Hill: You didn't get a ton to work with yesterday. Apple Pay is now going to be doing buy now, pay later.
Tim Beyers: Yeah.
Chris Hill: Affirm Holdings took a hit. I mean, this is the 800-pound gorilla stepping out of the room saying, this is a business we think we want to get into here. How threatened do you think those businesses are or do you think that look, this is just a given that any financial service, any payment option is going to have to buy now pay later.
Tim Beyers: Yes to what you just said. Any financial services are going to have to buy now, pay later here, but this is Apple going full Draymond Green. To use the [laughs] NBA analogy here, Draymond Green for the Golden State Warriors for those who don't know, when he makes a big play he does the flex on the sidelines here. This is Apple flexing its balance sheet here. Chris, for those who don't know, $51.5 billion is just in cash and short-term investments on Apple's balance sheet. They have tons and tons of money, they also have plenty of additional money beyond that.
Apple can do a lot with its balance sheet and so if they want to fund, buy now, pay later to put more iPhones, more MacBook Airs, more equipment into the hands of more people, they can do it easily. Incidentally, Chris, this has been something that enterprise hardware companies have done for years. I mean, we haven't talked about this company a lot, but IBM famously carried a lot of debt on its balance sheet but most of that debt Chris, was for equipment that was basically lent out to companies on installment enterprise plans. You're buying boatloads of IBM servers and other equipment, IBM is carrying debt, but essentially they're just giving you equipment so that they can generate cash flow from that and then it just happens to have a net debt effect on the balance sheet. This is absolutely nothing new. It just so happens that Apple is an extremely rich company and you're getting to see them flex the power of their balance sheet to just throw their weight around in this market.
Chris Hill: Last thing before I'll let you go. It seemed like Apple was dropping bread crumbs yesterday and pointing toward a VR headset coming in 2023. Was that your read on yesterday's event, and if not, when do you think we're going to see a VR headset from Apple? Because that really does seem like a device they should be and probably are working on.
Tim Beyers: Maybe I'm naive here, Chris. I thought the integration of the iPhone and the Mac, essentially the essential seamless integration where from your iPhone to your Mac, if you want to send a message or make a call or use your iPhone as the camera on your Mac, I thought just the seamless integration between those two took me to the place of your iPhone, is your window into the world? I don't know that they want to have a device that replaces the iPhone, especially since the iPhone is getting better and it's an interesting device for doing things like augmented reality. Because that's your central point of contact.
I mean, I will not disagree with you here, I certainly think there's something to be said for Apple getting involved here, and really because they are highlighting the work that they're doing around gaming, it makes a lot of sense that Apple would have a headset in this area. But making the iPhone more important and increasingly so especially with things like augmented reality, feels like a way to keep putting more iPhones and progressively more advanced iPhones in people's hands. I didn't have that same read, however, I wouldn't rule it out.
Chris Hill: Tim Beyers, always great talking to you. Thanks for being here.
Tim Beyers: Thanks, Chris.
Chris Hill: Tim referenced the big macro on one topic and the big macro that's been getting more airtime lately is the prospect of a recession. Alison Southwick and Robert Brokamp discuss how you can recession prep your investments and more importantly, your mindset.
Alison Southwick: Today we going to talk about growing fears of our recession and how to recession-proof your finances. Joining me is Dr. Awfulizer, aka Robert Brokamp not an actual doctor. Bro, you're a "glass maybe half-full but it's probably also poisoned" kind of guy, aren't you?
Robert Brokamp: Well, I don't think I'm that bad. But yes, [laughs] I would say that I have a tendency to contemplate the worst-case scenario when it comes to money. I would suppose a psychologist or financial therapist would likely point out that such tendencies have some route in our childhoods, and that's probably true for me. Had a very solid middle-class upbringing, a very happy childhood, very grateful to my parents. But at one point my dad's business did go under and we had a couple of pretty rough years and I saw the toll that took on my parents in their marriage, and definitely it taught me that you can't rely on the good times lasting forever. That's not an experience that's unique to me and my family, which I think is important for everyone to plan for less than awesome.
I listened to Daily Stoic podcast by Ryan Holiday. He points out that the Roman philosopher Seneca called this the premeditation of evils and wrote that we should project our thoughts ahead of us at every turn and have in mind every possible eventuality instead of only the usual course of events. I suppose in more modern business-y terms this is often called a premortem as opposed to a postmortem, during which a team imagines that you have a project or maybe a whole organization you're managing that it's failed, and then you work backwards to determine the possible threats and what can be done about them ahead of time.
Yes, I know this all sounds very doom and gloomy. But the truth is, a key part of financial planning is preparing for potentially bad outcomes because they may happen and when it comes to economic recessions which is the topic of this podcast, it's not really a question of if but when because we haven't yet eliminated the boom and bust cycles with the economy.
Alison Southwick: But I didn't mean to call out your pessimism as necessarily a bad thing, I just wanted to call it out so that our audience understands just how uniquely, [laughs] well credentialed you are to talk to in this episode.
Robert Brokamp: Thank you.
Alison Southwick: Everyone is concerned about things going south, it's you Dr. Awfulizer. You could probably get away with saying we're in a recession when the country has experienced two quarters of declining GDP. In the first quarter of this year GDP in this country declined for the first time since the start of the pandemic. But there are other factors economists consider when putting their finger to the wind of our economy. What is causing economists to say that a recession is on its way now?
Robert Brokamp: You're right, that's two quarters of declining GDP is definitely a sign of trouble and so it's a good rule of thumb. Officially, though recession has occurred only when the folks at the National Bureau of Economic Research say so and the NBER is a private non-profit research organization made up of like 1,700 economists and there are the folks who officially designate when recessions begin and end, and here's one definition offered by the NBER. A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. In that context, real means inflation-adjusted. You can tell from the definition the downturn has been pretty spread out throughout the economy to be a recession. Inflation is a little bogeyman here.
The Fed is raising interest rates and intentionally slowing down the economy to curb inflation and many experts are skeptical that inflation can be brought to heel, so to speak, without tipping the economy into a recession. An example is that in an interview with Bloomberg recently, former Treasury Secretary Larry Summer said, "If you look at history, there's never been a moment where inflation is above 4% and unemployment is below 5%, where we did not have a recession within two years, and we definitely meet both of those criteria."
You likely have heard that JPMorgan CEO Jamie Dimon recently said that he's preparing the bank for "economic hurricane," saying you better brace yourselves. One of my favorite economists, Mark Zandi at Moody's Analytics, recently said in his podcast that he thinks there is a 1 in 3 chance of a recession over the next 12 months. Now, to be sure there are plenty of good things going on in the economy, just as an example, last Friday's jobs report was really good. But now is definitely a good time to take a look at your finances and get on defensive footing at least in the short term.
Alison Southwick: Is the thinking here that things have been so good, now we need to keep it from being so good, but we're going to pull back too hard and swing the other way?
Robert Brokamp: Yes, exactly. I mean, the fear is that because inflation is so high, the Federal Reserve really has to put the brakes on the economy and rein in some excesses. It's too difficult to do the soft landing, it will probably have to go a little too much in the other direction.
Alison Southwick: Well, before we get into what our listeners can do to recession-proof their finances, it's probably helpful if we give a little more context to recessions in general. Some history, fun fact time: Recessions used to be much more common.
Robert Brokamp: Yeah, the NBER provides data on recessions that go back as far as 1857. Since then, we've had 34 recessions. Basically, we have a recession on average every 4.8 years. However, there's more than a decade between two of the last three recessions. In the last expansion, which is the opposite of the recession it's what the term economist uses to describe the times when the economy is growing, that expansion lasted from 2008 to 2020 and that was the longest expansion on record. I also point out that the last recession, which was caused by the pandemic panic of 2020, lasted just two months and that was the shortest recession ever.
Alison Southwick: I've really am a summer child, I didn't think about that. But as long as I've been investing, things have actually been pretty good. Just a little more context in history here, I'm going to name an asset or other fun economic indicator and you tell me whether it tends to go up or down in a recession, feel free to play along at home. The first one, is stocks.
Robert Brokamp: The answer is course is they tend to go down. The average decline during the recession since the 1920s is around 35%, so you have to understand that stocks are leading indicators. Very generally speaking, they tend to decline six months before a recession and bottom out six months into a recession. But that's very general. Every recession is a little different. I think back to the dot-com crash, the stock market start dropping a year before the recession, and then we had three calendar years of declines before the market recovered.
Alison Southwick: All right. Interest rates.
Robert Brokamp: Down, usually. I mean, the Fed is raising rates now to slow down the economy, they're generally successful, so then they have to reverse course to stimulate the economy and when it's declining. However, we all hear a lot nowadays about the '70s stagflation when we had high inflation and not great economic growth, and there were some instances there, particularly in '73, '74 recession where the economy went down, but interest rates kept going up because the Fed still had to fight inflation.
Alison Southwick: All right. Bonds.
Robert Brokamp: Bonds actually go up because bond prices move inversely to interest rates. Plus, during the recession, the stock market is going down. You will see that there's often a flight to safety during the recession, which means people sell their stocks, buy bonds, drive up the price of bonds, but it does depend on the quality of the bonds. If Treasuries hold up well, lower-rated bonds like junk bonds actually go down like stocks. Usually not as much.
Alison Southwick: Home prices.
Robert Brokamp: Take a guess, everyone. They actually generally go up, and that might be surprising, but when you look back to the six recessions since 1980, home prices only went down in two of those. In one of those, the decline was less than 1%, so it was basically flat. Research to Mark Hulbert of MarketWatch founded in 1952, home prices on average actually grew more during bear markets and stocks than during bull markets. I think people will find it surprising because they look back to the 2009 period, which has come to be known as the Great Recession, and that's when stocks and houses went down. But actually, historically, it was pretty much an outlier.
Alison Southwick: Last one, inflation. Does it go up or down?
Robert Brokamp: Down, we hope. That's the whole point of this. That's the whole reason the Fed is trying to put the brakes on the economy to bring inflation down. Generally, they succeed, although again, people will often point to the seven days that it took really high-interest rates. It was 10-year Treasury reaching 15%, 16% in 1981 before inflation finally came down.
Alison Southwick: I know it's tempting and often inaccurate to think, but this time it's different. But I don't know Brok, what do you think? Could this time be different?
Robert Brokamp: To a certain extent, yes. I would say that's because if you look at anything that's going on now and you attribute it to the pandemic, such as the supply chain issues and the shutdowns in China, we could possibly start seeing inflation come down over the next several months. In fact, the bond market is currently predicting lower inflation than it was, say, a month or two ago. On the other hand, food and energy prices are soaring partially due to the war in Ukraine and we have no idea of how that's going to shake out. There are some other geopolitical challenges going on.
One example is that India, which like Ukraine and Russia, is a big wheat exporter is experiencing extreme heat, we're talking like day after day of 100-degree temps, reaching as high as 120 in some places. The heat has so damaged its wheat crop that it put an embargo on exporting its wheat, so food prices could stay higher for longer. If the current inflation, and thus the Fed's efforts to slow down the economy were just due to the aftershocks of the pandemic, I'd say if we do have a recession, it may not be so bad. But these international factors could keep inflation higher for longer.
Alison Southwick: What can people do to come out relatively unscathed or even ahead of a recession?
Robert Brokamp: I'll just start with that boring yet important Foolish advice to make sure that you protect any money you need in the next few years by keeping it mostly in cash, short-term bonds, maybe Treasury, something like that. What you should do beyond that depends a lot on where you are along the road to retirement. If you're a decade or more away from retiring, the No. 1e risk of a recession to you is your income, in other words, your job. Now is the time to shore up your human capital. Look for ways to demonstrate your value to your employer and your customers. Keep an eye on how your company's doing so you can anticipate any layoffs. Maintain a professional network, keep your skills up to date in case you need to hit the job market and make sure you have an emergency fund to pay the bills in the meantime.
If you're nearing retirement, the concern is more for your portfolio since you'll be using it as a paycheck if you're not already. This is where asset allocation and diversification become really important. Start building what we call an income cushion, which is five years' worth of portfolio-provided income and cash or short-term bonds, so you can live off of that. But also having a mix of different types of stocks and owning enough of them, at least 25, I prefer even more with some index funds running, and you have to think of like how you diversify the stocks that you own.
Just an example, for every stock like Tesla you own, you should also own something like Berkshire Hathaway. By the way, those are two stocks that I personally own. You can invest in growth-oriented tech stocks but also have some solid dividend-paying consumer staple stocks. You don't want too much of your portfolio relying on just one sector, industry, or style of investing. According to Morningstar, the average stock allocation in target-date funds for retirees is 46%. To me, that's a bit more conservative than I think is necessary, especially for The Motley Fool audience, which tends to be a little bit more aggressive. I think 60% in the stock market is a good starting point and then you can adjust for your situation. Then finally, I'll just add that one of the best things retirees can do for the longevity of their portfolio is to not sell stocks when they're down. That means retirees may have to cut back on spending during recession.
Alison Southwick: I know, Dr. Awfulizer that my last question here could be quite painful for you to answer. But couldn't the case be made that a little recession now that it is actually good for us in the long run? I mean, as an investor can I view this as an opportunity?
Robert Brokamp: I would say absolutely. I have to say, I see economic expansions in boom times as sort of the holiday season. We all spend more, we eat more, we go to parties, we travel to relatives, and our credit card balances go up. We really don't spend too much time thinking about budgeting or things like that. Also, coincidentally, December is actually one of the best months for the stock market, historically speaking, and the recession is like January 1st. You wake up the next day, it's a new year, it's time to revisit the budget, pay off the debt, make some resolutions of how we get better with our money, maybe better in our jobs.
Take a look at our portfolios, reassess our asset allocations, and maybe do some rebalancing. Once a year, you should look at your portfolio and determine whether you are taking the right amount of risk for you. It essentially hunkers down for the winter but looks forward to spring because an expansion in the bull market follows every recession just as reliably as the change of season. Economic winter may be coming or not, but if so, it never lasts forever. In the meantime, with every contribution to your 401(k) and IRA, you're able to invest in companies at cheaper prices.
Alison Southwick: Well, the good news for you, our dear listeners, and Dr. Awfulizer here is that we're not actually done talking about market downturns and dark times. In the coming weeks, we're taking you to school with Morgan Housel. He's a partner at the Collaborative Fund and author of The Psychology of Money. Every episode will focus on a different market crash; what led up to it, how bad did it get, and what lessons you can glean to help weather any financial storm. Get on the bus kiddos, summer school starts next week, and I promise, you'll actually enjoy it.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against them, 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.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Alison Southwick has positions in Apple. Chris Hill has positions in Apple, JPMorgan Chase, and Target. Robert Brokamp, CFP(R) has positions in Tesla. Tim Beyers has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Affirm Holdings, Inc., Apple, Berkshire Hathaway (B shares), Target, and Tesla. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The unveiling of Apple's (NASDAQ: AAPL) newest features (including chips). In this podcast, Motley Fool senior analyst Tim Beyers discusses: CEO Brian Cornell taking a head-on approach to dealing with Target's (NYSE: TGT) inventory problems. I suppose in more modern business-y terms this is often called a premortem as opposed to a postmortem, during which a team imagines that you have a project or maybe a whole organization you're managing that it's failed, and then you work backwards to determine the possible threats and what can be done about them ahead of time. | The unveiling of Apple's (NASDAQ: AAPL) newest features (including chips). In this podcast, Motley Fool senior analyst Tim Beyers discusses: CEO Brian Cornell taking a head-on approach to dealing with Target's (NYSE: TGT) inventory problems. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Apple, Berkshire Hathaway (B shares), Target, and Tesla. | The unveiling of Apple's (NASDAQ: AAPL) newest features (including chips). I think back to the dot-com crash, the stock market start dropping a year before the recession, and then we had three calendar years of declines before the market recovered. 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 them, so don't buy or sell stocks based solely on what you hear. | The unveiling of Apple's (NASDAQ: AAPL) newest features (including chips). Chris Hill: We're going to get to Apple in a second, but we got to start with Target. Since then, we've had 34 recessions. |
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