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20700.0 | 2022-06-14 00:00:00 UTC | Apple (AAPL) Gains As Market Dips: What You Should Know | AAPL | https://www.nasdaq.com/articles/apple-aapl-gains-as-market-dips%3A-what-you-should-know-1 | nan | nan | Apple (AAPL) closed at $132.76 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 9.39% over the past month, lagging the Computer and Technology sector's loss of 8.38% and the S&P 500's loss of 6.69% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.14 per share, which would represent a year-over-year decline of 12.31%. Meanwhile, our latest consensus estimate is calling for revenue of $82.44 billion, up 1.23% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.11 per share and revenue of $394.91 billion, which would represent changes of +8.91% and +7.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 21.58. Its industry sports an average Forward P/E of 7.83, so we one might conclude that Apple is trading at a premium comparatively.
Investors should also note that AAPL has a PEG ratio of 1.73 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAPL's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
How to Profit from the Hot Electric Vehicle Industry
Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits.
See Zacks' Top Stocks to Profit from the EV Revolution >>
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Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) closed at $132.76 in the latest trading session, marking a +0.67% move from the prior day. Investors should also note that AAPL has a PEG ratio of 1.73 right now. AAPL's industry had an average PEG ratio of 1.85 as of yesterday's close. | Apple Inc. (AAPL): Free Stock Analysis Report Apple (AAPL) closed at $132.76 in the latest trading session, marking a +0.67% move from the prior day. Investors should also note that AAPL has a PEG ratio of 1.73 right now. | Apple (AAPL) closed at $132.76 in the latest trading session, marking a +0.67% move from the prior day. Investors should also note that AAPL has a PEG ratio of 1.73 right now. AAPL's industry had an average PEG ratio of 1.85 as of yesterday's close. | Apple (AAPL) closed at $132.76 in the latest trading session, marking a +0.67% move from the prior day. Investors should also note that AAPL has a PEG ratio of 1.73 right now. AAPL's industry had an average PEG ratio of 1.85 as of yesterday's close. |
20701.0 | 2022-06-14 00:00:00 UTC | After Hours Most Active for Jun 14, 2022 : ITUB, AUY, PYPL, QQQ, KO, AVDX, MSFT, VALE, AAPL, CLVT, SABR, BAC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-14-2022-%3A-itub-auy-pypl-qqq-ko-avdx-msft-vale-aapl-clvt | nan | nan | The NASDAQ 100 After Hours Indicator is up .47 to 11,312.16. The total After hours volume is currently 74,657,908 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.54, with 8,387,196 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
Yamana Gold Inc. (AUY) is unchanged at $5.13, with 3,589,181 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
PayPal Holdings, Inc. (PYPL) is unchanged at $72.46, with 3,558,015 shares traded. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.16 at $275.75, with 3,090,652 shares traded. This represents a .44% increase from its 52 Week Low.
Coca-Cola Company (The) (KO) is -0.029 at $59.20, with 2,669,719 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
AvidXchange Holdings, Inc. (AVDX) is unchanged at $6.79, with 2,485,706 shares traded. As reported by Zacks, the current mean recommendation for AVDX is in the "buy range".
Microsoft Corporation (MSFT) is unchanged at $244.49, with 2,340,084 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
VALE S.A. (VALE) is +0.03 at $15.86, with 2,337,156 shares traded. VALE's current last sale is 77.37% of the target price of $20.5.
Apple Inc. (AAPL) is -0.05 at $132.71, with 2,277,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Clarivate Plc (CLVT) is unchanged at $13.21, with 2,007,839 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
Sabre Corporation (SABR) is unchanged at $5.78, with 1,945,510 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is -0.01 at $31.45, with 1,699,167 shares traded., following a 52-week high recorded in today's regular session.
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 $132.71, with 2,277,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.54, with 8,387,196 shares traded. | Apple Inc. (AAPL) is -0.05 at $132.71, with 2,277,223 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 $132.71, with 2,277,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". PayPal Holdings, Inc. (PYPL) is unchanged at $72.46, with 3,558,015 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.05 at $132.71, with 2,277,223 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range". |
20702.0 | 2022-06-14 00:00:00 UTC | Why Skillz Stock Sank to a Fresh All-Time Low Today | AAPL | https://www.nasdaq.com/articles/why-skillz-stock-sank-to-a-fresh-all-time-low-today | nan | nan | What happened
Shares of mobile-gaming platform Skillz (NYSE: SKLZ) hit a new all-time low on Tuesday, sinking as far as $1.28 per share. The stock is now down 97% from its all-time high and finished today's session down 8%.
So what
Skillz didn't have direct news today, but there was a relevant development that reportedly came from a third-party research group. According to a report from NPD Group, total gaming revenue fell 19% year over year in May, its lowest point in two years. Moreover, the report said that revenue for mobile gaming was also down. On Alphabet's Google Play store, there was a 23% drop. And Apple's App Store saw a 2.6% decline.
It should be noted that the majority of Skillz's distribution comes from Apple.
To summarize today's problem, Skillz's business was already struggling. And now the gaming industry in general could be pulling back, exacerbating the company's uphill battle. Therefore, it's not surprising to see shares fall to a new all-time low.
Now what
Skillz stock has fallen so much that it now trades slightly below its book value per share of $1.35, according to Yahoo Finance. But a word of warning to potential value investors: Its book value per share will likely continue to fall throughout 2022. CEO Andrew Paradise reiterated in the first quarter of 2022 that the business likely won't break even on an adjusted profitability basis until 2024. Put another way, the business will burn cash for at least two more years.
After registering a net loss of $148 million in the first quarter alone, Skillz will see its book value keep falling. So don't think of this as a value stock. It's a company in a difficult financial position and in need of a turnaround. And if NPD Group's May data signals the start of a longer trend, it could get even harder for Skillz.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jon Quast has positions in Skillz Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Skillz 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. | So what Skillz didn't have direct news today, but there was a relevant development that reportedly came from a third-party research group. Now what Skillz stock has fallen so much that it now trades slightly below its book value per share of $1.35, according to Yahoo Finance. CEO Andrew Paradise reiterated in the first quarter of 2022 that the business likely won't break even on an adjusted profitability basis until 2024. | According to a report from NPD Group, total gaming revenue fell 19% year over year in May, its lowest point in two years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Skillz Inc. | 10 stocks we like better than Skillz Inc. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Skillz Inc. | So don't think of this as a value stock. 10 stocks we like better than Skillz Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Skillz Inc. |
20703.0 | 2022-06-14 00:00:00 UTC | Big Tech bill has votes needed to pass, top U.S. antitrust lawmaker says | AAPL | https://www.nasdaq.com/articles/big-tech-bill-has-votes-needed-to-pass-top-u.s.-antitrust-lawmaker-says | nan | nan | WASHINGTON, June 14 (Reuters) - A top Democratic lawmaker on antitrust issues said Tuesday a bill aimed at reining in the market power of Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google had the votes to pass the both chambers of Congress in the next few weeks.
On the sidelines of an event to rally support for measures before the Senate and House of Representatives that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses in search and other ways, Representative David Cicilline, chair of the House antitrust subcommittee, said: "I'm very confident when these bills come to the floor, they will pass. Convincingly."
Asked when, he said: "Before we leave for the summer, my hope is that it will happen. Obviously, best case scenario would be in the next week. Worst case scenario in my view, the month of July."
U.S. Senator Amy Klobuchar, chair of a Senate antitrust panel, also said last week that she enough support in the Senate to win passage.
Representative Ken Buck, a Republican sponsor, said Tuesday he supported the bill at least partially because of his view that conservative views are stifled online. "We're being discriminated against," he said.
The bills have been the subject of a ferocious amount of lobbying, with tech giants warning of dire consequences, like the disappearance of popular consumer online applications like Google Maps. Cicilline called some of those allegations "lies" on Tuesday.
The U.S. Chamber of Commerce opposes the bills, and said on Tuesday: "The legislation would empower government bureaucracy to reign over our economy. No longer would competition be evaluated on the merits, instead the interest of consumers would be sidelined in favor of the interest of competitors."
Dozens of companies and business organizations sent a letter to U.S. lawmakers Monday, urging them to support the measures. L1N2Y01EC Companies supporting the measure include Yelp, Sonos, DuckDuckGo and Spotify.
(Reporting by Diane Bartz)
((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. | On the sidelines of an event to rally support for measures before the Senate and House of Representatives that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses in search and other ways, Representative David Cicilline, chair of the House antitrust subcommittee, said: "I'm very confident when these bills come to the floor, they will pass. WASHINGTON, June 14 (Reuters) - A top Democratic lawmaker on antitrust issues said Tuesday a bill aimed at reining in the market power of Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google had the votes to pass the both chambers of Congress in the next few weeks. The bills have been the subject of a ferocious amount of lobbying, with tech giants warning of dire consequences, like the disappearance of popular consumer online applications like Google Maps. | On the sidelines of an event to rally support for measures before the Senate and House of Representatives that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses in search and other ways, Representative David Cicilline, chair of the House antitrust subcommittee, said: "I'm very confident when these bills come to the floor, they will pass. No longer would competition be evaluated on the merits, instead the interest of consumers would be sidelined in favor of the interest of competitors." L1N2Y01EC Companies supporting the measure include Yelp, Sonos, DuckDuckGo and Spotify. | On the sidelines of an event to rally support for measures before the Senate and House of Representatives that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses in search and other ways, Representative David Cicilline, chair of the House antitrust subcommittee, said: "I'm very confident when these bills come to the floor, they will pass. WASHINGTON, June 14 (Reuters) - A top Democratic lawmaker on antitrust issues said Tuesday a bill aimed at reining in the market power of Big Tech platforms like Amazon.com AMZN.O and Alphabet's GOOGL.O Google had the votes to pass the both chambers of Congress in the next few weeks. Representative Ken Buck, a Republican sponsor, said Tuesday he supported the bill at least partially because of his view that conservative views are stifled online. | On the sidelines of an event to rally support for measures before the Senate and House of Representatives that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses in search and other ways, Representative David Cicilline, chair of the House antitrust subcommittee, said: "I'm very confident when these bills come to the floor, they will pass. Worst case scenario in my view, the month of July." Representative Ken Buck, a Republican sponsor, said Tuesday he supported the bill at least partially because of his view that conservative views are stifled online. |
20704.0 | 2022-06-14 00:00:00 UTC | Looking For New Stocks To Invest In Now? 3 Tech Stocks To Watch | AAPL | https://www.nasdaq.com/articles/looking-for-new-stocks-to-invest-in-now-3-tech-stocks-to-watch | nan | nan | Are These The Best Tech Stocks To Invest In This Week?
As investors continue to deal with market volatility, tech stocks would, arguably, be in an interesting position today. Overall, this area of the stock market would not be the first choice for investors amidst economic uncertainties. However, with some of the largest tech firms trading well below their sky-high pandemic-era valuations, this could be the case. Whether or not investors are looking to buy the dip now, tech firms also remain as active as ever. As such, it would not surprise me to see investors considering the top tech stocks in the stock market today.
For instance, we could look at the recent news surrounding video streaming goliath, Netflix (NASDAQ: NFLX). Notably, as of earlier today, a report from The Information notes that Netflix is hard at work building its ad-supported content. According to the report, Netflix is currently in talks with both Roku (NASDAQ: ROKU) and Comcast (NASDAQ: CMCSA). In detail, The Information writes that Netflix is looking toward these ad-tech firms to help with ad sales or technical infrastructure management. Not to mention, this comes less than a week after reports of Netflix potentially making a takeover offer for Roku.
Another tech industry heavy-hitter worth considering now would be Amazon (NASDAQ: AMZN). As of yesterday, the company is launching its drone delivery service in the Lockeford, California region. This would make it the first region to receive drone deliveries later this year. According to Amazon, the drones can fly beyond the line of sight and will be programmed to deliver packages to customers’ backyards. After considering all this, here are three more top tech stocks to look out for in the stock market now.
Tech Stocks To Buy [Or Sell] Today
Oracle Corporation (NYSE: ORCL)
Twitter Inc. (NYSE: TWTR)
Apple Inc. (NASDAQ: AAPL)
Oracle Corporation
First and foremost, we have Oracle. Oracle is a computer technology corporation that provides organizations around the world with computing infrastructure and software. The company is one of the largest suppliers of database software and business applications in the world. On the whole, the company primarily operates via its Oracle database software, a relational database management system, and for computer systems and software, such as Solaris and Java.
After the closing bell on Monday, Oracle announced its fourth quarter of 2022 and the fiscal full-year financial results. In summary, Total quarterly revenues were up 5% year-over-year and up 10% in constant currency to $11.8 billion. Cloud services and license support revenues were up 3% and up 7% in constant currency to $7.6 billion. Cloud license and on-premise license revenues were up 9% and 12% in constant currency to $5.9 billion. Furthermore, the company has reported a net income of $3.2 billion, with an earnings per share of $1.16.
Last week, Oracle completed its acquisition with Cerner. With Cerner, the company will build inroads in the healthcare industry which has been slow to adopt cloud technology. Simultaneously, the company believes that revenues may increase up to 19% in the current quarter. Larry Ellison, the Oracle Chairman, and CTO said, “Cerner and Oracle together have all the technologies required to provide healthcare professionals with better information—and better information will fundamentally transform healthcare.” Given the strong earnings report, do you have ORCL stock on your watchlist?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Edge Higher; FedEx Up After Raising Quarterly Cash Dividend
Twitter Inc.
Twitter is a real-time social media network that allows anyone to express themselves publicly. It links users to people, information, ideas, views, and news through a network. In addition, the company offers live commentary, live connections, and live dialogues. Through mobile devices and the internet, the application delivers social networking and microblogging capabilities. Moreover, businesses can utilize the corporation as a marketing tool. Promoted Tweets, Promoted Accounts, and Promoted Trends are some of the company’s services.
As many would know by now, Elon Musk, the chief executive officer of Tesla (NASDAQ: TSLA) has made a deal with Twitter to take over the company. Twitter has agreed to sell itself to Musk for $54.20 a share. In total, the deal is worth about $44 billion. With this deal, Elon Musk has planned to take the company private. This deal is now expected to close this year, subjected to the vote of Twitter shareholders and certain regulatory approvals.
In recent light, Musk will be addressing Twitter employees for the first time this coming Thursday. Parag Agrawal, the chief executive officer of Twitter, had announced a meeting in an email to the employees. Musk has expressed frustrations towards the company’s management, as there had been several fake accounts on the social media platform. With that, Twitter has complied with Musk’s demands of sharing the information for analysis of the issues at hand. Additionally, Twitter intends to enforce this merger agreement. Knowing all of this, is TWTR stock worth investing in right now?
Source: TD Ameritrade TOS
Apple Inc.
Last but not least, let us look at the multinational technology company, Apple. The corporation is a leader in the development and distribution of innovative information and communication devices. Furthermore, Apple has always been at the forefront of product development. Apple’s product portfolio includes iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV. The company also develops and markets a wide range of software needed to support the operation of the company’s media and other communication tools.
Recently, Apple announced its next-generation laptops, featuring the iPhone maker’s next-generation in-house chips. Ever since the company started selling its Macs powered by its homegrown M1 processors in late 2020, the company’s computer business has been picking up momentum. Now, the company has introduced the M2, which will debut in the new Macbook Air and Macbook Pro. Apple says that its M2 chip is about 1.2x faster in terms of photo editing tasks. Additionally, Mac sales have been reported to have risen over 14% in the March quarter.
At the same time, Apple provides its users with gaming and music streaming services namely Apple Arcade and Apple Music respectively. These two offerings could see revenue jump by 36% to $8.2 billion in 2025, according to JPMorgan (NYSE: JPM). Additionally, these two services are likely to have a combined number of 180 million subscribers due to the booming gaming industry. In particular, Apple Music is the second-largest music-streaming service in the world and could rake in approximately $7 billion by 2025. As Apple gains momentum, would AAPL stock be a top tech stock to consider adding to your portfolio?
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. | Tech Stocks To Buy [Or Sell] Today Oracle Corporation (NYSE: ORCL) Twitter Inc. (NYSE: TWTR) Apple Inc. (NASDAQ: AAPL) Oracle Corporation First and foremost, we have Oracle. As Apple gains momentum, would AAPL stock be a top tech stock to consider adding to your portfolio? Notably, as of earlier today, a report from The Information notes that Netflix is hard at work building its ad-supported content. | Tech Stocks To Buy [Or Sell] Today Oracle Corporation (NYSE: ORCL) Twitter Inc. (NYSE: TWTR) Apple Inc. (NASDAQ: AAPL) Oracle Corporation First and foremost, we have Oracle. As Apple gains momentum, would AAPL stock be a top tech stock to consider adding to your portfolio? On the whole, the company primarily operates via its Oracle database software, a relational database management system, and for computer systems and software, such as Solaris and Java. | Tech Stocks To Buy [Or Sell] Today Oracle Corporation (NYSE: ORCL) Twitter Inc. (NYSE: TWTR) Apple Inc. (NASDAQ: AAPL) Oracle Corporation First and foremost, we have Oracle. As Apple gains momentum, would AAPL stock be a top tech stock to consider adding to your portfolio? Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Edge Higher; FedEx Up After Raising Quarterly Cash Dividend Twitter Inc. Twitter is a real-time social media network that allows anyone to express themselves publicly. | Tech Stocks To Buy [Or Sell] Today Oracle Corporation (NYSE: ORCL) Twitter Inc. (NYSE: TWTR) Apple Inc. (NASDAQ: AAPL) Oracle Corporation First and foremost, we have Oracle. As Apple gains momentum, would AAPL stock be a top tech stock to consider adding to your portfolio? The company is one of the largest suppliers of database software and business applications in the world. |
20705.0 | 2022-06-14 00:00:00 UTC | Apple (AAPL) Watch Gets FDA Nod for Parkinson's Monitoring | AAPL | https://www.nasdaq.com/articles/apple-aapl-watch-gets-fda-nod-for-parkinsons-monitoring | nan | nan | Apple AAPL, along with developer partner Rune Labs, has recently received clearance from the U.S. Food and Drug Administration (“FDA”) to use Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease.
Apple Watch’s Parkinson monitoring was one of the many services offered by the company when it first launched ResearchKit back in 2015. The Parkinson monitoring service provided at that time was just to gather aggregated data by performing certain tests during specific periods to help researchers.
However, with the help of the movement disorder API developed by Apple, Rune Labs can use the Apple Watch to monitor tremors and other symptoms of Parkinson’s disease throughout a day and gather individual data.
This is the first time Apple Watch’s Parkinson monitoring will be used clinically as it will assist doctors in assessing a patient’s symptoms and providing better treatment. Currently, doctors have to collect data on a patient’s movements during a short clinical visit, which is not sufficient as symptoms vary with time. Apple Watch will provide doctors with a continuous stream of observations that can help them make proper diagnoses.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple Watch Health Features Helps Garner Market Share
Apple previewed watchOS 9 during the WWDC 2022, which heavily focused on health and fitness features.
During the event, Apple announced that the AFib history feature will be coming to Apple Watch with watchOS 9. Apple Watch provides notifications by identifying potential signs of atrial fibrillation (AFib). Moreover, with the new AFib history feature, users can estimate how frequently one’s heart rhythm shows signs of AFib. If left untreated, this can result in a stroke.
Apple wants to develop its health and fitness features as services that can be used clinically, differentiating itself from competitors
Per Verified Market Research, the global smartwatch market is expected to reach $690.38 billion by 2026, growing at a CAGR of 66.92% from 2019 to 2026.
Apple is the leading market shareholder in the smartwatch industry, but is facing stiff competition from Garmin GRMN and Alphabet’s GOOGL Google.
Garmin has been able to benefit from the growing fitness business amid the pandemic with its different smartwatches to meet the diverse needs of outdoor hikers, swimmers as well as other health enthusiasts.
Alphabet also remains well-poised to rapidly penetrate the booming smartwatch space. The seamless synchronization of Wear OS with Google Fit and other health apps is a positive amidst the pandemic, which has increased health and fitness awareness.
Further, Apple is also expected to face stiff competition from Meta Platforms META in the smartwatch industry as Meta is working on producing wrist-worn devices.
Meta has recently halted the development of a smartwatch with dual cameras and is instead working on other wrist- worn devices that can transmit nerve signals as digital commands, called electromyography. This will help in the development of metaverse. This feature separates Meta’s product from other smartwatches available in the industry and is expected to attract AR enthusiasts.
However, Apple Watch’s adoption rate continues to grow rapidly as more than two-thirds of customers who purchased Apple Watch during second quarter 2022, were first-time customers.
As a result, Wearables, Home and Accessories sales increased 12.4% year over year to $8.81 billion and accounted for 9.1% of total sales, which impacted shareholders’ wealth positively.
Shares of Apple, which currently carry Zacks Rank #3 (Hold), have outperformed the Zacks Computer and Technology sector year to date. Apple shares have lost 25.7% compared with the sector’s decline of 32.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How to Profit from the Hot Electric Vehicle Industry
Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits.
See Zacks' Top Stocks to Profit from the EV Revolution >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Garmin Ltd. (GRMN): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): 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, along with developer partner Rune Labs, has recently received clearance from the U.S. Food and Drug Administration (“FDA”) to use Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Apple Inc. (AAPL): Free Stock Analysis Report The Parkinson monitoring service provided at that time was just to gather aggregated data by performing certain tests during specific periods to help researchers. | Apple AAPL, along with developer partner Rune Labs, has recently received clearance from the U.S. Food and Drug Administration (“FDA”) to use Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Apple Inc. (AAPL): Free Stock Analysis Report However, with the help of the movement disorder API developed by Apple, Rune Labs can use the Apple Watch to monitor tremors and other symptoms of Parkinson’s disease throughout a day and gather individual data. | Apple AAPL, along with developer partner Rune Labs, has recently received clearance from the U.S. Food and Drug Administration (“FDA”) to use Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Apple Inc. (AAPL): Free Stock Analysis Report However, with the help of the movement disorder API developed by Apple, Rune Labs can use the Apple Watch to monitor tremors and other symptoms of Parkinson’s disease throughout a day and gather individual data. | Apple AAPL, along with developer partner Rune Labs, has recently received clearance from the U.S. Food and Drug Administration (“FDA”) to use Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Apple Inc. (AAPL): Free Stock Analysis Report However, with the help of the movement disorder API developed by Apple, Rune Labs can use the Apple Watch to monitor tremors and other symptoms of Parkinson’s disease throughout a day and gather individual data. |
20706.0 | 2022-06-14 00:00:00 UTC | Alphabet (GOOGL) Updates Google Calendar With New Features | AAPL | https://www.nasdaq.com/articles/alphabet-googl-updates-google-calendar-with-new-features | nan | nan | Alphabet’s GOOGL division, Google, is leaving no stone unturned to advance its time-management and scheduling calendar tool, Google Calendar, by bringing innovative capabilities.
Reportedly, Google has started rolling out a redesigned version of the layout of emails sent by Google Calendar to make the event details useful and accessible to users.
The redesigned version gives users both old and updated information in case of any modification to an event.
The updated features are available to customers using Google Workspace, legacy G Suite Basic and Business and those with personal Google Accounts.
With the latest capabilities, Alphabet strives to provide an enhanced experience to Google Calendar users.
We believe the latest move is expected to boost the adoption rate of Google Calendar.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Efforts to Bolster Google Workspace
With the recent initiative, Alphabet has added strength to the Google Workspace consisting of Gmail, Meet, Drive, Calendar, Contacts, Tasks and more. Moreover, Google Workspace has been driving the company’s momentum across organizations demanding productivity and collaboration tools.
Apart from the latest move, Google Drive, on the web, is seeing an upgrade with the required keyboard shortcuts to help users manage their files effortlessly.
Additionally, Google Docs is gearing up to add emoji reactions in documents to express opinions in an informal way.
Further, Gmail introduced a new feature that allows users to pause mobile notifications while the desktop client remains active.
All these endeavors are expected to continue bolstering the adoption rate of Google Workspace. This in turn will likely drive the company’s top-line growth in the days ahead.
Consequently, GOOGL will win investors’ confidence in the near as well as long term.
Shares of the company have been down 26.6% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 29% over the same timeframe.
Image Source: Zacks Investment Research
Competitive Scenario
The abovementioned endeavors are likely to provide Google a competitive edge against other organizations like Microsoft MSFT, Apple AAPL and Dropbox DBX that also offer workspace tools as well as productivity applications.
Currently, Google’s parent, Alphabet, carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Microsoft have been down 28% in the year-to-date period. The company’s offering, Microsoft365, delivers powerful productivity and office tools to help users work, learn, organize and connect.
Further, MSFT’s Outlook calendar, which is completely integrated with email, contacts, and other features, lets users create appointments, events and meetings, view group schedules, manage another user’s calendar, and more.
Apple has lost 25.8% in the year-to-date period. The company’s Apple iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations.
Additionally, the company lets users create and manage calendars on iCloud.com. Users can also customize their calendar on iPhone per their convenience.
Dropbox has lost 15.7% over the same time frame. The company’s Dropbox Business offers powerful features like more cloud storage, sharing of large files, additional security and tighter admin controls to ensure enhanced team productivity for businesses.
Further, Dropbox allows users to connect their Google or Outlook calendar and contacts to the Dropbox account. This remains a positive for the company.
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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. | Image Source: Zacks Investment Research Competitive Scenario The abovementioned endeavors are likely to provide Google a competitive edge against other organizations like Microsoft MSFT, Apple AAPL and Dropbox DBX that also offer workspace tools as well as productivity applications. Apple Inc. (AAPL): Free Stock Analysis Report Apart from the latest move, Google Drive, on the web, is seeing an upgrade with the required keyboard shortcuts to help users manage their files effortlessly. | Image Source: Zacks Investment Research Competitive Scenario The abovementioned endeavors are likely to provide Google a competitive edge against other organizations like Microsoft MSFT, Apple AAPL and Dropbox DBX that also offer workspace tools as well as productivity applications. Apple Inc. (AAPL): Free Stock Analysis Report Further, MSFT’s Outlook calendar, which is completely integrated with email, contacts, and other features, lets users create appointments, events and meetings, view group schedules, manage another user’s calendar, and more. | Image Source: Zacks Investment Research Competitive Scenario The abovementioned endeavors are likely to provide Google a competitive edge against other organizations like Microsoft MSFT, Apple AAPL and Dropbox DBX that also offer workspace tools as well as productivity applications. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet’s GOOGL division, Google, is leaving no stone unturned to advance its time-management and scheduling calendar tool, Google Calendar, by bringing innovative capabilities. | Image Source: Zacks Investment Research Competitive Scenario The abovementioned endeavors are likely to provide Google a competitive edge against other organizations like Microsoft MSFT, Apple AAPL and Dropbox DBX that also offer workspace tools as well as productivity applications. Apple Inc. (AAPL): Free Stock Analysis Report Further, MSFT’s Outlook calendar, which is completely integrated with email, contacts, and other features, lets users create appointments, events and meetings, view group schedules, manage another user’s calendar, and more. |
20707.0 | 2022-06-14 00:00:00 UTC | Adobe revamps metaverse design tools for Apple's chips | AAPL | https://www.nasdaq.com/articles/adobe-revamps-metaverse-design-tools-for-apples-chips | nan | nan | By Stephen Nellis
June 14 (Reuters) - Adobe Inc ADBE.O on Tuesday said it has reworked several of its tools for creating three-dimensional content to make them work well on Apple Inc AAPL.O computers that use the iPhone maker's proprietary "M" series chips.
Adobe has long been a major player providing software in creative fields like photography, graphic design and film. But Adobe has been working to build out more tools for making the three-dimensional worlds and objects used in video games and, increasingly, the so-called metaverse, where companies like Meta Platforms Inc FB.O are hoping to use augmented reality technology to overlay digital content on the real world.
Adobe acquired software tools called Substance 3D in 2019 when it bought French firm Allegorithmic for an undisclosed sum. The tool helps the makers of movies like "Frozen 2" and games imbue the digital objects they create with a wide array of lifelike textures, like wood or leather.
Adobe said that it has reworked the software so that it will run on Apple's proprietary chips, a move that is likely to help Apple gain some ground of its own. While Apple's laptops and desktop are widely used in some creative fields like music production, game developers tend to still rely on PCs that can be paired with power graphics chips from Nvidia Corp NVDA.O that help graphics look more realistic.
But Apple's new chips have added new graphics processing power, and Adobe plans to take full advantage of it in the new software, said Francois Cottin, senior director of marketing at Adobe.
"For these kinds of use cases, vertical integration is really key, from the app all the way to the chip," Cottin said. "We've been working very closely with Apple on future-looking use cases. I think Substance 3D definitely represent that."
Adobe also said Tuesday that it had signed up new customers for its three-dimensional content creation tools, including German fashion brand Hugo Boss and outdoor footwear brand Salomon Group.
(Reporting by Stephen Nellis in San Francisco; Editing by Christopher Cushing)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis June 14 (Reuters) - Adobe Inc ADBE.O on Tuesday said it has reworked several of its tools for creating three-dimensional content to make them work well on Apple Inc AAPL.O computers that use the iPhone maker's proprietary "M" series chips. Adobe acquired software tools called Substance 3D in 2019 when it bought French firm Allegorithmic for an undisclosed sum. The tool helps the makers of movies like "Frozen 2" and games imbue the digital objects they create with a wide array of lifelike textures, like wood or leather. | By Stephen Nellis June 14 (Reuters) - Adobe Inc ADBE.O on Tuesday said it has reworked several of its tools for creating three-dimensional content to make them work well on Apple Inc AAPL.O computers that use the iPhone maker's proprietary "M" series chips. But Adobe has been working to build out more tools for making the three-dimensional worlds and objects used in video games and, increasingly, the so-called metaverse, where companies like Meta Platforms Inc FB.O are hoping to use augmented reality technology to overlay digital content on the real world. Adobe said that it has reworked the software so that it will run on Apple's proprietary chips, a move that is likely to help Apple gain some ground of its own. | By Stephen Nellis June 14 (Reuters) - Adobe Inc ADBE.O on Tuesday said it has reworked several of its tools for creating three-dimensional content to make them work well on Apple Inc AAPL.O computers that use the iPhone maker's proprietary "M" series chips. But Adobe has been working to build out more tools for making the three-dimensional worlds and objects used in video games and, increasingly, the so-called metaverse, where companies like Meta Platforms Inc FB.O are hoping to use augmented reality technology to overlay digital content on the real world. But Apple's new chips have added new graphics processing power, and Adobe plans to take full advantage of it in the new software, said Francois Cottin, senior director of marketing at Adobe. | By Stephen Nellis June 14 (Reuters) - Adobe Inc ADBE.O on Tuesday said it has reworked several of its tools for creating three-dimensional content to make them work well on Apple Inc AAPL.O computers that use the iPhone maker's proprietary "M" series chips. Adobe acquired software tools called Substance 3D in 2019 when it bought French firm Allegorithmic for an undisclosed sum. While Apple's laptops and desktop are widely used in some creative fields like music production, game developers tend to still rely on PCs that can be paired with power graphics chips from Nvidia Corp NVDA.O that help graphics look more realistic. |
20708.0 | 2022-06-14 00:00:00 UTC | Why Is Everyone Talking About Stitch Fix Stock? | AAPL | https://www.nasdaq.com/articles/why-is-everyone-talking-about-stitch-fix-stock | nan | nan | Stitch Fix (NASDAQ: SFIX) recently made the headlines for all the wrong reasons. The online apparel retailer posted a disastrous fiscal third-quarter earnings report after the market close on June 9, and its stock sank 19% to an all-time low the following day.
A barrage of analyst downgrades exacerbated that pain, and its stock now trades nearly 60% below its initial public offering (IPO) price and more than 90% below its all-time high from last January. Let's review the business, why the stock was crushed, and if there's any hope left for Stitch Fix bulls in this unforgiving market.
What does Stitch Fix do?
Stitch Fix isn't a traditional apparel retailer. Instead of letting customers choose their own clothes, the company's platform gathers data on its shoppers with an online survey and artificial-intelligence algorithms. It then charges a "styling fee" of $20 before curating bundles of five items for customers.
Its customers pay for the items they want to keep and return the rest with a pre-paid shipping envelope. If they keep at least one item, the initial styling fee is deducted from the final price. If they keep all five, they receive a 20% discount. The company doesn't charge any subscription fees, and its deliveries can either be requested on demand or set on a regular schedule.
Is Stitch Fix's business model sustainable?
Stitch Fix continued to gain active clients from fiscal 2018 through fiscal 2021 (which ended last August). It struggled with slower sales in fiscal 2020 as the pandemic throttled consumers' demand for new apparel and disrupted its warehouse operations, but its business bounced back in fiscal 2021.
However, Stitch Fix subsequently lost active clients in the first nine months of fiscal 2022, and its revenue growth has slowed to a crawl.
PERIOD
FY 2018
FY 2019
FY 2020
FY 2021
9M 2022
Active Clients
2.74 million
3.24 million
3.52 million
4.17 million
3.91 million
YOY Change
25%
18%
9%
18%
(5%)
Revenue
$1.23 billion
$1.58 billion
$1.72 billion
$2.10 billion
$1.59 billion
YOY Change
26%
29%
11%
22%
4%
Data source: Stitch Fix. YOY = year over year.
The company partly attributed that slowdown to its launch of its Freestyle service last September, which allows shoppers to purchase curated products without ordering a full "fix" of five items. That approach might help Stitch Fix better control its logistics expenses as fuel costs surge, but it could also cannibalize the core business model.
It also said Apple's privacy update for iOS, which allowed users to opt out of data-tracking features, generated additional headwinds.
For the fiscal fourth quarter, management expects revenue to decrease 13% to 15% year over year. That would translate to a 1% drop for the full year and represent its first annual revenue decline as a publicly-traded company.
Focusing on profits instead of growth
As Stitch Fix expanded, it struggled to stay profitable while its logistics costs rose, and it increasingly relied on promotions to gain new shoppers.
The company was profitable on a GAAP (generally accepted accounting principles) basis a few years ago, and it reported a better track record of positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). However, its GAAP losses have deepened recently.
PERIOD
FY 2018
FY 2019
FY 2020
FY 2021
9M 2022
Net Income (loss)
$44.9 million
$36.9 million
($67.1 million)
($8.9 million)
($110.8 million)
Adjusted EBITDA
$53.6 million
$39.6 million
($29.1 million)
$64.9 million
$12.3 million
Data source: Stitch Fix.
For the fiscal 2022 fourth quarter, management expects to post negative adjusted EBITDA of $25 million to $30 million, which will cause that metric to turn negative for the full year.
Stitch Fix plans to lay off approximately 15% of its salaried positions (or 4% of its total headcount) to rein in costs, but that move will also cause it to incur $15 million to $20 million in one-time charges in the current quarter before it generates $40 million to $60 million in projected savings in fiscal 2023.
Can Stitch Fix survive this difficult transition?
Stitch Fix ended its third quarter with no debt and $235 million in cash and investments, so it can slog through an extended period of slowing growth and widening losses.
Unfortunately, supply chain constraints, inflation, and softer consumer spending will also likely throttle its growth for the foreseeable future. As a result, analysts expect revenue to rise just 3% in fiscal 2023, while net income and adjusted EBITDA stay deep in the red.
It deserves its discount valuation
Stitch Fix trades at just 0.3 times next year's sales, and its market cap of less than $700 million might make it a compelling takeover target for a larger apparel retailer.
That low valuation could also limit its downside potential going forward, but it also won't attract any bulls until the company stabilizes its client growth and narrows its losses. So for now, investors should simply avoid Stitch Fix and stick with more recession-resistant stocks to ride out this volatile market.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple and Stitch Fix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company partly attributed that slowdown to its launch of its Freestyle service last September, which allows shoppers to purchase curated products without ordering a full "fix" of five items. The company was profitable on a GAAP (generally accepted accounting principles) basis a few years ago, and it reported a better track record of positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). It deserves its discount valuation Stitch Fix trades at just 0.3 times next year's sales, and its market cap of less than $700 million might make it a compelling takeover target for a larger apparel retailer. | Active Clients 2.74 million 3.24 million 3.52 million 4.17 million 3.91 million YOY Change 25% 18% 9% 18% (5%) Revenue $1.23 billion $1.58 billion $1.72 billion $2.10 billion $1.59 billion YOY Change 26% 29% 11% 22% 4% Data source: Stitch Fix. Net Income (loss) $44.9 million $36.9 million ($67.1 million) ($8.9 million) ($110.8 million) Adjusted EBITDA $53.6 million $39.6 million ($29.1 million) $64.9 million $12.3 million Data source: Stitch Fix. For the fiscal 2022 fourth quarter, management expects to post negative adjusted EBITDA of $25 million to $30 million, which will cause that metric to turn negative for the full year. | Active Clients 2.74 million 3.24 million 3.52 million 4.17 million 3.91 million YOY Change 25% 18% 9% 18% (5%) Revenue $1.23 billion $1.58 billion $1.72 billion $2.10 billion $1.59 billion YOY Change 26% 29% 11% 22% 4% Data source: Stitch Fix. Net Income (loss) $44.9 million $36.9 million ($67.1 million) ($8.9 million) ($110.8 million) Adjusted EBITDA $53.6 million $39.6 million ($29.1 million) $64.9 million $12.3 million Data source: Stitch Fix. Stitch Fix plans to lay off approximately 15% of its salaried positions (or 4% of its total headcount) to rein in costs, but that move will also cause it to incur $15 million to $20 million in one-time charges in the current quarter before it generates $40 million to $60 million in projected savings in fiscal 2023. | What does Stitch Fix do? It then charges a "styling fee" of $20 before curating bundles of five items for customers. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Leo Sun has positions in Apple. |
20709.0 | 2022-06-14 00:00:00 UTC | Shiba Inu Could Have Turned Your $3 Into $1 Million in 2021. Can It Do It Again? | AAPL | https://www.nasdaq.com/articles/shiba-inu-could-have-turned-your-%243-into-%241-million-in-2021.-can-it-do-it-again | nan | nan | Last year was a blockbuster for cryptocurrencies, with an influx of tokens hitting investors' radars beyond the market leaders Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). The overall value of the industry soared from $770 billion in January to a whopping $2.9 trillion by November, although it has since lost about two-thirds of its value.
But when it comes to gains, one cryptocurrency stood clearly above the rest last year. Controversial meme token Shiba Inu (CRYPTO: SHIB) delivered a return of 43,800,000% between Jan. 1 and Dec. 31, 2021. There's no need to reach for the calculator: If your timing was perfect, an investment of just $3 would've turned into $1.3 million over that period.
Unfortunately for investors who were late to the party, Shiba Inu hasn't fared so well in 2022. It's sitting on a steep year-to-date loss of more than 75%. Some investors might be thinking they should buy the dip ahead of a possible repeat of 2021's life-changing return, so let's explore whether that's a good idea.
Image source: Getty Images.
New rules are on the way
Investors have been drawn to cryptocurrencies not only for their significant returns over the past few years, but also for their decentralized and unregulated nature. A veil of anonymity has allowed people to think like they're operating outside of the traditional financial system, which, especially lately, is beset by inflation and inefficiencies.
But after a number of catastrophic failures in the crypto industry, including the recent collapse of stablecoin TerraUSD, the U.S. government is racing to build guardrails to protect retail investors. Reclassifying many tokens as securities, which would impose tight compliance and audit rules on brokers, is a measure that will likely take effect.
And beginning in 2023, cryptocurrency brokers will be required to report their customers' trading activity to the Internal Revenue Service, to legitimize investing activity and to make it easier to tax.
But these changes come at a cost. They eliminate the popular benefit of anonymity, and they could also make investing more expensive as additional costs are incurred by brokers and exchanges to comply with the new rules. Plus, at the individual level, investors would need to factor in the cost of accounting for their annual crypto activity to ensure tax liabilities are paid.
This might impact Shiba Inu, which mostly serves as a speculative vehicle without a real-world use case; for example, just 659 businesses accept the token as payment for goods and services globally. If all of the potential new rules come into play, smaller investors might conclude that making bets on Shiba Inu is just too much trouble, which would hurt its ability to make big price gains.
The math problem
Shiba Inu is much more valuable now than it was on Jan. 1, 2021, when it started to make its historic run. At the current price per token of $0.0000081, and with 589 trillion tokens in circulation, it has a market value of $4.5 billion.
To match its 43,800,000% return from 2021, Shiba Inu's price per token would need to jump to roughly $4.80. That would send the overall value of all Shiba Inu tokens to a mind-blowing $2.8 quadrillion.
That would make Shiba Inu 1,200 times more valuable than Apple, the world's largest company. It would also be worth 33 times more than the annual gross domestic product (GDP) of the entire world.
In other words, that return is, for all intents and purposes, completely out of the question.
There is one path to $4.80 for Shiba Inu
There is one way Shiba Inu could reach that lofty price target purely on a cosmetic basis, though it won't yield the desired return. That's by shrinking the number of existing tokens down from 589 trillion to about 1.28 billion.
In that situation, Shiba Inu would maintain the same total market valuation as it has right now. But it would send the price per token to about $4.80 each to make up for the reduction in supply. But there's a catch: Every Shiba Inu holder would need to participate in order to bring supply down that much (by 99.99998% to be precise), fully offsetting any potential price gain they would receive.
Shiba Inu developers are trying to do this on a smaller scale at the moment. One tool they're building is SHIB: The Metaverse, which is a virtual world for the Shiba Inu community. It will contain exclusive benefits for holders of non-fungible tokens (NFTs), in addition to 100,595 virtual land plots purchasable using the Ethereum cryptocurrency.
Landowners will be allowed to change the name of their plots in exchange for a fee paid in Shiba Inu tokens, which will be burned and taken out of the supply forever, though it's going to take a mighty effort to shrink supply by the aforementioned amount.
In the end, while another 43,800,000% price gain is technically possible, it probably won't mean anything this time around.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But after a number of catastrophic failures in the crypto industry, including the recent collapse of stablecoin TerraUSD, the U.S. government is racing to build guardrails to protect retail investors. This might impact Shiba Inu, which mostly serves as a speculative vehicle without a real-world use case; for example, just 659 businesses accept the token as payment for goods and services globally. But there's a catch: Every Shiba Inu holder would need to participate in order to bring supply down that much (by 99.99998% to be precise), fully offsetting any potential price gain they would receive. | Controversial meme token Shiba Inu (CRYPTO: SHIB) delivered a return of 43,800,000% between Jan. 1 and Dec. 31, 2021. That would make Shiba Inu 1,200 times more valuable than Apple, the world's largest company. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. | If all of the potential new rules come into play, smaller investors might conclude that making bets on Shiba Inu is just too much trouble, which would hurt its ability to make big price gains. To match its 43,800,000% return from 2021, Shiba Inu's price per token would need to jump to roughly $4.80. There is one path to $4.80 for Shiba Inu There is one way Shiba Inu could reach that lofty price target purely on a cosmetic basis, though it won't yield the desired return. | Last year was a blockbuster for cryptocurrencies, with an influx of tokens hitting investors' radars beyond the market leaders Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). They eliminate the popular benefit of anonymity, and they could also make investing more expensive as additional costs are incurred by brokers and exchanges to comply with the new rules. That would make Shiba Inu 1,200 times more valuable than Apple, the world's largest company. |
20710.0 | 2022-06-14 00:00:00 UTC | US STOCKS-Futures edge higher after Monday's rout on Wall Street | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-edge-higher-after-mondays-rout-on-wall-street | 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 0.34%, S&P 0.54%, Nasdaq 0.87%
June 14 (Reuters) - U.S. stock index futures pointed to a potential rebound on Wall Street on Tuesday after a sharp selloff in the previous session pushed the S&P 500 into bear market territory.
The benchmark S&P 500 .SPX on Monday closed 20% below its all-time closing high hit on Jan. 3, while a key part of the Treasury yield curve inverted for the first time since April on mounting fears that the Federal Reserve's attempts to control soaring inflation will dent the economy. US/
The selling pressure appeared to ease in premarket trading. Market heavyweights such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Tesla TSLA.O rose between 0.7% and 1.6%.
Oracle Corp ORCL.N was another gainer after posting upbeat quarterly results on demand for its cloud products. Its shares jumped 13.2%.
"There may be opportunity for a bit of a breather from the aggressive expectations baked in, and you can see that in terms of how the markets are wandering today," said Edward Park, chief investment officer at Brooks Macdonald Asset Management in London.
"Markets are undoubtedly going to be choppy."
The mood remained fragile ahead of the Federal Reserve's policy decision on Wednesday. Investors expect the U.S. central bank to raise interest rates by a big 75 basis points after last week's inflation data came in much hotter than anticipated.
At 06:50 a.m. ET, Dow e-minis 1YMcv1 were up 103 points, or 0.34%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were up 98.5 points, or 0.87%.
The Labor Department will release producer price index (PPI) data at 8:30 a.m. ET. PPI for final demand likely rose 0.8% last month, after gaining 0.5% in April.
Among other stocks, medical equipment maker ResMed Inc RMD.N rose 1% after announcing a $1 billion deal for German healthcare software provider MEDIFOX DAN GmbH.
Continental Resources Inc CLR.N jumped 7.3% after the shale producer received an all-cash buyout proposal from its founder Harold Hamm, valuing the company at $25.41 billion.
United Airlines Holdings Inc UAL.O rose 0.7% after saying searches for international travel increased after the United States last week ended requirement that air travelers arriving in the country test negative for COVID-19.
(Reporting by Anisha Sircar and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila)
((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 such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Tesla TSLA.O rose between 0.7% and 1.6%. "There may be opportunity for a bit of a breather from the aggressive expectations baked in, and you can see that in terms of how the markets are wandering today," said Edward Park, chief investment officer at Brooks Macdonald Asset Management in London. Investors expect the U.S. central bank to raise interest rates by a big 75 basis points after last week's inflation data came in much hotter than anticipated. | Market heavyweights such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Tesla TSLA.O rose between 0.7% and 1.6%. Futures up: Dow 0.34%, S&P 0.54%, Nasdaq 0.87% June 14 (Reuters) - U.S. stock index futures pointed to a potential rebound on Wall Street on Tuesday after a sharp selloff in the previous session pushed the S&P 500 into bear market territory. ET, Dow e-minis 1YMcv1 were up 103 points, or 0.34%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were up 98.5 points, or 0.87%. | Market heavyweights such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Tesla TSLA.O rose between 0.7% and 1.6%. Futures up: Dow 0.34%, S&P 0.54%, Nasdaq 0.87% June 14 (Reuters) - U.S. stock index futures pointed to a potential rebound on Wall Street on Tuesday after a sharp selloff in the previous session pushed the S&P 500 into bear market territory. The benchmark S&P 500 .SPX on Monday closed 20% below its all-time closing high hit on Jan. 3, while a key part of the Treasury yield curve inverted for the first time since April on mounting fears that the Federal Reserve's attempts to control soaring inflation will dent the economy. | Market heavyweights such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Tesla TSLA.O rose between 0.7% and 1.6%. Futures up: Dow 0.34%, S&P 0.54%, Nasdaq 0.87% June 14 (Reuters) - U.S. stock index futures pointed to a potential rebound on Wall Street on Tuesday after a sharp selloff in the previous session pushed the S&P 500 into bear market territory. The benchmark S&P 500 .SPX on Monday closed 20% below its all-time closing high hit on Jan. 3, while a key part of the Treasury yield curve inverted for the first time since April on mounting fears that the Federal Reserve's attempts to control soaring inflation will dent the economy. |
20711.0 | 2022-06-14 00:00:00 UTC | Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-2 | nan | nan | The Schwab 1000 Index ETF (SCHK) was launched on 10/11/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $1.95 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.22% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.02% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has lost about -22.35% so far this year and is down about -12.89% in the last one year (as of 06/14/2022). In the past 52-week period, it has traded between $36.22 and $46.85.
The ETF has a beta of 1.02 and standard deviation of 23.77% for the trailing three-year period. With about 994 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 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, SCHK 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 $278.91 billion in assets, SPDR S&P 500 ETF has $340.15 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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 6.22% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Schwab 1000 Index ETF (SCHK) was launched on 10/11/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.22% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Schwab 1000 Index ETF (SCHK) was launched on 10/11/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.22% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab 1000 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 6.22% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Schwab 1000 Index ETF (SCHK) was launched on 10/11/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. |
20712.0 | 2022-06-14 00:00:00 UTC | German cartel office examining Apple's tracking rules | AAPL | https://www.nasdaq.com/articles/german-cartel-office-examining-apples-tracking-rules | nan | nan | Adds details, background
BERLIN, June 14 (Reuters) - Germany's cartel office is looking into Apple's AAPL.O rules on tracking for third-party apps to see whether they give the U.S. tech giant preferential treatment or hinder other companies, it said on Tuesday.
"We welcome data-friendly business models that give users choices about how their data is used," said cartel office president Andreas Mundt. "However, a company like Apple, which can unilaterally set the rules in its ecosystem and especially in the App Store, should make them in line with competition."
In question is Apple's App Tracking Transparency (ATT) framework, which requires users to give additional consent to having their data collected through tracking on apps that are not from Apple, according to the cartel office.
Tracking allows apps to collect user data and can be used for advertising purposes, such as personalized advertising.
A spokesperson for Apple said the company would work constructively with the cartel office to resolve any issues and discuss its approach to tracking rules.
The spokesperson added that ATT does not stop companies from showing ads while also allowing users to control their privacy.
Under new regulations that came into force in 2021, the regulator can ban companies that have particular market weight from carrying out practices that harm market competition.
The office has meanwhile used the instrument to also open proceedings against Facebook, Amazon and Google.
(Reporting by Nadine Schimroszik, Writing by Miranda Murray Editing by Madeline Chambers and David Evans)
((Miranda.Murray@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. | Adds details, background BERLIN, June 14 (Reuters) - Germany's cartel office is looking into Apple's AAPL.O rules on tracking for third-party apps to see whether they give the U.S. tech giant preferential treatment or hinder other companies, it said on Tuesday. "We welcome data-friendly business models that give users choices about how their data is used," said cartel office president Andreas Mundt. A spokesperson for Apple said the company would work constructively with the cartel office to resolve any issues and discuss its approach to tracking rules. | Adds details, background BERLIN, June 14 (Reuters) - Germany's cartel office is looking into Apple's AAPL.O rules on tracking for third-party apps to see whether they give the U.S. tech giant preferential treatment or hinder other companies, it said on Tuesday. In question is Apple's App Tracking Transparency (ATT) framework, which requires users to give additional consent to having their data collected through tracking on apps that are not from Apple, according to the cartel office. Tracking allows apps to collect user data and can be used for advertising purposes, such as personalized advertising. | Adds details, background BERLIN, June 14 (Reuters) - Germany's cartel office is looking into Apple's AAPL.O rules on tracking for third-party apps to see whether they give the U.S. tech giant preferential treatment or hinder other companies, it said on Tuesday. In question is Apple's App Tracking Transparency (ATT) framework, which requires users to give additional consent to having their data collected through tracking on apps that are not from Apple, according to the cartel office. A spokesperson for Apple said the company would work constructively with the cartel office to resolve any issues and discuss its approach to tracking rules. | Adds details, background BERLIN, June 14 (Reuters) - Germany's cartel office is looking into Apple's AAPL.O rules on tracking for third-party apps to see whether they give the U.S. tech giant preferential treatment or hinder other companies, it said on Tuesday. "However, a company like Apple, which can unilaterally set the rules in its ecosystem and especially in the App Store, should make them in line with competition." In question is Apple's App Tracking Transparency (ATT) framework, which requires users to give additional consent to having their data collected through tracking on apps that are not from Apple, according to the cartel office. |
20713.0 | 2022-06-14 00:00:00 UTC | Tech Sell-Off: 1 Stock That's Defying the Downturn and Looks Set to Explode | AAPL | https://www.nasdaq.com/articles/tech-sell-off%3A-1-stock-thats-defying-the-downturn-and-looks-set-to-explode | nan | nan | Technology stocks have been hammered brutally on the market, but contract electronics manufacturer Jabil (NYSE: JBL) has held its ground so far thanks to the strength of its business and its attractive valuation.
While the tech-laden Nasdaq-100 Technology Sector index has lost 16.4% of its value in the past three months, Jabil stock has remained relatively flat (down 2%). What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information.
With Jabil set to release its fiscal 2022 third-quarter earnings report on Thursday, June 16, it won't be surprising to see this tech stock get a nice shot in the arm. Let's take a peek at what Jabil's quarterly numbers could look like and see why the stock can go on a bull run.
Jabil's growth has picked up the pace in recent quarters
Jabil has delivered consistently strong results this fiscal year thanks to the healthy demand for its services from different verticals such as 5G, automotive, healthcare, networking, connected devices, and healthcare. As it turns out, the company has raised its guidance for fiscal 2022 twice already and expects fiscal third-quarter revenue to land at $8.2 billion at the midpoint of its guidance range.
That would translate into a nice year-over-year increase of 14%. The company has guided for non-GAAP earnings of $1.60 per share at the midpoint, which would be a 23% jump over the year-ago quarter's figure of $1.30 per share. Analysts, however, have raised their expectations from Jabil. Wall Street is looking for $1.62 per share in earnings from Jabil on revenue of $8.22 billion.
The good part is that Jabil is witnessing solid momentum across its multiple end markets that could help it beat Wall Street's expectations. CFO Mike Dastoor had said on the March earnings conference call that Jabil is "expecting double-digit growth from the healthcare, automotive retail, industrial and semi-cap, and 5G wireless and cloud end markets."
The electric vehicle market is going to be a key growth driver for Jabil. The company points out that acceleration in the adoption of electric vehicles is expected to drive 50%-plus growth in automotive revenue this year. Jabil provides critical applications for electric vehicles such as battery management systems. This secular growth opportunity is driving impressive growth in the automotive business, and it should be a long-term tailwind for Jabil, as the global battery management systems market is expected to clock nearly 20% annual growth over the next decade, according to market researcher Fact.MR.
Jabil's biggest customer, Apple, which accounted for 22% of the company's top line in fiscal 2021, is another reason the company's results and guidance could turn out to be better than expected. While the overall smartphone market was down in the first quarter of 2022, Apple defied expectations with an increase in iPhone sales. That's because the company has been able to negotiate the supply chain challenges and is on track to produce 250 million iPhones in 2022, per third-party estimates.
Other estimates suggest that Apple could produce 300 million iPhones this year, though that seems a tad aggressive amid the supply chain constraints plaguing the industry and macroeconomic headwinds. Still, Apple's iPhone shipments are expected to head higher in 2022. Apple shipped an estimated 236 million iPhones last year, so the growth in shipments of its largest customer should rub off positively on Jabil, as it supplies aluminum casings used in iPhones and iPads.
The stock is an enticing buy
Jabil looks well placed to deliver another quarter of impressive growth, and it could back its numbers up with robust guidance. Jabil stock is now trading at just 10 times earnings, compared to its five-year average earnings multiple of 38. The forward earnings multiple of 7.7 is even more attractive and points toward an improvement in the company's bottom line.
That's why investors looking to buy a value stock may want to take a closer look at Jabil before it releases its earnings, as a solid showing could send its shares soaring and make the stock relatively more expensive.
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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's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. Technology stocks have been hammered brutally on the market, but contract electronics manufacturer Jabil (NYSE: JBL) has held its ground so far thanks to the strength of its business and its attractive valuation. With Jabil set to release its fiscal 2022 third-quarter earnings report on Thursday, June 16, it won't be surprising to see this tech stock get a nice shot in the arm. | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. As it turns out, the company has raised its guidance for fiscal 2022 twice already and expects fiscal third-quarter revenue to land at $8.2 billion at the midpoint of its guidance range. CFO Mike Dastoor had said on the March earnings conference call that Jabil is "expecting double-digit growth from the healthcare, automotive retail, industrial and semi-cap, and 5G wireless and cloud end markets." | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. Jabil's growth has picked up the pace in recent quarters Jabil has delivered consistently strong results this fiscal year thanks to the healthy demand for its services from different verticals such as 5G, automotive, healthcare, networking, connected devices, and healthcare. This secular growth opportunity is driving impressive growth in the automotive business, and it should be a long-term tailwind for Jabil, as the global battery management systems market is expected to clock nearly 20% annual growth over the next decade, according to market researcher Fact.MR. | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. The company points out that acceleration in the adoption of electric vehicles is expected to drive 50%-plus growth in automotive revenue this year. Apple shipped an estimated 236 million iPhones last year, so the growth in shipments of its largest customer should rub off positively on Jabil, as it supplies aluminum casings used in iPhones and iPads. |
20714.0 | 2022-06-14 00:00:00 UTC | Tech Turbulence: 1 Growth Stock to Buy on the Dip and Hold | AAPL | https://www.nasdaq.com/articles/tech-turbulence%3A-1-growth-stock-to-buy-on-the-dip-and-hold | nan | nan | 2022 has been a bumpy year for the stock market, and there isn't an end in sight just yet. The technology-focused Nasdaq-100 index is trading deep in bear market territory with a loss of over 30% year to date, and many individual tech stocks have fared much worse, some down as much as 70% in 2022.
But there are some companies having a slightly better year than the broad market, because their businesses are less exposed to the effects of higher interest rates and slower economic growth. Duolingo (NASDAQ: DUOL) is one of them, down a less unnerving 24%. It's a global leader in digital language education, and its growth phase might be just getting started.
Here's why it's a solid bet amid turbulent market conditions.
Duolingo is executing flawlessly
Duolingo shareholders are around 7% better off in 2022 than if they held the Nasdaq-100 index, and it's thanks to the company's stellar operating performance. In the face of economic uncertainty and a tumbling stock market, Duolingo delivered one of its best periods ever in the recent first quarter of 2022.
Duolingo runs a mobile-first strategy for its language education platform, which more closely resembles a game than a learning experience. But that's why it's so successful -- it's an engaging app, and the company has even found ways to integrate social networking features to help users track the progress of their friends.
In the first quarter, monthly active users hit an all-time high of 49.2 million, and the number of users converting to a paid subscription soared 60% year over year to 2.9 million. It helped the app maintain its crown as the highest-grossing platform in the education category on Alphabet's Play Store, and the second spot on Apple's App Store.
The company's revenue jumped 47% in the quarter to $81.2 million, and bookings grew an even faster 55% to $102.1 million. That marked a quarterly all-time high on both counts, and since bookings are expected to eventually convert to revenue, it's indicative that even faster growth might be on the horizon in the future.
Maturing as a business
Duolingo only began to monetize its app with paid subscriptions in 2018, so it has scaled up its revenue incredibly quickly. Naturally, as the numbers have trended higher in each year since then, the rate of growth has slowed to a more sustainable level.
One key challenge Duolingo faces is profitability. It's still a loss-making company, because it's still early in its monetization phase, but with a gross profit margin of over 73%, it has plenty of flexibility to invest in growth before delivering positive earnings. Once the business achieves scale, it can trim back operating costs like sales and marketing so more money flows to the bottom line.
Until then, Duolingo is finding success by spending money to expand the number of languages it offers to include those with non-Roman writing systems like Japanese and Hebrew. In addition, it's investing in advanced technology like artificial intelligence to help users correct mistakes more quickly, improving the learning experience.
Weathering the storm
Duolingo estimates 1.8 billion people are learning a foreign language worldwide. It's often something many people want to do, but they fail to make the necessary commitment. Duolingo's app bridges that gap by offering a convenient and fun way to learn, which is highlighted by the remarkable fact 90% of its user acquisition is organic -- only the minority of growth comes through paid marketing.
That's a major advantage in tough economic conditions where companies would typically have to pay more to attract customers who are less sticky, and less willing to spend money. It's one reason Duolingo could continue to outperform its technology peers.
Another reason is the company's focus on emerging markets like India. This story is still in its infancy, but Duolingo saw 400% growth in that country in 2020, and it estimates that by the end of this year, 500 million Indians will have accessed the internet for the first time ever as mobile data costs continue to fall.
It's an enormous long-term opportunity as Duolingo offers arguably the most accessible way for citizens of economically developing nations to learn global languages like English.
If history can teach investors one thing, it's that bear markets don't last forever. In fact, they're often the best time to put money to work. For that reason, this might be a great chance to build a position in Duolingo stock ahead of the next bull market.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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. | Duolingo's app bridges that gap by offering a convenient and fun way to learn, which is highlighted by the remarkable fact 90% of its user acquisition is organic -- only the minority of growth comes through paid marketing. This story is still in its infancy, but Duolingo saw 400% growth in that country in 2020, and it estimates that by the end of this year, 500 million Indians will have accessed the internet for the first time ever as mobile data costs continue to fall. It's an enormous long-term opportunity as Duolingo offers arguably the most accessible way for citizens of economically developing nations to learn global languages like English. | In the face of economic uncertainty and a tumbling stock market, Duolingo delivered one of its best periods ever in the recent first quarter of 2022. In the first quarter, monthly active users hit an all-time high of 49.2 million, and the number of users converting to a paid subscription soared 60% year over year to 2.9 million. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. | In the face of economic uncertainty and a tumbling stock market, Duolingo delivered one of its best periods ever in the recent first quarter of 2022. Duolingo's app bridges that gap by offering a convenient and fun way to learn, which is highlighted by the remarkable fact 90% of its user acquisition is organic -- only the minority of growth comes through paid marketing. For that reason, this might be a great chance to build a position in Duolingo stock ahead of the next bull market. | Duolingo runs a mobile-first strategy for its language education platform, which more closely resembles a game than a learning experience. In the first quarter, monthly active users hit an all-time high of 49.2 million, and the number of users converting to a paid subscription soared 60% year over year to 2.9 million. 10 stocks we like better than Duolingo, Inc. |
20715.0 | 2022-06-13 00:00:00 UTC | SPY, PFI: Big ETF Outflows | AAPL | https://www.nasdaq.com/articles/spy-pfi%3A-big-etf-outflows | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 10,050,000 units were destroyed, or a 1.1% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 3.2%, and Microsoft is lower by about 2%.
And on a percentage change basis, the ETF with the biggest outflow was the Invesco DWA Financial Momentum ETF, which lost 590,000 of its units, representing a 33.9% decline in outstanding units compared to the week prior. Among the largest underlying components of PFI, in morning trading today Lpl Financial Holdings is down about 4.3%, and Sun Communities is lower by about 3.1%.
VIDEO: SPY, PFI: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in morning trading today Apple is off about 3.2%, and Microsoft is lower by about 2%. And on a percentage change basis, the ETF with the biggest outflow was the Invesco DWA Financial Momentum ETF, which lost 590,000 of its units, representing a 33.9% decline in outstanding units compared to the week prior. Among the largest underlying components of PFI, in morning trading today Lpl Financial Holdings is down about 4.3%, and Sun Communities is lower by about 3.1%. | Among the largest underlying components of SPY, in morning trading today Apple is off about 3.2%, and Microsoft is lower by about 2%. Among the largest underlying components of PFI, in morning trading today Lpl Financial Holdings is down about 4.3%, and Sun Communities is lower by about 3.1%. VIDEO: SPY, PFI: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 10,050,000 units were destroyed, or a 1.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the Invesco DWA Financial Momentum ETF, which lost 590,000 of its units, representing a 33.9% decline in outstanding units compared to the week prior. Among the largest underlying components of PFI, in morning trading today Lpl Financial Holdings is down about 4.3%, and Sun Communities is lower by about 3.1%. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 10,050,000 units were destroyed, or a 1.1% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 3.2%, and Microsoft is lower by about 2%. And on a percentage change basis, the ETF with the biggest outflow was the Invesco DWA Financial Momentum ETF, which lost 590,000 of its units, representing a 33.9% decline in outstanding units compared to the week prior. |
20716.0 | 2022-06-13 00:00:00 UTC | U.S. bill to rein in Big Tech backed by dozens of small and big companies | AAPL | https://www.nasdaq.com/articles/u.s.-bill-to-rein-in-big-tech-backed-by-dozens-of-small-and-big-companies | nan | nan | By Diane Bartz
WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations sent a letter to U.S. Congress members on Monday, urging them to support a bill that would rein in the biggest tech companies such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google.
Last week, Democratic U.S. Senator Amy Klobuchar and lawmakers from both parties said they had the Senate votes needed to pass legislation that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses.
Companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms."
Other signatories included the American Booksellers Association, the American Independent Business Alliance, the Institute for Local Self-Reliance and Kelkoo Group. Amazon.com, the Chamber of Commerce and others oppose the measure.
Supporters urged lawmakers to pass the bill, saying it would modernize antitrust laws so smaller companies can compete.
Last week, Klobuchar said she believed she had the 60 Senate votes needed to end debate and move to a vote on final passage. There is a similar bill in the House of Representatives.
"It's no surprise that Yelp and Spotify like the bill since it's designed to help them. But senators are telling us that they just aren't hearing their voters demanding changes to Amazon Basics and Google Maps," the pro-tech Chamber of Progress said in a statement.
The tech giants have said the bill would imperil popular consumer products like Google Maps and Amazon Basics and make it harder for the companies to protect their users' security and privacy.
Carl Szabo of NetChoice said the pressure being exerted to get a vote on the bill was a sign that it did not have enough support to pass. "This is a drowning bill's last gasp for air," he said.
(Reporting by Diane Bartz Editing by Chris Reese and David Gregorio)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Senator Amy Klobuchar and lawmakers from both parties said they had the Senate votes needed to pass legislation that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses. Companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms." But senators are telling us that they just aren't hearing their voters demanding changes to Amazon Basics and Google Maps," the pro-tech Chamber of Progress said in a statement. | Senator Amy Klobuchar and lawmakers from both parties said they had the Senate votes needed to pass legislation that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses. Companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms." Supporters urged lawmakers to pass the bill, saying it would modernize antitrust laws so smaller companies can compete. | Senator Amy Klobuchar and lawmakers from both parties said they had the Senate votes needed to pass legislation that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses. By Diane Bartz WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations sent a letter to U.S. Congress members on Monday, urging them to support a bill that would rein in the biggest tech companies such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google. Companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms." | Senator Amy Klobuchar and lawmakers from both parties said they had the Senate votes needed to pass legislation that would prevent tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses. Supporters urged lawmakers to pass the bill, saying it would modernize antitrust laws so smaller companies can compete. Last week, Klobuchar said she believed she had the 60 Senate votes needed to end debate and move to a vote on final passage. |
20717.0 | 2022-06-13 00:00:00 UTC | Rune Labs gets FDA clearance to use Apple Watch to track Parkinson's symptoms | AAPL | https://www.nasdaq.com/articles/rune-labs-gets-fda-clearance-to-use-apple-watch-to-track-parkinsons-symptoms-1 | nan | nan | By Stephen Nellis
June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease.
The Rune Labs software uses motion sensors built into the Apple Watch, which can already be used to detect when a person falls. Rune Labs Chief Executive Brian Pepin said in an interview that Apple Watch data will be combined with data from other sources, including a Medtronic Inc MDT.N implant that can measure brain signals.
Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment. At present, Pepin said, most doctors have to gather data on a patient's movements by observing them during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time.
Using the Apple Watch, Rune Labs' StrivePD software platform will provide doctors a continuous stream of observations over long stretches, Pepin said.
"When you think about the process of getting someone to their optimal therapy or combination of drugs or devices, or even whether or not a patient might be a good fit for a certain clinical trial, it's a very hard decision to make when you only have a little context," Pepin said.
The Rune Labs FDA clearance is the first prominent use of software tools that Apple APPL.O released for measuring movement disorders in 2018.
Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. After contacting Apple about the tools, Pepin said, "it took about eight minutes for the team lead to get back to me and say, 'Hey, perfect, let's explore this.'"
Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & Johnson JNJ.N to study whether it can be used to help lower stroke risk.
(Reporting by Stephen Nellis in San Francisco; editing by Diane Craft and Bill Berkrot)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. At present, Pepin said, most doctors have to gather data on a patient's movements by observing them during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. | Using the Apple Watch, Rune Labs' StrivePD software platform will provide doctors a continuous stream of observations over long stretches, Pepin said. The Rune Labs FDA clearance is the first prominent use of software tools that Apple APPL.O released for measuring movement disorders in 2018. Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & Johnson JNJ.N to study whether it can be used to help lower stroke risk. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs Chief Executive Brian Pepin said in an interview that Apple Watch data will be combined with data from other sources, including a Medtronic Inc MDT.N implant that can measure brain signals. Using the Apple Watch, Rune Labs' StrivePD software platform will provide doctors a continuous stream of observations over long stretches, Pepin said. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment. At present, Pepin said, most doctors have to gather data on a patient's movements by observing them during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. |
20718.0 | 2022-06-13 00:00:00 UTC | Monday's ETF with Unusual Volume: RYT | AAPL | https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-ryt-0 | nan | nan | The Invesco S&P 500— Equal Weight Technology ETF is seeing unusually high volume in afternoon trading Monday, with over 1.3 million shares traded versus three month average volume of about 82,000. Shares of RYT were down about 3.8% on the day.
Components of that ETF with the highest volume on Monday were Apple, trading down about 2.6% with over 62.7 million shares changing hands so far this session, and Advanced Micro Devices, down about 6.4% on volume of over 57.8 million shares. Cisco Systems is the component faring the best Monday, lower by about 0.2% on the day, while Enphase Energy is lagging other components of the Invesco S&P 500— Equal Weight Technology ETF, trading lower by about 9.1%.
VIDEO: Monday's ETF with Unusual Volume: RYT
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 S&P 500— Equal Weight Technology ETF is seeing unusually high volume in afternoon trading Monday, with over 1.3 million shares traded versus three month average volume of about 82,000. Components of that ETF with the highest volume on Monday were Apple, trading down about 2.6% with over 62.7 million shares changing hands so far this session, and Advanced Micro Devices, down about 6.4% on volume of over 57.8 million shares. Cisco Systems is the component faring the best Monday, lower by about 0.2% on the day, while Enphase Energy is lagging other components of the Invesco S&P 500— Equal Weight Technology ETF, trading lower by about 9.1%. | The Invesco S&P 500— Equal Weight Technology ETF is seeing unusually high volume in afternoon trading Monday, with over 1.3 million shares traded versus three month average volume of about 82,000. Cisco Systems is the component faring the best Monday, lower by about 0.2% on the day, while Enphase Energy is lagging other components of the Invesco S&P 500— Equal Weight Technology ETF, trading lower by about 9.1%. VIDEO: Monday's ETF with Unusual Volume: RYT 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 S&P 500— Equal Weight Technology ETF is seeing unusually high volume in afternoon trading Monday, with over 1.3 million shares traded versus three month average volume of about 82,000. Components of that ETF with the highest volume on Monday were Apple, trading down about 2.6% with over 62.7 million shares changing hands so far this session, and Advanced Micro Devices, down about 6.4% on volume of over 57.8 million shares. Cisco Systems is the component faring the best Monday, lower by about 0.2% on the day, while Enphase Energy is lagging other components of the Invesco S&P 500— Equal Weight Technology ETF, trading lower by about 9.1%. | The Invesco S&P 500— Equal Weight Technology ETF is seeing unusually high volume in afternoon trading Monday, with over 1.3 million shares traded versus three month average volume of about 82,000. Cisco Systems is the component faring the best Monday, lower by about 0.2% on the day, while Enphase Energy is lagging other components of the Invesco S&P 500— Equal Weight Technology ETF, trading lower by about 9.1%. VIDEO: Monday's ETF with Unusual Volume: RYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20719.0 | 2022-06-13 00:00:00 UTC | US STOCKS-Recession fears put S&P 500 on track to confirm bear market | AAPL | https://www.nasdaq.com/articles/recession-fears-put-sp-500-on-track-to-confirm-bear-market | nan | nan | By Chuck Mikolajczak
NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 on pace for its fourth straight decline and poised to confirm a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession.
The benchmark index is more than 20% below its record closing high on Jan. 3, the second such intraday decline since the pandemic-led rout on Wall Street in 2020.
A drop of 20% or more from the Jan. 3 closing high would confirm the index is in a bear market, according to a commonly used definition.
All the major S&P sectors were sharply lower, with only about 20 components of the S&P 500 trading in positive territory on the day. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest rate hike.
The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates.
High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.356%, its highest level since April 2011. Growth stocks are more likely to see their earnings suffer in a rising rate environment.
"The Fed could do more, that is what is actively being discussed, certainly what we are seeing in the market what is actively being discussed is do they do three-quarters of a point on Wednesday, do they talk about accelerating," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
"How is the Federal Reserve going to get its arms around inflation and keep the economy going? - there are just not enough answers."
The Dow Jones Industrial Average .DJI fell 783.78 points, or 2.5%, to 30,609.01, the S&P 500 .SPX lost 132.19 points, or 3.39%, to 3,768.67 and the Nasdaq Composite .IXIC dropped 467.65 points, or 4.12%, to 10,872.37.
In addition, the two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, which many in the markets see as a reliable signal that a recession could come in the next year or two.
A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. FEDWATCH
The Nasdaq Composite index .IXIC, which was also on track for its fourth straight drop, confirmed it was in bear market territory on March 7 and has declined roughly 30% this year.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 33.47 points, its highest level since May 12. Still, many analysts view the level as subdued and not indicating investors have capitulated.
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, all plunged as bitcoin BTC=BTSP slumped more than 10% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions.
Declining issues outnumbered advancing ones on the NYSE by a 15.63-to-1 ratio; on Nasdaq, a 6.92-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 75 new lows; the Nasdaq Composite recorded 12 new highs and 711 new lows.
S&P 500 timelinehttps://tmsnrt.rs/3xIIbwA
S&P 500 bear marketshttps://tmsnrt.rs/3mPfLdP
(Additional reporting by Lewis Krauskopf and Noel Randewich; Editing by Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.356%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 on pace for its fourth straight decline and poised to confirm a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. FEDWATCH The Nasdaq Composite index .IXIC, which was also on track for its fourth straight drop, confirmed it was in bear market territory on March 7 and has declined roughly 30% this year. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.356%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 on pace for its fourth straight decline and poised to confirm a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.356%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 on pace for its fourth straight decline and poised to confirm a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.356%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 on pace for its fourth straight decline and poised to confirm a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. A drop of 20% or more from the Jan. 3 closing high would confirm the index is in a bear market, according to a commonly used definition. |
20720.0 | 2022-06-13 00:00:00 UTC | US STOCKS-S&P 500 confirms bear market as recession worry grows | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-confirms-bear-market-as-recession-worry-grows-0 | nan | nan | By Chuck Mikolajczak
NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession.
The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition.
All the major S&P sectors were sharply lower, with only 5 components of the S&P 500 in positive territory on the day. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest rate hike.
The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates.
High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. Growth stocks are more likely to see their earnings suffer in a rising rate environment.
A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. FEDWATCH
"The market had been trying to rally around the idea that inflation has peaked, and the Fed would not have to be more aggressive," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
"That story fell apart on Friday with the CPI report, showing broad inflation being entrenched everywhere you look."
The Dow Jones Industrial Average .DJI fell 876.05 points, or 2.79%, to 30,516.74, the S&P 500 .SPX lost 151.23 points, or 3.88%, to 3,749.63 and the Nasdaq Composite .IXIC dropped 530.80 points, or 4.68%, to 10,809.23.
The longest S&P 500 bear market lasted just over five years, starting on March 6, 1937 and ending on April 29, 1942 while the shortest lasted just over a month, beginning on Feb. 19, 2020 and ending on March 23, 2020, according to S&P Dow Jones Indices.
It has taken a little over a year on average for the index to reach its bottom during bear markets, and then roughly another two years to return to its prior high, according to CFRA Research.
In addition, the two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, which many in the markets see as a reliable signal that a recession could come in the next year or two.
The Nasdaq Composite index .IXIC, which suffered its fourth straight drop, confirmed it was in bear market territory on March 7 and has declined roughly 30% this year.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to its highest level since May 9 at 35.05 before closing at 34.02. Still, many analysts view the level as somewhat subdued and could mean more selling pressure is in store.
"This is a market that does not look like it is capitulating as much as it is frustrated," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
"Even with some of the securities being thrown out, it is just not deep enough, violent enough to see that people have taken positions off."
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, all plunged as bitcoin BTC=BTSP slumped more than 10% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions.
Volume on U.S. exchanges was 14.98 billion shares, compared with the 11.95 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 16.62-to-1 ratio; on Nasdaq, a 7.00-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 76 new lows; the Nasdaq Composite recorded 12 new highs and 743 new lows.
S&P 500 timelinehttps://tmsnrt.rs/3xIIbwA
S&P 500 bear marketshttps://tmsnrt.rs/3mPfLdP
(Additional reporting by Lewis Krauskopf, Stephen Culp and Noel Randewich; Editing by Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession. The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. |
20721.0 | 2022-06-13 00:00:00 UTC | US STOCKS-S&P 500 confirms bear market as recession worry grows | AAPL | https://www.nasdaq.com/articles/sp-500-confirms-bear-market-as-recession-worry-grows | nan | nan | By Chuck Mikolajczak
NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession.
The benchmark S&P index has fallen for four straight days, with the index now down more than 20% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition.
All the major S&P sectors were sharply lower, with only about 10 components of the S&P 500 in positive territory on the day. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest rate hike.
The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates.
High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. Growth stocks are more likely to see their earnings suffer in a rising rate environment.
A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. FEDWATCH
"The market had been trying to rally around the idea that inflation has peaked, and the Fed would not have to be more aggressive," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
"That story fell apart on Friday with the CPI report, showing broad inflation being entrenched everywhere you look."
According to preliminary data, the S&P 500 .SPX lost 149.91 points, or 3.85%, to end at 3,750.95 points, while the Nasdaq Composite .IXIC lost 526.82 points, or 4.65%, to 10,813.20. The Dow Jones Industrial Average .DJI fell 857.70 points, or 2.73%, to 30,535.09.
In addition, the two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, which many in the markets see as a reliable signal that a recession could come in the next year or two.
The Nasdaq Composite index .IXIC, which suffered its fourth straight drop, confirmed it was in bear market territory on March 7 and has declined roughly 30% this year.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to its highest level since May. Still, many analysts view the level as subdued and could mean more selling pressure is in store.
"This is a market that does not look like it is capitulating as much as it is frustrated," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
"Even with some of the securities being thrown out, it is just not deep enough, violent enough to see that people have taken positions off.
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, all plunged as bitcoin BTC=BTSP slumped more than 10% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions.
S&P 500 timelinehttps://tmsnrt.rs/3xIIbwA
S&P 500 bear marketshttps://tmsnrt.rs/3mPfLdP
(Additional reporting by Lewis Krauskopf, Stephen Culp and Noel Randewich; Editing by Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. FEDWATCH "The market had been trying to rally around the idea that inflation has peaked, and the Fed would not have to be more aggressive," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest rate hike. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. According to preliminary data, the S&P 500 .SPX lost 149.91 points, or 3.85%, to end at 3,750.95 points, while the Nasdaq Composite .IXIC lost 526.82 points, or 4.65%, to 10,813.20. |
20722.0 | 2022-06-13 00:00:00 UTC | Why Apple Could Still Go Lower | AAPL | https://www.nasdaq.com/articles/why-apple-could-still-go-lower | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With Russia gobbling Ukraine, China threatening to take Taiwan, and the damage from climate change becoming obvious, it can seem hard to make a case for any stock. Even Apple (NASDAQ:AAPL).
Apple crossed into bear market territory last week and was due to open at $133.35, down almost 23% for 2022. But it’s still not cheap, relative to the market. Those who step in June 13 will still pay more than 22 times last year’s earnings. The company’s market cap is still over $2.2 trillion, double its pre-pandemic high.
Rather than quote some analyst or stockholder, heed the words of Apple CEO Tim Cook. Don’t buy Apple if you’re a short term trader.
Ticker Company Price
AAPL Apple $131.93
AAPL Stock: Strengths
Apple held its worldwide developer conference (WWDC) on June 6, an event that would have once dominated the news cycle. This year few noticed who weren’t being paid to.
There were things. Its laptops will use the Apple-designed M2 chip and it will be off Intel (NASDAQ:INTC) later this year. There were software updates, and new health features on the Apple Watch. Analysts seemed cheered, especially Dan Ives of Wedbush, who continues to support the stock.
By working closely with Taiwan Semiconductor (NYSE:TSM), which is building a huge new manufacturing plant in Arizona, Apple has assured itself of supplies. The danger is that, as a chip supplier, Apple is now subject to the hazards of other chip suppliers, like flaws that can’t be patched.
As it controls its supply chain, Apple also controls its customer. Its latest Buy Now, Pay Later (BNPL) initiative bypasses banks and credit processors, who you might see as the “chip companies” of consumer credit. Payments will be tied directly to users’ debit cards, and Apple will make its own lending decisions. There’s risk, but a run rate of nearly $400 billion/year in sales means they’re manageable.
Apple’s Weaknesses
Apple’s weaknesses are those of the global economy.
It’s not just the U.S. that’s headed into recession. It’s the world, and that greatly impacts Apple. The $200/share price target put on the stock by Citicorp (NYSE:C) looks ludicrous when China, its second-largest market, is threatening to go to war. Investors who see losses elsewhere in their portfolios are selling their winners, including Apple, and that’s going to continue.
Technicians note that Apple stock recently plunged through a “death cross.” The stock’s losses over the last quarter now exceed those over the last year. For a less worthy company this would be a sign to abandon a sinking ship. To those with a longer-term view, it may be a sign to buy.
Trouble is, buy with what? Investors who were told to “buy the dip” six months ago now have fat losses, and less cash to buy anything else. We’re not all Warren Buffett of Berkshire Hathaway (NYSE:BRK-A), who still has 40% of his portfolio in Apple stock because his insurance empire keeps generating cash that needs to be invested.
The Bottom Line on AAPL Stock
Speaking of cash, Apple still had $51.5 billion of cash and equivalents on its books at the end of March. Sounds like a lot, but a year earlier it had almost $70 billion.
Apple has an $11 billion capital budget and pays $14.5 billion in dividends each year. It also spent nearly $86 billion last year buying back its own stock. Even Apple’s strength is not unlimited.
But bear markets end. It’s hard to believe when you’re in one. It was hard to buy this line in 2002, and hard to buy it in late 2008. But this, too, shall pass away, as those crises passed away. A few years from now, if civilization survives, you’ll be glad you own Apple stock. If it doesn’t nothing, not even cash, matters.
On the date of publication, Dana Blankenhorn held long positions in INTC, TSM and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post Why Apple Could Still Go Lower appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even Apple (NASDAQ:AAPL). Ticker Company Price AAPL Apple $131.93 AAPL Stock: Strengths Apple held its worldwide developer conference (WWDC) on June 6, an event that would have once dominated the news cycle. The Bottom Line on AAPL Stock Speaking of cash, Apple still had $51.5 billion of cash and equivalents on its books at the end of March. | Ticker Company Price AAPL Apple $131.93 AAPL Stock: Strengths Apple held its worldwide developer conference (WWDC) on June 6, an event that would have once dominated the news cycle. The Bottom Line on AAPL Stock Speaking of cash, Apple still had $51.5 billion of cash and equivalents on its books at the end of March. Even Apple (NASDAQ:AAPL). | Ticker Company Price AAPL Apple $131.93 AAPL Stock: Strengths Apple held its worldwide developer conference (WWDC) on June 6, an event that would have once dominated the news cycle. The Bottom Line on AAPL Stock Speaking of cash, Apple still had $51.5 billion of cash and equivalents on its books at the end of March. Even Apple (NASDAQ:AAPL). | The Bottom Line on AAPL Stock Speaking of cash, Apple still had $51.5 billion of cash and equivalents on its books at the end of March. Even Apple (NASDAQ:AAPL). Ticker Company Price AAPL Apple $131.93 AAPL Stock: Strengths Apple held its worldwide developer conference (WWDC) on June 6, an event that would have once dominated the news cycle. |
20723.0 | 2022-06-13 00:00:00 UTC | S&P 500 confirms bear market as recession worry grows | AAPL | https://www.nasdaq.com/articles/sp-500-confirms-bear-market-as-recession-worry-grows-0 | nan | nan | By Chuck Mikolajczak
NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession.
The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition.
All the major S&P sectors were sharply lower, with only 5 components of the S&P 500 in positive territory on the day. Markets have been under pressure this year as climbing prices, including a jump in oil prices due in part to the war in Ukraine, have put the Fed on track to take strong actions to tighten its monetary policy, such as interest rate hike.
The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates.
High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. Growth stocks are more likely to see their earnings suffer in a rising rate environment.
A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. FEDWATCH
"The market had been trying to rally around the idea that inflation has peaked, and the Fed would not have to be more aggressive," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
"That story fell apart on Friday with the CPI report, showing broad inflation being entrenched everywhere you look."
The Dow Jones Industrial Average .DJI fell 876.05 points, or 2.79%, to 30,516.74, the S&P 500 .SPX lost 151.23 points, or 3.88%, to 3,749.63 and the Nasdaq Composite .IXIC dropped 530.80 points, or 4.68%, to 10,809.23.
The longest S&P 500 bear market lasted just over five years, starting on March 6, 1937 and ending on April 29, 1942 while the shortest lasted just over a month, beginning on Feb. 19, 2020 and ending on March 23, 2020, according to S&P Dow Jones Indices.
It has taken a little over a year on average for the index to reach its bottom during bear markets, and then roughly another two years to return to its prior high, according to CFRA Research.
In addition, the two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, which many in the markets see as a reliable signal that a recession could come in the next year or two.
The Nasdaq Composite index .IXIC, which suffered its fourth straight drop, confirmed it was in bear market territory on March 7 and has declined roughly 30% this year.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to its highest level since May 9 at 35.05 before closing at 34.02. Still, many analysts view the level as somewhat subdued and could mean more selling pressure is in store.
"This is a market that does not look like it is capitulating as much as it is frustrated," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
"Even with some of the securities being thrown out, it is just not deep enough, violent enough to see that people have taken positions off."
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, all plunged as bitcoin BTC=BTSP slumped more than 10% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions.
Volume on U.S. exchanges was 14.98 billion shares, compared with the 11.95 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 16.62-to-1 ratio; on Nasdaq, a 7.00-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 76 new lows; the Nasdaq Composite recorded 12 new highs and 743 new lows.
S&P 500 timelinehttps://tmsnrt.rs/3xIIbwA
S&P 500 bear marketshttps://tmsnrt.rs/3mPfLdP
(Additional reporting by Lewis Krauskopf, Stephen Culp and Noel Randewich; Editing by Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession. The Fed is scheduled to make its next policy announcement on Wednesday and investors will be highly focused on any clues for how aggressive the central bank intends to be in raising rates. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. By Chuck Mikolajczak NEW YORK, June 13 (Reuters) - U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, heightening fears that the expected aggressive interest rate hikes by the Federal Reserve could push the economy into a recession. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. | High-growth market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were the biggest drags on the S&P 500, as the yield on the benchmark 10-year U.S. Treasury note hit 3.44%, its highest level since April 2011. The benchmark S&P index has fallen for four straight days, its longest losing streak in three months, with the index now down 21.8% from its most recent record closing high to confirm a bear market began on Jan. 3, according to a commonly used definition. A hotter-than-expected consumer price index (CPI) reading on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, while expectations for a 75 basis point hike at the June meeting have jumped to nearly 30% from 3.1% a week ago, according to CME's Fedwatch Tool. |
20724.0 | 2022-06-13 00:00:00 UTC | Meta Platforms (META) Halts Dual-Camera Smartwatch Development | AAPL | https://www.nasdaq.com/articles/meta-platforms-meta-halts-dual-camera-smartwatch-development | nan | nan | Meta Platforms META has recently halted the development of a smartwatch with dual cameras and is instead working on producing other devices to be worn on the wrist.
Per Bloomberg, Meta’s dual-camera smartwatch was in development for two years and would have included several features like activity tracking, music playback and messaging, similar to rival Apple’s AAPL smartwatch.
Apple has been enjoying dominant market share in the smartwatch segment since the launch of Apple Watch in 2015. However, the key differentiators for Meta’s smartwatch from other smartwatches were the dual cameras.
One of the reasons behind the production of this smartwatch being stopped is the design. The presence of the second camera caused issues with another feature for translating nerve signals from the wrist into digital commands.
The ability to transmit nerve signals as digital commands, called electromyography, is a top priority for Meta as it will help in development of the AR space, metaverse. By using electromyography in their wrist devices, people can control their avatar and interact with other users in the metaverse.
Another reason why the smartwatch production has been halted is likely to be cost cuts by Meta. At the company’s lastearnings callin April, Meta executives informed that the company will be reducing expenses by $3 billion due to a broader business slowdown.
Meta is prioritizing certain projects over others since they are expected to reap better return from investments, specifically in developing the metaverse, upon which the company has laid its future.
Meta’s Reality Labs division is working on developing the metaverse and diversifying income actively from the ad business model. The company has been successful so far, which is reflected in its first-quarter 2022 earnings result. Meta generated revenues of $695 million from its Reality Labs business segment in the first quarter of 2022 (2.5% of total revenues), reflecting an increase of 30.1% year over year.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
What’s in Store for Meta Platforms’ Stock in 2022?
Meta’s Sheryl Sandberg stepped down recently as the COO of the company after a 14-year stint. Sandberg pioneered Facebook’s ads business model and transformed the company into a profitable business.
Sandberg’s departure doesn’t bode well for Meta’s ad-based business model, which is the primary source of revenue for the company. Meta is under persistent pressure due to increasing scrutiny by governments worldwide due to its failure to rein in large-scale misinformation, hate speech and privacy breaches.
Meta is also suffering from Apple’s iOS changes and engagement-related headwinds.
Apple’s iOS changes have made ad targeting difficult, which in turn has increased the cost of driving outcomes. Measuring these outcomes has become difficult. Meta expects these factors to hurt advertising revenue growth throughout 2022.
Further, the ongoing Russia-Ukraine war and growing macro-economic challenges have hurt advertisers’ budgets, which is expected to negatively impact Meta’s revenue-generating ability.
Also due to rising inflation, globally customers have pulled back on their purchases. This will impact Meta’s shares negatively, as it did to its FAAMG peers — Alphabet GOOGL and Microsoft MSFT.
Meta, which currently carries Zacks Rank #3 (Hold), has seen its stock tumble 47.8% in the year-to-date period compared with the Zacks Internet – Software industry and Zacks Computer and Technology sector’s decline of 64.1% and 30.2% respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet shares have lost 23.3% in the year-to-date period compared with the Zacks Internet – Services industry’s fall of 26.3%.
Microsoft shares have lost 24.7% in the year-to-date period compared with the Zacks Computer - Software industry’s decline of 26.4%.
Meta is expected to spend more than $10 billion over the next 10 years to build the metaverse.
Per Bloomberg, the metaverse market, globally, is expected to reach $800 billion by 2024. As the primary first mover in creating the metaverse, Meta is expected to seize market share rapidly in the alternate reality space. This is expected to aid Meta’s revenues in the long term and impact shareholders’ wealth 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. | Per Bloomberg, Meta’s dual-camera smartwatch was in development for two years and would have included several features like activity tracking, music playback and messaging, similar to rival Apple’s AAPL smartwatch. Apple Inc. (AAPL): Free Stock Analysis Report The ability to transmit nerve signals as digital commands, called electromyography, is a top priority for Meta as it will help in development of the AR space, metaverse. | Per Bloomberg, Meta’s dual-camera smartwatch was in development for two years and would have included several features like activity tracking, music playback and messaging, similar to rival Apple’s AAPL smartwatch. Apple Inc. (AAPL): Free Stock Analysis Report Meta, which currently carries Zacks Rank #3 (Hold), has seen its stock tumble 47.8% in the year-to-date period compared with the Zacks Internet – Software industry and Zacks Computer and Technology sector’s decline of 64.1% and 30.2% respectively. | Per Bloomberg, Meta’s dual-camera smartwatch was in development for two years and would have included several features like activity tracking, music playback and messaging, similar to rival Apple’s AAPL smartwatch. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META has recently halted the development of a smartwatch with dual cameras and is instead working on producing other devices to be worn on the wrist. | Per Bloomberg, Meta’s dual-camera smartwatch was in development for two years and would have included several features like activity tracking, music playback and messaging, similar to rival Apple’s AAPL smartwatch. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META has recently halted the development of a smartwatch with dual cameras and is instead working on producing other devices to be worn on the wrist. |
20725.0 | 2022-06-13 00:00:00 UTC | Notable ETF Inflow Detected - ITOT, AAPL, MSFT, PFE | AAPL | https://www.nasdaq.com/articles/notable-etf-inflow-detected-itot-aapl-msft-pfe | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $129.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 446,300,000 to 447,800,000). Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is off about 3.1%, Microsoft Corporation (Symbol: MSFT) is off about 2%, and Pfizer Inc (Symbol: PFE) is lower by about 2.7%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $83.40 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.46. 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 ITOT, in trading today Apple Inc (Symbol: AAPL) is off about 3.1%, Microsoft Corporation (Symbol: MSFT) is off about 2%, and Pfizer Inc (Symbol: PFE) is lower by about 2.7%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $83.40 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.46. 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 ITOT, in trading today Apple Inc (Symbol: AAPL) is off about 3.1%, Microsoft Corporation (Symbol: MSFT) is off about 2%, and Pfizer Inc (Symbol: PFE) is lower by about 2.7%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $83.40 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is off about 3.1%, Microsoft Corporation (Symbol: MSFT) is off about 2%, and Pfizer Inc (Symbol: PFE) is lower by about 2.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $129.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 446,300,000 to 447,800,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $83.40 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.46. | Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is off about 3.1%, Microsoft Corporation (Symbol: MSFT) is off about 2%, and Pfizer Inc (Symbol: PFE) is lower by about 2.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $129.7 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 446,300,000 to 447,800,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $83.40 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.46. |
20726.0 | 2022-06-13 00:00:00 UTC | 3 Red Flags for Affirm Holdings' Future | AAPL | https://www.nasdaq.com/articles/3-red-flags-for-affirm-holdings-future | nan | nan | Affirm Holdings (NASDAQ: AFRM) was one of the hottest initial public offerings of 2021. The buy now, pay later (BNPL) services provider went public at $49 per share last January, started trading at $90.90, and closed at an all-time high of $168.52 last November. But today, its stock trades at about $20.
The stock tumbled as investors fretted over its widening losses, rising leverage, and the long-term sustainability of the BNPL business model. Rising interest rates, which sparked an exodus from the market's pricier and unprofitable growth stocks, exacerbated that sell-off.
Contrarian investors will point out that analysts still expect Affirm's revenue to increase 54% in fiscal 2022 (which ends this month) and grow another 42% to $1.9 billion in fiscal 2023. Based on those estimates, the stock still looks pretty cheap at just three times next year's sales. Unfortunately, three bright red flags could prevent it from recovering anytime soon.
Image source: Getty Images.
1. Inflation will throttle consumer spending
Affirm generates most of its revenue in the U.S., where inflation recently hit a 40-year high. BNPL services generally target younger and lower-income consumers who can't get approved for traditional credit cards, and that core market could get hit hard by inflation.
The bulls will point out that BNPL services can provide those shoppers more-flexible payment options as prices rise. A recent survey from Credit Karma found that 60% of consumers said inflation was driving them to use more BNPL services.
However, their overall spending could still decelerate as they limit their discretionary purchases. Before inflation soared, many Gen Z shoppers had been introduced to BNPL services through social media influencers on TikTok and other platforms, which persuaded their followers to take on more BNPL debt to buy clothing, accessories, and other discretionary products.
Some of those consumers are now struggling to pay off that debt, and Credit Karma found that 40% of BNPL users have an outstanding balance of $665 on average, and 20% were actually using credit cards to cover their BNPL payments. Affirm's delinquent loans (over the past 30 days) only accounted for 2% of its active balances in its latest quarter, but that percentage could climb quickly in an inflationary (or potentially recessionary) environment.
2. Rising interest rates will generate major headwinds
To tame inflation, the Federal Reserve needs to raise interest rates. Higher rates will generate headwinds for Affirm and other stand-alone BNPL firms because they consistently borrow the money that they lend to their users.
To offset that pressure, Affirm needs to charge its users higher interest rates and raise its merchant fees. But in its latest 10-Q filing, the company warns that "in order to continue to expand our consumer base, we may originate certain loans" with "zero or below market interest rates under certain merchant arrangements that we do not expect to achieve positive revenue." In other words, the company is still willing to operate at a loss to fend off its growing list of challengers in the BNPL market.
Rising interest rates will also make it difficult for Affirm to raise fresh funds. It was still sitting on $2.26 billion in cash and equivalents in the third quarter of fiscal 2022, but its high debt-to-equity ratio of 1.7 (compared to 0.9 a year earlier) doesn't leave it much room for new debt offerings.
3. Apple's entry into the BNPL market
Affirm already faced formidable competitors like PayPal and Block's Afterpay in the BNPL market, but Apple's (NASDAQ: AAPL) planned entry into the arena could be a game changer.
During its latest Worldwide Developers Conference on June 6, Apple introduced Apple Pay Later, a BNPL extension of its payments ecosystem that lets consumers split their purchases into four equal interest-free monthly payments. Apple will handle its lending and credit checks through an internal subsidiary, then fund the platform from its own balance sheet instead of taking out additional loans like Affirm and its BNPL peers.
That key difference should terrify Affirm, since Apple ended its latest quarter with a whopping $193 billion in cash and marketable securities. It also suggests that BNPL platforms might function much better as subsidiaries of larger, cash-rich companies instead of stand-alone businesses.
Are Affirm's days numbered?
Affirm found a fresh way to challenge traditional credit card companies, but there's no evidence its approach is actually sustainable. The company is practically giving its services away to gain new merchants and customers, but it will face daunting challenges this year as consumer spending slows down, interest rates rise, and Apple expands its BNPL services.
It won't go bankrupt anytime soon, but it simply doesn't have a bright future as a stand-alone company. The best outcome might be a takeover by Alphabet's Google or its current retail partner Amazon, but I don't see either tech giant rushing to buy its unprofitable business in this volatile market. So for now, investors should stay away from Affirm and stick with better-run tech companies.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet (A shares), Amazon, and Apple. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., and PayPal Holdings. 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's entry into the BNPL market Affirm already faced formidable competitors like PayPal and Block's Afterpay in the BNPL market, but Apple's (NASDAQ: AAPL) planned entry into the arena could be a game changer. BNPL services generally target younger and lower-income consumers who can't get approved for traditional credit cards, and that core market could get hit hard by inflation. Affirm's delinquent loans (over the past 30 days) only accounted for 2% of its active balances in its latest quarter, but that percentage could climb quickly in an inflationary (or potentially recessionary) environment. | Apple's entry into the BNPL market Affirm already faced formidable competitors like PayPal and Block's Afterpay in the BNPL market, but Apple's (NASDAQ: AAPL) planned entry into the arena could be a game changer. The company is practically giving its services away to gain new merchants and customers, but it will face daunting challenges this year as consumer spending slows down, interest rates rise, and Apple expands its BNPL services. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., and PayPal Holdings. | Apple's entry into the BNPL market Affirm already faced formidable competitors like PayPal and Block's Afterpay in the BNPL market, but Apple's (NASDAQ: AAPL) planned entry into the arena could be a game changer. The company is practically giving its services away to gain new merchants and customers, but it will face daunting challenges this year as consumer spending slows down, interest rates rise, and Apple expands its BNPL services. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Block, Inc., and PayPal Holdings. | Apple's entry into the BNPL market Affirm already faced formidable competitors like PayPal and Block's Afterpay in the BNPL market, but Apple's (NASDAQ: AAPL) planned entry into the arena could be a game changer. The company is practically giving its services away to gain new merchants and customers, but it will face daunting challenges this year as consumer spending slows down, interest rates rise, and Apple expands its BNPL services. That's right -- they think these 10 stocks are even better buys. |
20727.0 | 2022-06-13 00:00:00 UTC | US STOCKS-S&P 500 on pace to confirm bear market on recession worries | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-on-pace-to-confirm-bear-market-on-recession-worries | nan | nan | By Anisha Sircar and Sruthi Shankar
June 13 (Reuters) - Wall Street's main stock indexes fell sharply and the S&P 500 was on track to confirm a bear market on Monday on fears that the Federal Reserve's aggressive interest rate hikes would tip the economy into recession.
The benchmark index is more than 20% below its record closing high on Jan. 3, the second such intraday decline since the pandemic-led rout on Wall Street in 2020.
A close of more than 20% below the all-time high would confirm the index is in a bear market, based on a commonly used definition.
All the major S&P sectors were sharply lower, with energy .SPNY and consumer discretionary .SPLRCD leading the declines, as worries over inflation, rate hikes and the Ukraine war unnerved investors.
Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.4% and 5.9%.
"This is the kind of agnostic selling you see when everyone wants out of everything - even the best-performing sector of the S&P 500, energy, is finally for sale," said Art Hogan, chief market strategist at National Securities.
"This is the ongoing pricing of risk that happens when inflation continues to run hotter than expectations and in the wake of that, the Fed will likely have to be more aggressive."
A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. FEDWATCH
"There was some speculation the Fed may speed up their rate rise, perhaps even an additional quarter percent at this next meeting, which I would suggest is not enough to be able to really significantly slow down inflation," said Chris Campbell, chief strategist at Kroll in Miami.
The two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, which many in the markets see as a reliable signal that a recession could come in the next year or two. US/
The Fed's interest rate decision is due on June 14-15, with focus on the speed and scale of rate hikes that policymakers believe will be needed to quash red-hot inflation.
The Nasdaq Composite index .IXIC confirmed it was in bear market territory on March 7 and has declined nearly 28% this year.
At 11:47 a.m. ET, the Dow Jones Industrial Average .DJI was down 658.82 points, or 2.10%, at 30,733.97, the S&P 500 .SPX was down 116.47 points, or 2.99%, at 3,784.39, and the Nasdaq Composite .IXIC fell 443 points or 3.9% to 10,897.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 33.47 points, its highest level since May 12.
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, fell between 11.6% and 14.2% as bitcoin BTC=BTSP slumped more than 10%.
Declining issues outnumbered advancers for a 17.07-to-1 ratio on the NYSE and for a 7.49-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 73 new lows, while the Nasdaq recorded 11 new highs and 662 new lows.
S&P 500 timelinehttps://tmsnrt.rs/3xIIbwA
(Reporting by Anisha Sircar, Sruthi Shankar and Devik Jain in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.4% and 5.9%. By Anisha Sircar and Sruthi Shankar June 13 (Reuters) - Wall Street's main stock indexes fell sharply and the S&P 500 was on track to confirm a bear market on Monday on fears that the Federal Reserve's aggressive interest rate hikes would tip the economy into recession. All the major S&P sectors were sharply lower, with energy .SPNY and consumer discretionary .SPLRCD leading the declines, as worries over inflation, rate hikes and the Ukraine war unnerved investors. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.4% and 5.9%. By Anisha Sircar and Sruthi Shankar June 13 (Reuters) - Wall Street's main stock indexes fell sharply and the S&P 500 was on track to confirm a bear market on Monday on fears that the Federal Reserve's aggressive interest rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.4% and 5.9%. By Anisha Sircar and Sruthi Shankar June 13 (Reuters) - Wall Street's main stock indexes fell sharply and the S&P 500 was on track to confirm a bear market on Monday on fears that the Federal Reserve's aggressive interest rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.4% and 5.9%. By Anisha Sircar and Sruthi Shankar June 13 (Reuters) - Wall Street's main stock indexes fell sharply and the S&P 500 was on track to confirm a bear market on Monday on fears that the Federal Reserve's aggressive interest rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. |
20728.0 | 2022-06-13 00:00:00 UTC | 4 Reasons to Keep Investing Through This Stock Market Dip | AAPL | https://www.nasdaq.com/articles/4-reasons-to-keep-investing-through-this-stock-market-dip | nan | nan | It's been a minute since we've seen a stock market dip like this one. For the year so far, the major indexes -- the S&P 500, Dow Jones Industrial Average, and the Nasdaq 100 -- are all down more than 9%.
Times like these can prompt you to doubt your investing approach, or even pause investing temporarily. But both responses work against you. Doubt clouds your decision-making. And an investing pause intended to prevent further losses can easily backfire.
Get your confidence back with these four reasons to continue investing through this stock market dip.
1. You don't need the money right now
When do you plan to use the money locked in your investment account? If the timeline is five years or more, you're well-positioned to keep investing.
This is because the market moves in cycles. It goes up, down, and then up again. Notably, the downcycles often don't last longer than five years. If you can wait out that five years without liquidating shares, the downturn can end up being mostly irrelevant. Your portfolio will simply return to growth.
For context, the average duration of a bear market is about two years. Two extremes embedded in that average are the five-year bear market that started in 1937 and the Coronavirus-prompted crash that reversed in two months.
2. You can afford to wait
Your timeline defines when you plan on spending your investment wealth. But your cash savings often dictate how long you can afford to wait.
If you don't have cash on hand, you may have to reach into your investment account to cover emergency expenses. That's not ideal when share prices are down. The liquidation will generate less cash than you want. It'll also leave you with fewer shares, which lowers your growth potential in a recovery.
Compare your cash balance to your monthly living expenses. To keep investing comfortably in this market, you should have enough cash to stay afloat for three to six months. If you're short of that benchmark, save extra money in a cash account for now. You can shift back to investing once you have that cash cushion in place.
3. You are comfortable investing in value
When the market struggles, share prices drop across the board. Stocks can lose value even when there's no fundamental change in the underlying business models.
For good companies that keep making money when the market or economy is down, a dip in share price can be a buying opportunity. It's akin to buying last season's designer coat on sale. The company is largely the same, but the price you pay is lower.
Billionaire investor Warren Buffett put this idea into practice in the first quarter of this year. The famous investor took advantage of lower prices on Apple (NASDAQ: AAPL) to buy more than 3.7 million shares. Apple is one of Buffett's favorite stocks -- it accounts for more than 42% of his portfolio.
Keep in mind that this logic doesn't apply universally. Some companies do suffer under temporary external circumstances. Your job is to understand how long any suffering might last, and how that aligns with your investment timeline. A quarter or two of lackluster earnings could be irrelevant when you measure your timeline in years or decades.
4. You believe in recovery upside
The cheaper shares you buy today have huge upside potential in a recovery. To realize that upside, though, you must be confident enough to wait for it -- even when it seems like no one else is.
It may help to remember that the stock market has always recovered from downturns. History doesn't guarantee the future, of course. But the market has shown its resilience time and time again. And the investors who stay invested for decades are often the ones who benefit most.
Positioned for growth
If your finances are strong and you're willing to wait for a turnaround, you're in a good place to keep investing through this market dip. The strategy takes some emotional fortitude, but there is upside. You'll pad your share count for less and position your portfolio for growth when this market turns around.
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Catherine Brock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The famous investor took advantage of lower prices on Apple (NASDAQ: AAPL) to buy more than 3.7 million shares. For good companies that keep making money when the market or economy is down, a dip in share price can be a buying opportunity. Positioned for growth If your finances are strong and you're willing to wait for a turnaround, you're in a good place to keep investing through this market dip. | The famous investor took advantage of lower prices on Apple (NASDAQ: AAPL) to buy more than 3.7 million shares. You believe in recovery upside The cheaper shares you buy today have huge upside potential in a recovery. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | The famous investor took advantage of lower prices on Apple (NASDAQ: AAPL) to buy more than 3.7 million shares. Get your confidence back with these four reasons to continue investing through this stock market dip. For good companies that keep making money when the market or economy is down, a dip in share price can be a buying opportunity. | The famous investor took advantage of lower prices on Apple (NASDAQ: AAPL) to buy more than 3.7 million shares. Times like these can prompt you to doubt your investing approach, or even pause investing temporarily. For good companies that keep making money when the market or economy is down, a dip in share price can be a buying opportunity. |
20729.0 | 2022-06-13 00:00:00 UTC | Rune Labs gets FDA clearance to use Apple Watch to track Parkinson's symptoms | AAPL | https://www.nasdaq.com/articles/rune-labs-gets-fda-clearance-to-use-apple-watch-to-track-parkinsons-symptoms | nan | nan | By Stephen Nellis
June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease.
The Rune Labs software uses the motion sensors built into the Apple Watch, which can already be used to detect when a person falls. Rune Labs Chief Executive Brian Pepin told Reuters in an interview the Apple Watch data will be combined with data from other sources, including a Medtronic MDT.N implant that can measure brain signals.
Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment, an approach called precision medicine. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time.
The Apple Watch will give doctors a continuous stream of observations over long stretches, Pepin said.
"When you think about the process of getting someone to their optimal therapy or combination of drugs or devices, or even whether or not a patient might be a good fit for certain clinical trial, it's a very hard decision to make when you only have a little context," Pepin said.
The Rune Labs FDA clearance is the first prominent use of software tools that Apple released for measuring movement disorders in 2018.
Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. After contacting Apple about the tools, Pepin said "it took about eight minutes for the team lead to get back to me and say, 'Hey, perfect, let's explore this.'"
Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & JohnsonJNJ.N to study whether the watch can be used to help lower stroke risk.
(Reporting by Stephen Nellis in San Francisco; editing by Diane Craft)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. "When you think about the process of getting someone to their optimal therapy or combination of drugs or devices, or even whether or not a patient might be a good fit for certain clinical trial, it's a very hard decision to make when you only have a little context," Pepin said. Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. The Rune Labs FDA clearance is the first prominent use of software tools that Apple released for measuring movement disorders in 2018. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs Chief Executive Brian Pepin told Reuters in an interview the Apple Watch data will be combined with data from other sources, including a Medtronic MDT.N implant that can measure brain signals. Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & JohnsonJNJ.N to study whether the watch can be used to help lower stroke risk. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment, an approach called precision medicine. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. |
20730.0 | 2022-06-13 00:00:00 UTC | US STOCKS-Futures fall on bets of aggressive Fed rate hikes | AAPL | https://www.nasdaq.com/articles/u.s.-stock-futures-fall-on-bets-of-aggressive-fed-rate-hikes | nan | nan | By Sruthi Shankar and Anisha Sircar
June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession.
If current losses hold, the S&P 500 .SPX will open more than 20% below its record closing high of Jan 3, putting the index on track to confirm a bear market for the second time since the pandemic-led rout on Wall Street in 2020.
Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading.
A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. DWATCH>
The two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, a move viewed by many in the market as a reliable signal that a recession could come in the next year or two.US/
"Although tech stocks are more sensitive to long-term yields, the heightened risk of recession is weighing on overvalued stocks," said Raffi Boyadjian, lead investment analyst at brokerage XM.
"The inversion of part of the US yield curve has only made the threat of a recession more real."
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 32.54 points, its highest level since May 19.
At 07:20 a.m. ET (1120 GMT) Dow e-minis 1YMcv1 were down 544 points, or 1.73%, S&P 500 e-minis EScv1 were down 87.25 points, or 2.24%, and Nasdaq 100 e-minis NQcv1 were down 345.25 points, or 2.92%.
The Fed's interest rate decision is due on June 14-15, with focus on the speed and scale of rate hikes that policymakers believe will be needed to quash red-hot inflation.
The central bank's latest projections through 2024 and beyond for economic growth, unemployment and inflation will also come under scrutiny.
Last week, U.S. stocks posted their biggest weekly percentage declines since January on worries over a steeper-than-expected rise in U.S. consumer prices, rising interest rates and the likelihood of a recession.
Cryptocurrency and blockchain-related stocks including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O fell over 15% as bitcoin BTC=BTSP, slumped close to 20% amid a wider selloff.
Inversionhttps://tmsnrt.rs/3zPQQPp
(Reporting by Sruthi Shankar, Anisha Sircar and Devik Jain in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. If current losses hold, the S&P 500 .SPX will open more than 20% below its record closing high of Jan 3, putting the index on track to confirm a bear market for the second time since the pandemic-led rout on Wall Street in 2020. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 32.54 points, its highest level since May 19. |
20731.0 | 2022-06-13 00:00:00 UTC | 7 Stocks to Buy Before the S&P 500 Hits 5,000 | AAPL | https://www.nasdaq.com/articles/7-stocks-to-buy-before-the-sp-500-hits-5000 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors haven’t been looking for S&P stocks to buy since the market’s decline this year. After peaking at around 4,800 the S&P 500 is barely avoiding new lows.
Markets are bracing for hyper-inflationary rates to pressure the Federal Reserve to raise interest rates 50 basis points at a time.
Investors who take a very long-term view of the S&P 500 will treat the current downtrend as a blip when looking for stocks to buy. In the last decade, the index bounced back and found new highs. This time is no different. The central bank will eventually slow the economy down enough to stabilize inflation rates.
7 Great Dividend Stocks Under $25
In addition to investing steadily in the S&P 500 index, investors may pick seven of the best stocks. Many of the top stocks to buy for an S&P rebound are in the technology sector, but there are other companies worth a close look as well.
AMZN Amazon $109.65
AAPL Apple $137.13
AMAT Applied Materials $101.88
COST Costco Wholesale $463.31
MSFT Microsoft $252.99
CRM Salesforce $178.45
Amazon (AMZN)
Source: Sundry Photography / Shutterstock.com
The supposed imminent recession sent shares of Amazon.com (NASDAQ:AMZN) to below $104 (adjusted for the 20-for-1 stock split on June 6) briefly last month before it rebounded. The split alone puts Amazon among the best stocks to buy as retail investors have more and easier access to the new “lower” price.
Investors are confident that the e-commerce giant will thrive despite economic slowdown risks. Consumers will manage their spending carefully. They will visit online stores that help them save money. Amazon will leverage its low-cost fulfillment capabilities, passing its savings to customers.
Six months ago, markets did not worry about Amazon’s prospects when they should have. Now that AMZN stock is below its split-adjusted $188 52-week high, investors should look at its upside optimistically.
The company has a low debt-to-equity of 0.53 times. Its forward price-to-earnings multiple is at historically low levels. The company will remove major uncertainties when it re-adjusts its hiring levels to align with lower demand and book impairment charges.
The increased liquidity may increase its stock volatility. In the second half of the year, markets should expect better consumer discretionary spending. Amazon will run its promotional Prime Day next month. It will have a back-to-school and holiday shopping seasonal lift next.
Apple (AAPL)
Source: dennizn / Shutterstock.com
Markets discounted the valuation of Apple (NASDAQ:AAPL) shares since its peak in December 2021.
Investors are worried that the company will sell fewer expensive iPhones as consumers grapple with inflation. Apple has a supply constraint, not a demand decline. It has billions of dollars worth of sales delayed because of China locking down Shanghai for over two months.
Shanghai is slowly reopening, a process that started on June 1. Apple will guide investors to stronger sales in the second half of the year. This should help AAPL stock from here.
7 of the Hottest ETFs to Buy Right Now
In addition, its services revenue should get strong support as App Store sales recover. Users are unlikely to cut app spending in inflationary times. App prices are too low for consumers to consider.
Among the reasons it is one of the best stocks to buy is that Apple plans to launch augmented reality and virtual reality products. This will re-ignite its product mix. It will diversify the company’s hardware lineup away from smartphones, tablets, computers and smartwatches.
More importantly, users may choose Apple’s AR/VR product over that offered by Meta Platforms (NASDAQ:FB).
Applied Materials (AMAT)
Source: Shutterstock
Applied Materials (NASDAQ:AMAT) posted strong cash flows from operations. It returned $2.01 billion to shareholders through a stock buyback of $1.8 billion and $211 million in dividends.
Applied’s fabrication equipment market will run at around $100 billion levels, it benefits from strong demand. In 2023, the company will execute its long-term capacity and technology roadmap.
Investors are ignoring the persistently strong demand in the years ahead. While the stock underperforms on the market, shareholders get a dividend worth $1.04 a share annually.
Inflation will increase input costs, which Applied Materials may pass on to customers if needed. It will protect its operating margins as it continues selling fabrication equipment to the memory chip suppliers.
Markets are unwilling to look beyond the supply chain constraints that hurt this company’s third-quarter outlook. This miscalculation makes it one of the more intriguing stocks to buy for the long term. Investors should ignore the temporary slowdown. Instead, expect growth to resume as the constraints ease in the quarters ahead.
Costco Wholesale (COST)
Source: ilzesgimene / Shutterstock.com
Costco Wholesale (NASDAQ:COST) posted net sales growth in the double-digit percentage for. Its e-commerce unit grew at a faster pace. In the month, total company sales grew by 11.7%. E-commerce sales rose by 34.4%.
The strong results are impressive, considering Target (NYSE:TGT) and Walmart (NYSE:WMT) posted weak quarterly results. COST stock fell as a result of the bad news from competitors, which makes it one of the more solid stocks to buy on the dip.
To save more money, customers are likely to renew their Costco membership. Renewal rates and membership growth are two trends that shareholders will watch closely. Fortunately, the customer’s urgency to maximize savings should drive membership growth figures in 2022.
7 Top-Rated Large-Cap Stocks to Buy and Hold
Energy inflation will pressure Costco’s expenses. The company will have expense control measures in place to offset gross margin pressures.
For example, it may manage inventory levels to align with customer demand. It also has the option to raise membership rates to offset the impact of higher energy costs.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) recently warned investors that a $460 million impact from foreign exchange rates would hurt its earnings.
This headwind has no effect on its business or its business model. The software firm has multiple catalysts to sustain its growth rates.
Power Apps cater to the mass market. It strengthens Microsoft’s platform by fueling demand. Corporations will need a cloud-based solution by relying on Microsoft’s Azure. Furthermore, they would continue subscribing to the Office software. Customers have no alternative to Office’s functionality and convenience of use.
When times get hard, corporations will need to consolidate their vendor list. They could switch to Microsoft for security, productivity solutions and other cloud offerings.
Since Microsoft offers a superior product, it does not need to give discounts. Providing a profit moat like this makes it among the most stable stocks to buy. This will preserve its healthy profit margins.
In the virtual office space, Microsoft offers Power Teams. Users, who logged onto Microsoft 365, may have Teams meetings while seamlessly using other productivity-related solutions.
Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.com
Salesforce (NYSE:CRM) reported strong first-quarter fiscal 2023 results that reaffirmed cloud computing’s market dominance.
It posted revenue of $7.41 billion, up by 24% year over year. For Q2/2023, Salesforce expects revenue of between $7.69 billion to $7.70 billion, up by 21% year over year. For the full year, it expects revenue of up to $31.8 billion.
Customer demand for Salesforce is rising because of new feature introductions. For example, its engineering team introduced Revenue Intelligence last year. This integrates Tableau and its Sales Cloud. Sales teams have a more efficient way to collect cash quickly.
7 Cheap Growth Stocks That Won't Stay That Way for Long
Salesforce increased its operating margin to 20.4% by unlocking efficiencies across the entire business. Each leader prioritized investments. This resulted in a higher return on investment.
With a tight staff-hiring environment, the company is approaching it at a steady pace.
For example, Salesforce increased resources in customer support first. This ensures its clients get the best support. This strategic investment will lead to higher renewal rates and bigger contracts in the future.
Walt Disney (DIS)
Source: Shutterstock
Walt Disney (NYSE:DIS) offers investors the best of both worlds. The theme parks around the world will benefit from the post-covid reopening.
People who demand online content will subscribe to Disney+. Those who are sensitive to prices could sign up for an ad-supported version at a lower monthly subscription rate.
In the second half of the year, Disney’s streaming service will have new content. It will expand to new markets, increasing its revenue potential. Disney allocated billions to grow its content. As its movie offerings improve, the service will increase its market share. Investors should consider avoiding its competitors and look at DIS stock instead.
The company is willing to run Disney+ at a loss for a few years. It needs to build a strong subscription base before focusing on profitability next.
In the near term, investors should brace for a revenue disruption for Disney’s theme parks. Covid restrictions and lockdowns in Hong Kong and Shanghai, respectively, will weaken attendance. Now that those disruptions are unwinding, revenue in the second half should recover.
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 7 Stocks to Buy Before the S&P 500 Hits 5,000 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. | AMZN Amazon $109.65 AAPL Apple $137.13 AMAT Applied Materials $101.88 COST Costco Wholesale $463.31 MSFT Microsoft $252.99 CRM Salesforce $178.45 Amazon (AMZN) Source: Sundry Photography / Shutterstock.com The supposed imminent recession sent shares of Amazon.com (NASDAQ:AMZN) to below $104 (adjusted for the 20-for-1 stock split on June 6) briefly last month before it rebounded. Apple (AAPL) Source: dennizn / Shutterstock.com Markets discounted the valuation of Apple (NASDAQ:AAPL) shares since its peak in December 2021. This should help AAPL stock from here. | AMZN Amazon $109.65 AAPL Apple $137.13 AMAT Applied Materials $101.88 COST Costco Wholesale $463.31 MSFT Microsoft $252.99 CRM Salesforce $178.45 Amazon (AMZN) Source: Sundry Photography / Shutterstock.com The supposed imminent recession sent shares of Amazon.com (NASDAQ:AMZN) to below $104 (adjusted for the 20-for-1 stock split on June 6) briefly last month before it rebounded. Apple (AAPL) Source: dennizn / Shutterstock.com Markets discounted the valuation of Apple (NASDAQ:AAPL) shares since its peak in December 2021. This should help AAPL stock from here. | AMZN Amazon $109.65 AAPL Apple $137.13 AMAT Applied Materials $101.88 COST Costco Wholesale $463.31 MSFT Microsoft $252.99 CRM Salesforce $178.45 Amazon (AMZN) Source: Sundry Photography / Shutterstock.com The supposed imminent recession sent shares of Amazon.com (NASDAQ:AMZN) to below $104 (adjusted for the 20-for-1 stock split on June 6) briefly last month before it rebounded. Apple (AAPL) Source: dennizn / Shutterstock.com Markets discounted the valuation of Apple (NASDAQ:AAPL) shares since its peak in December 2021. This should help AAPL stock from here. | AMZN Amazon $109.65 AAPL Apple $137.13 AMAT Applied Materials $101.88 COST Costco Wholesale $463.31 MSFT Microsoft $252.99 CRM Salesforce $178.45 Amazon (AMZN) Source: Sundry Photography / Shutterstock.com The supposed imminent recession sent shares of Amazon.com (NASDAQ:AMZN) to below $104 (adjusted for the 20-for-1 stock split on June 6) briefly last month before it rebounded. Apple (AAPL) Source: dennizn / Shutterstock.com Markets discounted the valuation of Apple (NASDAQ:AAPL) shares since its peak in December 2021. This should help AAPL stock from here. |
20732.0 | 2022-06-13 00:00:00 UTC | Dozens of companies, small business groups back U.S. bill to rein in Big Tech | AAPL | https://www.nasdaq.com/articles/dozens-of-companies-small-business-groups-back-u.s.-bill-to-rein-in-big-tech | nan | nan | By Diane Bartz
WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations are sending a letter to U.S. senators on Monday to urge them to support a bill aimed at reining in the biggest tech companies, such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google.
Democratic U.S. Senator Amy Klobuchar and lawmakers from both parties said last week they had the Senate votes needed to pass legislation that would prevent the tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses on their platforms.
The companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms."
Other signatories included the American Booksellers Association, the American Independent Business Alliance, the Institute for Local Self-Reliance and Kelkoo Group.
The organizations urged the Senate to pass the bill, saying it would modernize antitrust laws so smaller companies have space to compete.
Klobuchar said last week she believed she had the 60 Senate votes needed to end debate and move to a vote on final passage. There is a similar bill in the House.
The Senate is expected to vote on the bill this summer, perhaps as early as late June, according to two sources familiar with the matter. The House is then expected to vote on the Senate version, sources said.
Amazon.com, the Chamber of Commerce and others have taken aim at the measure.
The tech giants have said the bill would imperil popular consumer products like Google Maps and Amazon Basics and make it harder for the companies to protect their users' security and privacy.
Amazon has lambasted the bill saying in a blog post the bill "jeopardizes two of the things American consumers love most about Amazon: the vast selection and low prices made possible by opening our store to third-party selling partners, and the promise of fast, free shipping through Amazon Prime."
(Reporting by Diane Bartz Editing by Chris Reese)
((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. | Senator Amy Klobuchar and lawmakers from both parties said last week they had the Senate votes needed to pass legislation that would prevent the tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses on their platforms. The companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms." The organizations urged the Senate to pass the bill, saying it would modernize antitrust laws so smaller companies have space to compete. | Senator Amy Klobuchar and lawmakers from both parties said last week they had the Senate votes needed to pass legislation that would prevent the tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses on their platforms. By Diane Bartz WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations are sending a letter to U.S. senators on Monday to urge them to support a bill aimed at reining in the biggest tech companies, such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google. The organizations urged the Senate to pass the bill, saying it would modernize antitrust laws so smaller companies have space to compete. | Senator Amy Klobuchar and lawmakers from both parties said last week they had the Senate votes needed to pass legislation that would prevent the tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses on their platforms. By Diane Bartz WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations are sending a letter to U.S. senators on Monday to urge them to support a bill aimed at reining in the biggest tech companies, such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google. Amazon has lambasted the bill saying in a blog post the bill "jeopardizes two of the things American consumers love most about Amazon: the vast selection and low prices made possible by opening our store to third-party selling partners, and the promise of fast, free shipping through Amazon Prime." | Senator Amy Klobuchar and lawmakers from both parties said last week they had the Senate votes needed to pass legislation that would prevent the tech platforms, including Apple AAPL.O and Facebook FB.O, from favoring their own businesses on their platforms. By Diane Bartz WASHINGTON, June 13 (Reuters) - Dozens of companies and business organizations are sending a letter to U.S. senators on Monday to urge them to support a bill aimed at reining in the biggest tech companies, such as Amazon.com AMZN.O and Alphabet's GOOGL.O Google. The companies supporting the measure, which include Yelp, Sonos, DuckDuckGo and Spotify, called it a "moderate and sensible bill aimed squarely at well-documented abuses by the very largest online platforms." |
20733.0 | 2022-06-13 00:00:00 UTC | Apple music, gaming to bring in over $8 bln in revenue by 2025, JPM says | AAPL | https://www.nasdaq.com/articles/apple-music-gaming-to-bring-in-over-%248-bln-in-revenue-by-2025-jpm-says | nan | nan | June 13 (Reuters) - Apple Inc's AAPL.O revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as the iPhone maker taps its huge user base to drive its subscription services.
The two services are likely to have a combined subscriber base of about 180 million by 2025 - 110 million for music and 70 million for gaming - boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik Chatterjee.
Apple Music, which was launched in 2015 and is the second-biggest music-streaming service after Spotify Technology SPOT.N, is expected to account for a bigger chunk of that revenue, raking in about $7 billion by 2025, the brokerage said.
Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion.
Apple did not immediately respond to a request for comment.
The company does not give a sales breakup for gaming and music services but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, reported revenue of $19.82 billion for the March quarter. The business is seen as Apple's engine for expansion.
Chatterjee, who is rated five stars for his estimate accuracy on Apple by Refinitiv Eikon, expects the gaming-market size to hit $360 billion by 2028 and music streaming to reach $55 billion by 2025.
(Reporting by Siddarth S and Pushkala Aripaka in Bengaluru; Editing by Anil D'Silva)
((Siddarth.s@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. | June 13 (Reuters) - Apple Inc's AAPL.O revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as the iPhone maker taps its huge user base to drive its subscription services. Apple Music, which was launched in 2015 and is the second-biggest music-streaming service after Spotify Technology SPOT.N, is expected to account for a bigger chunk of that revenue, raking in about $7 billion by 2025, the brokerage said. Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion. | June 13 (Reuters) - Apple Inc's AAPL.O revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as the iPhone maker taps its huge user base to drive its subscription services. The two services are likely to have a combined subscriber base of about 180 million by 2025 - 110 million for music and 70 million for gaming - boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik Chatterjee. Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion. | June 13 (Reuters) - Apple Inc's AAPL.O revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as the iPhone maker taps its huge user base to drive its subscription services. The company does not give a sales breakup for gaming and music services but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, reported revenue of $19.82 billion for the March quarter. Chatterjee, who is rated five stars for his estimate accuracy on Apple by Refinitiv Eikon, expects the gaming-market size to hit $360 billion by 2028 and music streaming to reach $55 billion by 2025. | June 13 (Reuters) - Apple Inc's AAPL.O revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as the iPhone maker taps its huge user base to drive its subscription services. The two services are likely to have a combined subscriber base of about 180 million by 2025 - 110 million for music and 70 million for gaming - boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik Chatterjee. Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion. |
20734.0 | 2022-06-13 00:00:00 UTC | Rune Labs gets FDA clearance to use Apple Watch to track Parkinson's symptoms | AAPL | https://www.nasdaq.com/articles/rune-labs-gets-fda-clearance-to-use-apple-watch-to-track-parkinsons-symptoms-0 | nan | nan | By Stephen Nellis
June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease.
The Rune Labs software uses the motion sensors built into the Apple Watch, which can already be used to detect when a person falls. Rune Labs Chief Executive Brian Pepin told Reuters in an interview the Apple Watch data will be combined with data from other sources, including a Medtronic MDT.N implant that can measure brain signals.
Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment, an approach called precision medicine. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time.
The Apple Watch will give doctors a continuous stream of observations over long stretches, Pepin said.
"When you think about the process of getting someone to their optimal therapy or combination of drugs or devices, or even whether or not a patient might be a good fit for certain clinical trial, it's a very hard decision to make when you only have a little context," Pepin said.
The Rune Labs FDA clearance is the first prominent use of software tools that Apple released for measuring movement disorders in 2018.
Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. After contacting Apple about the tools, Pepin said "it took about eight minutes for the team lead to get back to me and say, 'Hey, perfect, let's explore this.'"
Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & JohnsonJNJ.N to study whether the watch can be used to help lower stroke risk.
(Reporting by Stephen Nellis in San Francisco; editing by Diane Craft)
((Stephen.Nellis@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. "When you think about the process of getting someone to their optimal therapy or combination of drugs or devices, or even whether or not a patient might be a good fit for certain clinical trial, it's a very hard decision to make when you only have a little context," Pepin said. Last year, a group of scientists at Apple published a study in the journal Science Translational Medicine showing the device was effective at monitoring Parkinson's symptoms. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. The Rune Labs FDA clearance is the first prominent use of software tools that Apple released for measuring movement disorders in 2018. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs Chief Executive Brian Pepin told Reuters in an interview the Apple Watch data will be combined with data from other sources, including a Medtronic MDT.N implant that can measure brain signals. Apple has partnered with a range of other companies to use the Apple Watch as a health monitoring device, including a deal with Johnson & JohnsonJNJ.N to study whether the watch can be used to help lower stroke risk. | By Stephen Nellis June 13 (Reuters) - San Francisco-based startup Rune Labs on Monday said it has received clearance from the U.S. Food and Drug Administration to use the Apple Watch to monitor tremors and other common symptoms in patients with Parkinson’s disease. Rune Labs' goal is for doctors to use the combined data to decide whether and how to fine-tune the patients' treatment, an approach called precision medicine. At present, Pepin said, most doctors have to gather data on a patient's movements by observing the patient during a short clinical visit, which is not ideal because Parkinson's symptoms can vary widely over time. |
20735.0 | 2022-06-13 00:00:00 UTC | Technology Sector Update for 06/13/2022: AAPL, PINS, BB, XLK, SOXX | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-06-13-2022%3A-aapl-pins-bb-xlk-soxx | nan | nan | Technology stocks were retreating premarket Monday. The Technology Select Sector SPDR ETF (XLK) was down more than 2% and the Semiconductor Sector Index Fund (SOXX) was slipping past 3% recently.
The Netherlands Authority for Consumers and Markets said Apple (AAPL) has agreed to permit different payment methods for Dutch dating apps, allowing the iPhone maker to meet the requirements that the regulator has set under European and Dutch competition rules. Apple was over 2% lower recently.
Pinterest (PINS) said it has completed the acquisition of The Yes, an artificial intelligence-powered shopping platform. Financial terms were not disclosed. Pinterest was recently down more than 3%.
BlackBerry (BB) said its digital LCD cluster, developed jointly with BiTECH Automotive, will equip Changan Automobile's high-end coupe UNI-V. BlackBerry was slipping past 3% recently.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Netherlands Authority for Consumers and Markets said Apple (AAPL) has agreed to permit different payment methods for Dutch dating apps, allowing the iPhone maker to meet the requirements that the regulator has set under European and Dutch competition rules. Pinterest (PINS) said it has completed the acquisition of The Yes, an artificial intelligence-powered shopping platform. BlackBerry (BB) said its digital LCD cluster, developed jointly with BiTECH Automotive, will equip Changan Automobile's high-end coupe UNI-V. BlackBerry was slipping past 3% recently. | The Netherlands Authority for Consumers and Markets said Apple (AAPL) has agreed to permit different payment methods for Dutch dating apps, allowing the iPhone maker to meet the requirements that the regulator has set under European and Dutch competition rules. The Technology Select Sector SPDR ETF (XLK) was down more than 2% and the Semiconductor Sector Index Fund (SOXX) was slipping past 3% recently. BlackBerry (BB) said its digital LCD cluster, developed jointly with BiTECH Automotive, will equip Changan Automobile's high-end coupe UNI-V. BlackBerry was slipping past 3% recently. | The Netherlands Authority for Consumers and Markets said Apple (AAPL) has agreed to permit different payment methods for Dutch dating apps, allowing the iPhone maker to meet the requirements that the regulator has set under European and Dutch competition rules. The Technology Select Sector SPDR ETF (XLK) was down more than 2% and the Semiconductor Sector Index Fund (SOXX) was slipping past 3% recently. BlackBerry (BB) said its digital LCD cluster, developed jointly with BiTECH Automotive, will equip Changan Automobile's high-end coupe UNI-V. BlackBerry was slipping past 3% recently. | The Netherlands Authority for Consumers and Markets said Apple (AAPL) has agreed to permit different payment methods for Dutch dating apps, allowing the iPhone maker to meet the requirements that the regulator has set under European and Dutch competition rules. Technology stocks were retreating premarket Monday. The Technology Select Sector SPDR ETF (XLK) was down more than 2% and the Semiconductor Sector Index Fund (SOXX) was slipping past 3% recently. |
20736.0 | 2022-06-13 00:00:00 UTC | US STOCKS-S&P 500 on course to confirm bear market as inflation fears mount | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-on-course-to-confirm-bear-market-as-inflation-fears-mount | nan | nan | By Sruthi Shankar, Anisha Sircar and Devik Jain
June 13 (Reuters) - Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession.
The benchmark index is more than 20% below its record closing high of Jan. 3, as worries over inflation, rate hikes and the Ukraine war push it into bear market territory for the second time since the pandemic-led rout on Wall Street in 2020.
Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 1.5% and 3.3%.
A hotter-than-expected inflation print on Friday prompted traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. FEDWATCH
"Across the board there is blinking yellow and perhaps blinking red lights suggesting that inflation is going to be around for some time," said Chris Campbell, chief strategist at Kroll in Miami.
"There was some speculation the Fed may speed up their rate rise, perhaps even to a quarter percent at this next meeting, which I would suggest is not enough to be able to really significantly slow down inflation, but all that means is that there's troubled times ahead for the economy."
The two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, a move viewed by many in the market as a reliable signal that a recession could come in the next year or two.US/
The Fed's interest rate decision is due on June 14-15, with focus on the speed and scale of rate hikes that policymakers believe will be needed to quash red-hot inflation.
The Nasdaq Composite index .IXIC confirmed it was in bear market territory on March 7 and has declined nearly 28% this year.
At 09:56 a.m. the Dow Jones Industrial Average .DJI fell 611.99 points, or 1.95% , to 30,780.80, the S&P 500 .SPX lost 96.57 points, or 2.54%, to 3,801.89 and the Nasdaq Composite .IXIC lost 342.18 points, or 3.02%, to 10,997.85.
All the major S&P sectors were sharply lower, with energy .SPNY, consumer discretionary .SPLRCD and technology .SPLRCT leading the declines.
Financials .SPSY dropped 2%, while banks .SPXBK slid 1.8%.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 32.54 points, its highest level since May 19.
Cryptocurrency- and blockchain-related stocks, including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O, fell between 11.6% and 14.2% as bitcoin BTC=BTSP slumped over 10% amid a wider market selloff.
Declining issues outnumbered advancers by a 20.4-to-1 ratio on the NYSE and by about a 11.3-to-1 ratio on the Nasdaq.
The S&P 500 posted one new 52-week high and 58 new lows, while the Nasdaq recorded 13 new highs and 690 new lows.
Inversionhttps://tmsnrt.rs/3zPQQPp
(Reporting by Sruthi Shankar, Anisha Sircar and Devik Jain in Bengaluru; Editing by Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 1.5% and 3.3%. By Sruthi Shankar, Anisha Sircar and Devik Jain June 13 (Reuters) - Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession. The benchmark index is more than 20% below its record closing high of Jan. 3, as worries over inflation, rate hikes and the Ukraine war push it into bear market territory for the second time since the pandemic-led rout on Wall Street in 2020. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 1.5% and 3.3%. By Sruthi Shankar, Anisha Sircar and Devik Jain June 13 (Reuters) - Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession. The Nasdaq Composite index .IXIC confirmed it was in bear market territory on March 7 and has declined nearly 28% this year. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 1.5% and 3.3%. By Sruthi Shankar, Anisha Sircar and Devik Jain June 13 (Reuters) - Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession. The benchmark index is more than 20% below its record closing high of Jan. 3, as worries over inflation, rate hikes and the Ukraine war push it into bear market territory for the second time since the pandemic-led rout on Wall Street in 2020. | Market heavyweights Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 1.5% and 3.3%. By Sruthi Shankar, Anisha Sircar and Devik Jain June 13 (Reuters) - Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession. The benchmark index is more than 20% below its record closing high of Jan. 3, as worries over inflation, rate hikes and the Ukraine war push it into bear market territory for the second time since the pandemic-led rout on Wall Street in 2020. |
20737.0 | 2022-06-13 00:00:00 UTC | Apple Is Starting to Walk and Talk Like a Bank. Could It Ever Become One? | AAPL | https://www.nasdaq.com/articles/apple-is-starting-to-walk-and-talk-like-a-bank.-could-it-ever-become-one | nan | nan | Apple (NASDAQ: AAPL) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Many have long feared that tech giants like Apple could one day become banks and offer traditional financial services because of their superior customer acquisition and tech capabilities. With Apple continuing to walk and talk more like a bank, could the company ever get a banking charter and become one?
The BNPL offering
Customers who use Apple's wallet app to purchase items will have the option to put no money down and pay off the purchase through multiple installment payments with no extra fees or interest attached. The buy now, pay later payment format has become wildly popular among consumers and also has helped merchants increase sales.
Image source: Getty Images.
To start, this will be a challenge to others in the BNPL space because of how well integrated the offering is. But Apple is also planning to fund the loans from its own balance sheet and make loan underwriting decisions through its own subsidiary, called Apple Financing. Typically, a lot of consumer tech companies will turn to partner banks to help them set up this kind of infrastructure, which is why this announcement has attracted so much interest.
Apple is still partnering with Mastercard to help it set up its BNPL offering. Mastercard has a white-label product and still communicates with the vendors to make the process possible. Goldman Sachs is the issuer of Apple's credit card. Apple Financing has also apparently obtained all of the necessary state licenses to issue the BNPL loans.
Getting a bank charter
While it's very uncommon for a large tech company to outright obtain a bank charter, large payments and tech company Block did manage to obtain an industrial bank charter after a very lengthy process. An industrial bank charter is for a state-chartered bank with insurance from the Federal Deposit Insurance Corp. (FDIC), but it is a bit more limited in nature.
So, while Apple could try to pursue a bank charter, I doubt it would, given how long the process might take and the pushback it might receive from the banking industry and other regulators due to antitrust concerns. With more than 1.8 billion active iPhones, if Apple did ever pursue a charter and get more involved in traditional banking services, there could be concerns over data privacy.
A recent example that comes to mind is Meta Platforms' foray into stablecoins, which are digital assets pegged to a commodity or fiat currency. Meta for years sank time and resources into building a U.S. dollar-backed stablecoin called Diem, but kept running into regulatory issues. The company tried partnering with an issuing bank for the token but eventually ended up selling the project. Many surmise that regulatory issues were the primary reason for the sale.
Finally, keep in mind that banking is a very heavily regulated industry, with most banks having three regulators. Even Block, with its industrial charter, is still regulated by the FDIC and the Utah Department of Financial Institutions. And then once a company is a bank, it has to raise and hold regulatory capital, which investors are not always so thrilled about.
Will it ever happen?
I find it unlikely that Apple would ever pursue a bank charter due to pushback from regulators, the lengthy application process, and the need to hold regulatory capital. But perhaps after setting up and running some of its banking infrastructure, Apple will get more interested, especially if it sees serious profit potential. But even without getting a charter, the fact that Apple is bringing its loan underwriting under its roof will give the company more data on its consumers' finances, which could embolden Apple to offer even more financial services in the future.
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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) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Typically, a lot of consumer tech companies will turn to partner banks to help them set up this kind of infrastructure, which is why this announcement has attracted so much interest. Meta for years sank time and resources into building a U.S. dollar-backed stablecoin called Diem, but kept running into regulatory issues. | Apple (NASDAQ: AAPL) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Getting a bank charter While it's very uncommon for a large tech company to outright obtain a bank charter, large payments and tech company Block did manage to obtain an industrial bank charter after a very lengthy process. The Motley Fool has positions in and recommends Apple, Block, Inc., Goldman Sachs, Mastercard, and Meta Platforms, Inc. | Apple (NASDAQ: AAPL) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Getting a bank charter While it's very uncommon for a large tech company to outright obtain a bank charter, large payments and tech company Block did manage to obtain an industrial bank charter after a very lengthy process. So, while Apple could try to pursue a bank charter, I doubt it would, given how long the process might take and the pushback it might receive from the banking industry and other regulators due to antitrust concerns. | Apple (NASDAQ: AAPL) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Apple is still partnering with Mastercard to help it set up its BNPL offering. The Motley Fool has positions in and recommends Apple, Block, Inc., Goldman Sachs, Mastercard, and Meta Platforms, Inc. |
20738.0 | 2022-06-12 00:00:00 UTC | Buy Snap Stock When There’s Blood in the Street | AAPL | https://www.nasdaq.com/articles/buy-snap-stock-when-theres-blood-in-the-street | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Snap (NYSE:SNAP) has seen the type of decline one rarely sees in a company that’s done as well as it has. Snap stock has fallen 84% from its all-time high, which came just nine month ago in September. This name has lived and died by its earnings reports.
In July 2021, shares erupted 24% on a strong report, then plunged 27% in October on earnings. The stock fell hard after management said it did not navigate Apple’s (NASDAQ:AAPL) user-privacy changes that well.
Then as Snap stock was cratering in February — and on the heels of a bad report from Meta (NASDAQ:META) — shares rose 59% on strong earnings, followed by a modest gain on earnings in April. Prior to that 1.1% gain, shares fell more than 20% in after-hours trading.
While management called it a “challenging” environment, they were optimistic. That optimism faded pretty quickly, as shares plunged 43% in a single day following an earnings and revenue update. Management said those metrics would come in below the low-end of the prior range given about a month ago, as “the macroeconomic environment has deteriorated further and faster than anticipated.”
Clearly, Snap’s management isn’t good for guidance or long-term outlooks! But that doesn’t make its business worthless.
Ticker Company Current Price
SNAP Snap $13.28
Forget About Guidance For a Minute
Snap lost 2 cents a share last quarter. In the prior six quarters, the company turned in breakeven or better results. In the prior quarter — the one reported in February — Snap reported its first quarter of positive net income. Further, Snap became free cash flow (FCF) positive last year. On a trailing 12-month basis, the company has generated just $203 million in FCF. Last quarter alone, Snap generated more than $100 in FCF.
Further, daily active users (DAUs) increased 18% year-over-year to 332 million last quarter. Name another social media stock with 18% user growth right now.
Twitter (NYSE:TWTR) grew monetizable daily active users (mDAU) 15.9% in the quarter. But mDAU is defined differently than DAU. Not to mention Twitter has the whole Elon Musk hoopla going on and had to restate its user growth after miscounting it for almost three years.
Snap is not perfect — clearly — but it’s still growing its user base.
Leaning on estimates is a dangerous thing to do — especially in this case — so I would take them with a grain of salt. However, analysts still expect Snap to be profitable this year and generate even more earnings in 2023. Expectations call for earnings to be halved this year versus 2021, but almost triple in 2023.
On the revenue front, analysts still expect 23% growth this year and an acceleration up to 36% growth in 2023. Estimates are quite optimistic for 2024 and 2025, too. If they come to fruition — which is a big “if” — we’re talking about a company that did $4.12 billion in sales in 2021 to one that would be approaching $12 billion in 2025.
Is Snap Stock Worth the Risk?
On the one hand, the future looks bright. Because it’s the future though, it’s not guaranteed. On the other hand, we have the present, and in the present, we know there’s some deterioration. The question is, has that been priced into SNAP stock?
At the end of the day, Snap trades at a similar price-to-sales ratio as its peers (although it’s cheaper than Twitter). That said, it’s not as profitable as its peers, hence the price-to-sales ratio rather than price-to-earnings. When it comes to gross margins, it’s down near Twitter’s profile (in the 60% range) rather than up near industry leaders like Meta and Pinterest (NYSE:PINS) (at or above 80%).
Again, we’ve established that Snap is not perfect. In a recessionary environment, that’s not good. Stocks are going to get sold in those environments and those without profits will suffer more than those that do. That’s a general rule of thumb. That said, it’s hard to deny the growth with Snap — both in regards to its users and its revenue. As its revenue continues to climb alongside free cash flow, the door to profitability opens up.
The question becomes this: After an 84% dip in Snap stock, is the risk worth it?
A Look at the Chart
Click to Enlarge
Source: Chart courtesy of TrendSpider
Aggressive bulls can be long on this current dip, but I’d keep a careful eye on the May 24 low at $12.55. A close below that level can start opening up more downside potential, like $10 or lower. Remember, this stock sank to $7.89 in March 2020. That’s not to say it will go there again, but in a bearish environment, who’s to say it won’t?
While that’s 91% below the high — just slightly worse than the 85% peak-to-trough drop Snap sports now — it would mean a 41% decline from current levels.
Outside of that setup, I would be dollar-cost-averaging below $10. That to me represents value in a long-term growth vehicle. On the upside, traders should keep an eye on $20, then on the $24 to $25 area.
On the date of publication, Bret Kenwell held a long position in PINS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Buy Snap Stock When There’s Blood in the Street appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock fell hard after management said it did not navigate Apple’s (NASDAQ:AAPL) user-privacy changes that well. That optimism faded pretty quickly, as shares plunged 43% in a single day following an earnings and revenue update. When it comes to gross margins, it’s down near Twitter’s profile (in the 60% range) rather than up near industry leaders like Meta and Pinterest (NYSE:PINS) (at or above 80%). | The stock fell hard after management said it did not navigate Apple’s (NASDAQ:AAPL) user-privacy changes that well. Then as Snap stock was cratering in February — and on the heels of a bad report from Meta (NASDAQ:META) — shares rose 59% on strong earnings, followed by a modest gain on earnings in April. In the prior quarter — the one reported in February — Snap reported its first quarter of positive net income. | The stock fell hard after management said it did not navigate Apple’s (NASDAQ:AAPL) user-privacy changes that well. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap (NYSE:SNAP) has seen the type of decline one rarely sees in a company that’s done as well as it has. Then as Snap stock was cratering in February — and on the heels of a bad report from Meta (NASDAQ:META) — shares rose 59% on strong earnings, followed by a modest gain on earnings in April. | The stock fell hard after management said it did not navigate Apple’s (NASDAQ:AAPL) user-privacy changes that well. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap (NYSE:SNAP) has seen the type of decline one rarely sees in a company that’s done as well as it has. While management called it a “challenging” environment, they were optimistic. |
20739.0 | 2022-06-12 00:00:00 UTC | Why Is Baidu Stock Rallying? | AAPL | https://www.nasdaq.com/articles/why-is-baidu-stock-rallying | nan | nan | Chinese search engine behemoth Baidu’s stock (NASDAQ: BIDU) has witnessed a solid rally over the last month, gaining over 40%, compared to the broader S&P 500 which was up about 4% over the same period. However, the stock still remains down by about 18% over the past year, and by almost 55% from all-time highs seen in early 2021. So what’s driving the recent gains and will the momentum hold up for Baidu?
There are a couple of factors driving the recent gains. Firstly, Baidu posted a better than expected set of Q1 2022 results, as demand for its cloud and artificial intelligence products remained strong, although the ad-driven search business faced pressures due to macro headwinds and weaker consumer spending. Revenue for the quarter rose by 1% year-over-year to 28.4 billion yuan ($4.48 billion) with revenue for the Baidu AI Cloud rising 45% year-over-year. Adjusted earnings were also well ahead of consensus estimates, due to the company’s strong cost management.
There have also been signs that the Chinese government’s crackdown on the tech sector could ease. In mid-May, Chinese Vice Premier Liu He indicated that the country would “properly manage” the relationship between the Chinese government and the industry while supporting the listing of technology companies on domestic and foreign exchanges. This could reduce fears of further regulatory pressure on China’s big tech space while giving investors some confidence about the future of stocks listed on U.S. exchanges. Baidu, for instance, was placed on a provisional watchlist of foreign companies that might face delisting from U.S. exchanges earlier this year. There are hopes that economic growth in China could also pick up as the government looks to ease the strict lockdowns and harsh zero-Covid policies that it imposed in multiple cities and provinces following a surge in Covid-19 cases in recent months. This could also be seen as a positive sign for the economy and high-profile tech players such as Baidu.
To be sure, there are still multiple risks for the company. There are concerns about economic growth even as China emerges from the Covid-19 lockdowns, given the weak real estate market, high commodity prices, and trade tensions with the U.S. Competition is also mounting in fast-growing areas such as cloud computing, with the likes of Alibaba, Tencent, and Huawei also offering compelling services. However, we still believe that Baidu’s stock is undervalued. At its current market price of about $153 per share, Baidu trades at just about 21x 2023 earnings. The multiple falls to just over 10x if we exclude Baidu’s sizable $25 billion-plus in cash holdings, which account for roughly half its overall valuation. Baidu is still expected to grow at a reasonable pace in the coming years. Consensus estimates point to over 4% growth for 2022, due to headwinds in China, although growth is expected to pick up to about 14% in 2023.
We estimate Baidu valuation at about $204 per share indicating a potential upside of 33% over the market price. See our analysis of Baidu revenues for more details on how Baidu’s revenues are likely to trend.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BIDU Return 9% 3% -7%
S&P 500 Return 1% -13% 86%
Trefis Multi-Strategy Portfolio 2% -18% 224%
[1] Month-to-date and year-to-date as of 6/9/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Firstly, Baidu posted a better than expected set of Q1 2022 results, as demand for its cloud and artificial intelligence products remained strong, although the ad-driven search business faced pressures due to macro headwinds and weaker consumer spending. There are hopes that economic growth in China could also pick up as the government looks to ease the strict lockdowns and harsh zero-Covid policies that it imposed in multiple cities and provinces following a surge in Covid-19 cases in recent months. There are concerns about economic growth even as China emerges from the Covid-19 lockdowns, given the weak real estate market, high commodity prices, and trade tensions with the U.S. Competition is also mounting in fast-growing areas such as cloud computing, with the likes of Alibaba, Tencent, and Huawei also offering compelling services. | Chinese search engine behemoth Baidu’s stock (NASDAQ: BIDU) has witnessed a solid rally over the last month, gaining over 40%, compared to the broader S&P 500 which was up about 4% over the same period. Consensus estimates point to over 4% growth for 2022, due to headwinds in China, although growth is expected to pick up to about 14% in 2023. Total [2] BIDU Return 9% 3% -7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 2% -18% 224% [1] Month-to-date and year-to-date as of 6/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Firstly, Baidu posted a better than expected set of Q1 2022 results, as demand for its cloud and artificial intelligence products remained strong, although the ad-driven search business faced pressures due to macro headwinds and weaker consumer spending. See our analysis of Baidu revenues for more details on how Baidu’s revenues are likely to trend. Total [2] BIDU Return 9% 3% -7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 2% -18% 224% [1] Month-to-date and year-to-date as of 6/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adjusted earnings were also well ahead of consensus estimates, due to the company’s strong cost management. There have also been signs that the Chinese government’s crackdown on the tech sector could ease. Total [2] BIDU Return 9% 3% -7% S&P 500 Return 1% -13% 86% Trefis Multi-Strategy Portfolio 2% -18% 224% [1] Month-to-date and year-to-date as of 6/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20740.0 | 2022-06-12 00:00:00 UTC | Staying the Course With FuboTV Stock May be the Least Bad Option | AAPL | https://www.nasdaq.com/articles/staying-the-course-with-fubotv-stock-may-be-the-least-bad-option | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
FuboTV (NYSE:FUBO) has been clobbered over the past year, falling 90%
It’s possible shares are forming a bottom, but Q2 earnings present a potential downside catalyst
New money should avoid FUBO stock, but current investors may want to hang on
Source: Burdun Iliya / Shutterstock.com
FuboTV (NYSE:FUBO) has plummeted 90% in the past year and more than 80% so far in 2022. However, it’s not FuboTV’s fault its shares got caught up in the irrational exuberance of the meme stock movement. FUBO stock also suffered from negative sentiment surrounding streaming stocks that started with Netflix’s (NASDAQ:NFLX) subscriber miss earlier this year.
One of the criticisms of FuboTV is that, while a streaming service, it doesn’t differentiate itself from traditional cable TV. The cord-cutting trend and shift to streaming are largely about people paying for the content they really want. For many consumers, that means live sports. And that’s where FuboTV stands out.
Plus, as Fubo management pointed out in their letter to shareholders, for many consumers the proliferation of streaming services and related content has reinforced the “linear bundle” they had with traditional cable TV. If this turns out to be a trend, FuboTV is well-positioned to capture these users.
With FUBO stock now in penny stock territory, it could be worth keeping shares if you already own them. But further downside is not out of the question.
FUBO FuboTV $2.96
Other Streaming Services Are Going Below the Line
When I worked in marketing communications, I became familiar with the phrase “below the line.” That meant boutique agencies could capture work from clients that would be unprofitable for larger, national agencies. The pie was big enough to go around unless the larger agencies went after this work. Then, it was harder for smaller agencies to compete.
In a similar vein, the biggest threat I see to services like FuboTV is the ability of companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) to go after streaming content for major sports. For example, Amazon won the rights to the National Football League’s (NFL) “Thursday Night Football” package. Apple has made inroads with Major League Baseball and is one of many companies in contention to capture the NFL “Sunday Ticket” package once the league’s contract with DirecTV expires in 2023.
Right now, this only has a marginal impact on FuboTV. However, many professional sports leagues are making it clear that they plan to engage more with streaming services, not less. So it’s something to watch closely.
Should You Gamble on FuboTV’s Sportsbook?
I’ve made it no secret that FuboTV’s integrated sportsbook is at the core of my reasoning for taking a small position in FUBO stock. Fubo has the “only owned-and-operated app in the U.S. that syncs live sports viewing and wagering in a single ecosystem.”
Furthermore, the company notes that “crossover users (those who are both video subscribers and sportsbook players) are placing more bets and retaining at higher rates than sportsbook-only players, and our data continues to support our thesis around the strength of a fully-integrated experience.”
That being said, the sportsbook is only live in two states — Iowa and Arizona — although it has access deals in 10 states. And the sportsbook doesn’t excite InvestorPlace’s Louis Navellier, who points out that there are other sportsbooks already grabbing significant market share.
However, just like streaming services, there’s room for more than one platform. And if a sports betting enthusiast is already using the FuboTV service, it seems likely they will use the sportsbook service as well.
What Should You Do With FUBO Stock?
Over the past month, it looks like FUBO stock is forming a bottom. However, many analysts expect stocks to have another leg down after companies report second-quarter earnings. That means there may be more pain to come for FuboTV shareholders, particularly if the company continues to adjust its guidance lower.
However, the consensus opinion of 11 analysts, according to TipRanks, gives the stock a $7.75 price target. That’s more than 160% above the current price. And the highest target of $20 per share would represent a gain of around 575%.
With that said, FUBO stock is a high-beta stock with a significant amount of short interest. If you don’t have a position already, there are better places to deploy your capital. If you have a small position, as I do, it may be worth hanging around to see if the outlook changes.
On the date of publication, Chris Markoch had a long position in FUBO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Staying the Course With FuboTV Stock May be the Least Bad Option 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 a similar vein, the biggest threat I see to services like FuboTV is the ability of companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) to go after streaming content for major sports. Plus, as Fubo management pointed out in their letter to shareholders, for many consumers the proliferation of streaming services and related content has reinforced the “linear bundle” they had with traditional cable TV. I’ve made it no secret that FuboTV’s integrated sportsbook is at the core of my reasoning for taking a small position in FUBO stock. | In a similar vein, the biggest threat I see to services like FuboTV is the ability of companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) to go after streaming content for major sports. InvestorPlace - Stock Market News, Stock Advice & Trading Tips FuboTV (NYSE:FUBO) has been clobbered over the past year, falling 90% It’s possible shares are forming a bottom, but Q2 earnings present a potential downside catalyst New money should avoid FUBO stock, but current investors may want to hang on Source: Burdun Iliya / Shutterstock.com FuboTV (NYSE:FUBO) has plummeted 90% in the past year and more than 80% so far in 2022. For many consumers, that means live sports. | In a similar vein, the biggest threat I see to services like FuboTV is the ability of companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) to go after streaming content for major sports. InvestorPlace - Stock Market News, Stock Advice & Trading Tips FuboTV (NYSE:FUBO) has been clobbered over the past year, falling 90% It’s possible shares are forming a bottom, but Q2 earnings present a potential downside catalyst New money should avoid FUBO stock, but current investors may want to hang on Source: Burdun Iliya / Shutterstock.com FuboTV (NYSE:FUBO) has plummeted 90% in the past year and more than 80% so far in 2022. FUBO FuboTV $2.96 Other Streaming Services Are Going Below the Line When I worked in marketing communications, I became familiar with the phrase “below the line.” That meant boutique agencies could capture work from clients that would be unprofitable for larger, national agencies. | In a similar vein, the biggest threat I see to services like FuboTV is the ability of companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) to go after streaming content for major sports. And if a sports betting enthusiast is already using the FuboTV service, it seems likely they will use the sportsbook service as well. What Should You Do With FUBO Stock? |
20741.0 | 2022-06-12 00:00:00 UTC | 2 Warren Buffett Stocks to Buy Now and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-now-and-hold-forever-0 | nan | nan | When it comes to following famous investors, track records matter. After 57 years as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett's track record is about as long as they get. It's also, quite possibly, the most successful investment record in history.
When Buffett took the helm in 1965, Berkshire Hathaway was trading for just $19 per share. Berkshire's Class A shares (BRK.A) have been trading at an eye-popping $478,670 lately. From 1965 through the end of 2021, shares of the sprawling conglomerate generated a compound annual return of 20.1% compared to just 10.5% for the benchmark S&P 500 index.
Riding on Buffett's coattails has been a successful strategy for longer than most of us have been alive. Clearly, paying attention to Berkshire Hathaway's disclosures can pay off well for patient investors.
Apple
Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. Buffett is famously uncomfortable with tech stocks, but he gladly tells anyone who will listen that Apple is a favorite thanks to some impenetrable competitive advantages.
The iPhone has been the single most popular handheld device since it launched in 2007. It's still in a league of its own thanks to an operating system the company doesn't allow other manufacturers to access the way Alphabet licenses Android.
The pricing power Apple enjoys on its devices is significant, but it isn't going to be the company's main source of profits in the years ahead. Buffett can't get enough of Apple right now because he expects its services segment to continue growing at a strong pace for many years to come. During the fiscal second quarter ended March 26, 2022, services revenue grew 17% year over year to $19.8 billion.
If you're holding one of more than 1 billion active iPhones at the moment, and you initially subscribed to an application through the App Store, Apple most likely keeps between 15% and 30% of your subscription fees. Apple generates revenue from more services than its App Store and it runs them well. For example, Apple TV+ recently beat Netflix to become the first streaming service to win an Academy Award for Best Picture.
Buffett also adores Apple's commitment to returning its profits to shareholders. In April, Apple's board of directors raised its repurchase program by $90 billion and the company also nudged its quarterly cash dividend 4.5% higher. During the first half of fiscal 2022, the company bought and retired $43 billion worth of its own stock. With a new $90 billion authorization, this pace could accelerate.
Amazon.com
In 2019, Berkshire Hathaway began accumulating Amazon.com (NASDAQ: AMZN) shares. The stock shot higher during the early days of the pandemic, but it's been beaten down by around 41% from the peak it reached last summer. Heavy investment in fulfillment services that were necessary to meet exploding demand in 2020 and 2021 led to a net loss of $3.8 billion in the first quarter of 2022.
At just 0.4% of the overall portfolio, Berkshire's Amazon stake is a relatively minor one. In the months ahead, though, I expect to the size of this stake to increase significantly. According to the U.S. Census Bureau, e-commerce accounted for less than 15% of total retail sales during the first quarter, giving Amazon's consumer business plenty of room to grow.
Amazon's greatest strength is its ability to turn challenges into successful new businesses. For example, the company had to invest heavily in internet infrastructure to run its online shopping business. Instead of chafing at its own expenses, the company leaned in and later launched Amazon Web Services (AWS) in 2006. Now, AWS is the company's most profitable segment. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income.
Amazon's consumer business has been in its present position before. The big difference now is that the company is supported by positive cash flows from other parts of its increasingly diverse operation. With the means to support the consumer business on its path back to profitability, this is a great stock to buy and hold for the long run.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. 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 Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. In April, Apple's board of directors raised its repurchase program by $90 billion and the company also nudged its quarterly cash dividend 4.5% higher. According to the U.S. Census Bureau, e-commerce accounted for less than 15% of total retail sales during the first quarter, giving Amazon's consumer business plenty of room to grow. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. After 57 years as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett's track record is about as long as they get. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. It's also, quite possibly, the most successful investment record in history. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income. |
20742.0 | 2022-06-12 00:00:00 UTC | Looking for Passive Income? Buy These 3 Top Tech Stocks | AAPL | https://www.nasdaq.com/articles/looking-for-passive-income-buy-these-3-top-tech-stocks | nan | nan | Passive income -- money you can earn with little to no effort -- is one key to achieving financial flexibility, and dividend-paying stocks are a top choice for those who seek it. Plenty of companies out there reliably distribute some of their earnings to shareholders every quarter.
After the drubbing the stock market took in the first half of 2022, even some growing tech companies are priced such that their dividends offer lucrative yields. If you're looking for fantastic long-term passive income plays in this market, three Fool.com contributors think Texas Instruments (NASDAQ: TXN), Logitech International (NASDAQ: LOGI), and Qualcomm (NASDAQ: QCOM) should be on your radar.
This semiconductor giant has increased its dividend 50-fold over the past 17 years
Billy Duberstein (Texas Instruments): In this time of uncertainty and rising interest rates, what would investors find attractive in an income-producing asset? Defensive characteristics, a meaningful yield supported by high free cash flow, and the potential to grow through a potential downturn.
Semiconductor giant Texas Instruments has these characteristics in spades. First, the company has been around since 1930, so it's a survivor. It also has a really impressive culture and a record of adaptability. Yet even after 92 years, Texas Instruments still grew revenue by 14% year over year last quarter, and its earnings per share rose by 26%. It also has incredibly high margins, with an operating margin exceeding 51% over the past 12 months, and a 68% return on equity. That's in part due to the company's competitive advantages in 300mm manufacturing, its deep customer relationships, and broad cross-selling opportunities.
These super-high profitability metrics have allowed Texas Instruments to grow its free cash flow per share at a 12% annualized rate since 2004, and have allowed management to increase its dividend payouts at an even higher 25% annualized rate over that time. That's more than a 50-fold increase in the company's dividend since 2004. At today's share price, it yields 2.75%. While I don't expect TI's payouts to grow by another 50-fold over the next 17 years, I still expect them to grow significantly.
Texas Instruments produces a very broad set of mission-critical analog and embedded chips for a wide array of customers and industries. As part of its long-term strategy, it has targeted the industrial and automotive segments over the past decade. That's because industrial machines and automobiles contain more and more semiconductor content with each generation, propelling TI's long-term growth. Last year, sales for industrial and automotive applications accounted for 62% of its revenue, up from 42% in 2013.
With booming demand for auto and industrial chips today, Texas Instruments is investing in the future. It has two plants coming online in the near term, its RFAB2 facility in Texas later this year, and its Lehi fab in Utah early next year. Moreover, TI began construction of a giant new four-fab complex in Sherman, Texas, that's set to come online in 2025. When those facilities are producing, growth should follow -- and high-margin growth at that.
With a solid yield, a reasonable price-to-earnings ratio in the high teens, and solid growth prospects over at least the next decade, Texas Instruments is a sleep-at-night semiconductor stock that should pay shareholders more in dividends each and every year.
Just one check a year, but it's a generous one
Anders Bylund (Logitech International): Computer accessories maker Logitech International runs an unusual dividend program. Instead of distributing payouts every quarter as most U.S. dividend payers do, this Swiss company issues them just once a year. But those annual checks are juicy, and management has been increasing the payouts every year since 2014.
Logitech's payouts have more than quadrupled from $0.23 per share in 2013 to $1.05 per share in September's pre-announced issue. This year, it's coming through with a 10% step-up. Shareholders still have to approve the proposed payout at Logitech's annual meeting earlier that month, but I see no reason why they would reject it.
It's true that Logitech's business is sputtering in 2022. The company has absorbed higher costs for freight transport and rising component prices, along with manufacturing halts due to COVID-19 lockdowns in China. Then again, every company is dealing with those issues now, and Logitech still generated $100 million in operating cash flow during its fiscal 2022 fourth quarter, which ended on March 31. That's more than enough to keep its dividend payouts rolling -- those amounted to $159 million in fiscal 2022, while its operating cash flows added up to $298 million.
So Logitech delivers a robust and growing dividend with an effective yield of 1.7% at today's share price, fully financed by incoming cash flows even during a challenging period. Meanwhile, the stock trades nearly 60% below its 52-week high at a valuation of just 11 times forward earnings estimates. What's not to love? Buy this stock at a discount, and start collecting those generous dividends as they grow larger year by year.
Income and growth from the leader in mobility
Nicholas Rossolillo (Qualcomm): If you're looking for a semiconductor company that's well-entrenched in the fabric of the economy, look no further than Qualcomm. Sure, a lot of investors focus on Apple's (NASDAQ: AAPL) decision to start developing its own chips, and other tech giants have begun experimenting with in-house designs, too. But there's good reason why Qualcomm remains so dominant in the mobile chip world. It's been doing this for decades and has a technological edge over its competitors.
Of course, a consumer goods-centric business like Qualcomm's can have issues. Smartphone and tablet sales are highly cyclical, and the company's booming growth over the last couple of years can be chalked up to a tidal wave of upgrades to 5G network-ready devices. Most of the world has yet to upgrade to devices that use the faster new wireless tech, but eventually, the 5G growth cycle will fade.
But today's Qualcomm is not the Qualcomm of the 2010s. Under the leadership of CEO Cristiano Amon and CFO Akash Palkhiwala, it's charging into new arenas like industrial IoT and the automotive sector. Each of these segments currently accounts for a fairly small portion of its sales. IoT contributed 15% of revenue in the last quarter (including its licensing and royalty business), and automotive was just 3%. However, year over year, IoT sales grew by 61%, and automotive sales rose by 41%.
Beyond providing it with growth opportunities, many of these new markets carry even higher profit margins for Qualcomm, which should provide a further boost to its already-lucrative operating profit margin of 31% over the last 12 months.
Qualcomm's dividend at current share prices yields 2.2%, and it bought back $951 million worth of its stock last quarter alone. If passive income is what you're after, this stock should rank high on your short list of investment options.
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Anders Bylund has no position in any of the stocks mentioned. Billy Duberstein has positions in Apple and Texas Instruments. His clients may have positions in the companies mentioned. Nicholas Rossolillo has positions in Apple and Qualcomm. His clients may have positions in the companies mentioned. The Motley Fool has positions in and recommends Apple, Logitech International, Qualcomm, and Texas Instruments. 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. | Sure, a lot of investors focus on Apple's (NASDAQ: AAPL) decision to start developing its own chips, and other tech giants have begun experimenting with in-house designs, too. This semiconductor giant has increased its dividend 50-fold over the past 17 years Billy Duberstein (Texas Instruments): In this time of uncertainty and rising interest rates, what would investors find attractive in an income-producing asset? So Logitech delivers a robust and growing dividend with an effective yield of 1.7% at today's share price, fully financed by incoming cash flows even during a challenging period. | Sure, a lot of investors focus on Apple's (NASDAQ: AAPL) decision to start developing its own chips, and other tech giants have begun experimenting with in-house designs, too. This semiconductor giant has increased its dividend 50-fold over the past 17 years Billy Duberstein (Texas Instruments): In this time of uncertainty and rising interest rates, what would investors find attractive in an income-producing asset? These super-high profitability metrics have allowed Texas Instruments to grow its free cash flow per share at a 12% annualized rate since 2004, and have allowed management to increase its dividend payouts at an even higher 25% annualized rate over that time. | Sure, a lot of investors focus on Apple's (NASDAQ: AAPL) decision to start developing its own chips, and other tech giants have begun experimenting with in-house designs, too. Yet even after 92 years, Texas Instruments still grew revenue by 14% year over year last quarter, and its earnings per share rose by 26%. These super-high profitability metrics have allowed Texas Instruments to grow its free cash flow per share at a 12% annualized rate since 2004, and have allowed management to increase its dividend payouts at an even higher 25% annualized rate over that time. | Sure, a lot of investors focus on Apple's (NASDAQ: AAPL) decision to start developing its own chips, and other tech giants have begun experimenting with in-house designs, too. If you're looking for fantastic long-term passive income plays in this market, three Fool.com contributors think Texas Instruments (NASDAQ: TXN), Logitech International (NASDAQ: LOGI), and Qualcomm (NASDAQ: QCOM) should be on your radar. Yet even after 92 years, Texas Instruments still grew revenue by 14% year over year last quarter, and its earnings per share rose by 26%. |
20743.0 | 2022-06-12 00:00:00 UTC | 3 Things to Watch in the Stock Market This Week | AAPL | https://www.nasdaq.com/articles/3-things-to-watch-in-the-stock-market-this-week-26 | nan | nan | It was another tough time for investors last week, as both the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) shed 5%. Most of that decline came following news that inflation was still running near a 40-year high, suggesting further aggressive interest-rate increases on the way from the Federal Reserve.
Many individual stocks performed better, though, especially in the case of positive earnings announcements. With that in mind, let's preview reports on the way this week from Kroger (NYSE: KR), Jabil (NYSE: JBL), and Adobe (NASDAQ: ADBE).
1. Kroger's profit outlook
Kroger's stock took a hit after rival Walmart (NYSE: WMT) lowered its 2022 earnings outlook last month, and we'll learn on Thursday whether the supermarket chain avoided those profit challenges.
There are good reasons to believe Kroger can outperform its bigger rival. The chain closed the growth gap last quarter, in part thanks to excitement around its fresh produce and prepared food niches. Follow comparable-store sales for signs that Kroger is gaining market share. That metric rose 3% in Walmart's last report.
Kroger navigated through soaring costs in early 2022, and investors are hoping that it can extend that positive momentum in this report with help from its vertically integrated supply chain.
When costs are spiking, it's handy to own your own dairy farm, trucking company, and retailing network. Follow Kroger's earnings outlook, which currently calls for a big annual profit boost, for evidence of continued pricing power.
2. Jabil's operating margin
Electronics manufacturing specialist Jabil will announce its latest earnings results on Thursday, and investors have big questions heading into the report. The company trounced expectations at its last outing, which showed an 11% sales boost. Even more impressive was Jabil's 23% increase in earnings per share.
Follow Jabil's operating profit margin for signs that the company is still benefiting rising demand in the smartphone, cloud services, and automotive niches. That metric was below 5% of sales last quarter but has the potential to rise with increased prices.
Jabil raised its 2022 outlook back in March, and management now sees revenue landing at $32.6 billion, or about 11% higher than 2021. The big question is how its partnership with Apple might set it up for even faster gains down the line.
3. Adobe's growth rate
Despite having set new sales and cash flow records last quarter, Adobe's stock has fallen since that report in late March. The main concern from investors is that growth will slow following two years of booming demand for its digital media products through earlier phases of the pandemic.
That slowdown isn't likely to threaten the long-term outlook for Adobe, which announces fiscal Q2 results on Thursday. Executives in March predicted sales would grow at roughly 15% for the period, compared with Q1's 17% increase.
In addition to hitting those numbers, investors are hoping that Adobe might project a brighter earnings outlook over time as more businesses and consumers shift creative work onto its cloud services platform.
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Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Adobe Inc. and Apple. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., 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. | Kroger navigated through soaring costs in early 2022, and investors are hoping that it can extend that positive momentum in this report with help from its vertically integrated supply chain. The main concern from investors is that growth will slow following two years of booming demand for its digital media products through earlier phases of the pandemic. In addition to hitting those numbers, investors are hoping that Adobe might project a brighter earnings outlook over time as more businesses and consumers shift creative work onto its cloud services platform. | Kroger's profit outlook Kroger's stock took a hit after rival Walmart (NYSE: WMT) lowered its 2022 earnings outlook last month, and we'll learn on Thursday whether the supermarket chain avoided those profit challenges. Follow Jabil's operating profit margin for signs that the company is still benefiting rising demand in the smartphone, cloud services, and automotive niches. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. | Kroger's profit outlook Kroger's stock took a hit after rival Walmart (NYSE: WMT) lowered its 2022 earnings outlook last month, and we'll learn on Thursday whether the supermarket chain avoided those profit challenges. Adobe's growth rate Despite having set new sales and cash flow records last quarter, Adobe's stock has fallen since that report in late March. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. | Kroger's profit outlook Kroger's stock took a hit after rival Walmart (NYSE: WMT) lowered its 2022 earnings outlook last month, and we'll learn on Thursday whether the supermarket chain avoided those profit challenges. Jabil's operating margin Electronics manufacturing specialist Jabil will announce its latest earnings results on Thursday, and investors have big questions heading into the report. The Motley Fool has positions in and recommends Adobe Inc. and Apple. |
20744.0 | 2022-06-11 00:00:00 UTC | 3 Unstoppable Growth Stocks to Buy in the Stock Market Sell-Off | AAPL | https://www.nasdaq.com/articles/3-unstoppable-growth-stocks-to-buy-in-the-stock-market-sell-off | nan | nan | Growth stocks are falling out of favor with investors in 2022. Interest rates are rising quickly, a trend that makes the present value of future cash flows worth less.
Despite how the market feels about growth stocks, Apple (NASDAQ: AAPL), Roblox (NYSE: RBLX), and Airbnb (NASDAQ: ABNB) are operating excellent businesses that seem unstoppable. Their stocks are already trading at discounts after the sell-off. Investors should consider adding these three growth stocks if the market crash gains further momentum. Here's why.
Apple has decades of proven innovation
Apple's business is centered around a unique capability to deliver innovative consumer technology products that drive billions in sales -- starting with the Mac computer, iPod, iPhone, iPad, Apple Watch, AirPods, and more. What's important for investors is that it has repeatedly proven that it can innovate. That makes it likely it can sustain robust revenue and profitability for the long term.
AAPL PE Ratio data by YCharts
From 2019 to 2021, Apple's sales bounced from $260 billion to $366 billion while growing earnings per share from $2.97 to $5.61. Apple is trading at a price-to-earnings ratio of 22 and a price-to-free-cash-flow (P/FCF) multiple of 21.
Roblox is a pioneer of the metaverse
Roblox operates a platform where players can virtually interact with each other and the environment -- in other words, a metaverse. It has grown to boast 53.1 million monthly active users as of April, a 23% increase over the prior year. It's free to join and use, for the most part. Roblox makes money by selling Robux, an in-game currency required for premium items.
RBLX Cash from Operations (Annual) data by YCharts
Roblox has chosen to outsource those creations, a business model that has helped it deliver robust cash flows for the last two years. Roblox thrived at the pandemic's onset, when millions of kids -- its most popular cohort -- were spending more time at home. Economic reopening is creating headwinds for Roblox, which, in addition to the growth stock sell-off, has caused its stock to crater. Selling at a P/FCF multiple of 31, it's nearly the cheapest it's ever been.
Airbnb offers travelers more options
Like Roblox, Airbnb runs an asset-light business model that has been helpful to its ability to generate free cash flow. Instead of building, owning, and operating the listings on its platform, Airbnb induces others to list rentals. Airbnb takes a percentage of the booking value of each transaction on its website.
Additionally, by letting hosts list properties on the platform, Airbnb sources a unique set of properties unavailable from traditional hotels. This means that on Airbnb, travelers can book a room inside an apartment or an entire home, depending on their needs for the particular stay. Revenue exploded by 77% for Airbnb in 2021, highlighting that it is gaining favor with travelers.
ABNB Cash from Operations (Annual) data by YCharts
Also like Roblox, Airbnb is trading near its lowest P/FCF multiple at 25.
Robust growth at an excellent price
Each of the three stocks mentioned above has delivered excellent growth, indicating continued expansion in future years. Fortunately or unfortunately, depending on your perspective as a shareholder or potential investor, the growth stock sell-off has these businesses trading at substantial discounts to where they were only months ago.
They could become even better values if a further crash pushes prices still lower. Investors should put Apple, Roblox, and Airbnb on their watch lists and consider adding them to their portfolios in the event of a continued market slide.
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Parkev Tatevosian has positions in Airbnb, Inc., Apple, and Roblox Corporation. The Motley Fool has positions in and recommends Airbnb, Inc., Apple, and Roblox Corporation. 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. | Despite how the market feels about growth stocks, Apple (NASDAQ: AAPL), Roblox (NYSE: RBLX), and Airbnb (NASDAQ: ABNB) are operating excellent businesses that seem unstoppable. AAPL PE Ratio data by YCharts From 2019 to 2021, Apple's sales bounced from $260 billion to $366 billion while growing earnings per share from $2.97 to $5.61. Interest rates are rising quickly, a trend that makes the present value of future cash flows worth less. | Despite how the market feels about growth stocks, Apple (NASDAQ: AAPL), Roblox (NYSE: RBLX), and Airbnb (NASDAQ: ABNB) are operating excellent businesses that seem unstoppable. AAPL PE Ratio data by YCharts From 2019 to 2021, Apple's sales bounced from $260 billion to $366 billion while growing earnings per share from $2.97 to $5.61. ABNB Cash from Operations (Annual) data by YCharts Also like Roblox, Airbnb is trading near its lowest P/FCF multiple at 25. | Despite how the market feels about growth stocks, Apple (NASDAQ: AAPL), Roblox (NYSE: RBLX), and Airbnb (NASDAQ: ABNB) are operating excellent businesses that seem unstoppable. AAPL PE Ratio data by YCharts From 2019 to 2021, Apple's sales bounced from $260 billion to $366 billion while growing earnings per share from $2.97 to $5.61. Apple has decades of proven innovation Apple's business is centered around a unique capability to deliver innovative consumer technology products that drive billions in sales -- starting with the Mac computer, iPod, iPhone, iPad, Apple Watch, AirPods, and more. | Despite how the market feels about growth stocks, Apple (NASDAQ: AAPL), Roblox (NYSE: RBLX), and Airbnb (NASDAQ: ABNB) are operating excellent businesses that seem unstoppable. AAPL PE Ratio data by YCharts From 2019 to 2021, Apple's sales bounced from $260 billion to $366 billion while growing earnings per share from $2.97 to $5.61. Investors should consider adding these three growth stocks if the market crash gains further momentum. |
20745.0 | 2022-06-11 00:00:00 UTC | 3 Warren Buffett Stocks to Buy Before the Next Bull Market | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-before-the-next-bull-market | nan | nan | With the broadly followed S&P 500 index recently flirting with bear market territory, and the tech-centric Nasdaq-100 index already there, investors are tasked with navigating some pretty treacherous waters. But those searching for a guiding light should look no further than legendary investor Warren Buffett, whose Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) conglomerate has consistently outperformed the broader market over the last 50-plus years.
Three Motley Fool contributors have identified the Berkshire picks that could crush the market when a new tech bull wave kicks off. Here's why investors should consider buying shares in Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Apple (NASDAQ: AAPL) before that happens.
Image source: The Motley Fool.
A leader in more ways than one
Anthony Di Pizio (Amazon): In difficult market conditions, owning diverse companies with multiple revenue streams can be the difference between share price declines of 35% and share price declines of 80% -- which is the reality for many tech stocks right now. But Amazon offers the added bonus of strong profitability, and also the endorsement of Buffett, who has consistently expressed his regret for not buying into the company during its early days. Berkshire did finally take the leap in 2019.
E-commerce continues to gain traction, and in the U.S. Amazon alone is currently responsible for over 40% of all online sales. While that makes up the majority of the company's revenue, it's actually not the most intriguing part of its overall business, which has grown to include cloud platform Amazon Web Services (AWS), a booming advertising segment, and even a stake in an emerging electric vehicle company.
AWS leads the entire cloud computing industry. It provides hundreds of different products and services to help companies operate online, whether they need to store data, develop games, or even supercharge their businesses with advanced machine learning tools. The segment contributed $67.1 billion to Amazon's revenue in the last 12 months, representing 14% of the company's $477.7 billion in total sales. But it's the profitability engine behind the entire organization, having generated all of its operating income over the same period -- if not for AWS, Amazon would've made an operating loss on a trailing-12-month basis.
That's the benefit of diverse revenue streams. When part of the business lacks performance, another piece can often pick up the slack.
Amazon's aggressive approach to entering new industries likely won't change anytime soon, given it has worked so well in the company's 28-year history. For that reason, investors should take the current 35% dip in its share price as an opportunity to build a long-term position. It's never too late to add quality stocks to your portfolio -- even Buffett himself is late to the party sometimes.
Berkshire's bet on data analytics
Jamie Louko (Snowflake): Buffett is known for owning stable, low-volatility stocks, but Snowflake does not fall into that category. Snowflake makes it easier to analyze data stored in different clouds -- a migraine-level problem for large enterprises. It is a usage-based service in which customers only pay when they store and compute data, and as businesses create more data, it will only become a more vital service in the future.
Shares are down 66% from their all-time highs, but Snowflake's business performance is soaring higher. In its fiscal first quarter, which ended April 30, the company reported revenue growth of 85% year over year to $422 million. This was driven by the number of customers spending more than $1 million, which soared 98% year over year to 206.
One of the big problems with usage-based businesses is that customers can easily dial back their usage during a worrisome economic environment. However, Snowflake is in a relatively recession-resistant market because consumers need to continuously analyze data, and that won't change during an economic downturn.
Management expects specific customers to cut back on spending, but the company maintained its guidance set in the fourth quarter, indicating this won't take a major toll on growth.
The company lost $166 million in Q1, but it has over $3.8 billion in cash and expects to generate over $300 million in adjusted free cash flow during the full fiscal year, both of which could subsidize these losses. With a product that could become more necessary over the long term, Berkshire Hathaway seems to think that Snowflake is a great company to own, and you might want to consider following along.
A cash-flow machine
Trevor Jennewine (Apple): In 2022, Brand Finance once again recognized Apple as the most valuable brand in the world, highlighting its lineup of trendy electronic devices and the consumer loyalty those products inspire. Most notably, Apple dominates the U.S. smartphone space with 50% market share, and it ranks second globally with 18% market share.
The company certainly does make sleek hardware, but the engine behind its competitive edge is actually software. Apple's operating systems, such as iOS for the iPhone, are closed source. That means no third-party hardware vendor can use its software to create a cheaper alternative. If you want the Apple experience, you have to pay for it. That pricing power has made Apple a cash flow machine -- free cash flow surged 17% to $106 billion over the past year.
Additionally, the company is investing aggressively in its services business, aiming to more effectively monetize its massive user base. That includes App Store sales, payment services like Apple Card and Apple Pay, and various subscription products like Apple TV+ and Apple Fitness+. Those efforts are paying off. In the most recent quarter, total revenue rose 9% to $97.3 billion, but services revenue soared 17% to $19.8 billion. And because Apple's services business comes with much higher margins, total gross margin climbed 120 basis points to 43.7%.
Investors have plenty of reasons to be excited. Apple recently introduced new models of the MacBook Air and MacBook Pro, both powered by its proprietary M2 Chip, which the company says improves on the "industry-leading performance per watt of M1." Additionally, the company announced Apple Pay Later, a "buy now, pay later" service with zero interest and zero fees. Apply Pay Later allows U.S. consumers to make purchases (anywhere Apple Pay is accepted) in four installments over a six-week period.
More broadly, Apple benefits from incredible brand authority, and its burgeoning services business should accelerate profitability over time. That's why this stock -- which happens to comprise 43% of Warren Buffett's holdings through Berkshire -- is a smart buy before the next bull market.
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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. Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko has positions in Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. 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. | Here's why investors should consider buying shares in Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Apple (NASDAQ: AAPL) before that happens. But Amazon offers the added bonus of strong profitability, and also the endorsement of Buffett, who has consistently expressed his regret for not buying into the company during its early days. It provides hundreds of different products and services to help companies operate online, whether they need to store data, develop games, or even supercharge their businesses with advanced machine learning tools. | Here's why investors should consider buying shares in Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Apple (NASDAQ: AAPL) before that happens. That pricing power has made Apple a cash flow machine -- free cash flow surged 17% to $106 billion over the past year. Jamie Louko has positions in Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. Trevor Jennewine has positions in Amazon. | Here's why investors should consider buying shares in Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Apple (NASDAQ: AAPL) before that happens. That includes App Store sales, payment services like Apple Card and Apple Pay, and various subscription products like Apple TV+ and Apple Fitness+. Jamie Louko has positions in Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. Trevor Jennewine has positions in Amazon. | Here's why investors should consider buying shares in Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Apple (NASDAQ: AAPL) before that happens. That's right -- they think these 10 stocks are even better buys. Jamie Louko has positions in Amazon, Apple, Berkshire Hathaway (B shares), and Snowflake Inc. Trevor Jennewine has positions in Amazon. |
20746.0 | 2022-06-11 00:00:00 UTC | An American Supercomputer Just Shattered the Speed Record. What's That Mean? | AAPL | https://www.nasdaq.com/articles/an-american-supercomputer-just-shattered-the-speed-record.-whats-that-mean | nan | nan | The world of supercomputing can be quite competitive. In this clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Demitri Kalogeropoulos and Jose Najarro discuss a New York Times article that stated a U.S. supercomputer named Frontier recently surpassed one in China to become the world's fastest.
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Demitri Kalogeropoulos: There's this machine called Frontier is the name of the computer that is now apparently the first one to have broken the speed barrier, which is 1 quintillion operations per second, which is a crazy number and I'm sure doesn't give you any context, but this won't help either. But 1 quintillion is 1 billion billion. [LAUGHTER] That's a lot.
It's an interesting article. This is a machine that's 8,000 pounds, 75 containers basically together. This is interesting, I didn't know about what some of these supercomputers that used to be used for things like cracking codes, encryption, stuff like that, designing weapons. But today they're used increasingly for things like developing vaccines, mapping out global climate change, running through extensive, crazy complicated simulations, and design simulations, and things like that.
Apparently so there's a little bit of a mystery in this thing because there's apparently some competition mainly between the U.S. and China in terms of who's got the biggest supercomputer power. According to some estimates, there are about 170 these supercomputers in China versus around 125 or so in the U.S.
Then it's rumored that there might actually be a faster machine in China is what this article talks about, but they haven't tested it out and it hasn't been officially submitted, that's the way you get ranked in these things. I think we've recently talked about Meta Platforms (NASDAQ: META) working within Nvidia (NASDAQ: NVDA), I think Jose on securing one of those 125 supercomputers for its own work. I know a lot of companies are into that space too, right?
Jose Najarro: Yeah, definitely. I think Meta is working with both AMD (NASDAQ: AMD) and Nvidia to make these supercomputers. I think, for me, the Fourth Horseman also made a comment about autonomous driving with Apple (NASDAQ: AAPL), even though you have big competitors and I think this is the big reason why sometimes even just having that first advantage of data isn't that important too much right now.
Because right now with a lot of things happening in supercomputers like driving simulations, for example, even if you don't have that first raw data, if you have a lot of money to be able to buy some of these supercomputers, be able to buy some of these driving simulations, you'll be able to collect as much data as probably some of the people who already have that experience firsthand.
The other thing I read about this article is that now this supercomputer is about roughly two times faster than the one that was previously so it just shows the huge leap of technology improvement in just the past few years or so.
Kalogeropoulos: Yeah, really cool stuff. Just in the past week, I think I haven't personally looked at this, but there's apparently AI-generated things online that you can just describe a random scene and it would AI generate a painting basically, it looks super realistic based on whatever you said. I also saw a headline recently about something that can search for your face, for example, if you look at a picture of your own face it can go through all the public data and just find all this stuff.
So, it's raising some privacy concerns and things like that obviously. But there's so much data out there and there are machines now that are going to be able to crunch it in crazy granularity that we've never seen before, that's for sure.
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. Demitri Kalogeropoulos has positions in Apple and Meta Platforms, Inc. Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Inc., and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Inc., and Nvidia. 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. | I think, for me, the Fourth Horseman also made a comment about autonomous driving with Apple (NASDAQ: AAPL), even though you have big competitors and I think this is the big reason why sometimes even just having that first advantage of data isn't that important too much right now. In this clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Demitri Kalogeropoulos and Jose Najarro discuss a New York Times article that stated a U.S. supercomputer named Frontier recently surpassed one in China to become the world's fastest. The other thing I read about this article is that now this supercomputer is about roughly two times faster than the one that was previously so it just shows the huge leap of technology improvement in just the past few years or so. | I think, for me, the Fourth Horseman also made a comment about autonomous driving with Apple (NASDAQ: AAPL), even though you have big competitors and I think this is the big reason why sometimes even just having that first advantage of data isn't that important too much right now. I think we've recently talked about Meta Platforms (NASDAQ: META) working within Nvidia (NASDAQ: NVDA), I think Jose on securing one of those 125 supercomputers for its own work. Demitri Kalogeropoulos has positions in Apple and Meta Platforms, Inc. Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Inc., and Nvidia. | I think, for me, the Fourth Horseman also made a comment about autonomous driving with Apple (NASDAQ: AAPL), even though you have big competitors and I think this is the big reason why sometimes even just having that first advantage of data isn't that important too much right now. See the 10 stocks Stock Advisor returns as of 2/14/21 Demitri Kalogeropoulos: There's this machine called Frontier is the name of the computer that is now apparently the first one to have broken the speed barrier, which is 1 quintillion operations per second, which is a crazy number and I'm sure doesn't give you any context, but this won't help either. According to some estimates, there are about 170 these supercomputers in China versus around 125 or so in the U.S. Then it's rumored that there might actually be a faster machine in China is what this article talks about, but they haven't tested it out and it hasn't been officially submitted, that's the way you get ranked in these things. | I think, for me, the Fourth Horseman also made a comment about autonomous driving with Apple (NASDAQ: AAPL), even though you have big competitors and I think this is the big reason why sometimes even just having that first advantage of data isn't that important too much right now. Because right now with a lot of things happening in supercomputers like driving simulations, for example, even if you don't have that first raw data, if you have a lot of money to be able to buy some of these supercomputers, be able to buy some of these driving simulations, you'll be able to collect as much data as probably some of the people who already have that experience firsthand. Demitri Kalogeropoulos has positions in Apple and Meta Platforms, Inc. Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Inc., and Nvidia. |
20747.0 | 2022-06-11 00:00:00 UTC | Is Apple About to Conquer This Innovative Big Tech Space? | AAPL | https://www.nasdaq.com/articles/is-apple-about-to-conquer-this-innovative-big-tech-space | nan | nan | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets.
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Travis Hoium: I think this is an interesting company in this space specifically because, Oculus has had headsets out for what, six years now? Apple doesn't release half-baked ideas. The idea of a headset plugging into a specific gaming computer with a specific graphics card and very limited content and all the things that Oculus did and had to do to grow up the way that they have, that's not what Apple does.
Apple watches the industry develop, and they want to be the second or third mover. They want to come in and just drop a bomb and go, this is the way you should've been doing it all along. [laughs] We look back on something like the iPhone and you go, of course, that makes a ton of sense.
But they waited and they saw everything developing, and there was a number of reasons they didn't release something like the iPhone earlier. Well, they kind of tried. They had a deal with, I believe it was with Motorola (NYSE: MSI) to do the iTunes phone that didn't do very well. I think what we're seeing here is them waiting.
We've talked about the chips that they have developed for their Max that I think everybody expects at least one of those chips to end up in this headset in some way, shape, or form. It's like they're building these building blocks that will eventually lead us to some sort of headset. We just don't know quite what it looks like. We'll see what we learn next week, but we're starting to get at least kernels coming out.
Rachel Warren: I do think it's a really interesting point you bring up of Apple, unlike a lot of companies. Sometimes you think of, oh, you need to have first-mover advantage, particularly in a highly competitive space in order to win. I think it's interesting the point you raised that Apple has said, well no, I'm not necessarily going to make a new mouse trap, I'm just going to make it better than anybody else. [laughs] I think that's something that they continue to do. I think that's a really interesting approach that they've taken and I like that as an investor.
Demitri Kalogeropoulos: Another part of Apple that makes it a little special in this space, as I always think, is how better platforms and Microsoft (NASDAQ: MSFT) two of the other bigger players in the space seem to be making as much noise as they can about how they are in the metaverse and how they're developing AR and VR stuff. In part because they want to attract all that great staffing and everything like that.
Apple is special in the fact that I guess probably it doesn't have to do that or it's secretive too in the same way. It's taken a whole different approach. It's like, maybe we're working on it, maybe we're not, we're not going to confirm anything. It's always interesting to see Apple. Apple definitely walks to the beat of its own drum for sure.
Demitri Kalogeropoulos has positions in Apple. Rachel Warren has positions in Apple. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets. Find out why Apple is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. I think it's interesting the point you raised that Apple has said, well no, I'm not necessarily going to make a new mouse trap, I'm just going to make it better than anybody else. Demitri Kalogeropoulos: Another part of Apple that makes it a little special in this space, as I always think, is how better platforms and Microsoft (NASDAQ: MSFT) two of the other bigger players in the space seem to be making as much noise as they can about how they are in the metaverse and how they're developing AR and VR stuff. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. But they waited and they saw everything developing, and there was a number of reasons they didn't release something like the iPhone earlier. I think that's a really interesting approach that they've taken and I like that as an investor. |
20748.0 | 2022-06-10 00:00:00 UTC | This Is How Apple's WWDC Announcements Could Affect Your Stocks | AAPL | https://www.nasdaq.com/articles/this-is-how-apples-wwdc-announcements-could-affect-your-stocks | nan | nan | In this video, I will be discussing Square's side of Block's (NYSE: SQ) partnership with Apple (NASDAQ: AAPL) with regard to Tap to Pay on iPhone as well as some announcements that were made by Apple during its recent Worldwide Developers Conference, such as the new Apple CarPlay and Apple Pay Later, and how they might affect companies like PayPal and Affirm.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of June 8, 2022. The video was published on June 9, 2022.
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Neil Rozenbaum has positions in Block, Inc. The Motley Fool has positions in and recommends Apple and Block, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this video, I will be discussing Square's side of Block's (NYSE: SQ) partnership with Apple (NASDAQ: AAPL) with regard to Tap to Pay on iPhone as well as some announcements that were made by Apple during its recent Worldwide Developers Conference, such as the new Apple CarPlay and Apple Pay Later, and how they might affect companies like PayPal and Affirm. For the full insights, do watch the video, consider subscribing, and click the special offer link below. Find out why Apple is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. | In this video, I will be discussing Square's side of Block's (NYSE: SQ) partnership with Apple (NASDAQ: AAPL) with regard to Tap to Pay on iPhone as well as some announcements that were made by Apple during its recent Worldwide Developers Conference, such as the new Apple CarPlay and Apple Pay Later, and how they might affect companies like PayPal and Affirm. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Block, Inc. | In this video, I will be discussing Square's side of Block's (NYSE: SQ) partnership with Apple (NASDAQ: AAPL) with regard to Tap to Pay on iPhone as well as some announcements that were made by Apple during its recent Worldwide Developers Conference, such as the new Apple CarPlay and Apple Pay Later, and how they might affect companies like PayPal and Affirm. The Motley Fool has positions in and recommends Apple and Block, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In this video, I will be discussing Square's side of Block's (NYSE: SQ) partnership with Apple (NASDAQ: AAPL) with regard to Tap to Pay on iPhone as well as some announcements that were made by Apple during its recent Worldwide Developers Conference, such as the new Apple CarPlay and Apple Pay Later, and how they might affect companies like PayPal and Affirm. For the full insights, do watch the video, consider subscribing, and click the special offer link below. *Stock Advisor returns as of June 2, 2022 Neil Rozenbaum has positions in Block, Inc. |
20749.0 | 2022-06-10 00:00:00 UTC | Wall Street suffers biggest weekly loss since January after hot CPI data | AAPL | https://www.nasdaq.com/articles/wall-street-suffers-biggest-weekly-loss-since-january-after-hot-cpi-data | nan | nan | By Caroline Valetkevitch
NEW YORK, June 10 (Reuters) - U.S. stocks posted their biggest weekly percentage declines since January and ended sharply lower on the day Friday as a steeper-than-expected rise in U.S. consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve.
Tech and growth stocks, whose valuations rely more heavily on future cash flows, led the decline. Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O drove losses in the S&P 500.
Following the inflation report, two-year Treasury yields US2YT=RR, which are highly sensitive to rate hikes, spiked to 3.057%, the highest since June 2008. Benchmark 10-year yields US10YT=RR reached 3.178%, the highest since May 9.
The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. Economists polled by Reuters had forecast the monthly CPI picking up 0.7%.
Year-on-year, CPI surged 8.6%, its biggest gain since 1981 and following an 8.3% jump in May.
Stocks have been volatile this year, and recent selling has largely been tied to worries over inflation, rising interest rates and the likelihood of a recession.
"Today's report should extinguish any pretense that a 'pause' in rate hikes will likely be appropriate by the end of summer, as the Fed is clearly still behind the eight ball on bringing inflation under control," said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
The Dow Jones Industrial Average .DJI fell 880 points, or 2.73%, to 31,392.79; the S&P 500 .SPX lost 116.96 points, or 2.91%, to 3,900.86; and the Nasdaq Composite .IXIC dropped 414.20 points, or 3.52%, to 11,340.02.
The major indexes registered their biggest weekly percentage drops since the week ended Jan. 21, with the Dow down 4.58%, the S&P 500 down 5.06% and the Nasdaq down 5.60% for the week.
The S&P 500 is now down 18.2% for the year so far.
On Friday, the S&P 500 growth index .IGX took a 3.7% hit, while the value index .IVX fell 2.2%.
The inflation report was published ahead of an anticipated second 50 basis points rate hike from the Fed on Wednesday. A further half-percentage-point is priced in for July, with a strong chance of a similar move in September.
One worry is that an aggressive push higher on rates by the Fed could send the economy into recession.
Among the day's losers, Netflix Inc NFLX.O slid 5.1% after Goldman downgraded the streaming video giant's stock to "sell" from "neutral" due to a possibly weaker macro environment.
Declining issues outnumbered advancing ones on the NYSE by a 5.70-to-1 ratio; on Nasdaq, a 4.05-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 44 new lows; the Nasdaq Composite recorded 17 new highs and 326 new lows.
Volume on U.S. exchanges was 12.62 billion shares, compared with the 11.88 billion average for the full session over the last 20 trading days.
(Additional reporting by Devik Jain, Mehnaz Yasmin and Shreyashi Sanyal in Bengaluru and Davide Barbuscia in New York; Editing by Jonathan Oatis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O drove losses in the S&P 500. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks posted their biggest weekly percentage declines since January and ended sharply lower on the day Friday as a steeper-than-expected rise in U.S. consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve. "Today's report should extinguish any pretense that a 'pause' in rate hikes will likely be appropriate by the end of summer, as the Fed is clearly still behind the eight ball on bringing inflation under control," said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia. | Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O drove losses in the S&P 500. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks posted their biggest weekly percentage declines since January and ended sharply lower on the day Friday as a steeper-than-expected rise in U.S. consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve. Stocks have been volatile this year, and recent selling has largely been tied to worries over inflation, rising interest rates and the likelihood of a recession. | Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O drove losses in the S&P 500. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks posted their biggest weekly percentage declines since January and ended sharply lower on the day Friday as a steeper-than-expected rise in U.S. consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve. Following the inflation report, two-year Treasury yields US2YT=RR, which are highly sensitive to rate hikes, spiked to 3.057%, the highest since June 2008. | Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O drove losses in the S&P 500. Following the inflation report, two-year Treasury yields US2YT=RR, which are highly sensitive to rate hikes, spiked to 3.057%, the highest since June 2008. The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. |
20750.0 | 2022-06-10 00:00:00 UTC | Tesla to seek investor approval for 3-for-1 stock split | AAPL | https://www.nasdaq.com/articles/tesla-to-seek-investor-approval-for-3-for-1-stock-split | nan | nan | June 10 (Reuters) - Electric vehicle maker Tesla Inc TSLA.O on Friday proposed a stock split at a three-to-one ratio in the form of a stock dividend, according to a regulatory filing.
The proposal will be put to vote on August 4 and if approved, it would be the latest after a five-for-one split in August 2020.
Tesla will also ask shareholders to vote to reduce its board of directors' terms to two years from three. If approved, directors' terms would be staggered over two years.
Following a pandemic-induced rally in the technology shares, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, too, have in the recent past split their shares to make them more affordable.
While stock splits make shares of a company cheaper for its employees and investors, some brokerages already allow customers to buy fractions of individual shares, which makes the benefit of stock splits less exaggerated than in the past.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Following a pandemic-induced rally in the technology shares, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, too, have in the recent past split their shares to make them more affordable. Tesla will also ask shareholders to vote to reduce its board of directors' terms to two years from three. While stock splits make shares of a company cheaper for its employees and investors, some brokerages already allow customers to buy fractions of individual shares, which makes the benefit of stock splits less exaggerated than in the past. | Following a pandemic-induced rally in the technology shares, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, too, have in the recent past split their shares to make them more affordable. If approved, directors' terms would be staggered over two years. While stock splits make shares of a company cheaper for its employees and investors, some brokerages already allow customers to buy fractions of individual shares, which makes the benefit of stock splits less exaggerated than in the past. | Following a pandemic-induced rally in the technology shares, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, too, have in the recent past split their shares to make them more affordable. June 10 (Reuters) - Electric vehicle maker Tesla Inc TSLA.O on Friday proposed a stock split at a three-to-one ratio in the form of a stock dividend, according to a regulatory filing. While stock splits make shares of a company cheaper for its employees and investors, some brokerages already allow customers to buy fractions of individual shares, which makes the benefit of stock splits less exaggerated than in the past. | Following a pandemic-induced rally in the technology shares, Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O, too, have in the recent past split their shares to make them more affordable. The proposal will be put to vote on August 4 and if approved, it would be the latest after a five-for-one split in August 2020. Tesla will also ask shareholders to vote to reduce its board of directors' terms to two years from three. |
20751.0 | 2022-06-10 00:00:00 UTC | 5 High-Quality Stocks Sizzling this Summer | AAPL | https://www.nasdaq.com/articles/5-high-quality-stocks-sizzling-this-summer | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is excerpted from Tom Yeung’s Profit & Protection newsletter. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here.
The Quality Stocks of the Profit & Protection Playbook
On Tuesday, I introduced the Profit & Protection definition of a “quality” stock:
A company that can generate high and stable returns over long periods of time.
And believe me, I know…
… that’s a boring definition.
Can’t “quality” mean something flashier, like having a great product? A well-known brand? Maybe even fat margins in a hyper-growth market.
But as we saw when we looked at the data, none of that particularly matters.
Instead, companies from Home Depot (NYSE:HD) to Apple (NASDAQ:AAPL) have outlasted Crazy Eddie and Compaq in their ability to generate superior returns. For every $1 of investor capital those two winners touch, they can return $20 within a decade, thanks to their 35% rate of return on invested capital (ROIC).
Today, we will look at five other companies with similarly high ROIC and stability that look set to sizzle this summer. And in tomorrow’s newsletter, I’ll unveil which of these five high-quality picks make it onto the Profit & Protection’s core “buy” list.
5 High-Quality Stocks Sizzling this Summer: Align Technology (ALGN)
ROIC Score: A+ | Stability Score: A-
The parent company behind the brand Invisalign has quietly built a $20 billion empire from its invisible orthodontic sets. A stunning 99% ROIC puts it squarely atop 99% of companies in the broad-based Russell 3000 index.
Those familiar with the dental industry will immediately understand why:
Align’s (NASDAQ:ALGN) iTero scanner.
The company’s proprietary intraoral scanner creates a steep barrier to entry. Scanners are sold at a discount, and Align makes up the difference by charging more for orthodontics over time.
Dentists also have incentives to stick to one system. Align gives increasingly significant discounts based on the volume of Invisalign cases, making it financially unattractive for dentists to invest in a second system.
The system has created a pseudo-monopoly in the invisible braces market, where Align has three times the market share of all of its competitors combined. ALGN has generated no less than 20% ROE over the past five years.
Shares are also cheap from a historical standpoint. A return to more typical valuations gives the firm a 110% upside — making for a potentially phenomenal summer of investing.
That said, there are some issues with ALGN. Shares have fallen 58% since the start of the year on valuation concerns. Margins have also faltered on weaker demand over the past two quarters; belt-tightening customers can switch to metal bracers or forgo them entirely. Morningstar analysts have cut their price target from $650 in March to $440 today.
Still, investors have good reason to take the opportunity to buy the dip. As historical data shows, buying these stable, high-ROIC companies is the recipe to generating phenomenal returns.
Adobe (ADBE)
ROIC Score: A | Stability Score: A
The software maker should also come as no surprise to industry watchers. As an early mover to a subscription-based cloud offering, Adobe (NASDAQ:ADBE) has managed to increase margins and sales at the same time. Software piracy has become a relic of the past.
Analysts expect the company’s ROIC to top 45% in the coming year, earning the software maker an “A” grade on the Profit & Protection’s “quality” scale.
All this creates a perfect storm for buying the dip this summer. Adobe’s shares are down nearly 25% this year on a broader tech slowdown; an investor pivot to quality will quickly send shares back up to their previous heights.
Malibu Boats (MBUU)
ROIC Score: A- | Stability Score: A+
When I first covered Malibu Boats (NASDAQ:MBUU) one year after its IPO, the company was a well-run value stock. Shares traded at $14, pricing the company at under 9x forward price-to-earnings.
Fast forward to the present day and MBUU has now become a stunningly high-quality play.
Over the past five years, the company has consolidated the boating market by acquiring high-value brands including Cobalt, Pursuit and Maverick. Combined, the firm now controls 32% of the performance sports boat market and 36% of the 24-foot to 29-foot sterndrive market. Its closest competitor is less than half its size.
Malibu’s scale has also translated into phenomenal capital returns. The company has generated an average of 47% ROIC over the last five years, and analysts expect no less than 24% in the coming decade — not bad for a consumer-discretionary firm.
The firm also looks set for a sizzling summer this year. Q3 sales rose 26%, benefiting from 21% pricing growth; demand-hungry customers have shrugged off inflationary concerns.
That said, investors should remain wary. The boating market is highly cyclical; demand for RVs is already sagging and a prolonged recession could also put the boating industry on the back foot. Interest rates are also an issue; third parties finance around 80% of Malibu’s sales.
Still, Malibu Boats is a firm that scores extraordinarily well on the Profit & Protection “quality” scores. And in the long run, it’s the type of firm that the P&P system says will outperform.
ASML Holding (ASML)
ROIC Score: A | Stability Score: A-
Nvidia (NASDAQ:NVDA)… AMD (NASDAQ:AMD)… Taiwan Semiconductor (NYSE:TSM)…
Chipmaker stocks have long captured investor imagination for their cutting-edge products and … well… ability to create fun. Nvidia’s Titan V processor now crams 21 billion transistors onto a video card, giving gamers yet another reason to spend $3,000 on a computer part.
But all these chipmakers have one company to thank:
ASML Holding (NASDAQ:ASML).
This Netherlands-based firm is the world leader in photolithography machinery, the process for physically creating micro-sized chips and transistors. By using extreme ultraviolet light (EUV), ASML’s equipment can etch silicon elements as small as 10 nanometers.
Competitors have had a tough time keeping up. Nikon (OTCMKTS:NINOY) and Canon (NYSE:CAJ) dropped out of the EUV race in 2020, and Chinese makers seem to be at least a decade behind. ASML has almost a 90% share of the chipmaking market.
That’s translated into large, consistent margins. Analysts expect ASML to generate 40% ROIC, putting the company in the top 6% of all firms in the Russell 3000 index. And though semiconductor shortages will moderate by 2023, ASML looks set to ride out the coming supply glut.
Bonus Pick: Meta Platforms (META)
ROIC Score: A- | Stability Score: A
Finally, Facebook parent Meta Platforms (NASDAQ:META) makes a surprise appearance on the Profit & Protection quality list. It’s 33% expected ROIC and its high ROE stability score put the firm ahead of other FAANG stocks by a reasonable margin.
The quality score might surprise some readers, as it did me. Uncertainty around Facebook’s advertising growth rates and data privacy issues have dogged the company for years. And a sudden resignation by COO Sheryl Sandberg points to internal politicking.
But the numbers don’t lie:
Facebook has generated superior profits.
The social media firm has long… leaned in… on data of its 2.9 billion monthly users to become an advertising giant. It arguably knows more about its users than any other social media firm, giving it a pricing edge in targeted advertising. Operating margins have consistently remained above 35%, or two-thirds higher than Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL).
CEO Mark Zuckerberg has also kept the company on the offensive. A pivot to virtual reality expands on Facebook’s ambitions as an entertainment hub. And smart acquisitions of companies like Kustomer and Giphy have helped the firm grow into neighboring territories.
If you needed to pick between the FAANG stocks, the “F” of Facebook would be the natural place for quality-minded investors to start.
(Or is it “de-MANGAed?”)
The EV/S Ratio
The Profit & Protection concept of “quality” can often create unintuitive outcomes.
Firms with highly recognizable brands from Coca-Cola (NYSE:KO) to Mcdonald’s (NYSE:MCD) can earn lower ROIC than hum-drum ones like internet registry firm VeriSign (NASDAQ:VRSN).
Yet this type of investing works. $10,000 invested in each of those three companies in 2000 would have turned into:
Verisign. $187,450
McDonald’s. $82,790
Coca Cola. $23,260
The unfortunate truth about investing is that brands, customer loyalty and management ability are only contributors to high stock returns. A company can just as quickly run a network with extreme regulatory barriers or send enough lobbyists to Congress to fill a mid-sized swamp.
That occasionally creates perverse incentives. Companies from tobacco firm Altria (NYSE:MO) to gunmaker Smith & Wesson (NASDAQ:SWBI) have long lobbied politicians to help them maintain their businesses (often with extreme side effects).
But there are still plenty of firms doing good in addition to doing well. And though hum-drum firms like Verisign might never make a “most innovative list” (as Enron once did), these are the under-the-radar firms that can power a Profit & Protection portfolio for the long run.
P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at feedback@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post 5 High-Quality Stocks Sizzling this Summer 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. | Instead, companies from Home Depot (NYSE:HD) to Apple (NASDAQ:AAPL) have outlasted Crazy Eddie and Compaq in their ability to generate superior returns. Align gives increasingly significant discounts based on the volume of Invisalign cases, making it financially unattractive for dentists to invest in a second system. Companies from tobacco firm Altria (NYSE:MO) to gunmaker Smith & Wesson (NASDAQ:SWBI) have long lobbied politicians to help them maintain their businesses (often with extreme side effects). | Instead, companies from Home Depot (NYSE:HD) to Apple (NASDAQ:AAPL) have outlasted Crazy Eddie and Compaq in their ability to generate superior returns. 5 High-Quality Stocks Sizzling this Summer: Align Technology (ALGN) ROIC Score: A+ | Stability Score: A- The parent company behind the brand Invisalign has quietly built a $20 billion empire from its invisible orthodontic sets. ASML Holding (ASML) ROIC Score: A | Stability Score: A- Nvidia (NASDAQ:NVDA)… AMD (NASDAQ:AMD)… Taiwan Semiconductor (NYSE:TSM)… Chipmaker stocks have long captured investor imagination for their cutting-edge products and … well… ability to create fun. | Instead, companies from Home Depot (NYSE:HD) to Apple (NASDAQ:AAPL) have outlasted Crazy Eddie and Compaq in their ability to generate superior returns. The Quality Stocks of the Profit & Protection Playbook On Tuesday, I introduced the Profit & Protection definition of a “quality” stock: A company that can generate high and stable returns over long periods of time. Malibu Boats (MBUU) ROIC Score: A- | Stability Score: A+ When I first covered Malibu Boats (NASDAQ:MBUU) one year after its IPO, the company was a well-run value stock. | Instead, companies from Home Depot (NYSE:HD) to Apple (NASDAQ:AAPL) have outlasted Crazy Eddie and Compaq in their ability to generate superior returns. The Quality Stocks of the Profit & Protection Playbook On Tuesday, I introduced the Profit & Protection definition of a “quality” stock: A company that can generate high and stable returns over long periods of time. ALGN has generated no less than 20% ROE over the past five years. |
20752.0 | 2022-06-10 00:00:00 UTC | US STOCKS-Wall St ends down sharply as hot inflation data intensifies investor fears | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-ends-down-sharply-as-hot-inflation-data-intensifies-investor-fears | nan | nan | By Caroline Valetkevitch
NEW YORK, June 10 (Reuters) - U.S. stocks ended down sharply on Friday and posted their biggest weekly percentage declines since January as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve.
Tech and growth stocks, whose valuations rely more heavily on future cash flows, led the decline. Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest weights on the S&P 500 and Nasdaq.
Following the inflation report, benchmark 10-year U.S. Treasury yields US10YT=RR reached 3.152%, the highest since May 9.
The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. Economists polled by Reuters had forecast the monthly CPI picking up 0.7%.
Year-on-year, CPI surged 8.6%, its biggest gain since 1981 and following an 8.3% jump in May.
Stocks have been volatile this year, and recent selling has largely been tied to uncertainty over the outlook for inflation and interest rates.
"Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut.
"But there are some signs within the economy that ultimately inflation should start to slow, and the Fed will likely do whatever it takes to keep raising rates and reduce inflation over the coming 12 to 18 months."
According to preliminary data, the S&P 500 .SPX lost 117.05 points, or 2.91%, to end at 3,900.77 points, while the Nasdaq Composite .IXIC lost 415.07 points, or 3.53%, to 11,339.16. The Dow Jones Industrial Average .DJI fell 882.47 points, or 2.73%, to 31,395.72.
The inflation report was published ahead of an anticipated second 50 basis points rate hike from the Fed next Wednesday. A further half-percentage-point is priced in for July, with a strong chance of a similar move in September.
Netflix Inc NFLX.O slid after Goldman downgraded the streaming giant's stock to "sell" from "neutral" due to a possibly weaker macro environment.
(Additional reporting by Devik Jain, Mehnaz Yasmin and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur, Aditya Soni and Jonathan Oatis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest weights on the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks ended down sharply on Friday and posted their biggest weekly percentage declines since January as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve. Stocks have been volatile this year, and recent selling has largely been tied to uncertainty over the outlook for inflation and interest rates. | Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest weights on the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks ended down sharply on Friday and posted their biggest weekly percentage declines since January as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve. The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. | Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest weights on the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - U.S. stocks ended down sharply on Friday and posted their biggest weekly percentage declines since January as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve. "Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut. | Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest weights on the S&P 500 and Nasdaq. The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. According to preliminary data, the S&P 500 .SPX lost 117.05 points, or 2.91%, to end at 3,900.77 points, while the Nasdaq Composite .IXIC lost 415.07 points, or 3.53%, to 11,339.16. |
20753.0 | 2022-06-10 00:00:00 UTC | Down 79% in 2022, Is fuboTV Stock a Buy? | AAPL | https://www.nasdaq.com/articles/down-79-in-2022-is-fubotv-stock-a-buy | nan | nan | Investors in fuboTV (NYSE: FUBO) have taken a shellacking in 2022. The stock is down 79% year to date as the bottom has fallen out of this sports-centered streaming alternative to cable TV. Interestingly, fuboTV has sustained explosive revenue growth, but it hasn't been enough to assuage wary investors.
Let's consider fuboTV's prospects, weigh them against the lower valuation after the price crash, and determine if long-term investors should buy the stock now.
Image source: Getty Images.
Revenue at fuboTV is soaring
Sports-streaming service fuboTV is riding the back of a powerful tailwind attracting sports fans who want the benefits of a cable TV bundle with the convenience of a streaming connection. With fuboTV, folks can get all the channels they would get through cable, but since it's delivered through a streaming connection, it can be taken anywhere there's internet. That has propelled fuboTV's revenue from $218 million in 2020 to $638 million in 2021.
In the quarter ended March 31, fuboTV's revenue jumped by 102% year over year to $242 million. The company boasts over 1.35 million subscribers who pay a subscription fee to access the service. fuboTV's upward trajectory could continue as it benefits from the structural advantages of streaming over cable. The more significant challenge for fuboTV is sustainability, not growth.
FUBO Revenue (Annual) data by YCharts
In its most recent quarter ended in March, it lost $140.8 million on the bottom line, more than double the loss of $70.6 million in the same quarter of the prior year. fuboTV's most oversized expense item is subscriber-related costs -- in other words, the fees it pays for content rights.
Of course, this is what motivates folks to sign up. Without the content, fuboTV would not have subscribers. But it cannot sustain the business by paying 102% of revenue for content as it did in its most recent quarter. That's similar to buying a new iPhone from the Apple store at $700 and then reselling it for $675. Sure, sales will be brisk because you are offering a lower price, but it's not a sustainable business model. To make matters worse, this was an increase from 95% of the revenue it paid for content rights in the same quarter of the prior year.
What fuboTV needs to demonstrate is that it can grow the business sustainably. That could mean increasing the prices of its service, which could slow revenue and subscriber growth. It could also mean negotiating better terms with content providers, which would reduce costs.
fuboTV stock is down, but not enough
FUBO PS Ratio data by YCharts
The stock price crash has fuboTV selling at a price-to-sales ratio of 0.6, near the lowest in its young history as a public company. Regardless, it's challenging to say the stock is cheap because of the unsustainable business model. Investors would be prudent to wait for fuboTV to demonstrate it can reduce losses on the bottom line.
One of the questions that needs to be answered is: What would revenue and subscribers look like if it raised prices enough to break even? Thankfully, management indicated it had implemented changes that would make the company cash-flow positive. The catch -- it's not expected to hit that inflection point until 2025. So even though the stock is down 79% in 2022, fuboTV is still not a buy right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's consider fuboTV's prospects, weigh them against the lower valuation after the price crash, and determine if long-term investors should buy the stock now. fuboTV's most oversized expense item is subscriber-related costs -- in other words, the fees it pays for content rights. To make matters worse, this was an increase from 95% of the revenue it paid for content rights in the same quarter of the prior year. | In the quarter ended March 31, fuboTV's revenue jumped by 102% year over year to $242 million. FUBO Revenue (Annual) data by YCharts In its most recent quarter ended in March, it lost $140.8 million on the bottom line, more than double the loss of $70.6 million in the same quarter of the prior year. fuboTV stock is down, but not enough FUBO PS Ratio data by YCharts The stock price crash has fuboTV selling at a price-to-sales ratio of 0.6, near the lowest in its young history as a public company. | Revenue at fuboTV is soaring Sports-streaming service fuboTV is riding the back of a powerful tailwind attracting sports fans who want the benefits of a cable TV bundle with the convenience of a streaming connection. fuboTV stock is down, but not enough FUBO PS Ratio data by YCharts The stock price crash has fuboTV selling at a price-to-sales ratio of 0.6, near the lowest in its young history as a public company. So even though the stock is down 79% in 2022, fuboTV is still not a buy right now. | But it cannot sustain the business by paying 102% of revenue for content as it did in its most recent quarter. 10 stocks we like better than fuboTV, Inc. The Motley Fool has positions in and recommends Apple and fuboTV, Inc. |
20754.0 | 2022-06-10 00:00:00 UTC | Stock Market News for Jun 10, 2022 | AAPL | https://www.nasdaq.com/articles/stock-market-news-for-jun-10-2022 | nan | nan | U.S. stocks ended sharply lower on Thursday as investors worried about the state of the economy ahead of the release of the key inflation report. All the major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 1.9% or 638.11 points to end at 32,272.79 points.
The S&P 500 declined 2.4% or 97.95 points to finish at 4,017.82 points. Communication, technology and financial stocks were the worst performers
The Communication Services Select Sector SPDR (XLC) shed 3.1%. The Technology Select Sector SPDR (XLK) and the Financials Select Sector SPDR (XLF) declined 2.7% and 2.5%, respectively. All the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq tumbled 2.8% or 332.05 points to close at 11,754 points. All the three indexes recorded their worst daily percentage declines since May 18.
The fear-gauge CBOE Volatility Index (VIX) was up 8.89% to 26.09. Decliners outnumbered advancers on the NYSE by a 5.51-to-1 ratio. On Nasdaq, a 2.79-to-1 ratio favored declining issues. A total of 11.50 billion shares were traded on Thursday, lower than the last 20-session average of 12.07 billion.
Stocks Slide on Inflation Worries
Investors have been worrying ahead of the release of the May consumer-price index report. They are now nervous about a potential economic slowdown in the wake of the Fed’s aggressive stance toward tightening the monetary policy to check surging inflation.
On Thursday, worries grew further ahead of Friday morning’s release of the key inflation data. Investors are almost sure that the consumer-price index will reflect a massive jump for May. The yearly rate fell slightly in April to 8.3% but prior to that, the March reading of 8.5% was the highest in four decades.
Rising costs have been crippling industries. Moreover, supply disruption owing to the pandemic and the ongoing war between Russia and Ukraine has already pushed up prices. Oil prices are at a three-month high, which pushing transportation costs, that are biting into the profits of manufacturers and retailers
These fears once again unsettled investors who went for a massive selloff on Thursday during the end of the trading session. Mega-cap tech stocks were the biggest sufferers, with shares of Meta Platforms, Inc. META tumbling 6.4%. Also, shares of Amazon.com, Inc. AMZN declined 4.1%, while Apple, Inc AAPL fell 3.6%. Meta Platforms has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Economic data released on Thursday also wasn’t impressive Initial jobless claims rose to 229,000, increasing 27,000 for the week ending Jun 4, the Labor Department said. This is the highest level since Jan 15. The four-week moving average also increased to 215,000, an increase of 8,000 from the previous week’s revised average of 207,000.
Continuing claims came in at 1,306,000, unchanged from the previous week’s revised level, the lowest level since December 1969. The previous week's numbers were revised down by 3,000 from 1,309,000 to 1,342,000. The 4-week moving average came in at 1,317,500, a decrease of 9,000 from the previous week's revised average.
A separate report showed that the net worth of total U.S. households declined $5.4 billion to $149.2 trillion.
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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. | Also, shares of Amazon.com, Inc. AMZN declined 4.1%, while Apple, Inc AAPL fell 3.6%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended sharply lower on Thursday as investors worried about the state of the economy ahead of the release of the key inflation report. | Also, shares of Amazon.com, Inc. AMZN declined 4.1%, while Apple, Inc AAPL fell 3.6%. Apple Inc. (AAPL): Free Stock Analysis Report Communication, technology and financial stocks were the worst performers The Communication Services Select Sector SPDR (XLC) shed 3.1%. | Also, shares of Amazon.com, Inc. AMZN declined 4.1%, while Apple, Inc AAPL fell 3.6%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended sharply lower on Thursday as investors worried about the state of the economy ahead of the release of the key inflation report. | Also, shares of Amazon.com, Inc. AMZN declined 4.1%, while Apple, Inc AAPL fell 3.6%. Apple Inc. (AAPL): Free Stock Analysis Report The Dow Jones Industrial Average (DJI) slipped 1.9% or 638.11 points to end at 32,272.79 points. |
20755.0 | 2022-06-10 00:00:00 UTC | Notable Friday Option Activity: TSLA, AAPL, DAL | AAPL | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-tsla-aapl-dal | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Tesla Inc (Symbol: TSLA), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 120.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 380.7% of TSLA's average daily trading volume over the past month, of 31.7 million shares. Especially high volume was seen for the $700 strike put option expiring June 10, 2022, with 62,630 contracts trading so far today, representing approximately 6.3 million underlying shares of TSLA. Below is a chart showing TSLA's trailing twelve month trading history, with the $700 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 1.1 million contracts, representing approximately 107.6 million underlying shares or approximately 110.8% of AAPL's average daily trading volume over the past month, of 97.1 million shares. Especially high volume was seen for the $140 strike call option expiring June 10, 2022, with 49,497 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange:
And Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 84,198 contracts, representing approximately 8.4 million underlying shares or approximately 68.6% of DAL's average daily trading volume over the past month, of 12.3 million shares. Particularly high volume was seen for the $38 strike call option expiring July 15, 2022, with 21,395 contracts trading so far today, representing approximately 2.1 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $38 strike highlighted in orange:
For the various different available expirations for TSLA options, AAPL options, or DAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $140 strike call option expiring June 10, 2022, with 49,497 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing TSLA's trailing twelve month trading history, with the $700 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 1.1 million contracts, representing approximately 107.6 million underlying shares or approximately 110.8% of AAPL's average daily trading volume over the past month, of 97.1 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 84,198 contracts, representing approximately 8.4 million underlying shares or approximately 68.6% of DAL's average daily trading volume over the past month, of 12.3 million shares. | Below is a chart showing TSLA's trailing twelve month trading history, with the $700 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 1.1 million contracts, representing approximately 107.6 million underlying shares or approximately 110.8% of AAPL's average daily trading volume over the past month, of 97.1 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 84,198 contracts, representing approximately 8.4 million underlying shares or approximately 68.6% of DAL's average daily trading volume over the past month, of 12.3 million shares. Especially high volume was seen for the $140 strike call option expiring June 10, 2022, with 49,497 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. | Below is a chart showing TSLA's trailing twelve month trading history, with the $700 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 1.1 million contracts, representing approximately 107.6 million underlying shares or approximately 110.8% of AAPL's average daily trading volume over the past month, of 97.1 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 84,198 contracts, representing approximately 8.4 million underlying shares or approximately 68.6% of DAL's average daily trading volume over the past month, of 12.3 million shares. Especially high volume was seen for the $140 strike call option expiring June 10, 2022, with 49,497 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. | Below is a chart showing TSLA's trailing twelve month trading history, with the $700 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 1.1 million contracts, representing approximately 107.6 million underlying shares or approximately 110.8% of AAPL's average daily trading volume over the past month, of 97.1 million shares. Especially high volume was seen for the $140 strike call option expiring June 10, 2022, with 49,497 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: And Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 84,198 contracts, representing approximately 8.4 million underlying shares or approximately 68.6% of DAL's average daily trading volume over the past month, of 12.3 million shares. |
20756.0 | 2022-06-10 00:00:00 UTC | Apple (AAPL) to Expand Apple TV+ Content With New Series 'Sugar' | AAPL | https://www.nasdaq.com/articles/apple-aapl-to-expand-apple-tv-content-with-new-series-sugar | nan | nan | Apple AAPL is keeping no stone unturned to increase the popularity of its Apple TV+ streaming service. The company has ordered a new series — Sugar — starring Colin Farrell, per a 9TO5Mac report. Farrell, along with Simon Kinberg (X-Men), Audrey Chon (Invasion), and Scott Greenberg (The Guilty), will serve as an executive producer.
Apple TV+ outbid Netflix NFLX to win the rights of Sugar. Apple TV+ is gaining 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 has boosted its position in the streaming industry as a serious competitor.
Apple recently inked a multi-year exclusive deal with Playtone, headed by Tom Hanks and Gary Goetzman. Apple and Hanks also recently completed the production of the WWII series, Masters of the Air.
The addition of prominent content creators like Hanks definitely boosts Apple’s prospects in the increasingly competitive streaming market currently dominated by Netflix, besides robust offerings from streaming services by Disney DIS and Amazon AMZN.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple has been trying to expand its footprint in different genres to attract viewers. Apple TV+ recently gained the rights to stream weekly Major League Baseball (“MLB”) games, including two Friday night games.
The announcement of the Apple-MLB deal marks Apple’s entry into the lucrative live sports market currently dominated by the likes of Disney (through ESPN), Fox Sports, NBC and CBS. Streaming service providers like Apple and Amazon are new entrants in this market space.
Amazon, however, is well ahead of Apple in this scenario. In 2021, the National Football League announced a new series of long-term TV deals, including a contract with Amazon, under which the latter's streaming service, prime video, became the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season.
Apple TV+ is offered at a lower price than its competitors in the United States. The low cost, along with great content, is expected to aid this Zacks Rank #3 (Hold) company in attracting subscribers in the long haul.
What Awaits Apple Shares in 2022?
Apple shares have outperformed the Zacks Computer & Technology sector year to date. Apple shares are down 19.7% compared with the sector’s decline of 27.6%.
Apple has been struggling so far in 2022, primarily due to coronavirus-induced supply-chain disruptions, industry-wide silicon shortage, unfavorable forex and the ongoing Russia-Ukraine conflict.
The near-term outlook is not enthusiastic, given the headwinds. Apple did not provide revenue guidance for the third quarter of fiscal 2022. Apple expects COVID-induced supply chain disruptions and the industry-wide silicon shortage to hurt the top line by $4-$8 billion. Unfavorable forex is also expected to hurt revenues by 300 basis points (bps).
Moreover, the absence of revenues from Russia will hurt the top line by 150 bps. Apple paused all sales in Russia during the fiscal second quarter (March quarter).
However, growing adoption of services like Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services' revenue growth, which is expected to be in strong double digits for the June quarter.
In the second quarter of fiscal 2022, Apple’s Services revenues grew 17.3% from the year-ago quarter to $19.82 billion and accounted for 20.4% of sales.
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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 keeping no stone unturned to increase the popularity of its Apple TV+ streaming service. Apple Inc. (AAPL): Free Stock Analysis Report The low cost, along with great content, is expected to aid this Zacks Rank #3 (Hold) company in attracting subscribers in the long haul. | Apple AAPL is keeping no stone unturned to increase the popularity of its Apple TV+ streaming service. Apple Inc. (AAPL): Free Stock Analysis Report The addition of prominent content creators like Hanks definitely boosts Apple’s prospects in the increasingly competitive streaming market currently dominated by Netflix, besides robust offerings from streaming services by Disney DIS and Amazon AMZN. | Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL is keeping no stone unturned to increase the popularity of its Apple TV+ streaming service. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple has been trying to expand its footprint in different genres to attract viewers. | Apple AAPL is keeping no stone unturned to increase the popularity of its Apple TV+ streaming service. Apple Inc. (AAPL): Free Stock Analysis Report Streaming service providers like Apple and Amazon are new entrants in this market space. |
20757.0 | 2022-06-10 00:00:00 UTC | 3 Undervalued Stocks to Buy That Are Preparing to Rocket in 2022 | AAPL | https://www.nasdaq.com/articles/3-undervalued-stocks-to-buy-that-are-preparing-to-rocket-in-2022 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Be fearful when others are greedy and greedy when others are fearful. It’s an investment philosophy made famous by the market’s most well-known value investor Warren Buffett. And right now, Wall Street is running scared. But where are those buy decisions best directed? In undervalued stocks capable of producing out-of-this-world returns. Right?
Saying it is the easy part, of course. Execution on the right undervalued stocks is another matter, especially in a market where dirt cheap companies are seemingly offered to buyers like fish in a barrel.
Not to knock the Oracle of Omaha’s stock picking prowess, but even his single largest holding, tech giant Apple (NASDAQ:AAPL), wouldn’t make the cut for the type of undervalued rocket fuel we’re after. That requires something extra.
Below are three companies whose shares offer a strong blend of heavy discounting, off and on the price chart. Additionally, they have higher octane sales growth that’s bound to make others take notice and deliver sizzling profits for today’s undervalued stock buyers.
7 of the Hottest ETFs to Buy Right Now
Here are three undervalued stocks to buy that could take off in 2022:
Ticker Company Price
TYL Tyler Technologies, Inc. $351.61
ROKU Roku, Inc. $89.44
AMD Advanced Micro Devices, Inc. $98.60
Undervalued Stocks to Buy: Tyler Technologies (TYL)
Click to Enlarge
Source: Charts by TradingView
Tyler Technologies (NYSE:TYL) is the first of our undervalued stocks with revenue growth capable of propelling shares strongly higher.
TYL stock is a less well-known and profitable $14.23 billion large-cap software company focused on the public sector. Tyler Technologies saw stronger-than-forecast sales of $456 million grow by 55% in the first quarter (Q1) and organic growth coming in at its best in five years.
Analysts at Morningstar see business momentum as continuing and priced for upside of around $445 for buyers of this undervalued stock. That amounts to a premium of roughly 27% from today’s market price.
Admittedly, that’s not extraordinary rocket fuel for TYL stock’s burly-sounding growth. However, consensus forecasts of a median price target of $495 and range high of $600 situated 70% above this undervalued stock’s market price does sound worthy.
Technically, this undervalued stock has formed an inside monthly doji off Bollinger and layered Fibonacci support dating as far back as 2010. To ensure fair value doesn’t become further stretched from reality, waiting for a buy signal from an oversold stochastics and breakout of TYL stock’s downtrend is prudent.
Roku (ROKU)
Click to Enlarge
Source: Charts by TradingView
Roku (NASDAQ:ROKU) is the next of our undervalued stocks with sales growth in its DNA, setting up investors for big-time returns.
The streaming giant grew total revenues over the past year by 55%. Gross profits have climbed 74% year-over-year. ROKU is also cashflow positive and shares of this undervalued stock have one-time growth darling Cathie Wood’s Ark Invest as an active investor.
That last item, of course, may not sit well with some investors, with Ark’s ETFs taking a beating over the past fifteen or so months. Nevertheless, the investment manager has still been busy buying shares in recent weeks.
Compared to Ark’s cost average of around $250, at a current share price at the time of writing of $92.37 — that’s roughly 80% removed from last July’s all-time-high — conditions are shaping up for this undervalued stock.
7 Top-Rated Large-Cap Stocks to Buy and Hold
And with shares set inside May’s doji and in between ROKU’s March 2020 Covid-19 candle and lifetime support, a doable rally retracing 38% of the decline is possible. This is because it matches consensus views of $240 and gets Cathie Wood back toward breakeven. Investors could buy this undervalued growth play for huge profits.
Undervalued Stocks to Buy: Advanced Micro Devices (AMD)
Click to Enlarge
Source: Charts by TradingView
Advanced Micro Devices (NASDAQ:AMD) is our final undervalued stock, offering a special blend of growth and overblown distress that’s buyable for big-time gains.
The top semiconductor play continued to wow Wall Street last month after blasting top- and bottom-line estimates and issuing upside and above-views guidance. Business is also booming, as evidenced by across-the-board double-digit sales growth in all of AMD’s product lines.
In the wake of the report, broker Piper Sandler raised shares of this undervalued stock to “overweight” from “neutral.” Additionally, they lifted their price target to an above-the-market $140, as prior PC and acquisition concerns failed to play out as anticipated.
About a month later, shares of AMD have confirmed a monthly chart pattern stationed off Covid-19 and long-term Fibonacci and trendline support after getting cut nearly in half from last November’s all-time-high.
With an oversold stochastics bullishly-aligned and massive volume accompanying the reversal formation, $140 looks like a good start toward a more rocket-worthy Street price target high of $230 inside the next 12 months.
On the date of publication, Chris Tyler holds long positions in Advanced Micro Devices (AMD) and Ark ETFs (ARKK, ARKG) (either directly or indirectly), but no other 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 Undervalued Stocks to Buy That Are Preparing to Rocket 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. | Not to knock the Oracle of Omaha’s stock picking prowess, but even his single largest holding, tech giant Apple (NASDAQ:AAPL), wouldn’t make the cut for the type of undervalued rocket fuel we’re after. Click to Enlarge Source: Charts by TradingView Advanced Micro Devices (NASDAQ:AMD) is our final undervalued stock, offering a special blend of growth and overblown distress that’s buyable for big-time gains. In the wake of the report, broker Piper Sandler raised shares of this undervalued stock to “overweight” from “neutral.” Additionally, they lifted their price target to an above-the-market $140, as prior PC and acquisition concerns failed to play out as anticipated. | Not to knock the Oracle of Omaha’s stock picking prowess, but even his single largest holding, tech giant Apple (NASDAQ:AAPL), wouldn’t make the cut for the type of undervalued rocket fuel we’re after. 7 of the Hottest ETFs to Buy Right Now Here are three undervalued stocks to buy that could take off in 2022: Ticker Company Price TYL Tyler Technologies, Inc. $351.61 ROKU Roku, Inc. $89.44 AMD Advanced Micro Devices, Inc. $98.60 Undervalued Stocks to Buy: Tyler Technologies (TYL) Click to Enlarge Source: Charts by TradingView Advanced Micro Devices (NASDAQ:AMD) is our final undervalued stock, offering a special blend of growth and overblown distress that’s buyable for big-time gains. | Not to knock the Oracle of Omaha’s stock picking prowess, but even his single largest holding, tech giant Apple (NASDAQ:AAPL), wouldn’t make the cut for the type of undervalued rocket fuel we’re after. 7 of the Hottest ETFs to Buy Right Now Here are three undervalued stocks to buy that could take off in 2022: Ticker Company Price TYL Tyler Technologies, Inc. $351.61 ROKU Roku, Inc. $89.44 AMD Advanced Micro Devices, Inc. $98.60 Undervalued Stocks to Buy: Tyler Technologies (TYL) Click to Enlarge Source: Charts by TradingView Tyler Technologies (NYSE:TYL) is the first of our undervalued stocks with revenue growth capable of propelling shares strongly higher. | Not to knock the Oracle of Omaha’s stock picking prowess, but even his single largest holding, tech giant Apple (NASDAQ:AAPL), wouldn’t make the cut for the type of undervalued rocket fuel we’re after. 7 of the Hottest ETFs to Buy Right Now Here are three undervalued stocks to buy that could take off in 2022: Ticker Company Price TYL Tyler Technologies, Inc. $351.61 ROKU Roku, Inc. $89.44 AMD Advanced Micro Devices, Inc. $98.60 Undervalued Stocks to Buy: Tyler Technologies (TYL) ROKU is also cashflow positive and shares of this undervalued stock have one-time growth darling Cathie Wood’s Ark Invest as an active investor. |
20758.0 | 2022-06-10 00:00:00 UTC | Why Apple, Amazon, and Nvidia Plunged Today | AAPL | https://www.nasdaq.com/articles/why-apple-amazon-and-nvidia-plunged-today | nan | nan | What happened
Shares of big-cap tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) were down big on Friday, declining 3.4%, 5.6%, and 5.5%, respectively, as of 1 p.m. ET.
There wasn't much material news out of any of these three technology giants today. However, each of these companies trades at above-average valuations, and were therefore battered by today's higher-than-expected inflation reading.
So what
This morning, the Bureau of Labor Statistics reported May's consumer price index, which tracks price movements to end consumers. While many had hoped the March reading had marked peak inflation, May's numbers disappointed with the highest inflation print since 1981.
The headline inflation number came in at 8.6%, versus expectations of 8.3%, while "core" inflation, which strips out volatile food and energy prices, came in at 6%, versus the 5.9% estimate. What was especially troubling was that it wasn't just one item that appeared to surprise to the upside, such as energy, which was known to be pushing higher. The bureau wrote inflation was "broad-based," with food costs and shelter costs also rising sharply. Surprisingly, even prices for items such as apparel and used vehicles, which appeared to be rolling over to the downside last month, increased once again.
Investors may ask themselves, "What does this have to do with Apple, Amazon, and Nvidia?" Well, each of these stocks is a growth stock with a higher-than-average price-to-earnings (P/E) ratio. Even after today's decline, Apple trades at a 22.4 P/E ratio, with Amazon at 52.4 and Nvidia at 45.7 -- all higher than the market average.
If inflation is higher and more persistent than expected, investors may have to price in higher long-term interest rates. For instance, the 10-year Treasury bond yield rose 12 basis points today, to 3.17% as of this writing -- surpassing levels last seen in October 2018.
A higher long-term interest rate could cause investors to discount future earnings by a greater amount. The further out in the future those earnings are, the more they get discounted. Therefore, rising rates hit growth stocks especially hard, as their valuation ratios compress.
On the other side, when the Federal Reserve hikes rates, there is also the fear it will go too far, causing a recession in order to get prices back down. That wouldn't be good for discretionary names, or really any stock that isn't a staple whose products are bought in good times and bad. Traditionally, technology products have been seen as discretionary. If this scenario occurs, not only will these companies see lower P/E multiples, but their financial metrics could suffer in the near term.
Now what
Though technology has traditionally been seen as discretionary, one could argue these names are less discretionary than they used to be. After all, more and more of our lives are conducted now through our phones and laptops, so Apple's results may not be quite as cyclical than they were, say, five years ago. On the other hand, consumers may delay upgrades for longer.
Similarly, Amazon's retail site is currently getting hit with higher shipping costs, and consumers may buy less discretionary items. On the other hand, Amazon is also known for low prices, and higher fuel costs could entice consumers to order more from the e-commerce giant rather than driving to a store.
Nvidia is a tricky one, as semiconductors have been known to be highly cyclical. However, while gaming and laptop sales may turn down, Nvidia's strong position in enabling artificial intelligence (AI) could allow it to grow through an economic downturn. AI is becoming more and more useful for a wider swath of businesses, and is a key competitive advantage for many. Furthermore, automating more processes could help lower labor costs and increase efficiency.
With each of these names already down by large amounts from their highs, and with each stock benefiting from strong competitive advantages, I wouldn't advocate long-term investors rush to sell any of these names in a panic. After all, these companies survived the dot-com crash and the Great Recession of 2008, and they will survive this bout of inflation. On the other hand, there is a lot of uncertainty right now, so I would also be cautious about adding or piling into these names just because they are down.
These three therefore look like "holds" at the moment for long-term investors. However, those without a position and who are interested in these best-in-class tech names may wish to think about starting a position at these marked-down prices for the long term. Just be prepared for more downside if the Fed has to raise rates more than expected. Keep allocations within your risk parameters in a diversified portfolio, and perhaps think about dollar-cost averaging through what should be a volatile summer.
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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 big-cap tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) were down big on Friday, declining 3.4%, 5.6%, and 5.5%, respectively, as of 1 p.m. On the other hand, Amazon is also known for low prices, and higher fuel costs could entice consumers to order more from the e-commerce giant rather than driving to a store. However, while gaming and laptop sales may turn down, Nvidia's strong position in enabling artificial intelligence (AI) could allow it to grow through an economic downturn. | What happened Shares of big-cap tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) were down big on Friday, declining 3.4%, 5.6%, and 5.5%, respectively, as of 1 p.m. A higher long-term interest rate could cause investors to discount future earnings by a greater amount. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | What happened Shares of big-cap tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) were down big on Friday, declining 3.4%, 5.6%, and 5.5%, respectively, as of 1 p.m. Even after today's decline, Apple trades at a 22.4 P/E ratio, with Amazon at 52.4 and Nvidia at 45.7 -- all higher than the market average. If inflation is higher and more persistent than expected, investors may have to price in higher long-term interest rates. | What happened Shares of big-cap tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) were down big on Friday, declining 3.4%, 5.6%, and 5.5%, respectively, as of 1 p.m. Even after today's decline, Apple trades at a 22.4 P/E ratio, with Amazon at 52.4 and Nvidia at 45.7 -- all higher than the market average. If inflation is higher and more persistent than expected, investors may have to price in higher long-term interest rates. |
20759.0 | 2022-06-10 00:00:00 UTC | How Managers Can Get Better Results | AAPL | https://www.nasdaq.com/articles/how-managers-can-get-better-results | nan | nan | Do you own your models, or do your models own you? That's one of the driving questions in Roger Martin's new book, A New Way to Think: Your Guide To Superior Management Effectiveness. The former dean of the Rotman School of Management at the University of Toronto, Martin has also been a strategic advisor to Procter & Gamble (NYSE: PG), Ford Motor (NYSE: F), and Lego.
In this podcast, Motley Fool contributor Rachel Warren talks with him about:
The flawed models driving back-to-office plans.
Why stock-based compensation doesn't necessarily help outside investors.
When corporate mergers can succeed and why they often destroy value.
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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Roger Martin: It's the model of they're loyal, and ignoring of the model that says, habit drives behavior, that is getting all these companies in trouble. The "Great Resignation" is real. I think that we haven't seen the worst of it yet, it's going to ripple through the economy and it's because the companies are now getting more strident about, "You must come back to work." That's all based on a flawed model of human behavior.
Chris Hill: I'm Chris Hill and that's Roger Martin, author of the new book, A New Way to Think: Your Guide To Superior Management Effectiveness. Martin has served as the Dean of the Rotman School of Management at the University of Toronto, he's also worked as a strategic advisor for Procter & Gamble, Ford Motor, and Lego. Motley Fool contributor Rachel Warren talked with him about key takeaways from his book, how to reframe the flawed models which can hurt businesses and shareholders.
Rachel Warren: First off, let's just dive right in and talk about your new book, A New Way to Think: Your Guide To Superior Management Effectiveness. Now tell our audience what's the book about? Or what was the journey to writing this book and what are some of the dominant themes of the book?
Roger Martin: Sure well, the book is about our use of models. When we make any management decision, we have some way of thinking about it. I'll call it a model. I should be nicer to this employee in this conversation, and so that's your model for the conversation, or we should pay our CEO lots and stock-based compensation. Those are a model that guides how we do things. What I've noticed is that the business world gets models in mind as, what it thinks is a good way of helping you think through a problem that don't work and stay that way for a long period of time.
The attempt of the book is to dive into some models that don't produce what the user of the model would like to have to happen and to provide them with an alternative. It's not saying I'd like you to change what you're trying to accomplish. I'm not saying, oh, you should care more about other stakeholders than shareholders necessarily or the like. I'm just saying, whatever you're trying to do, don't use the model that doesn't get you that thing. Use a better model. You owe it to yourself and your organization to have the most powerful models that guide your thinking to make decisions that will get what you're trying to accomplish.
Rachel Warren: You've written a series of acclaimed books, some of which I mentioned earlier, covering strategy, integrative thinking, design of business incentives and governance, social innovation, democratic capitalism, the list goes on. How does the latest book on new ways of thinking fit into your overall body of work?
Roger Martin: Well, it turns out that when I look back on all of my books, they do have a similar quality. You say integrative thinking, The Opposable Mind, one of my earliest books, first best-selling book said, as an executive, when you're facing a tough choice, Rachel, you're facing a choice, I should invest in this or this and I can't invest in both. Which should I do. When you're facing a tough choice, the model in our head is, well, you're the CEO, Rachel, tough job, just make the choice, so that's the model, and that's the model we've taught in business school. What I discovered is that the most successful leaders out in the world, don't do that in that situation.
When they have that tough choice, they say, no, that's a dumb idea to make a choice between two options, neither of which I like. You should take that as a cue to invent a third better way and they invest in doing that, even take time to do that. It turns out, that my various books all had this characteristic to them. This is some sense is a compilation of a whole lot of chapters, each of which is a model as opposed to The Opposable Mind was all about one model and how to change that model. It's the thing I do. I observe models being used that aren't effective and try to provide a model that is easy to use and more effective.
Rachel Warren: Speaking of models or frameworks, ways of thinking. In your book, you pose a question to readers, which is, do you own your models, or do your models own you? I'd love if you could dive a bit into what you mean by this and why is this distinction is so important looking at business landscape now.
Roger Martin: Well, what it means is if you are taught a model or just come to start using a model, and it doesn't produce the outcomes that you intend when you use that model, and you keep using it, then I say you're owned by your model. It's almost like the mafia has got something on you, and you have to keep doing what you're doing, even though it's not what you want. It's that sense of it owns you. It's so important you can't change. I would like managers to own their models and by owning their models, it will be, you've got a model, you've put it in use. If it doesn't provide the outcomes that it promised that you thought it was going to provide, then you put it on probation.
Maybe you try it one more time and if it doesn't work again, you say rather than I didn't do it well enough, you say, I need to have a different model. Just to give you an example, back in the mid-'70s, an influential article written by Mike Jensen and Bill Macy said there's this agency problem and we need to solve it. Where management doesn't necessarily do what's in the interest of shareholders. The way we should do that is to align their interests. We said to align your interest, but stock-based compensation, and that will produce better returns for shareholders. That's now almost a half a century ago. That model has been in effect. CEO compensation has skyrocketed.
But guess, what's happened to shareholder returns, they haven't gotten any better. When I have conversations about this with people, they say to me, well, it must be that we didn't do it right. We gave too much in options and not enough and [UNCLEAR] stock units or we didn't have them tiered the right way or everything. There are all these excuses that say it's about the way I use the model. That's why I said it owns you. It screws up, but you blame yourself for it anyway. I'd rather have a step back and say, does it actually align with the interest of management and shareholders? The answer is, in my view, it doesn't. Then, therefore, what are other models we could use to produce better shareholder returns?
Rachel Warren: Well, and speaking of business leaders having to recalibrate their ways of thinking, we're obviously in a time of great turbulence in the labor market as a whole. The world of work has changed significantly over the last few years in the wake of the pandemic, we're still deep within the "Great Resignation" as the movement has been termed. How should leaders think differently about the future of work, particularly around return-to-office plans.
Roger Martin: Sure, there's a chapter in the book on this very question, which is our model that pertains to this would be that what's really important is loyalty. I think that a lot of these companies are saying, well, we've got loyal employees. All we have to do is tell them that they need to come back to the office and they will. Then a whole bunch of them are quitting and it's baffling to people. I thought they were really with us and we're more loyal to the company and they're just quitting en masse or threatening to like 69% of Apple employees do not want to come back to the office is the thing I read last week. But that's because a better model, is that we are driven as human beings more by habit than loyalty. Loyalty is a conscious concept.
You bought Tide detergent or Colgate toothpaste the last 50 times and you like the result it gave you, so you say to yourself, I'm loyal to Tide. Let's say Tide detergent. What really is going on is your subconscious, which now all the brain science tells us one equivalently likes comfort and familiarity more than anything else, has become comfortable with Tide. It's done the job for 50 times. You're now completely comfortable. You're familiar with exactly what it is and what it is not. When you're walking down the aisle in the grocery store, you are not thinking, I'm loyal to Tide. I'll buy another type of Tide pods. Your subconscious is actually saying to you, rate the thing that you're most comfortable with, but we here underneath the surface are most comfortable with is that orange one. Dump that in your cart.
If you were going to reach for something else, literally your subconscious would be screaming at you. Don't do that. We don't know that one. We're not comfortable with that one, etc. It turns out that habit is a much more powerful driver than loyalty. How does that apply to the "Great Resignation"? Well, a couple of years ago, there was force majeure. Workplaces were being locked down and people needed to work remotely. Remotely ended up being whatever, their porch, their basement, their guest room and what was established as a new habit. The old habit, which was broken was, get up, get in your car or get on the subway or get on the bus or the train, work your way into work, sit at your office, hang out and do the things you normally do in the office, get in your car, drive back home.
Totally interrupted, gone. New one is roll out of bed, make yourself a coffee, get dressed, go to your home office and proceed. What happens is that becomes habit. Your subconscious says, no, I'm totally familiar with this, I'm comfortable with this, this is awesome, this is terrific. What happens then, one day your place of work phones up and says, you need to stop working remotely. You need to return to the office. Consciously, you can take that in, but your subconscious is saying, they want me to work remotely. Your office in Manhattan is now remotely and your office is at home to your subconscious. The subconscious is saying, wait a minute. This is interrupting everything that I feel comfortable with and familiar with. It's basically saying to your conscious, you should feel weird about this.
It turns out that habit in any endeavor of our lives, habit has a huge advantage over all the other alternatives. You should think about what you habitually use and are used to, a way of doing things is an 100-yard dash and it gets to start at the 80-yard line and all the alternatives get to start at the starting line and the gun goes off and who's going to win? Habit. That's why we keep doing the things we're doing. By breaking the habit of how work is done, which is at home at your desk and saying, I want you to do this new thing, these companies are taking their employees who they think of as loyal employees and putting them back to the starting line with alternatives like, I am going to get a job here in Greenwich.
I'm going to go gig economy. I am going to take some time off before I think about what I'm going to do next. It's the model of they're loyal and ignoring the model that says, habit drives behavior. That is getting all these companies in trouble. The "Great Resignation" is real. I think we haven't seen the worst of it yet that's going to ripple through the economy and it's because the companies are now getting more strident about, you must come back to work. That's all based on a flawed model of human behavior. I'm not saying you shouldn't want them back to work, at their traditional place of work.
I'm saying the model you're using is going about it [UNCLEAR] in a way that's going to be extremely unsuccessful in accomplishing what you want to accomplish. You'll end up with half the employees that you had before that you've invested enormous amounts in some training app and getting to work are two-thirds, I mean, even that would be terrible or 75 percent, that would be a terrible outcome losing all those good people. Instead, you should be thinking about it as another habit change challenge. You can get people to change their habits. But can you get them to change their habits like that? No, you can't. You get them to change their habits slowly. Get them comfortable with the new habit. That's what these companies need to do if they want to maintain their workforce.
Rachel Warren: Well, and taking a little bit more into that as well, we have seen this real tug of war between what companies are willing to provide, whether it be changing or adjusting their model as you mentioned, and also what workers want and workers have a lot of leverage in the current labor market. As we see the "Great Resignation" continuing and I know you just mentioned your viewpoint is perhaps the worst is yet to come, what do you think the most important thing is that leaders need to know to recruit and retain top talent right now to keep those employees after they hire them? What's the answer here?
Roger Martin: The answer is that they should be thinking about the key criteria is making the person feel special as opposed to the key criteria being how much you pay them. There's a chapter in the book on that, too, and I use Aaron Rogers as my example of this. He was the highest-paid quarterback in the NFL when he signed his last two contracts prior to the one he just signed. But that didn't stop him last summer from being extremely upset, getting his contract reduced by a year, threatening to retire or leave despite being paid at a ridiculously high level. The reason was he was being treated generically and he said it in very clear terms. He said, "You'd think after being around for all these years, winning MVPs, Super Bowls, that they would at least take into account what I'm interested in in terms of the players around me."
But they said to him, "You're a player, we're management, you go sling the football, and we will take care of these decisions." They were dismissing his point of view out of hand and treating him as if he was any other player. All he wanted to be treated is special to the extent he was special. That he'd been with the Packers for a long time, had proven track record of success. They finally started listening to him and bringing back one of his favorite receivers saying they will actually talk to him about these moves. Then he was satisfied to come back and play, dropping sort of the "I'm going to go, I want to be traded, I want to go elsewhere, I'm going to retire." That's just a story of this but it's consistent with top talent.
Top talent is top talent because they've invested crazy in themselves being special. Then if you treat them generically, if you dismiss their ideas, they're going to go regardless of how much you pay them. It is not about compensation. It's about making sure their ideas are not dismissed and they're considered. Make sure their path forward isn't blocked. But they've invested in talent so that they can keep enhancing that, you block it and they go. You tell Eric Yuan you can't rewrite the Cisco software for WebEx for mobile platform and he says, well, I've got to go, I've found a company that will be mobile first and it's Zoom.
That's a classic, you've blocked their path. The last one is a little counterintuitive which is they need pats on the back just like everybody else. Often managers think that their best employees they're going to get paid the most, they're going to get the biggest bonus, and so they don't need to be taken aside and said, that new contract you brought in or that was an awesome performance for the company. Thank you for your work. If you don't do that, they will go to someplace that makes them feel special, and that is the secret to talent. Do you have to do everything they want and everything they say? No, not at all. But you can't dismiss them and treat them like they're just another employee.
Rachel Warren: I want to also turn to another very interesting topic that you dedicated a chapter to in your book, which is basically the current state of mergers and acquisitions, the SPAC boom. We saw quite the market in that space last year. It's certainly been a slower year for M&A activity and SPACs thus far in 2022. One of the things you mentioned in your book was that there's evidence that most of these actions fail. I'm wondering if maybe you could dive a little bit into that. Is there a better way to be thinking about M&A, and what are some of the most dominant trends that you see shaping this landscape as we're now headed into the second half of 2022?
Roger Martin: This just gets back to the retail versus wholesale thing. In some sense doing a merger by acquiring a company is getting sales to increase wholesale. You get a whole bunch at a the time rather than getting more sales or one customer at a time. It's popular because it feels easy, and it's popular because it enables you to get into new spaces. But the problem with it is the theory tends to be what will this acquisition do for us? It will pump up our size, it will get us into this new space. Like AT&T, I talk about that in the book and in part because of the time that acquisition was made. I made a prediction to a Fortune reporter who was calling me about, "This is an exciting acquisition." I said it's going to be an absolute failure. This will be an absolute failure. This will cost Randall Stephenson his job, and it will be sold for half its cost within five years. Those three predictions to which thankfully he came back and three years later when they sold it for exactly half the price, and Randall Stephenson retired.
Maybe he retired, who knows? But it's interesting how it happened at the same time. [laughs] There was, "We'll get into content. That's what we'll get from this." The better theory in my view is here's what we will be able to give to that acquisition. It's more about what you give than what you get. Because if it's all get, you're going to pay a ridiculous top dollar for it and not have anything that you do to add value once you've gotten it. That's exactly the AT&T story. It was exciting, but we're getting into content now. Content we're going to have owner economics all these crazy arguments, and it wasn't like the things we have at AT&T can really help Time Warner be much more effective.
Did you ever hear around the time, let me just think back to it. Did you ever hear an argument of that? No, it will make us a, integrated content delivery platform blah, blah, blah, blah, blah. That's all the things it will do for us. I think the acquisition of Android by Google, that made a lot of sense. Google's fantastic software people and programmers can help make Android even better and more effective and then we can back it and get it out on all these devices. That's at least a give-get equivalence or maybe more give than get. That's what I would be thinking of in acquisitions. I wouldn't make an acquisition where I couldn't demonstrate that I'm giving that acquisition more in terms of its competitive position, after you've acquired it, it will be a division or something, but that will be so much better off competitively being part of us because we can give it the capital it needs to expand. We can give it the products into distribution faster, better, more thoroughly. Give, think, in acquisition, think first, give, and then get. If you do that you can get some things that are really helpful to you but only if you give.
Rachel Warren: Folks, check out Roger's new book, A New Way to Think: Your Guide to Superior Management Effectiveness out for sale now. Roger, thank you so much for joining me on the show today. It has been a delight to speak with you.
Roger Martin: Oh well, thanks for having me, this is fun. It's fun to be back on Motley.
Rachel Warren: Great to have you back.
Chris Hill: As always, people on the program may have interest in the stocks they talked 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.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), and Apple. Rachel Warren has positions in Alphabet (A shares), Apple, and Zoom Video Communications. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Cisco Systems, and Zoom Video Communications. 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. | Martin has served as the Dean of the Rotman School of Management at the University of Toronto, he's also worked as a strategic advisor for Procter & Gamble, Ford Motor, and Lego. Rachel Warren: You've written a series of acclaimed books, some of which I mentioned earlier, covering strategy, integrative thinking, design of business incentives and governance, social innovation, democratic capitalism, the list goes on. As we see the "Great Resignation" continuing and I know you just mentioned your viewpoint is perhaps the worst is yet to come, what do you think the most important thing is that leaders need to know to recruit and retain top talent right now to keep those employees after they hire them? | Chris Hill: I'm Chris Hill and that's Roger Martin, author of the new book, A New Way to Think: Your Guide To Superior Management Effectiveness. Martin has served as the Dean of the Rotman School of Management at the University of Toronto, he's also worked as a strategic advisor for Procter & Gamble, Ford Motor, and Lego. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Cisco Systems, and Zoom Video Communications. | I'm just saying, whatever you're trying to do, don't use the model that doesn't get you that thing. Roger Martin: Well, what it means is if you are taught a model or just come to start using a model, and it doesn't produce the outcomes that you intend when you use that model, and you keep using it, then I say you're owned by your model. Maybe you try it one more time and if it doesn't work again, you say rather than I didn't do it well enough, you say, I need to have a different model. | I'm just saying, whatever you're trying to do, don't use the model that doesn't get you that thing. Maybe you try it one more time and if it doesn't work again, you say rather than I didn't do it well enough, you say, I need to have a different model. Chris Hill: As always, people on the program may have interest in the stocks they talked 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. |
20760.0 | 2022-06-10 00:00:00 UTC | UK plans to probe Apple, Google's mobile browser dominance | AAPL | https://www.nasdaq.com/articles/uk-plans-to-probe-apple-googles-mobile-browser-dominance-0 | nan | nan | Adds details, quotes, Apple and Google response
LONDON, June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store.
The Competition and Markets Authority (CMA) said on Friday it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices.
It said the two tech giants had an "effective duopoly" on mobile ecosystems that gave them a stranglehold on operating systems, app stores and web browsers on mobile devices.
"When it comes to how people use mobile phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said following the publication of a report on mobile ecosytems.
"As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice."
It said 97% of all mobile web browsing in Britain last year was powered by either Apple's or Google's browser engine, and in addition Apple banned alternatives to its own browser on iPhone.
The CMA said it was concerned this severely limited the potential for rival browsers to differentiate themselves from Apple's Safari, for example on features such as speed and functionality.
Apple said in a statement it had "created a safe and trusted experience users love and a great business opportunity for developers" through its ecosystem.
"We respectfully disagree with a number of conclusions reached in the report, which discount our investments in innovation, privacy and user performance — all of which contribute to why users love iPhone and iPad and create a level playing field for small developers to compete on a trusted platform," a spokesperson said.
"We will continue to engage constructively with the CMA to explain how our approach promotes competition and choice, while ensuring consumers’ privacy and security are always protected."
Google said smartphones using its Android operating system offered people and businesses more choice than any other mobile platform, and its Google Play app store has been the launchpad for millions of apps.
"We regularly review how we can best support developers and have reacted quickly to CMA feedback in the past," a Google spokesperson said.
"We will review the report and continue to engage with the CMA."
The regulator said it was also worried about Apple blocking the emergence of cloud gaming services, which allow high-quality games to be streamed rather than individually downloaded.
"By preventing this sector from growing, Apple risks causing mobile users to miss out on the full benefits of cloud gaming," it said.
The CMA said its proposed investigation would further assess its concerns and could result in legally binding orders requiring changes to be made to Apple's and Google's practices.
The consultation on the proposed the market investigation reference will close on 22 July.
(Reporting by Yadarisa Shabong in Bengaluru and Paul Sandle in London; Editing by Anil D'Silva and Elaine Hardcastle)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details, quotes, Apple and Google response LONDON, June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store. The Competition and Markets Authority (CMA) said on Friday it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices. "As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice." | Adds details, quotes, Apple and Google response LONDON, June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store. It said the two tech giants had an "effective duopoly" on mobile ecosystems that gave them a stranglehold on operating systems, app stores and web browsers on mobile devices. Google said smartphones using its Android operating system offered people and businesses more choice than any other mobile platform, and its Google Play app store has been the launchpad for millions of apps. | Adds details, quotes, Apple and Google response LONDON, June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store. "When it comes to how people use mobile phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said following the publication of a report on mobile ecosytems. It said 97% of all mobile web browsing in Britain last year was powered by either Apple's or Google's browser engine, and in addition Apple banned alternatives to its own browser on iPhone. | Adds details, quotes, Apple and Google response LONDON, June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store. Google said smartphones using its Android operating system offered people and businesses more choice than any other mobile platform, and its Google Play app store has been the launchpad for millions of apps. "We will review the report and continue to engage with the CMA." |
20761.0 | 2022-06-10 00:00:00 UTC | Wall Street falls sharply as inflation data fuels jitters | AAPL | https://www.nasdaq.com/articles/wall-street-falls-sharply-as-inflation-data-fuels-jitters | nan | nan | By Caroline Valetkevitch
NEW YORK, June 10 (Reuters) - All three major U.S. stock indexes were down at least 2% in Friday afternoon trading as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve.
Growth stocks led the decline, with Microsoft Corp MSFT.O and Apple Inc AAPL.O the biggest weights on the S&P 500 and Nasdaq.
Benchmark 10-year U.S. Treasury yields US10YT=RR reached 3.152%, the highest since May 9 following the inflation report.
The Labor Department's report showed the consumer price index increased 1.0% last month after gaining 0.3% in April. Economists polled by Reuters had forecast the monthly CPI picking up 0.7%.
Year-on-year, CPI surged 8.6%, its biggest gain since 1981 and following an 8.3% jump in May.
Stocks have been volatile this year, and recent selling has largely been tied to uncertainty over the outlook for inflation and rates.
"Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut.
"But there are some signs within the economy that ultimately inflation should start to slow, and the Fed will likely do whatever it takes to keep raising rates and reduce inflation over the coming 12 to 18 months."
The Dow Jones Industrial Average .DJI fell 658.3 points, or 2.04%, to 31,614.49; the S&P 500 .SPX lost 91.06 points, or 2.27%, to 3,926.76; and the Nasdaq Composite .IXIC dropped 342.63 points, or 2.91%, to 11,411.60.
All three major indexes are expected to be down for the week as well.
Goldman Sachs said on Friday that it now expects the Fed to hike rates by 50 basis points in September, up from its previous expectation of a 25 basis point increase.
Netflix Inc NFLX.O slid 4.5% after Goldman downgraded the streaming giant's stock to "sell" from "neutral" due to a possibly weaker macro environment.
Declining issues outnumbered advancing ones on the NYSE by a 6.46-to-1 ratio; on Nasdaq, a 4.38-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 44 new lows; the Nasdaq Composite recorded 13 new highs and 308 new lows.
(Additional reporting by Devik Jain, Mehnaz Yasmin and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur, Aditya Soni and Jonathan Oatis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Growth stocks led the decline, with Microsoft Corp MSFT.O and Apple Inc AAPL.O the biggest weights on the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - All three major U.S. stock indexes were down at least 2% in Friday afternoon trading as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve. The Labor Department's report showed the consumer price index increased 1.0% last month after gaining 0.3% in April. | Growth stocks led the decline, with Microsoft Corp MSFT.O and Apple Inc AAPL.O the biggest weights on the S&P 500 and Nasdaq. The Labor Department's report showed the consumer price index increased 1.0% last month after gaining 0.3% in April. Goldman Sachs said on Friday that it now expects the Fed to hike rates by 50 basis points in September, up from its previous expectation of a 25 basis point increase. | Growth stocks led the decline, with Microsoft Corp MSFT.O and Apple Inc AAPL.O the biggest weights on the S&P 500 and Nasdaq. By Caroline Valetkevitch NEW YORK, June 10 (Reuters) - All three major U.S. stock indexes were down at least 2% in Friday afternoon trading as a steeper-than-expected rise in U.S. consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve. "Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut. | Growth stocks led the decline, with Microsoft Corp MSFT.O and Apple Inc AAPL.O the biggest weights on the S&P 500 and Nasdaq. Year-on-year, CPI surged 8.6%, its biggest gain since 1981 and following an 8.3% jump in May. "Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut. |
20762.0 | 2022-06-10 00:00:00 UTC | ANALYSIS-Buy Now Pay Later business model faces test as rates rise | AAPL | https://www.nasdaq.com/articles/analysis-buy-now-pay-later-business-model-faces-test-as-rates-rise | nan | nan | By Elizabeth Howcroft
LONDON, June 10 (Reuters) - Reduced consumer spending, rising interest rates and trickier credit conditions spell trouble for Buy Now Pay Later lenders, raising the prospect of consolidation in the sector.
Buy Now Pay Later (BNPL) firms have created one of the fastest-growing segments in consumer finance, with transaction volumes hitting $120 billion in 2021 up from just $33 billion in 2019, according to GlobalData.
The BNPL business model emerged out of a very low interest rate environment which enabled BNPL firms to raise funds at relatively low cost and offer point-of-sale loans to customers on online shopping websites.
Consumers pay for their purchases in instalments over a period of weeks or months, usually interest-free, and BNPL firms charge online retailers a fee for each transaction.
The model proved popular among young consumers during the COVID-19 pandemic as e-commerce volumes soared, with Buy Now Pay Later transactions accounting for $2 in every $100 spent in e-commerce last year, according to GlobalData.
But the sector faces a reckoning as the circumstances which fuelled its explosive growth are coming to an end, with consumers cutting spending and rising interest rates pushing up BNPL firms' funding costs, squeezing their margins.
There are more than 100 BNPL firms globally, according to S&P Global Market Intelligence's 451 Research.
Apple's AAPL.O announcement this week that it would launch its own deferred payments service will further intensify competition and briefly knocked the stock price of listed players such as Affirm Holdings AFRM.O, the biggest BNPL firm in the United States, and Australia's Zip Co ZIP.AX and Sezzle Inc SZL.AX.
Their share prices were already under pressure, with Affirm down around 75% this year.
Shares of Jack Dorsey's payments firm Block Inc SQ.N, which bought Australian BNPL provider Afterpay in a deal completed in January, are down around 48% in 2022.
"Right now there's more caution and less interest (in BNPL firms from investors) because of the financial risks that could become apparent here if we are in an economic slowdown or a potential recession," said Bryan Keane, senior payments analyst at Deutsche Bank.
Top BNPL firm Klarna, which was valued at $46 billion following a funding round a year ago, recently laid off 700 staff - 10% of its workforce.
The Swedish-based company cited shifting consumer sentiment, inflation and the war in Ukraine as reasons, and said it is in talks with investors to raise more money.
For smaller players, many of them fledgling start-ups, accessing funding to lend to shoppers will become more difficult.
“Most Buy Now Pay Later providers don't have access to deposits, they generally aren't financial institutions," said Jordan McKee, principal research analyst at 451 Research. "There are certainly a few exceptions to that. But generally they need to borrow these funds to lend out and as interest rates associated with borrowing those funds increase ... it's costing them more money to extend money out to consumers and that puts pressure on their margins.”
Companies that are more insulated include Klarna and Block which have bank charters and could fund with deposits, analysts say.
The sector also faces increasing scrutiny from regulators, as consumers struggle with rising costs. UK charity Citizens Advice said on Tuesday that half of 18-34 year olds in Britain had borrowed money to make their BNPL payments.
Britain's finance ministry has launched a consultation on how BNPL firms should be regulated. Australia's financial services minister said on Tuesday the government would push to regulate BNPL lenders under credit laws.
AFFORDABILITY CHECKS
New entrants are undeterred by the downturn: British banking start-up Zopa, which reached a $1 billion valuation in a funding round in October, announced on Tuesday that it would launch BNPL products as part of its offering.
Tim Waterman, Zopa's chief commercial officer, expects upcoming regulations to include more stringent checks that customers can afford to make their payments, and that reliance on the services will have to be reported to credit reference agencies.
"The affordability checks are going to create more friction within the customer experience and potentially tip the balance for merchants," he said. "At the moment BNPL is very efficient in terms of driving sales and conversion rates and that may change slightly."
Deutsche Bank's Keane said that merchants may put up with higher fees if BNPL firms are bringing more customers to their websites, but that would favour the big players.
"I think some small players will probably go out of business or they'll try to connect onto some other tech players or some consolidation to the bigger players," Keane said. Some big financial institutions may also be interested in M&A opportunities in the sector, analysts say.
Rob Galtman, senior director at Fitch Ratings said that, although any lending product risks higher default rates during a downturn in the economic cycle, BNPL firms may be protected by their ability to control what kind of line of credit they offer based on a users' behaviour, as well as the fact that they typically offer shorter-term loans.
Apple's entry "signals a validation of these offerings in the market", he said.
Deutsche Bank estimates that the market could reach $482 billion by 2025, and account for 5.6% of e-commerce spending including payments for travel and events.
"What the Apple move telegraphs to me is that increasingly Buy Now Pay Later is being seen as a feature, not a standalone business," said McKee.
Buy Now Pay Later stockshttps://tmsnrt.rs/3tp7scK
VC deals in BNPL per quarterhttps://tmsnrt.rs/3xjZnak
(Reporting by Elizabeth Howcroft, additional reporting by John McCrank; Editing by Sinead Cruise and Susan Fenton)
((Elizabeth.Howcroft@thomsonreuters.com; +44 02075427104;))
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.O announcement this week that it would launch its own deferred payments service will further intensify competition and briefly knocked the stock price of listed players such as Affirm Holdings AFRM.O, the biggest BNPL firm in the United States, and Australia's Zip Co ZIP.AX and Sezzle Inc SZL.AX. By Elizabeth Howcroft LONDON, June 10 (Reuters) - Reduced consumer spending, rising interest rates and trickier credit conditions spell trouble for Buy Now Pay Later lenders, raising the prospect of consolidation in the sector. But the sector faces a reckoning as the circumstances which fuelled its explosive growth are coming to an end, with consumers cutting spending and rising interest rates pushing up BNPL firms' funding costs, squeezing their margins. | Apple's AAPL.O announcement this week that it would launch its own deferred payments service will further intensify competition and briefly knocked the stock price of listed players such as Affirm Holdings AFRM.O, the biggest BNPL firm in the United States, and Australia's Zip Co ZIP.AX and Sezzle Inc SZL.AX. The BNPL business model emerged out of a very low interest rate environment which enabled BNPL firms to raise funds at relatively low cost and offer point-of-sale loans to customers on online shopping websites. But the sector faces a reckoning as the circumstances which fuelled its explosive growth are coming to an end, with consumers cutting spending and rising interest rates pushing up BNPL firms' funding costs, squeezing their margins. | Apple's AAPL.O announcement this week that it would launch its own deferred payments service will further intensify competition and briefly knocked the stock price of listed players such as Affirm Holdings AFRM.O, the biggest BNPL firm in the United States, and Australia's Zip Co ZIP.AX and Sezzle Inc SZL.AX. The BNPL business model emerged out of a very low interest rate environment which enabled BNPL firms to raise funds at relatively low cost and offer point-of-sale loans to customers on online shopping websites. But the sector faces a reckoning as the circumstances which fuelled its explosive growth are coming to an end, with consumers cutting spending and rising interest rates pushing up BNPL firms' funding costs, squeezing their margins. | Apple's AAPL.O announcement this week that it would launch its own deferred payments service will further intensify competition and briefly knocked the stock price of listed players such as Affirm Holdings AFRM.O, the biggest BNPL firm in the United States, and Australia's Zip Co ZIP.AX and Sezzle Inc SZL.AX. Buy Now Pay Later (BNPL) firms have created one of the fastest-growing segments in consumer finance, with transaction volumes hitting $120 billion in 2021 up from just $33 billion in 2019, according to GlobalData. But generally they need to borrow these funds to lend out and as interest rates associated with borrowing those funds increase ... it's costing them more money to extend money out to consumers and that puts pressure on their margins.” Companies that are more insulated include Klarna and Block which have bank charters and could fund with deposits, analysts say. |
20763.0 | 2022-06-10 00:00:00 UTC | The 3 Reasons to Own PayPal Stock | AAPL | https://www.nasdaq.com/articles/the-3-reasons-to-own-paypal-stock | nan | nan | Here are three main reasons that you should own PayPal (NASDAQ: PYPL) stock. It is one of my favorite fintech companies due to its high free cash flow and increased monetization of its service Venmo.
*Stock prices used were the midday prices of June 8, 2022. The video was published on June 8, 2022.
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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. | It is one of my favorite fintech companies due to its high free cash flow and increased monetization of its service Venmo. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal Holdings wasn't one of them! | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Connor Allen has positions in Alphabet (A shares), Apple, and PayPal Holdings. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. | 10 stocks we like better than PayPal Holdings When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal Holdings wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. |
20764.0 | 2022-06-10 00:00:00 UTC | How Does Dollar Cost Averaging Work? | AAPL | https://www.nasdaq.com/articles/how-does-dollar-cost-averaging-work | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Simply put, dollar cost averaging is the process of buying a stock, mutual fund or exchange traded fund (ETF) on a regular and consistent basis regardless of the price.
The purpose of this strategy is to lessen the impact of volatility and prevent investors from trying to time the market. With dollar cost averaging, which is also called a “constant dollar plan,” investors buy a stock sometimes when the price is up and sometimes when it is down. But, over time, they end up owning the stock at an average price that is somewhere in the middle.
Buy Low, Sell High
While many investors hold firm to the adage of “buy low and sell high” when it comes to stocks, the reality is that it can be very difficult to time the market. This is especially true for individual investors who are trying to save for retirement and don’t have access to the same technology as Wall Street professionals. Individual investors are also preoccupied with work and daily life and might not be able to monitor the ups and downs of the stock market on a daily basis. Even Warren Buffett himself has admitted that he has “not been good at timing” the market over more than 50 years of investing.
7 Top-Rated Large-Cap Stocks to Buy and Hold
To get around this issue, many investors rely on dollar cost averaging, which is the process of investing equal amounts of money at regular intervals regardless of the price of a stock, mutual fund or ETF. For example, an investor might set aside $500 to invest at the end of every month and use it to build a position in consumer electronics giant Apple (NASDAQ:AAPL). Some months, They might buy shares of Apple as low as $100 each. Other months, the shares might cost $115, $127, $132, $145 and so on. Overtime, however, the average price at which they hold AAPL stock comes out to $123.80.
The main benefit of dollar cost averaging is that it helps investors avoid the mistake of making one lump-sum investment that is poorly timed. Using the Apple example, it helps the investor avoid buying their entire stake in AAPL stock at $145 per share only to see it fall. Dollar cost averaging is a strategy that investors can use to build and grow their savings over a long period of time. It helps to eliminate the impacts of short-term volatility in the stock market. Many investment advisors recommend using dollar cost averaging for people who want to save and invest money on a consistent basis and have long-term horizons.
401k Plans
The 401k retirement plans offered by many employers in the U.S. can help people invest money on a consistent basis using a dollar-cost averaging strategy. Money allocated to a 401k plan each time an employee gets paid is used to make regular purchases of a mutual fund, ETF or stock regardless of the price at a given time. Through a 401k plan, employees can choose a preset amount of their salary that they want to invest in a particular security. When paid, the amount the employee has chosen to contribute to the 401k is invested in their security of choice automatically at that time whether the investment is up or down. This leads to dollar cost averaging.
Of course, dollar-cost averaging can be used outside of 401k plans. It’s just that 401k plans automate the process and ensure it happens on a consistent basis. Also, dividend reinvestment plans allow investors to dollar-cost average by buying more shares of a company consistently over time regardless of the price at a particular moment in time. Many investment advisors recommend dollar cost averaging as a simple technique that helps to eliminate volatility and helps investors grow their savings over time. The technique can be used by experienced and novice investors.
Issues to Consider
If there is one flaw with dollar cost averaging, it is that it assumes that stocks, mutual funds and ETFs will always rise over time. For dollar-cost averaging to work, an investment must increase in price over the long-term. While the strategy can help to mitigate short-term market volatility, it cannot protect investments from sustained market declines or the collapse of an individual stock. Implicit in dollar cost averaging is the belief that prices will always rise given enough time. For this reason, dollar cost averaging is often most effective for investors with a time horizon of 10 years or longer.
Some critics of dollar cost averaging say the strategy is dangerous because it encourages investors to continue buying more shares in a stock at times when they might be best off to exit a holding completely. For this reason, some investment professionals recommend using dollar cost averaging to buy a mutual fund or ETF that tracks a diversified index, such as the S&P 500, or a basket of stocks, rather than employing the strategy to buy one particular stock.
Conclusion
Dollar cost averaging can help to lower the cost of an investment over time and help investors manage volatility and risk. The strategy can also help investors achieve greater gains on investments that rise in price. But dollar cost averaging does assume that prices will rise given enough time, so the strategy might best be used to invest in diversified mutual funds and ETFs rather than individual stocks.
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 How Does Dollar Cost Averaging Work? 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. | For example, an investor might set aside $500 to invest at the end of every month and use it to build a position in consumer electronics giant Apple (NASDAQ:AAPL). Overtime, however, the average price at which they hold AAPL stock comes out to $123.80. Using the Apple example, it helps the investor avoid buying their entire stake in AAPL stock at $145 per share only to see it fall. | For example, an investor might set aside $500 to invest at the end of every month and use it to build a position in consumer electronics giant Apple (NASDAQ:AAPL). Overtime, however, the average price at which they hold AAPL stock comes out to $123.80. Using the Apple example, it helps the investor avoid buying their entire stake in AAPL stock at $145 per share only to see it fall. | For example, an investor might set aside $500 to invest at the end of every month and use it to build a position in consumer electronics giant Apple (NASDAQ:AAPL). Overtime, however, the average price at which they hold AAPL stock comes out to $123.80. Using the Apple example, it helps the investor avoid buying their entire stake in AAPL stock at $145 per share only to see it fall. | For example, an investor might set aside $500 to invest at the end of every month and use it to build a position in consumer electronics giant Apple (NASDAQ:AAPL). Overtime, however, the average price at which they hold AAPL stock comes out to $123.80. Using the Apple example, it helps the investor avoid buying their entire stake in AAPL stock at $145 per share only to see it fall. |
20765.0 | 2022-06-10 00:00:00 UTC | 7 Large Cap Stocks to Buy for Long-Term Stability | AAPL | https://www.nasdaq.com/articles/7-large-cap-stocks-to-buy-for-long-term-stability | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Large-cap stocks are dividend aristocrats with steady returns and low beta. Growth stocks are the portfolio upside catalysts and can deliver multi-fold returns. It, therefore, makes sense to have a portfolio that’s a blend of growth and large-cap stocks.
In the last 10-years, the Vanguard Large Cap ETF (NYSERCA:VV) has delivered annualized returns of 14.22%. During the same period, the Vanguard Growth ETF (NYSEARCA:VUG) has given annualized returns of 15.23%.
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Besides providing stability to the portfolio, large-cap stocks have also matched returns of growth stocks in this period. Even if the same is not replicated in the next 10-years, it still makes sense to hold quality large cap stocks.
In the recent market correction, dozens of high-flying growth stocks have plunged by more than 50%. This underscores the importance of having a balanced portfolio.
PFE Pfizer $51.78
LMT Lockheed Martin $432.72
WMT Walmart $121.02
CVX Chevron $177.52
MO Altria $48.66
AAPL Apple $142.64
AMZN Amazon $116.15
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
With the stock trading at a forward price-to-earnings-ratio of 7.8 and offering a dividend yield of 3.0% Pfizer (NYSE:PFE) is among my favorite large-cap stocks.
PFE stock has trended higher by 36% in the last 12-months on the boost from earnings and cash flow from the covid-19 vaccine, but the vaccine isn’t critical to Pfizer’s future.
Pfizer has a deep pipeline of drug candidates for the next few years. This will ensure steady organic growth. Additionally, Pfizer has been on an acquisition spree in the last few quarters.
It’s worth noting that for 2022, the company expects research and development expenses in the range of $11 to $12 billion. With strong cash flows, meaningful investments in R&D will sustain.
Overall, PFE stock is positioned to deliver steady returns in the coming years through dividend and stock upside. The low-beta stock is worth holding in the portfolio.
Lockheed Martin (LMT)
Source: Ken Wolter / Shutterstock.com
With the escalation in tensions between Russia and Ukraine, Lockheed Martin (NYSE:LMT) stock has trended higher by 22% for year-to-date 2022.
However, this might just be the beginning of the long-term rally for the stock.
Prior to the recent escalation in tensions, most of the NATO members have been behind their defense spending targets. It’s likely that aggressive spending by NATO allies will benefit Lockheed in the coming years.
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It’s worth noting that Lockheed reported an order backlog of $134 billion as of March 2022. This provides clear cash flow visibility. The company has already guided for free cash flow of $6.0 billion for 2022.
Strong cash flows will ensure that the current dividend of $11.2 per share sustains. If growth accelerates backed by higher defense spending, dividends can possibly increase.
Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
With inflationary pressure and fears of recession, retail stocks have taken a beating. Walmart (NYSE:WMT) is no exception. However, I believe that the stock is trading at attractive levels for long-term exposure.
The U.S. economy is largely consumption-based and retail spending is a key component of consumption expenditure. Policies will therefore shift to expansionary if there is a recession. There is unlikely to be a significant impact on the company’s sales.
Walmart has been building strong omnichannel sales capabilities. This will ensure that growth sustains in the long term. Additionally, the company has a presence in attractive international markets. Over the next few years, international sales can be a key growth driver.
Of course, inflation is likely to affect the company’s bottom line through 2022. This factor seems discounted in the stock. Once inflation eases, cash flows will be robust. I would consider WMT stock for a dividend yield of 1.8% and a low beta.
Chevron Corporation (CVX)
Source: tishomir / Shutterstock.com
With Brent oil trading well above $100 per barrel, Chevron (NYSE:CVX) stock has been on a sustained upside.
In the last six months, the stock has returned 50%. I believe that small corrections offer opportunities to gain exposure to CVX stock.
A big reason to be bullish on Chevron is fundamentals. As of Q1 2022, the company reported a net-debt ratio of 10.8%. Further, for the quarter, the company’s operating cash flow was $8.1 billion.
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Given the strong fundamentals, Chevron plans to invest $15 to $17 billion annually through 2026. This is likely to ensure steady growth. At the same time, Chevron is investing in renewable assets.
It’s also worth noting that the company has low break-even assets. Even if oil corrects from current levels, cash flows will remain robust.
The dividend yield is therefore likely to remain attractive and share repurchase will create incremental value. Currently, the company has an annual buyback guidance in the range of $5 to $10 billion.
Altria (MO)
Source: Kristi Blokhin / Shutterstock.com
Another large-cap stock that trades at an attractive valuation and has a robust dividend yield is Altria (NYSE:MO). Even if MO stock remains sideways, a dividend yield of 6.7% is a big reason to buy.
It’s worth noting that Altria is in a business transformation phase. It’s unlikely that top-line growth will be robust in the next few years. However, cash flows are likely to remain stable.
The company’s smokable product segment is a cash machine that serves two functions.
First, it allows the company to invest in the non-smokable product category, which has shown encouraging results. In the non-smokable products segment, the company’s oral tobacco market share has been increasing.
Further, dividends and share repurchase will sustain with cash flows from iconic brands like Marlboro.
Altria also has investments in the cannabis sector through sake in Cronos (NASDAQ:CRON). Depending on the regulatory tailwinds, the stake can create value in the next five years.
Apple
Source: dennizn / Shutterstock.com
Apple’s (NASDAQ:AAPL) earnings growth has remained robust and AAPL stock is likely to deliver value on a sustained basis.
It’s also a quality dividend growth stock for the portfolio.
For Q2 2022, Apple reported revenue and EPS growth of 9% and 8.5% respectively. The iPhone segment remains the cash cow for the company. With 5G phones, growth is likely to sustain in this segment.
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At the same time, Apple continues to report strong numbers from the wearable and services segment. Apple also has the financial flexibility to diversify. Speculations continue on the company’s electric car. Overall, the innovation factor makes AAPL stock worth holding in the long term.
Apple has also been creating value through aggressive share repurchase and dividends. Just for Q2 2022, the company returned $27 billion to shareholders.
In the last 12-months, AAPL stock has trended higher by 13%. The stock still trades at an attractive forward P/E of 23.8 and seems poised for further upside.
Amazon (AMZN)
Source: Mike Mareen / Shutterstock.com
Amazon (NASDAQ:AMZN) stock has been trending lower with a correction of nearly 33% over the last six months. This seems like a good accumulation opportunity from a long-term perspective.
For Q1 2022, Amazon reported 7% revenue growth to $116.4 billion. The company’s operating and free cash flow have also been subdued on a relative basis.
However, growth for AWS has remained robust. In the last two years, AWS has witnessed an annual growth rate of 34%. The cloud business will continue to boost overall growth.
At the same time, e-commerce adoption remains in an uptrend on a global basis. With a presence in key emerging markets, Amazon is positioned to benefit.
It’s also worth noting that Amazon has been investing in emerging businesses. This includes virtual health care and broadband services. Considering the financial flexibility, investment in new businesses will help Amazon diversify and sustain growth.
Overall, AMZN stock is attractive among large-cap stocks after some correction. The company will continue to create value for shareholders in the coming years.
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 Large Cap Stocks to Buy for Long-Term Stability 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. | PFE Pfizer $51.78 LMT Lockheed Martin $432.72 WMT Walmart $121.02 CVX Chevron $177.52 MO Altria $48.66 AAPL Apple $142.64 AMZN Amazon $116.15 Pfizer (PFE) Source: photobyphm / Shutterstock.com With the stock trading at a forward price-to-earnings-ratio of 7.8 and offering a dividend yield of 3.0% Pfizer (NYSE:PFE) is among my favorite large-cap stocks. Apple Source: dennizn / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings growth has remained robust and AAPL stock is likely to deliver value on a sustained basis. Overall, the innovation factor makes AAPL stock worth holding in the long term. | PFE Pfizer $51.78 LMT Lockheed Martin $432.72 WMT Walmart $121.02 CVX Chevron $177.52 MO Altria $48.66 AAPL Apple $142.64 AMZN Amazon $116.15 Pfizer (PFE) Source: photobyphm / Shutterstock.com With the stock trading at a forward price-to-earnings-ratio of 7.8 and offering a dividend yield of 3.0% Pfizer (NYSE:PFE) is among my favorite large-cap stocks. Apple Source: dennizn / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings growth has remained robust and AAPL stock is likely to deliver value on a sustained basis. Overall, the innovation factor makes AAPL stock worth holding in the long term. | PFE Pfizer $51.78 LMT Lockheed Martin $432.72 WMT Walmart $121.02 CVX Chevron $177.52 MO Altria $48.66 AAPL Apple $142.64 AMZN Amazon $116.15 Pfizer (PFE) Source: photobyphm / Shutterstock.com With the stock trading at a forward price-to-earnings-ratio of 7.8 and offering a dividend yield of 3.0% Pfizer (NYSE:PFE) is among my favorite large-cap stocks. Apple Source: dennizn / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings growth has remained robust and AAPL stock is likely to deliver value on a sustained basis. Overall, the innovation factor makes AAPL stock worth holding in the long term. | PFE Pfizer $51.78 LMT Lockheed Martin $432.72 WMT Walmart $121.02 CVX Chevron $177.52 MO Altria $48.66 AAPL Apple $142.64 AMZN Amazon $116.15 Pfizer (PFE) Source: photobyphm / Shutterstock.com With the stock trading at a forward price-to-earnings-ratio of 7.8 and offering a dividend yield of 3.0% Pfizer (NYSE:PFE) is among my favorite large-cap stocks. Apple Source: dennizn / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings growth has remained robust and AAPL stock is likely to deliver value on a sustained basis. Overall, the innovation factor makes AAPL stock worth holding in the long term. |
20766.0 | 2022-06-10 00:00:00 UTC | 2 Reasons Investors Should Love Apple Pay Later | AAPL | https://www.nasdaq.com/articles/2-reasons-investors-should-love-apple-pay-later | nan | nan | Apple (NASDAQ: AAPL) unveiled its own buy now, pay later (BNPL) service, called Apple Pay Later, at its virtual Worldwide Developers Conference (WWDC) earlier this month. The service, integrated into Apple Pay, could provide a nice boost to Apple's increasingly important services business, and represents a threat to established BNPL service providers like Affirm and PayPal Holdings (NASDAQ: PYPL).
With the growing popularity of buy now, pay later, Apple Pay Later could provide a nice boost to Apple's services business. Here are two reasons for investors to get excited about Apple Pay Later.
1. Growing adoption and use of Apple Pay
Apple Pay is still incredibly underutilized by Apple device owners. While a large percentage of iPhone owners have set up Apple Pay, just 6% of them use it for in-store purchases, according to a survey from PYMNTS last fall. That's despite the fact that most merchants are already capable of accepting Apple Pay.
Adding buy now, pay later to Apple Pay gives consumers a reason to adopt Apple Pay, especially in stores. While other BNPL solutions have in-store capabilities, they rely on using a physical card or QR codes (which have lower adoption rates among merchants).
Apple will generate revenue from Apple Pay Later through interchange fees paid by merchants for accepting card payments. It isn't charging interest on the short-term loans or charging additional fees. In that sense, its business model is similar to PayPal's.
PayPal has seen success with its Pay in 4 product. "Buy Now, Pay Later has an incredible return for us, not just in actual usage of the product but we actually see a halo effect of about double the revenue of the product usage itself when people use that product," PayPal's Vice President of Finance and Analytics Erica Gessert said during an analyst call in February.
Indeed, Apple could see much higher usage rates among consumers who adopt the Pay Later service. Apple Pay Later's greatest value may be increasing the use of Apple Pay among consumers who already have it set up on their devices.
2. Building out Apple financial services
Apple Pay Later is just one of several new services within Apple Pay. The company also rolled out a tap-to-pay feature, which enables merchants to accept payments with an iPhone, no extra terminal hardware required. It also introduced order tracking for online orders made with Apple Pay, which automatically provide receipts and tracking information at merchants that have integrated the service.
All these features look to increase adoption of Apple Pay by providing services that make using Apple Pay more convenient than other payment methods. But they also point to Apple's push toward building out more financial services.
Apple has been working on bringing more behind-the-scenes financial services in-house this year, according to a report from Bloomberg. Apple wants to do everything from payment processing to credit checks to lending decisions internally, instead of relying on third-party fintech companies and partner banks.
Building out its own financial services will allow it to expand services like Apple Pay Later, Apple Cash, and its credit card globally without the need to rely on local partners. So, if Apple Pay Later is a success in the U.S., it may drive further development of internal financial services, seeding the potential for global expansion.
Establishing its own credit and lending services could also pave the way for an all-in-one subscription service for Apple's devices and services. An iPhone subscription bundled with Apple One -- a bundling of Apple services like Arcade, News+, Music, iCloud+, Fitness+, and TV+ -- for one recurring monthly payment could ensure steady device sales and be a boon for Apple's services business.
As Apple's device sales face headwinds in the near term, the services business has increased in importance to Apple and its investors. The introduction of Apple Pay Later may be just a small piece in Apple's plans for a much bigger financial services business, bolstering the overall services segment for the tech giant.
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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) unveiled its own buy now, pay later (BNPL) service, called Apple Pay Later, at its virtual Worldwide Developers Conference (WWDC) earlier this month. While other BNPL solutions have in-store capabilities, they rely on using a physical card or QR codes (which have lower adoption rates among merchants). The company also rolled out a tap-to-pay feature, which enables merchants to accept payments with an iPhone, no extra terminal hardware required. | Apple (NASDAQ: AAPL) unveiled its own buy now, pay later (BNPL) service, called Apple Pay Later, at its virtual Worldwide Developers Conference (WWDC) earlier this month. The service, integrated into Apple Pay, could provide a nice boost to Apple's increasingly important services business, and represents a threat to established BNPL service providers like Affirm and PayPal Holdings (NASDAQ: PYPL). With the growing popularity of buy now, pay later, Apple Pay Later could provide a nice boost to Apple's services business. | Apple (NASDAQ: AAPL) unveiled its own buy now, pay later (BNPL) service, called Apple Pay Later, at its virtual Worldwide Developers Conference (WWDC) earlier this month. The service, integrated into Apple Pay, could provide a nice boost to Apple's increasingly important services business, and represents a threat to established BNPL service providers like Affirm and PayPal Holdings (NASDAQ: PYPL). Growing adoption and use of Apple Pay Apple Pay is still incredibly underutilized by Apple device owners. | Apple (NASDAQ: AAPL) unveiled its own buy now, pay later (BNPL) service, called Apple Pay Later, at its virtual Worldwide Developers Conference (WWDC) earlier this month. The service, integrated into Apple Pay, could provide a nice boost to Apple's increasingly important services business, and represents a threat to established BNPL service providers like Affirm and PayPal Holdings (NASDAQ: PYPL). Building out Apple financial services Apple Pay Later is just one of several new services within Apple Pay. |
20767.0 | 2022-06-10 00:00:00 UTC | Will Big Tech or Bitcoin Be Regulated? | AAPL | https://www.nasdaq.com/articles/will-big-tech-or-bitcoin-be-regulated | nan | nan | For years, investors have feared that governments would impose regulations on Bitcoin (CRYPTO: BTC). Some concerns are valid, when considering that countries like China have banned the use of Bitcoin and Bitcoin mining. The lack of current regulation has also led some investors to believe that governments will act swiftly to introduce new legislation.
However, when comparing regulatory risk between Bitcoin and some of the Nasdaq's heavyweights, such as Meta (NASDAQ: FB), Microsoft (NASDAQ: MSFT), or Apple (NASDAQ: AAPL), there is a clear trend of Big Tech companies consistently finding themselves in the crosshairs of government regulation.
Image source: Getty Images.
The end of Big Tech?
The rise of Big Tech since the Great Recession has been extraordinary. Since its low in November 2009, the Nasdaq increased roughly 1,000% when it hit a high in October 2021.
Yet this growth might be coming to an end, now that the world in general and governments alike are beginning to realize that the growth of these tech giants relies on some nontraditional methods.
These companies employ a business model that relies on collecting users' data, promoting polarizing content, and exploiting our own human nature to become addicted to serotonin boosts that come with getting "likes."
Big Tech CEOs from companies such as Alphabet's (NASDAQ: GOOGL) Google, Amazon (NASDAQ: AMZN), Microsoft, Meta, and Apple have all become familiar faces in Washington, D.C., and in courtrooms around the world because of their seemingly constant hearings with legislators over their business practices. Amazon is currently involved in four lawsuits. Apple has found itself in three active investigations. Google leads the way with five lawsuits. And Meta is in the midst of four investigations with legislators.
In the U.S., most of the allegations are related to a series of antitrust lawsuits that have pitted Big Tech against the Federal Trade Commission, state governments, and even the Department of Justice.
These lawsuits aim to rein in the monopolistic power Big Tech has amassed, comparable to the antitrust trial Microsoft faced in the late 1990's. If the government's approach to business overreach in the past is any indicator of the future, the end of Big Tech might be closer than it appears.
Recently, one of Congress' most vocal members of the House Antitrust Subcommittee stated that legislation to rein in Big Tech is near completion. Ken Buck, a Republican representative from Colorado, told Time in April that he expects Big Tech reform to be on President Biden's desk by the end of the summer.
Advocates for the bill hope that it will contain some language that would break up current companies into smaller ones, limit their ability to make new business acquisitions, and put an end to stock buy back programs that these companies use to buy their own stocks when they think their company is undervalued and then sell for a profit at a later date.
Why Bitcoin?
Despite being shrouded in controversy, Bitcoin will probably never see this kind of legislation and regulation. Fears over regulation of Bitcoin might be unwarranted or at least misplaced. Because Bitcoin is one of the most decentralized cryptocurrencies, it is naturally more difficult to regulate.
Technically speaking, governments can't truly regulate or even ban Bitcoin. They can shut down exchanges, they can outlaw mining, or they can increase taxes, but they will never be able to actually ban the purchase or selling of Bitcoin. Thanks to virtual private networks and decentralized exchanges, those who want Bitcoin have many options that governments can't control.
In addition, governments around the world are beginning to realize that citizens and companies want to use Bitcoin. Instead of introducing legislation that curbs the growth of Bitcoin, lawmakers are creating incentives around the new crypto economy and the use of Bitcoin.
Germany, for example, recently passed some of the most crypto-friendly tax laws in the developed world. States like Colorado in the U.S. are allowing citizens to pay taxes in Bitcoin. And just recently, the Central African Republic made Bitcoin legal tender, becoming the second country in the world to do so.
Current trends seem to signal that Bitcoin is in a similar position that Big Tech was roughly a decade ago. Post-Great Recession, a new way of life slowly unfolded. Everyone now has a smartphone. Everyone has an Amazon account. Everyone uses Google, Facebook, Instagram, and Twitter.
Bitcoin has a chance to catapult into the public's view over the coming decade. It provides true utility to send payments instantly across borders. It is a hedge against widespread inflation. And most importantly, as much as governments might want to regulate it, Bitcoin's decentralization will protect it from any type of detrimental legislation.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Bitcoin, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, when comparing regulatory risk between Bitcoin and some of the Nasdaq's heavyweights, such as Meta (NASDAQ: FB), Microsoft (NASDAQ: MSFT), or Apple (NASDAQ: AAPL), there is a clear trend of Big Tech companies consistently finding themselves in the crosshairs of government regulation. These companies employ a business model that relies on collecting users' data, promoting polarizing content, and exploiting our own human nature to become addicted to serotonin boosts that come with getting "likes." In the U.S., most of the allegations are related to a series of antitrust lawsuits that have pitted Big Tech against the Federal Trade Commission, state governments, and even the Department of Justice. | However, when comparing regulatory risk between Bitcoin and some of the Nasdaq's heavyweights, such as Meta (NASDAQ: FB), Microsoft (NASDAQ: MSFT), or Apple (NASDAQ: AAPL), there is a clear trend of Big Tech companies consistently finding themselves in the crosshairs of government regulation. Big Tech CEOs from companies such as Alphabet's (NASDAQ: GOOGL) Google, Amazon (NASDAQ: AMZN), Microsoft, Meta, and Apple have all become familiar faces in Washington, D.C., and in courtrooms around the world because of their seemingly constant hearings with legislators over their business practices. 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. | However, when comparing regulatory risk between Bitcoin and some of the Nasdaq's heavyweights, such as Meta (NASDAQ: FB), Microsoft (NASDAQ: MSFT), or Apple (NASDAQ: AAPL), there is a clear trend of Big Tech companies consistently finding themselves in the crosshairs of government regulation. Big Tech CEOs from companies such as Alphabet's (NASDAQ: GOOGL) Google, Amazon (NASDAQ: AMZN), Microsoft, Meta, and Apple have all become familiar faces in Washington, D.C., and in courtrooms around the world because of their seemingly constant hearings with legislators over their business practices. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Bitcoin, Meta Platforms, and Microsoft. | However, when comparing regulatory risk between Bitcoin and some of the Nasdaq's heavyweights, such as Meta (NASDAQ: FB), Microsoft (NASDAQ: MSFT), or Apple (NASDAQ: AAPL), there is a clear trend of Big Tech companies consistently finding themselves in the crosshairs of government regulation. The end of Big Tech? Why Bitcoin? |
20768.0 | 2022-06-10 00:00:00 UTC | How to Build a Stock Portfolio for New Investors | AAPL | https://www.nasdaq.com/articles/how-to-build-a-stock-portfolio-for-new-investors | nan | nan | Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch. This series is focused on investing for beginners, but investors of all backgrounds will enjoy this content. The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing.
Here are the growth stock portfolio allocations by category:
60% growth stocks, such as Tesla (NASDAQ: TSLA)
20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO)
10% dividend stocks, such as Microsoft (NASDAQ: MSFT)
10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI)
The video below provides an update on this stock portfolio, which was created in February 2022. I share the stocks I'm buying now, the stocks I am dollar-cost averaging into, and more. The entire portfolio and all positions are revealed, including four new stocks I've recently added, such as Snap (NYSE: SNAP) and Toast (NYSE: TOST). Please watch for more information, and don't forget to subscribe and click the bell to receive notifications, so you don't miss any future videos in the series.
*Stock prices used in the below video were during the trading day of February 9, 2022. The video was published on February 9, 2022.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Marvell Technology Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. | Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Marvell Technology Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. | Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! The Motley Fool has a disclosure policy. |
20769.0 | 2022-06-10 00:00:00 UTC | CMA Begins Consulting On Launch Of Market Investigation Into Mobile Browsers, Access To Cloud Gaming | AAPL | https://www.nasdaq.com/articles/cma-begins-consulting-on-launch-of-market-investigation-into-mobile-browsers-access-to | nan | nan | (RTTNews) - The Competition and Markets Authority or CMA in the UK is consulting on the launch of a market investigation into Apple and Google's market power in mobile browsers and Apple's restrictions on cloud gaming through its App Store. The CMA is also taking enforcement action against Google in relation to its app store payment practices.
"As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice," Andrea Coscelli, Chief Executive of the CMA, said.
The consultation on the proposed market investigation reference will close on 22 July.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The CMA is also taking enforcement action against Google in relation to its app store payment practices. "As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice," Andrea Coscelli, Chief Executive of the CMA, said. The consultation on the proposed market investigation reference will close on 22 July. | (RTTNews) - The Competition and Markets Authority or CMA in the UK is consulting on the launch of a market investigation into Apple and Google's market power in mobile browsers and Apple's restrictions on cloud gaming through its App Store. The CMA is also taking enforcement action against Google in relation to its app store payment practices. The consultation on the proposed market investigation reference will close on 22 July. | (RTTNews) - The Competition and Markets Authority or CMA in the UK is consulting on the launch of a market investigation into Apple and Google's market power in mobile browsers and Apple's restrictions on cloud gaming through its App Store. "As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice," Andrea Coscelli, Chief Executive of the CMA, said. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The Competition and Markets Authority or CMA in the UK is consulting on the launch of a market investigation into Apple and Google's market power in mobile browsers and Apple's restrictions on cloud gaming through its App Store. The CMA is also taking enforcement action against Google in relation to its app store payment practices. "As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice," Andrea Coscelli, Chief Executive of the CMA, said. |
20770.0 | 2022-06-10 00:00:00 UTC | UK plans to probe Apple, Google's mobile browser dominance | AAPL | https://www.nasdaq.com/articles/uk-plans-to-probe-apple-googles-mobile-browser-dominance | nan | nan | June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers as well as the iphone maker's restrictions on cloud gaming through its app store.
The Competition and Markets Authority said it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers as well as the iphone maker's restrictions on cloud gaming through its app store. The Competition and Markets Authority said it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers as well as the iphone maker's restrictions on cloud gaming through its app store. The Competition and Markets Authority said it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers as well as the iphone maker's restrictions on cloud gaming through its app store. The Competition and Markets Authority said it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 10 (Reuters) - Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc AAPL.O and Google's mobile browsers as well as the iphone maker's restrictions on cloud gaming through its app store. The Competition and Markets Authority said it was also taking enforcement action against Alphabet Inc's GOOGL.O Google over its app store payment practices. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
20771.0 | 2022-06-10 00:00:00 UTC | 2 Compelling Tech Stocks That Score a ‘Perfect 10’ | AAPL | https://www.nasdaq.com/articles/2-compelling-tech-stocks-that-score-a-perfect-10 | nan | nan | The high-flying tech stocks have been beaten to the ground in 2022. Broadly, supply-chain disruptions and macro headwinds are why investors dumped tech stocks. Due to the recent selling, most tech stocks have lost substantial value, making them attractive investments on the price front. However, given the uncertainty around the economic trajectory, could this be the right time to buy?
To find answers, let’s turn to TipRanks’ Smart Score. This data-driven, quantitative scoring system analyses stocks on eight major parameters and comes up with a Smart Score ranging from 1 to 10. The higher the score, the more likely a stock is to outperform the broader market averages.
The chart below highlights that the top Smart Score stocks generated solid positive alpha and outperformed the S&P 500 Index (SPX).
Using the tool, let’s look at two tech stocks that have recently received a “Perfect 10” Smart Score.
Alphabet (NASDAQ: GOOGL)
Shares of Google parent Alphabet are down about 21% in 2022. Tough year-over-year comparisons, unfavorable currency impact, and suspension of major activities in Russia led to a deceleration in YouTube ads growth, in turn, its overall revenue.
Moreover, uncertainty over future ad spending amid challenging macro conditions remains a drag.
In response to the slowdown in YouTube’s growth, Jefferies analyst Brent Thill said that YouTube registered an increase of 14% during the last reported quarter, which “was the lowest since the pandemic-hit 6% in 2Q20.
He expects headwinds to sustain in Q2, with tough comparisons to take a toll on its growth. However, the analyst is upbeat about Alphabet’s performance in 2022 as “core search advertising and network advertising” trends remain healthy. Thill is bullish on GOOGL stock.
Along with Thill, Stifel Nicolaus analyst Scott Devitt is also bullish on Alphabet. Devitt recommends buying GOOGL shares “given supportive valuation on EPS and confidence in the company’s long-term growth opportunity.”
GOOGL stock sports a Strong Buy consensus rating on TipRanks based on 30 unanimous Buy recommendations. The average GOOGL price target of $3,245.48 indicates 41.3% upside potential over the next 12 months. GOOGL stock also has positive indicators from hedge funds and retail investors, who are buying the dip. GOOGL stock has a maximum Smart Score of 10 out of 10.
Apple (NASDAQ: AAPL)
Strong product demand continues to fuel Apple’s growth. However, supply constraints and management’s cautionary tone for the June quarter (Q3) weighed on its stock price. It’s worth noting that Apple stock is down over 19% year-to-date.
For the June quarter, Apple’s management expects supply shortages to impact its ability to meet customer demand. This will result in a $4 billion to $8 billion headwind to its revenues. Management added that the COVID-related challenges could impact its China business. Meanwhile, the foreign exchange would be a 3% headwind to June quarter sales. Also, the pause on its operations in Russia will negatively impact its top line by 1.5%.
Despite the short-term challenges, most Wall Street analysts are bullish about AAPL stock, given the strong demand and new product launches.
The company recently unveiled two new MacBook models based on Apple’s new and faster M2 chip. In response to this, Wedbush analyst Daniel Ives stated that the company is “beating Intel (NASDAQ: INTC) and other chip companies at its own game, while being able to release new products in the midst of the biggest supply chain crisis in modern history as Cook & Co. further flex their muscles.” Further, the analyst is upbeat about the strength of the services segment.
AAPL stock sports a Strong Buy consensus rating on TipRanks based on 21 Buy and six Hold recommendations. Further, the average AAPL price target of $187.22 indicates 31.3% upside potential over the next 12 months. AAPL stock also has positive indicators from hedge funds and retail investors. Overall, AAPL stock has a maximum Smart Score of 10 out of 10.
Bottom Line
Both GOOGL and AAPL have multiple catalysts that could support their growth. Further, TipRanks’ maximum Smart Score indicates that shares of both these companies have a higher probability of outperforming the broader market.
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) Strong product demand continues to fuel Apple’s growth. Despite the short-term challenges, most Wall Street analysts are bullish about AAPL stock, given the strong demand and new product launches. AAPL stock sports a Strong Buy consensus rating on TipRanks based on 21 Buy and six Hold recommendations. | AAPL stock sports a Strong Buy consensus rating on TipRanks based on 21 Buy and six Hold recommendations. Apple (NASDAQ: AAPL) Strong product demand continues to fuel Apple’s growth. Despite the short-term challenges, most Wall Street analysts are bullish about AAPL stock, given the strong demand and new product launches. | AAPL stock sports a Strong Buy consensus rating on TipRanks based on 21 Buy and six Hold recommendations. Apple (NASDAQ: AAPL) Strong product demand continues to fuel Apple’s growth. Despite the short-term challenges, most Wall Street analysts are bullish about AAPL stock, given the strong demand and new product launches. | Overall, AAPL stock has a maximum Smart Score of 10 out of 10. Apple (NASDAQ: AAPL) Strong product demand continues to fuel Apple’s growth. Despite the short-term challenges, most Wall Street analysts are bullish about AAPL stock, given the strong demand and new product launches. |
20772.0 | 2022-06-10 00:00:00 UTC | Why Big Businesses Could Dominate AR in the Near Future | AAPL | https://www.nasdaq.com/articles/why-big-businesses-could-dominate-ar-in-the-near-future | nan | nan | In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium explains how Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other large companies will be leaders in AR because they have the resources and will use their technology across a variety of industries with very practical use cases.
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Travis Hoium: I think this is really where the AR and VR is probably going to advance first. Apple will be really interesting to watch from a consumer perspective. But if you think about even the value of an iPhone, you can go download, what is it? A hundred thousand, 200,000 apps today. When the iPhone first launched, we didn't have that. There's this, it's the same thing with the PC. If you were buying a PC in 1978, there wasn't a whole lot to do on it. You go fast forward to 1995 and you can do all kinds of different stuff.
This is the place where this technology is right now is great the tools exist, the HoloLens, the Oculus Quest, things like that. But now you have to build the applications for it that add value in some way, shape, or form. Is that going to be consumers, or it's going to be businesses? I think that you laid out really well why it's actually businesses that are probably going to see a benefit to this first.
The question is always been, even from that side is you have to find something that is high-value enough or modular enough that you can build it and make it, make any financial sense if you have to have five developers working for a year to build your factory line, to build all this stuff in, I mean, just do some ballpark math. You're spending a million dollars to build a piece of content. Now, you have to get a million dollars of value out of it. That's harder to do.
I think this stuff is coming. I think that what Microsoft is working on is really interesting, is probably a great use case. But it'll be interesting to see how they are able to build the platforms and the software tools that then an engineer who maybe is remote can drop in and add value on the spot because I think, I worked at a manufacturing plant for a couple of years and some of the engineers have to live within a certain amount of distance from the plant because if something goes down and you get a call at three in the morning, you have to come in and figure it out.
If you're running a line that is making $30,000 a minute of product you better drive as quick as you can to get there. Now if you can just pop your headset on and you can be anywhere [laughs] in the world. That's pretty cool. There's a real value case there. I think that's going to be interesting to watch for Microsoft and for the AR space in particular.
Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium explains how Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other large companies will be leaders in AR because they have the resources and will use their technology across a variety of industries with very practical use cases. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. But it'll be interesting to see how they are able to build the platforms and the software tools that then an engineer who maybe is remote can drop in and add value on the spot because I think, I worked at a manufacturing plant for a couple of years and some of the engineers have to live within a certain amount of distance from the plant because if something goes down and you get a call at three in the morning, you have to come in and figure it out. | In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium explains how Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other large companies will be leaders in AR because they have the resources and will use their technology across a variety of industries with very practical use cases. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Microsoft. | In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium explains how Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other large companies will be leaders in AR because they have the resources and will use their technology across a variety of industries with very practical use cases. The question is always been, even from that side is you have to find something that is high-value enough or modular enough that you can build it and make it, make any financial sense if you have to have five developers working for a year to build your factory line, to build all this stuff in, I mean, just do some ballpark math. But it'll be interesting to see how they are able to build the platforms and the software tools that then an engineer who maybe is remote can drop in and add value on the spot because I think, I worked at a manufacturing plant for a couple of years and some of the engineers have to live within a certain amount of distance from the plant because if something goes down and you get a call at three in the morning, you have to come in and figure it out. | In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium explains how Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other large companies will be leaders in AR because they have the resources and will use their technology across a variety of industries with very practical use cases. The question is always been, even from that side is you have to find something that is high-value enough or modular enough that you can build it and make it, make any financial sense if you have to have five developers working for a year to build your factory line, to build all this stuff in, I mean, just do some ballpark math. I think that what Microsoft is working on is really interesting, is probably a great use case. |
20773.0 | 2022-06-09 00:00:00 UTC | Buy Apple Stock Now To Profit From Second-Half Rally | AAPL | https://www.nasdaq.com/articles/buy-apple-stock-now-to-profit-from-second-half-rally | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) hasn’t been immune to the recent market meltdown that was led by tech stocks. AAPL stock has pulled back about 19% year-to-date (YTD) compared to a steeper 24% plunge by the Invesco QQQ Trust (NASDAQ:QQQ). The SPDR S&P 500 ETF Trust (NYSE:SPY) has fared better with a 15% drop.
Cupertino’s financial performance in the first half of the year does not warrant the kind of negative sentiment seen toward the stock. The company reported record March quarter revenue for the calendar-year first quarter. Services revenue was at an all-time high and all other hardware products, barring the iPad, turned in record revenues.
The company persisted with its massive shareholder return policy by paying out dividends and buying back stock. It has also built up a war chest with cash and cash equivalents of $28.098 billion at the end of the March quarter. Taking into consideration marketable securities, the cash position was a whopping $193 billion.
So, what drove the negative reaction to the stock?
Ticker Company Price
AAPL Apple Inc. $142.64
China Spooks Apple
Apple ticked all boxes with its fundamental performance during this lean period. The only minor irritant investors had to contend with was the company’s disclosure that it will take a $4 billion to $8 billion hit from supply disruptions. Apple was not alone in facing supply woes as Covid-19 lockdowns in China were beginning to bite high-profile big techs.
7 of the Hottest ETFs to Buy Right Now
China is a key supplier to the world given the cheap labor, lax regulatory requirements, and low taxes and duties. Foreign direct investments in China climbed 26.1% year-over-year for the January to April timeframe to $74.47 billion, with investments from Germany and the U.S. increasing by over 80% and 50%, respectively.
A lot has been said about diversifying production away from China. But not much progress has been made on this front. Apple has recently shifted some of its production to Vietnam and India. Additionally, it has reportedly asked its component suppliers to build manufacturing plants outside of China.
The situation in China has not only impacted production, but also demand. China is one of the key consumer markets for many high-tech goods. Apple’s March quarter results showed that revenue from Greater China — a term used to refer to mainland China, Hong Kong, Macau and Taiwan — rose a mere 3.5% year-over-year. Sequentially, Greater China revenue fell 28.9%.
In Apple’s Resilience we Trust
The Covid-19 situation is improving in China. Shanghai has lifted the months-long shutdown and Apple’s suppliers are slowly picking up their shreds.
The tech behemoth’s setback could have a transitory effect, but the company looks well set to shrug off the near-term uncertainties. Apple’s software-focused annual Worldwide Developers Conference got underway on Jun. 6. The company was expected to announce its newest operating systems, the iOS 16, iPadOS 16, and Watch OS 9.
Some also expect Apple to share more details of its mixed reality headset and the realityOS, which will likely power the device. A launch, however, is unlikely before 2023.
Apple could have at least two hardware launch events in the fall. The next iPhone iteration — the iPhone 14 — will be unveiled in late September or October. Apple analyst Ming-Chi Kuo said in a tweet in late May that the China lockdowns have not impacted the company’s shipping plan for the iPhone 14 models.
Among the variants, production of the “iPhone 14 Max is running behind, but it’s still under control currently,” the analyst said. He expressed confidence that “suppliers can work overtime to catch up with the schedule.”
Even as Apple toils hard to keep things ticking with its hardware sale, it has built up a formidable services subscription business. Paid subscriptions on Apple’s platform were at 825 million at the end of the March quarter, up 165 million over the past year. The business encompassing fitness apps, news bundles, television, music streaming and gaming should remain resilient in the wake of the economic uncertainties.
AAPL Stock Is Selling for Cheap
In all likelihood, Apple will be in for strong growth over the next 12 to 18 months, according to Wedbush analyst Daniel Ives. His confidence is based on the prospect for the iPhones:
“The stickiness of the iPhone upgrade cycle is being underestimated by investors in our opinion as we estimate that roughly 240 million of Apple’s 1 billion iPhones have not been upgraded to a new smartphone in roughly 3.5 years.”
Apple’s products may be selling for a premium, but at least its stock is well within grasp, given the pullback. The stock is trading at a trailing twelve-month price-to-earnings multiple of 22.33, slightly lower than the previous two-year low of 22.34, according to data from Guru Focus.
Apple stock jumped 30% between July 2021 and December 2021 compared to a mere 3.5% gain in the first half of the year. When the current headwinds end, there is all possibility that the stock comes back stronger.
The average analysts’ price target for Apple stock is $187.22, suggesting over 31% upside from current levels.
On the date of publication, Shanthi Rexaline 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 Apple Stock Now To Profit From Second-Half Rally appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hasn’t been immune to the recent market meltdown that was led by tech stocks. AAPL stock has pulled back about 19% year-to-date (YTD) compared to a steeper 24% plunge by the Invesco QQQ Trust (NASDAQ:QQQ). Ticker Company Price AAPL Apple Inc. $142.64 China Spooks Apple Apple ticked all boxes with its fundamental performance during this lean period. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hasn’t been immune to the recent market meltdown that was led by tech stocks. Ticker Company Price AAPL Apple Inc. $142.64 China Spooks Apple Apple ticked all boxes with its fundamental performance during this lean period. AAPL stock has pulled back about 19% year-to-date (YTD) compared to a steeper 24% plunge by the Invesco QQQ Trust (NASDAQ:QQQ). | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hasn’t been immune to the recent market meltdown that was led by tech stocks. Ticker Company Price AAPL Apple Inc. $142.64 China Spooks Apple Apple ticked all boxes with its fundamental performance during this lean period. AAPL stock has pulled back about 19% year-to-date (YTD) compared to a steeper 24% plunge by the Invesco QQQ Trust (NASDAQ:QQQ). | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hasn’t been immune to the recent market meltdown that was led by tech stocks. AAPL stock has pulled back about 19% year-to-date (YTD) compared to a steeper 24% plunge by the Invesco QQQ Trust (NASDAQ:QQQ). Ticker Company Price AAPL Apple Inc. $142.64 China Spooks Apple Apple ticked all boxes with its fundamental performance during this lean period. |
20774.0 | 2022-06-09 00:00:00 UTC | GLOBAL MARKETS-Asian stocks track global shares lower, U.S. CPI in focus | AAPL | https://www.nasdaq.com/articles/global-markets-asian-stocks-track-global-shares-lower-u.s.-cpi-in-focus | nan | nan | By Stella Qiu and Alun John
BEIJING/HONG KONG, June 10 (Reuters) - Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2% in early Asian trade, weighed down by drops of 1.5% in Hong Kong .HSI, 0.8% in resources-heavy Australia .AXJO and 1.6% in South Korea .KS11.
Japan's Nikkei .N225 fell 1.2%.
Tech giants listed in Hong Kong .HSTECH were hit hard, with their sub-index opening 2.9% lower. Hong Kong shares of Alibaba 9988.HK fell 3.3% after affiliate Ant Group said it had no plan to initiate an initial public offering. This was a response to media reports that Beijing had approved relaunching the IPO.
Alibaba shares BABA.N in the U.S. slid 8.1% overnight.
Market sentiment in China has been soured by renewed restrictions in Beijing and Shanghai as new COVID-19 cases have emerged. Multiple districts in Beijing are shutting down entertainment venues, while most citizens in Shanghai are facing new rounds of mass testing to prevent a new outbreak.
On Thursday, the European Central Bank ended a long-running stimulus scheme and said it would deliver next month its first interest rate rise since 2011, followed by a potentially larger move in September.
While the ECB decision was widely expected, the possibility of a larger rise in September weighed on sentiment. The euro zone economy is grappling with slowing growth and soaring inflation exacerbated by a months-long Ukraine war.
"Global equities came under pressure after the ECB delivered its guidance, and (ECB President Christine) Lagarde noted upside inflation risks," said analysts at ANZ in a note on Friday.
"And with energy prices still pushing higher, it is not yet clear that inflation has peaked. Fed guidance and policy actions may have to turn more hawkish for longer. Financial markets are nervous."
For months, markets have focused on how fast central banks have been moving to curb inflation. Investors now expect the Federal Reserve to raise interest rates by 50 basis points next week, especially if U.S. consumer price data on Friday confirms elevated inflation.
The consensus forecast sees a year-over-year inflation rate for May of 8.3%, unchanged from April.
Shares on Wall Street tumbled as the market awaited the price data. The S&P 500 .SPX and Nasdaq .IXIC fell more than 2% in their biggest daily percentage declines since mid-May, with mega-cap growth stocks leading the way.
Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell 3.6% and 4.2%, respectively.
While some investors have been hopeful that inflation may have peaked, a recent run higher in oil prices to a 13-week high has dented that optimism, boosting the appeal of the safe-haven dollar.
In currency markets, the U.S. dollar =USD retained its broad strength against a basket of major currencies, hovering around its highest level in three weeks. The euro EUR= wallowed at a 2-1/2 week low while the yen JPY= gained 0.16% against the greenback, pulling away from a 20-year low.
On Friday, moves in U.S. Treasuries were largely muted. The yield on benchmark 10-year Treasury notes US10YT=RR rose slightly to 3.0566%, compared with its U.S. close of 3.042% on Thursday.
The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, touched 2.8319%, compared with a U.S. close of 2.817%.
Oil prices dipped after parts of Shanghai imposed new lockdown measures. Still, strong gains in refined products supported crude prices near three-month highs.
U.S. crude futures CLc1 fell 0.16% to $121.33 a barrel and Brent LCOc1 settled 0.2% lower at $122.81.
Gold edged down on Friday and headed for a weekly fall, as Treasury yields rose. Spot gold XAU= was traded at $1,846.4949 per ounce. GOL/
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Stella Qiu and Alun John; Editing by Bradley Perrett)
((yifan.qiu@thomsonreuters.com; 86-10-66271289;))
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 Amazon.com Inc AMZN.O fell 3.6% and 4.2%, respectively. By Stella Qiu and Alun John BEIJING/HONG KONG, June 10 (Reuters) - Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2% in early Asian trade, weighed down by drops of 1.5% in Hong Kong .HSI, 0.8% in resources-heavy Australia .AXJO and 1.6% in South Korea .KS11. | Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell 3.6% and 4.2%, respectively. By Stella Qiu and Alun John BEIJING/HONG KONG, June 10 (Reuters) - Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors. Hong Kong shares of Alibaba 9988.HK fell 3.3% after affiliate Ant Group said it had no plan to initiate an initial public offering. | Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell 3.6% and 4.2%, respectively. By Stella Qiu and Alun John BEIJING/HONG KONG, June 10 (Reuters) - Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2% in early Asian trade, weighed down by drops of 1.5% in Hong Kong .HSI, 0.8% in resources-heavy Australia .AXJO and 1.6% in South Korea .KS11. | Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell 3.6% and 4.2%, respectively. By Stella Qiu and Alun John BEIJING/HONG KONG, June 10 (Reuters) - Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors. While some investors have been hopeful that inflation may have peaked, a recent run higher in oil prices to a 13-week high has dented that optimism, boosting the appeal of the safe-haven dollar. |
20775.0 | 2022-06-09 00:00:00 UTC | Apple Stock: The Bull and Bear Cases Today | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-the-bull-and-bear-cases-today | nan | nan | The stock market is having a very lackluster 2022 so far. The S&P 500 has contracted 13% since the start of the year, and the Nasdaq Composite, which is heavy with technology stocks, which can be more speculative, has toppled 23% in the same time frame. Equities continue to battle an unfavorable economic and geopolitical environment that includes 40-year high inflation, higher interest rates, and concerns about the war between Russia and Ukraine.
Even some of the world's star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. The iPhone maker's business has held up very nicely compared to other big tech companies like FAANG counterparts Netflix and Meta Platforms, yet the stock has been punished, sinking 18% year to date.
Let's discuss Apple's bull and bear case to help investors decide if they should add the stock to their portfolios now.
Image source: Getty Images.
What's looking good?
Unlike many of its technology peers, Apple's business hasn't seemed to suffer from the macro headwinds. In its second quarter of 2022, which ended on March 26, the company beat analysts' estimates for both revenue and earnings. Both total sales and diluted earnings per share grew 8.6% year over year in the quarter. The tech giant's products segment, which represented 80% of total revenue, had a very strong outing during the quarter, as each product category, excluding iPad, experienced sales growth year over year. The products segment includes iPhone, Mac, iPad, and wearables, Home, and accessories.
Apple's services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, and other subscription businesses, expanded at a rapid clip once again in the most recent quarter. Its total sales were nearly $20 billion, equal to 17.3% growth year over year, and the segment's gross margin expanded 254 basis points to 72.6%. Steady expansion from its products segment is a plus, but the company's growth trajectory is highly dependent on its services category. Fortunately for Apple and its shareholders, the company's $28.1 billion in cash and cash equivalents provides more than enough funding to develop this business further.
The latest sell-off has also soothed the tech leader's valuation. At the start of the year, the company was trading around 30 times earnings, which is notably higher than its five-year mean price-to-earnings (P/E) multiple of 23.1. Today, however, the stock has a P/E of 24.1, which represents a much more reasonable valuation.
What's keeping investors away?
Boasting a market capitalization of $2.4 trillion, Apple is an enormous company, which in turn limits its ability to grow like it once did. Analysts expect the tech juggernaut's top line to reach $394 billion in fiscal year 2022, indicating 7.7% growth year over year, and its bottom line to increase 9.4% to $6.14 per share. In 2023, Wall Street projects total revenue to climb just 5.6% to $416.2 billion and earnings per share to ascend 6.8% to $6.56.
While the stock's P/E has dropped to around 24, one could argue that there are more attractively priced stocks out there when considering growth rates. For instance, its fellow FAANG peer Alphabet is currently trading at 21.2 times earnings while projected to grow its bottom line by 18.7% in 2023, according to Wall Street analysts. With expectations that growth will continue to slow for Apple moving forward, it's not unreasonable to assume that certain investors will eventually fall out of love with the stock. And provided its subpar dividend yield of only 0.60%, the company may not be able to attract dividend and value investors, either.
I believe in the long-term picture
In today's sagging market, Apple extends investors a valid buying opportunity. Its resilient business model, extraordinary balance sheet, and lower P/E serve as compelling reasons to buy the stock right now. Despite its slowing growth, I believe the company will continue to deliver market-beating returns in the long run. It's time to take advantage of the stock market's shortsightedness by accumulating shares of this tech giant today.
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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. | Even some of the world's star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. Equities continue to battle an unfavorable economic and geopolitical environment that includes 40-year high inflation, higher interest rates, and concerns about the war between Russia and Ukraine. The iPhone maker's business has held up very nicely compared to other big tech companies like FAANG counterparts Netflix and Meta Platforms, yet the stock has been punished, sinking 18% year to date. | Even some of the world's star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. Analysts expect the tech juggernaut's top line to reach $394 billion in fiscal year 2022, indicating 7.7% growth year over year, and its bottom line to increase 9.4% to $6.14 per share. For instance, its fellow FAANG peer Alphabet is currently trading at 21.2 times earnings while projected to grow its bottom line by 18.7% in 2023, according to Wall Street analysts. | Even some of the world's star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. The tech giant's products segment, which represented 80% of total revenue, had a very strong outing during the quarter, as each product category, excluding iPad, experienced sales growth year over year. Apple's services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, and other subscription businesses, expanded at a rapid clip once again in the most recent quarter. | Even some of the world's star companies, like Apple (NASDAQ: AAPL), have been wounded by the current macro climate. The tech giant's products segment, which represented 80% of total revenue, had a very strong outing during the quarter, as each product category, excluding iPad, experienced sales growth year over year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
20776.0 | 2022-06-09 00:00:00 UTC | BlackRock Owns These 3 High-Quality Stocks; Should You? | AAPL | https://www.nasdaq.com/articles/blackrock-owns-these-3-high-quality-stocks-should-you | nan | nan | The iShares MSCI USA Quality Factor ETF (QUAL) is an ETF managed by BlackRock (BLK) with the objective of investing in high-quality U.S. stocks. QUAL's investment thesis requires a stock to exhibit lucrative return metrics, a robust balance sheet, and a sound market share.
The current economic environment has an appetite for quality stocks, as they provide the most resistance to rising interest rates and general contractions of the economy. Thus, I've identified three iShares MSCI USA Quality Factor ETF-owned stocks that I'm bullish on.
Nike (NKE)
Consumer cyclical stocks usually don't perform well during economic downturns. However, Nike holds a solid market position, allowing it to be a counter-cyclical stock.
The apparel giant revealed illustrious organic sales growth in its latest earnings report, released earlier this year. Nike's Direct sales and Brand Digital sales grew 15% and 19%, respectively, implying that the firm's growth trend could last into perpetuity.
Furthermore, Nike's return metrics are in good territory. First of all, its return on common equity of 45.74% is 26.7% higher than its five-year average, implying that investors' money is being deployed efficiently. Secondly, Nike's levered free cash flow margin (7.74%) adds to the argument that the firm's return metrics are sound, as it provides cash-based evidence.
Nike stock is considerably undervalued. The stock's price-to-earnings ratio is at a 31.6% discount to its five-year average, meaning that the market hasn't yet priced the firm's earnings-per-share potential. Moreover, Nike's TTM PEG ratio of 0.42 implies that the company's earnings-per-share growth is outstanding and underpriced.
Turning to Wall Street, Nike earns a Moderate Buy consensus rating based on 19 Buys and seven Hold ratings assigned in the past three months. The average NKE stock price target of $158.70 implies 33.8% upside potential.
Apple (AAPL)
Apple's strength lies in its integration strategy. The firm's ability to integrate vertically with software and hardware offerings allows it to obtain synergies that few enterprises have. Additionally, Apple's horizontal integration stems from a wide range of product offerings that cater to various markets with unique use cases.
Furthermore, Apple's constant will to innovate is probably what will continue setting it apart from its competitors. For instance, the company's working on entering the "buy now, pay later" market with an iBank offering that will allow users to split their Apple Pay purchases into installments.
The stock is undervalued from a quantitative vantage point, as Apple's price-to-earnings ratio of 24x is accompanied by a TTM PEG ratio of 0.64x. In addition, Apple's balance sheet and income metrics embody its growth potential, with its return on equity standing at an astounding 149%.
Turning to Wall Street, Apple earns a Strong Buy consensus rating based on 21 Buys and six Hold ratings assigned in the past three months. The average Apple stock price target of $187.22 implies 31.3% upside potential.
Visa (V)
UBS (UBS) analyst Keith Parker recently included Visa in his list of quality stocks to buy that could survive a recession. Visa has an enormous market share, assisting it in smoothing its top-line earnings. The company's interlinkage to e-commerce growth and pandemic re-openings means that it's a strong prospect at the moment.
Visa's CFO, Vasant Prabhu, recently elaborated on consumer spending and stated that: "You're seeing the pendulum swing, and so, where we see the greatest growth right now is in things people couldn't do before like travel, like restaurants, like entertainment, and so on."
Prabhu's claims can be substantiated by Visa's earnings momentum. During its second quarter, Visa beat its earnings target by 14 cents per share, as payment volumes rose by 17% year-over-year. Moreover, the company's cross-border transactions increased 47% during the quarter, conveying the importance of re-openings to the firm's business model.
From a quantitative point of view, Visa's quality stems from its profitability metrics and balance sheet. The latter is illustrated by the company's Piotroski score, which stands strong, at 8, demonstrating sound operational efficiency. While the prior can be backed up by Visa's impressive return on common equity ratio of about 40%.
Turning to Wall Street, Visa earns a Strong Buy consensus rating based on 14 Buys and two Hold ratings assigned in the past three months. The average Visa stock price forecast of $267.81 implies 29.9% upside potential.
Concluding Thoughts
Quality stocks will likely outperform the market for the foreseeable future, as they possess the necessary properties to sustain growth during economic downturns. BlackRock's iShares MSCI USA Quality Factor ETF provides an array of significantly undervalued quality stocks. Nike, Apple, and Visa are the pick of the bunch.
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) Apple's strength lies in its integration strategy. QUAL's investment thesis requires a stock to exhibit lucrative return metrics, a robust balance sheet, and a sound market share. Secondly, Nike's levered free cash flow margin (7.74%) adds to the argument that the firm's return metrics are sound, as it provides cash-based evidence. | Apple (AAPL) Apple's strength lies in its integration strategy. Turning to Wall Street, Nike earns a Moderate Buy consensus rating based on 19 Buys and seven Hold ratings assigned in the past three months. Turning to Wall Street, Apple earns a Strong Buy consensus rating based on 21 Buys and six Hold ratings assigned in the past three months. | Apple (AAPL) Apple's strength lies in its integration strategy. Turning to Wall Street, Nike earns a Moderate Buy consensus rating based on 19 Buys and seven Hold ratings assigned in the past three months. Turning to Wall Street, Apple earns a Strong Buy consensus rating based on 21 Buys and six Hold ratings assigned in the past three months. | Apple (AAPL) Apple's strength lies in its integration strategy. QUAL's investment thesis requires a stock to exhibit lucrative return metrics, a robust balance sheet, and a sound market share. The stock's price-to-earnings ratio is at a 31.6% discount to its five-year average, meaning that the market hasn't yet priced the firm's earnings-per-share potential. |
20777.0 | 2022-06-09 00:00:00 UTC | Best ETF Ideas for the Second Half of 2022 | AAPL | https://www.nasdaq.com/articles/best-etf-ideas-for-the-second-half-of-2022 | nan | nan | (0:45) - Breaking Down The Stock Market's Recent Volatility
(5:45) - Can The Fed Stop A Recession From Happening?
(10:30) - How Should You Position Your Portfolio In The Current Environment
(15:00) - State Street's Suite Of ETFs: QUS, STY & SPYV
(19:50) - What Sectors Perform The Best During High Inflation?
(25:30) - Breaking Down The Current Fund Flow Trends: Where Are People Investing Right Now?
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for the second half of 2022.
This year has been very challenging for investors, as concerns regarding surging inflation, rising rates, and a potential economic slowdown continue to weigh on stocks.
It remains to be seen whether the Fed will be able to tame inflation without sending the US economy into a recession, but a lot of bad news is already baked into stock prices. If the central bank succeeds in engineering a softish landing, we could see a gradual recovery in the market later this year.
Matt recommends three strategies for the second half of 2022: 1) emphasize high-quality value in the core, 2) limit duration in pursuit of real income and 3) consider inflation-sensitive alternatives.
The SPDR MSCI USA StrategicFactor ETF QUS seeks to invest in high-quality and attractively valued firms. Apple AAPL and Microsoft MSFT are its top holdings.
The SPDR S&P Dividend ETF SDY selects companies that have consistently increased their dividend for at least 20 consecutive years. Exxon Mobil XOM and Chevron CVX are among the top holdings.
The SPDR Portfolio S&P 500 Value ETF SPYV holds stocks that exhibit the strongest value characteristics. Berkshire Hathaway (BRK.B) and Johnson & Johnson JNJ are its top holdings.
For adding exposure to inflation sensitive assets, investors could consider the SPDR SSgA Multi-Asset Real Return ETF RLY or the SPDR S&P Global Natural Resources ETF GNR.
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Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
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Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
SPDR S&P Dividend ETF (SDY): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
SPDR SSgA MultiAsset Real Return ETF (RLY): ETF Research Reports
SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports
SPDR S&P Global Natural Resources ETF (GNR): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL and Microsoft MSFT are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report (10:30) - How Should You Position Your Portfolio In The Current Environment (15:00) - State Street's Suite Of ETFs: QUS, STY & SPYV (19:50) - What Sectors Perform The Best During High Inflation? | Apple AAPL and Microsoft MSFT are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report For adding exposure to inflation sensitive assets, investors could consider the SPDR SSgA Multi-Asset Real Return ETF RLY or the SPDR S&P Global Natural Resources ETF GNR. | Apple AAPL and Microsoft MSFT are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report SPDR S&P Dividend ETF (SDY): ETF Research Reports | Apple AAPL and Microsoft MSFT are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. |
20778.0 | 2022-06-09 00:00:00 UTC | After Hours Most Active for Jun 9, 2022 : KGC, MO, JD, MRO, ETWO, BABA, PFE, QQQ, ADPT, AAPL, DOCU, FOLD | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-9-2022-%3A-kgc-mo-jd-mro-etwo-baba-pfe-qqq-adpt-aapl-docu | nan | nan | The NASDAQ 100 After Hours Indicator is up 3.98 to 12,273.76. The total After hours volume is currently 82,147,290 shares traded.
The following are the most active stocks for the after hours session:
Kinross Gold Corporation (KGC) is +0.05 at $4.37, with 7,366,795 shares traded. KGC's current last sale is 54.29% of the target price of $8.05.
Altria Group (MO) is -0.07 at $48.59, with 4,259,568 shares traded. MO's current last sale is 85.25% of the target price of $57.
JD.com, Inc. (JD) is +0.2 at $61.60, with 4,196,601 shares traded. As reported by Zacks, the current mean recommendation for JD is in the "buy range".
Marathon Oil Corporation (MRO) is unchanged at $31.25, with 3,642,047 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $1.3. As reported by Zacks, the current mean recommendation for MRO is in the "buy range".
E2open Parent Holdings, Inc. (ETWO) is unchanged at $8.31, with 3,606,574 shares traded. As reported by Zacks, the current mean recommendation for ETWO is in the "strong buy range".
Alibaba Group Holding Limited (BABA) is unchanged at $109.90, with 3,465,021 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Pfizer, Inc. (PFE) is unchanged at $51.78, with 3,196,356 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.15 at $299.55, with 3,092,191 shares traded. This represents a 6.9% increase from its 52 Week Low.
Adaptive Biotechnologies Corporation (ADPT) is +0.45 at $7.95, with 2,518,113 shares traded. As reported by Zacks, the current mean recommendation for ADPT is in the "buy range".
Apple Inc. (AAPL) is +0.11 at $142.75, with 2,480,322 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
DocuSign, Inc. (DOCU) is -14.6701 at $72.69, with 2,469,396 shares traded. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Amicus Therapeutics, Inc. (FOLD) is unchanged at $8.55, with 2,448,898 shares traded. As reported in the last short interest update the days to cover for FOLD is 10.319477; this calculation is based on the average trading volume of the stock.
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 +0.11 at $142.75, with 2,480,322 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. | Apple Inc. (AAPL) is +0.11 at $142.75, with 2,480,322 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 82,147,290 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.11 at $142.75, with 2,480,322 shares traded. As reported by Zacks, the current mean recommendation for JD is in the "buy range". | Apple Inc. (AAPL) is +0.11 at $142.75, with 2,480,322 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". JD.com, Inc. (JD) is +0.2 at $61.60, with 4,196,601 shares traded. |
20779.0 | 2022-06-09 00:00:00 UTC | Wall Street falls as growth stocks struggle with inflation reading in focus | AAPL | https://www.nasdaq.com/articles/wall-street-falls-as-growth-stocks-struggle-with-inflation-reading-in-focus | nan | nan | By Devik Jain and Mehnaz Yasmin
June 9 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday, as growth and bank stocks slipped amid weaker risk appetite ahead of a closely watched inflation report this week.
Nine of the 11 major S&P sectors traded lower, with energy .SPNY, financials .SPSY and materials .SPLRCM down 1% each. Consumer staples .SPLRCS and consumer discretionary sectors .SPLRCD edged higher.
Apple Inc AAPL.O and Amazon.com AMZN.O declined 1%, dragging the S&P 500 and the Nasdaq indexes lower. Bank of America BAC.N tumbled 2.5%, while the broader banks index .SPXBK shed 1.7%.
Rate-sensitive growth stocks are under pressure as the benchmark U.S. 10-year Treasury yield US10YT=RR climbed to as much as 3.07%, its highest level since May 11.
Inflation worries came to the fore ahead of the U.S. consumer price index (CPI) report on Friday as Brent crude prices LCOc1 rose above $123 a barrel.
"There is a straight line read from higher prices at the pump for the U.S. consumer to higher U.S. inflation," said Huw Roberts, head of analytics at Quant Insight.
"The hope was that Friday's CPI report would be ammunition for the peak inflation argument and the crude oil move is upsetting that."
Consumer prices are expected to have risen 0.7% in May, while the core consumer price index, which excludes the volatile food and energy sectors, rose 0.5% in the month.
Investors fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor conditions.
The U.S. central bank has raised its short-term interest rate by three-quarters of a percentage point this year and intends to keep at it with 50 basis points increases at its meeting next week and again in July.
"Right now, we are at the confluence of four headwinds - a slowdown in economic growth rate in the United States, Fed tightening monetary policy, a rise in interest rates and a red hot inflation," said David Sekera, chief U.S. market strategist, at Morningstar.
At 12:11 p.m. ET, the Dow Jones Industrial Average .DJI was down 172.65 points, or 0.52%, at 32,738.25, the S&P 500 .SPX was down 26.40 points, or 0.64%, at 4,089.37, and the Nasdaq Composite .IXIC was down 90.96 points, or 0.75%, at 11,995.31.
Alibaba Group BABA.N slid 7.9% after its affiliate Ant Group said it has no plan to initiate an initial public offering.
Tesla Inc TSLA.O rose 2.2% as the electric automaker sold 32,165 China-made vehicles last month, up sharply from 1,152 in April. Brokerage UBS upgraded the stock to "buy" and raised its profit estimates for the next three years.
NXP Semiconductors NXPI.O jumped 6.1% on report Samsung Electronics 005930.KS plans to acquire the Dutch chipmaker.
Declining issues outnumbered advancers for a 3.82-to-1 ratio on the NYSE and for a 2.51-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded 13 new highs and 82 new lows.
(Reporting by Devik Jain and Mehnaz Yasmin in Bengaluru and Chuck Mikolajczak in New York; Editing by Arun Koyyur and 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. | Apple Inc AAPL.O and Amazon.com AMZN.O declined 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday, as growth and bank stocks slipped amid weaker risk appetite ahead of a closely watched inflation report this week. "The hope was that Friday's CPI report would be ammunition for the peak inflation argument and the crude oil move is upsetting that." | Apple Inc AAPL.O and Amazon.com AMZN.O declined 1%, dragging the S&P 500 and the Nasdaq indexes lower. Inflation worries came to the fore ahead of the U.S. consumer price index (CPI) report on Friday as Brent crude prices LCOc1 rose above $123 a barrel. Consumer prices are expected to have risen 0.7% in May, while the core consumer price index, which excludes the volatile food and energy sectors, rose 0.5% in the month. | Apple Inc AAPL.O and Amazon.com AMZN.O declined 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday, as growth and bank stocks slipped amid weaker risk appetite ahead of a closely watched inflation report this week. Inflation worries came to the fore ahead of the U.S. consumer price index (CPI) report on Friday as Brent crude prices LCOc1 rose above $123 a barrel. | Apple Inc AAPL.O and Amazon.com AMZN.O declined 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday, as growth and bank stocks slipped amid weaker risk appetite ahead of a closely watched inflation report this week. Consumer prices are expected to have risen 0.7% in May, while the core consumer price index, which excludes the volatile food and energy sectors, rose 0.5% in the month. |
20780.0 | 2022-06-09 00:00:00 UTC | Apple pay-later foray blurs tech-finance boundary | AAPL | https://www.nasdaq.com/articles/apple-pay-later-foray-blurs-tech-finance-boundary | nan | nan | Reuters
Reuters
LONDON (Reuters Breakingviews) - Tim Cook has crossed the banking divide. Big U.S. tech firms have so far largely kept out of the lending business. But on Monday Apple’s chief executive unveiled https://www.apple.com/newsroom/2022/06/apple-unveils-new-ways-to-share-and-communicate-in-ios-16 plans to use the $2.4 trillion company’s balance sheet to offer “buy now, pay later” loans to iPhone users. The push into financial services will keep traditional banks on their toes.
Apple has played around the fringes of finance for some time. Its Apple Pay service allows customers to use their devices to make swift payments. And in 2019 the company launched a credit card with much fanfare. The key difference this time, however, is that its Apple Financing subsidiary is making the lending decisions and will fund the loans with the backing of its parent company’s balance sheet https://www.apple.com/newsroom/pdfs/FY22_Q2_Consolidated_Financial_Statements.pdf, which included $193 billion of cash and securities at the end of March. Goldman Sachs, the lender behind Apple’s credit card, will in this case serve as the bank sponsor that allows Apple to access the Mastercard payments network.
Keeping the loans in-house should enable Apple to earn better margins. A typical pay-later transaction charges the retailer a fee of at least 4%. Jefferies analysts reckon Afterpay, now owned by payments firm Block, keeps about half of that after deducting credit card transaction fees, borrowing costs and loans that customers fail to repay. But Apple probably has lower borrowing costs than its rivals. Rising interest rates are squeezing pay-later providers such as Affirm and Klarna, which rely on wholesale credit and bank deposits. Meanwhile, data about users’ spending on its products may give Apple an edge when assessing the creditworthiness of borrowers, limiting future losses. Acting as the lender will allow it to keep a bigger chunk of the transaction fees.
Chinese tech firms like Ant, an offshoot of e-commerce giant Alibaba, have long mined user data to make loans. Fear of regulation, and the humdrum returns earned by most banks, have largely kept big U.S. tech firms out of the lending business. Even a successful foray into pay-later credit will barely register compared with fast-growing revenue streams like advertising, which research outfit Omdia estimates brought in $3.7 billion https://omdia.tech.informa.com/pr/2022-feb/omdia-report-finds-apples-ads-business-now-worth-3-7bn-per-year-following-idfa-changes for Apple last year. However, Cook’s decision to step decisively across the tech-finance boundary will have big banks watching with interest – and some trepidation.
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CONTEXT NEWS
Apple on June 6 announced a “buy now, pay later” service, offering to split purchases into four equal payments over six weeks. The tech giant plans to fund the loans off its corporate balance sheet.
Apple said its treasury department will decide the exact mechanism it will use to fund the loans and funding sources may shift over time. Decisions about loans and the creditworthiness of borrowers will be handled by a wholly owned subsidiary, Apple Financing.
Apple’s pay-later loans will have zero interest and no fees of any kind. To judge creditworthiness, Apple said it plans to use consumers’ credit and other data, such as their purchase and payment history with Apple in both its stores and online services such as the App Store.
To use the pay-later service, Apple customers will have to connect a debit card to their Apple Pay account to fund repayment of the loans. A quarter of the purchase price for approved loans will be due at the time of purchase, and, like other debit card transactions, Apple will run an instant check to ensure the buyer has sufficient funds to cover the upfront payment.
Apple will offer the loans anywhere that accepts Apple Pay, both online and in physical retail stores. The payments to merchants will be made over the Mastercard network using payment credentials issued by Goldman Sachs, Apple said.
(Editing by Peter Thal Larsen, Streisand Neto and Oliver Taslic)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The key difference this time, however, is that its Apple Financing subsidiary is making the lending decisions and will fund the loans with the backing of its parent company’s balance sheet https://www.apple.com/newsroom/pdfs/FY22_Q2_Consolidated_Financial_Statements.pdf, which included $193 billion of cash and securities at the end of March. Jefferies analysts reckon Afterpay, now owned by payments firm Block, keeps about half of that after deducting credit card transaction fees, borrowing costs and loans that customers fail to repay. Even a successful foray into pay-later credit will barely register compared with fast-growing revenue streams like advertising, which research outfit Omdia estimates brought in $3.7 billion https://omdia.tech.informa.com/pr/2022-feb/omdia-report-finds-apples-ads-business-now-worth-3-7bn-per-year-following-idfa-changes for Apple last year. | But on Monday Apple’s chief executive unveiled https://www.apple.com/newsroom/2022/06/apple-unveils-new-ways-to-share-and-communicate-in-ios-16 plans to use the $2.4 trillion company’s balance sheet to offer “buy now, pay later” loans to iPhone users. The key difference this time, however, is that its Apple Financing subsidiary is making the lending decisions and will fund the loans with the backing of its parent company’s balance sheet https://www.apple.com/newsroom/pdfs/FY22_Q2_Consolidated_Financial_Statements.pdf, which included $193 billion of cash and securities at the end of March. Jefferies analysts reckon Afterpay, now owned by payments firm Block, keeps about half of that after deducting credit card transaction fees, borrowing costs and loans that customers fail to repay. | Goldman Sachs, the lender behind Apple’s credit card, will in this case serve as the bank sponsor that allows Apple to access the Mastercard payments network. To judge creditworthiness, Apple said it plans to use consumers’ credit and other data, such as their purchase and payment history with Apple in both its stores and online services such as the App Store. To use the pay-later service, Apple customers will have to connect a debit card to their Apple Pay account to fund repayment of the loans. | Jefferies analysts reckon Afterpay, now owned by payments firm Block, keeps about half of that after deducting credit card transaction fees, borrowing costs and loans that customers fail to repay. Decisions about loans and the creditworthiness of borrowers will be handled by a wholly owned subsidiary, Apple Financing. Apple’s pay-later loans will have zero interest and no fees of any kind. |
20781.0 | 2022-06-09 00:00:00 UTC | Apple (AAPL) Relies on Subsidiary to Manage Apple Pay Later | AAPL | https://www.nasdaq.com/articles/apple-aapl-relies-on-subsidiary-to-manage-apple-pay-later | nan | nan | Apple AAPL will use its subsidiary, Apple Financing LLC, to manage the Apple Pay Later service, which was announced as part of iOS16 at this year’s Worldwide Developers Conference (“WWDC”). The latest move reflects Apple’s strategy of handling fintech operations on its own instead of relying on third parties.
Apple’s financial offerings like Apple Card credit card and Apple Cash rely on Goldman Sachs GS for loan decisions and creditworthiness. As per the latest move, the wholly-owned subsidiary will handle loans and creditworthiness while Apple will fund the loans off its own balance sheet.
This is rather unsurprising, given the small loan amount and short tenure. Apple Pay Later splits a purchase into four equal installments to be paid over six weeks. Based on its strong balance sheet and liquidity position, it should be a cakewalk for Apple to fund these loans.
As of Mar 22, 2022, Apple had cash & marketable securities of $192.73 billion on its balance sheet against term debt of $112.98 billion.
However, per a 9TO5 Report, Apple partners, Goldman Sachs and Mastercard MA, will still play a small role in the Apple Pay Later service, as the iPhone-maker doesn’t have a bank charter.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
The new service will be available to users in the United States and everywhere Apple Pay is accepted online or in-app, using the Mastercard network. Apple will charge consumers zero interest and no fees of any kind.
Apple Pay Later to Boost Apple Pay User Base
Undoubtedly, Apple Pay Later was the most eye-catching announcement at WWDC22. Through this new offering, the iPhone-maker is set to enter the Buy Now Pay Later (“BNPL”) market currently dominated by offerings from companies like Affirm AFRM, Paypal and Block.
The global BNPL market is expected to witness a CAGR of 21.7% during the 2022-2029 time frame to reach $90.51 billion, according to a latest report by Fortune Business Insights. This presents solid growth opportunity for market participants. Given Apple’s record of disrupting markets, these fintech companies are expected to face significant heat with the launch of the new service.
However, Affirm CEO believes Apple Pay Later is not a threat to its service as Affirm offers more extensive and longer-term plans. Affirm has more than 12.7 million customers and extended around $3.9 billion in loans in the first three months of 2022. The company’s shares have fallen roughly 7% to-date this week following Apple’s announcement on Jun 6.
Apple Pay Later will definitely boost Apple Pay’s user base, thereby eventually driving Services revenues. The Services portfolio has emerged as Apple’s new cash cow. This Zacks Rank #3 (Hold) company had more than 825 million paid subscribers across its Services portfolio at the end of fiscal second quarter. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Growing adoption of services like Apple Pay, Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services' revenue growth, which is expected to be in strong double digits for the June quarter.
In the second quarter of fiscal 2022, Apple’s Services revenues grew 17.3% from the year-ago quarter to $19.82 billion and accounted for 20.4% of sales.
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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 will use its subsidiary, Apple Financing LLC, to manage the Apple Pay Later service, which was announced as part of iOS16 at this year’s Worldwide Developers Conference (“WWDC”). Apple Inc. (AAPL): Free Stock Analysis Report The global BNPL market is expected to witness a CAGR of 21.7% during the 2022-2029 time frame to reach $90.51 billion, according to a latest report by Fortune Business Insights. | Apple AAPL will use its subsidiary, Apple Financing LLC, to manage the Apple Pay Later service, which was announced as part of iOS16 at this year’s Worldwide Developers Conference (“WWDC”). Apple Inc. (AAPL): Free Stock Analysis Report Apple’s financial offerings like Apple Card credit card and Apple Cash rely on Goldman Sachs GS for loan decisions and creditworthiness. | Apple AAPL will use its subsidiary, Apple Financing LLC, to manage the Apple Pay Later service, which was announced as part of iOS16 at this year’s Worldwide Developers Conference (“WWDC”). Apple Inc. (AAPL): Free Stock Analysis Report Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote The new service will be available to users in the United States and everywhere Apple Pay is accepted online or in-app, using the Mastercard network. | Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL will use its subsidiary, Apple Financing LLC, to manage the Apple Pay Later service, which was announced as part of iOS16 at this year’s Worldwide Developers Conference (“WWDC”). As of Mar 22, 2022, Apple had cash & marketable securities of $192.73 billion on its balance sheet against term debt of $112.98 billion. |
20782.0 | 2022-06-09 00:00:00 UTC | Interesting AAPL Put And Call Options For July 29th | AAPL | https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-july-29th | nan | nan | Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new July 29th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $4.50. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $135.50 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $146.27/share today.
Because the $140.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.21% return on the cash commitment, or 23.46% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $1.80. If an investor was to purchase shares of AAPL stock at the current price level of $146.27/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.62% if the stock gets called away at the July 29th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $160.00 strike highlighted in red:
Considering the fact that the $160.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.23% boost of extra return to the investor, or 8.98% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $146.27) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the July 29th expiration. | Below is a chart showing AAPL's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the July 29th expiration. | Below is a chart showing AAPL's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new July 29th contracts and identified one put and one call contract of particular interest. | Below is a chart showing AAPL's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the July 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new July 29th contracts and identified one put and one call contract of particular interest. |
20783.0 | 2022-06-09 00:00:00 UTC | 2 Top Warren Buffett Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-right-now-2 | nan | nan | Many consider Warren Buffett the greatest individual stock picker of all time. With his skill set, he was able to transform Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) from a declining textile company into a nearly $700 billion holding company.
Today, Berkshire Hathaway holds stock in over 40 publicly traded companies across the energy, consumer goods, and fintech sectors. With Buffett's stellar track record, any investor would be wise to monitor which stocks the Oracle of Omaha believes will be winners.
Here are two particular stocks Berkshire holds that are worth your attention.
Image source: The Motley Fool.
1. Activision Blizzard
In January, Microsoft (NASDAQ: MSFT) announced its intent to acquire Activision Blizzard (NASDAQ: ATVI) for $95 per share in an all-cash deal. Coincidentally, an investment manager at Berkshire bought $1.1 billion worth of Activision stock in the fourth quarter of 2021 for an average of $77 per share. Activision stock is still hovering around $77 per share, but Warren Buffett has since poured money into the scandal-ridden video game company.
Berkshire owns at least 9.5% of Activision Blizzard, and that may be because Buffett loves a merger arbitrage play, or buying stocks of companies trading below their acquisition prices. Activision Blizzard currently trades for about 22% below its acquisition price due to some skepticism that the Department of Justice and Federal Trade Commission will approve the deal.
That skepticism has merit considering Microsoft is the second-largest gaming company in the world by revenue, and Activision Blizzard is fifth. Therefore, Microsoft is tasked with convincing regulators that the $68.7 billion acquisition won't result in antitrust concerns within the gaming industry.
To ease regulators' concerns, Microsoft announced in February that it had developed a new set of rules for its app store. President Brad Smith commented, "Our goal is to build what's called a universal store for games. In other words, a store that anyone can access on any device on any platform to purchase or download any game that a developer chooses."
It's also important to note that scandals have plagued Activision Blizzard over the past year, including allegations of sexual harassment and discrimination against its female employees and misconduct. The Activision scandals could further muddy the acquisition although Microsoft was aware of the issues before the acquisition announcement.
The terms of the Activision Blizzard acquisition indicated Microsoft would finalize the deal during its fiscal 2023 year (July 2022 to June 2023), meaning the potential gains could take up to a year to actualize. Still, considering the S&P 500 index fund's historical annualized return has been 10.5% since 1965, it's easy to see why Buffett finds the arbitrage attractive. And if regulators do nix the deal, Berkshire's investing managers liked the stock at $77 per share anyway.
2. Apple
For years, Warren Buffett resisted investing in technology stocks; however, in 2016, under the influence of his two investing managers, Todd Combs and Ted Weschler, Berkshire opened a position in Apple (NASDAQ: AAPL). Today, Berkshire's Apple stake is worth over $130 billion, owning about 5.5% of the world's largest tech company.
In his latest annual letter, Warren Buffett penned his delight at how Berkshire's stake in Apple had increased from 5.39% in 2020 to 5.5% in 2021 without buying a single share due to Apple's stock buyback program. Specifically, Apple deployed almost $86 billion to repurchase its shares in its fiscal 2021 and has repurchased $43 billion in the first half of fiscal 2022.
Despite Apple's aggressive share repurchases and record revenue, Apple stock hasn't performed up to its historical standards in 2022, falling 18% year to date and underperforming the S&P 500 by almost 5%. As a result, the company's price-to-earnings (P/E) ratio -- a standard metric to value the price of a stock -- is at its lowest point since early 2020, when the COVID lockdowns began.
AAPL data by YCharts.
Additionally, Apple recently announced an increase of $90 billion to its existing share repurchase program, meaning Berkshire's ownership stake will continue to increase without buying additional shares. So, even if Buffett doesn't buy more Apple stock, the fact that the company accounts for over 40% of Berkshire's $360 billion stock portfolio demonstrates his confidence in the tech giant.
Final thoughts from Warren Buffett
Like the rest of us, Warren Buffett isn't immune to a good sale. He once wrote, "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
For Activision Blizzard, look to late 2022 as to whether or not federal regulators approve the acquisition by Microsoft. Expect the gaming company's stock to trade well below its acquisition price of $95 per share until then. As for Apple, look for the tech giant to continue repurchasing its shares at a discounted price -- an act that Buffett, no doubt, would applaud.
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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 For years, Warren Buffett resisted investing in technology stocks; however, in 2016, under the influence of his two investing managers, Todd Combs and Ted Weschler, Berkshire opened a position in Apple (NASDAQ: AAPL). AAPL data by YCharts. Berkshire owns at least 9.5% of Activision Blizzard, and that may be because Buffett loves a merger arbitrage play, or buying stocks of companies trading below their acquisition prices. | Apple For years, Warren Buffett resisted investing in technology stocks; however, in 2016, under the influence of his two investing managers, Todd Combs and Ted Weschler, Berkshire opened a position in Apple (NASDAQ: AAPL). AAPL data by YCharts. Additionally, Apple recently announced an increase of $90 billion to its existing share repurchase program, meaning Berkshire's ownership stake will continue to increase without buying additional shares. | Apple For years, Warren Buffett resisted investing in technology stocks; however, in 2016, under the influence of his two investing managers, Todd Combs and Ted Weschler, Berkshire opened a position in Apple (NASDAQ: AAPL). AAPL data by YCharts. In his latest annual letter, Warren Buffett penned his delight at how Berkshire's stake in Apple had increased from 5.39% in 2020 to 5.5% in 2021 without buying a single share due to Apple's stock buyback program. | Apple For years, Warren Buffett resisted investing in technology stocks; however, in 2016, under the influence of his two investing managers, Todd Combs and Ted Weschler, Berkshire opened a position in Apple (NASDAQ: AAPL). AAPL data by YCharts. Activision Blizzard In January, Microsoft (NASDAQ: MSFT) announced its intent to acquire Activision Blizzard (NASDAQ: ATVI) for $95 per share in an all-cash deal. |
20784.0 | 2022-06-09 00:00:00 UTC | Why the Shine Was Off Apple Stock Today | AAPL | https://www.nasdaq.com/articles/why-the-shine-was-off-apple-stock-today | nan | nan | What happened
Apple (NASDAQ: AAPL) wouldn't have become the tech industry megalith it is today without widespread investor love for its stock. That affection was barely visible on Thursday, however, as the company's shares tumbled by almost 4%, against the 2.4% slide of the S&P 500 index. A disquieting analysis of monthly sales and an apparently stalling effort at gaining support for domestic chipmaking were the main culprits behind this.
So what
In a new note to clients, Brandon Nispel, an analyst at KeyCorp's (NYSE: KEY) KeyBanc, revealed that payment card data from customers of the bank showed that spending on Apple products declined notably in May. On a month-over-month basis, this fall was 8%, quite a contrast to the three-year monthly average increase of 6%.
Nispel added that the drop was the weakest May showing, even taking into account the pre-pandemic era. In Nispel's estimation, this indicates weakening demand for Apple goods throughout the U.S.
In spite of this recent data, based on his estimates portending continued growth, the prognosticator is maintaining his overweight (buy) recommendation on Apple stock. Nispel is also keeping his $191 per share price target.
Meanwhile, an article published just before market open on Thursday by Bloomberg said that the Biden administration's effort to support domestic chip manufacturing could be stalling.
Thefinancial newsagency said that although a bill strengthening American producers' competitiveness against Chinese rivals is a priority for the White House, some legislators think the administration is not particularly engaged with it. Additionally, some Republican lawmakers seem determined not to give the Democrat in the Oval Office a big victory in the run-up to the November midterm elections.
Now what
Both items are concerning for Apple, as product revenue is still by far the bulk of its overall take, and it has lately pushed into chipmaking in a major way. I still feel the company is very strong in both areas, although it's certainly worth monitoring both monthly sales and that chip manufacturer bill for signs of potentially stiff headwinds.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Apple (NASDAQ: AAPL) wouldn't have become the tech industry megalith it is today without widespread investor love for its stock. So what In a new note to clients, Brandon Nispel, an analyst at KeyCorp's (NYSE: KEY) KeyBanc, revealed that payment card data from customers of the bank showed that spending on Apple products declined notably in May. In spite of this recent data, based on his estimates portending continued growth, the prognosticator is maintaining his overweight (buy) recommendation on Apple stock. | What happened Apple (NASDAQ: AAPL) wouldn't have become the tech industry megalith it is today without widespread investor love for its stock. A disquieting analysis of monthly sales and an apparently stalling effort at gaining support for domestic chipmaking were the main culprits behind this. Meanwhile, an article published just before market open on Thursday by Bloomberg said that the Biden administration's effort to support domestic chip manufacturing could be stalling. | What happened Apple (NASDAQ: AAPL) wouldn't have become the tech industry megalith it is today without widespread investor love for its stock. So what In a new note to clients, Brandon Nispel, an analyst at KeyCorp's (NYSE: KEY) KeyBanc, revealed that payment card data from customers of the bank showed that spending on Apple products declined notably in May. In spite of this recent data, based on his estimates portending continued growth, the prognosticator is maintaining his overweight (buy) recommendation on Apple stock. | What happened Apple (NASDAQ: AAPL) wouldn't have become the tech industry megalith it is today without widespread investor love for its stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed their ten top stock picks for investors to buy right now. |
20785.0 | 2022-06-09 00:00:00 UTC | Why Shares of Affirm Are Down Today | AAPL | https://www.nasdaq.com/articles/why-shares-of-affirm-are-down-today | nan | nan | What happened
Shares of "buy now pay later" (BNPL) company Affirm (NASDAQ: AFRM) were trading down by almost 10% as of 2:56 p.m. ET Thursday as investors continued to digest the recent revelation from Apple that it is wading into the space.
So what
At its annual developers conference this week, Apple disclosed that after it releases the next iteration of its iOS in September, consumers will be able to use its new BNPL service when making purchases with Apple Wallet. The service will allow them to buy items with no money down, and pay for those purchases in installments with no fees and zero interest. The company will integrate its BNPL offering directly into Apple Wallet, which comes installed on every iPhone. BNPL has soared in popularity recently, thanks in large part to Affirm.
Interestingly, Apple plans to fund loans through this program via its own balance sheet and also make credit decisions through its own subsidiary, which arguably pushes the tech giant further into the financial services space than ever before. Many investors have been wondering how deep some of these large technology companies might go into financial services, considering how effective they are at customer acquisition.
Affirm CEO Max Levchin said earlier this week that he is not concerned about Apple's move, given that only 5% of U.S. purchases are currently made with the BNPL format. "I don't think there's much concern," Levchin said on Bloomberg Television Tuesday. "There's a lot of room for growth for all involved."
Affirm also offers a variety of BNPL options including ones with and without interest, and has signed key partnerships with Shopify, Amazon, and Walmart.
Now what
While I agree with Levchin that the BNPL space is still new and the market for these services is largely untapped, I think the integration of this offering onto Apple's iPhone could be a game-changer because it could remove friction from the process.
On the whole, however, I do have concerns about the BNPL space when it comes to credit because the U.S. economy could soon slide into a recession, and past BNPL credit trends have been concerning. As for Apple wading into the financial services space, that will be something that banks and fintech companies -- and their shareholders -- should watch carefully.
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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. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Amazon, Apple, and Shopify. 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. | Interestingly, Apple plans to fund loans through this program via its own balance sheet and also make credit decisions through its own subsidiary, which arguably pushes the tech giant further into the financial services space than ever before. Affirm also offers a variety of BNPL options including ones with and without interest, and has signed key partnerships with Shopify, Amazon, and Walmart. Now what While I agree with Levchin that the BNPL space is still new and the market for these services is largely untapped, I think the integration of this offering onto Apple's iPhone could be a game-changer because it could remove friction from the process. | What happened Shares of "buy now pay later" (BNPL) company Affirm (NASDAQ: AFRM) were trading down by almost 10% as of 2:56 p.m. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Amazon, Apple, and Shopify. 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. | So what At its annual developers conference this week, Apple disclosed that after it releases the next iteration of its iOS in September, consumers will be able to use its new BNPL service when making purchases with Apple Wallet. Now what While I agree with Levchin that the BNPL space is still new and the market for these services is largely untapped, I think the integration of this offering onto Apple's iPhone could be a game-changer because it could remove friction from the process. 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 company will integrate its BNPL offering directly into Apple Wallet, which comes installed on every iPhone. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Affirm Holdings, Inc., Amazon, Apple, and Shopify. |
20786.0 | 2022-06-09 00:00:00 UTC | The Apple of Law Enforcement -- Is Axon a Top Stock to Buy Now? | AAPL | https://www.nasdaq.com/articles/the-apple-of-law-enforcement-is-axon-a-top-stock-to-buy-now | nan | nan | Axon Enterprise (NASDAQ: AXON) is a technology company focused on public safety. The company was founded over 25 years ago by Tom and Rick Smith. After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement.
In today's video, I provide deep-dive stock analysis on Axon. I'll break down the business in easy-to-understand language, provide valuation metrics, and give you my opinions and analysis on the stock. Please watch the below video for more information, and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of June 8, 2022. The video was published on June 8, 2022.
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Eric Cuka has positions in Apple and Datadog. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Datadog. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement. After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. I'll break down the business in easy-to-understand language, provide valuation metrics, and give you my opinions and analysis on the stock. | Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement. After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. | Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement. 10 stocks we like better than Axon Enterprise When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. | Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement. In today's video, I provide deep-dive stock analysis on Axon. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. |
20787.0 | 2022-06-09 00:00:00 UTC | The Biggest Mistake Disney Investors Can Make Right Now | AAPL | https://www.nasdaq.com/articles/the-biggest-mistake-disney-investors-can-make-right-now | nan | nan | Walt Disney (NYSE: DIS) stock is down 30% year to date, down over 45% from its all-time high set in March 2021, and is roughly the same price now as it was five years ago. Yet, in the last five years, Disney recorded its highest annual profit in company history (fiscal 2018) and its highest revenue in company history (fiscal 2019), and its business is in much better shape today than it was in 2020 or 2021.
Aside from panic-selling Disney stock, the worst mistake Disney investors can make right now is evaluating Disney+ similarly to other streaming services. Here's a better way to think about Disney+ and why the service is evolving into a gateway that propels customers toward bigger-ticket Disney products and experiences.
Image source: Getty Images.
Disney is built differently
Disney's bundle of streaming offerings (Disney+, ESPN+, and Hulu) is often compared to other streaming services -- namely, Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL) TV, Amazon (NASDAQ: AMZN) Prime Video, AT&T's (NYSE: T) HBO Max, Peacock, and Paramount+. But Disney is in a league of its own. And it starts from the customer engagement arc that Disney can take with any single person or family. Put another way, Disney has much more upside.
To illustrate this point, let's think of the best-case scenario for a satisfied Netflix subscriber. Maybe they tell their friends about the service, upgrade to Netflix's $19.99-per-month premium subscription tier, and are willing to accept future price hikes. Comparable upside applies to the other streaming services. Apple TV has limited overlap with Apple Music and Apple Podcasts. And Amazon Prime Video is somewhat connected with renting or buying movies on Amazon. But in general, these competing streaming services don't lead to follow-up purchases.
By comparison, Disney has many more touch points along the media value chain by which it can engage and profit from customers. And it all starts with Disney+. On its own, Disney+ is just $7.99 per month. It acts as a lead-generation tool that allows Disney to increase customer engagement. Here's how it works.
Disney's sales funnel
If you're familiar with marketing or lead generation, you've probably seen a version of the marketing and sales funnel. It's a model that applies to most businesses.
At the top is awareness, then it trickles down to interest, consideration, intent, evaluation, and finally, purchase. There are two objectives. The first is to bypass objections and friction to facilitate passage from stage to stage. The second is to grow the size of the funnel.
In my opinion, I believe Disney has a similar sales funnel with the all-important advantage that it makes money along the way and doesn't rely on a single catch-all outcome. Disney's end goal is to compel customers to visit a Disney park because they are a major revenue source and one of Disney's highest-operating-margin segments (typically 15% to 25%).
Again, this is my own interpretation. But I think the following visual illustrates the bigger picture of Disney+ and how it fits into the overall business.
Graphic by author.
Disney+ offers an easily accessible way to engage with hundreds of millions of consumers, archive content, introduce new content, expand storylines, and ultimately increase the chance that a customer sees a Disney movie, attends a Disney performance, goes to a Disney store, or buys some sort of licensed Disney product, etc.
Ultra-satisfied customers may be inclined to book a trip with Adventures by Disney, a vacation planning company that provides family packages for domestic and international travel. Or they might take a voyage on one of Disney's five cruise ships. Or maybe they will even go to one of Disney's six resorts. The funnel isn't necessarily in order of price and has a lot of variance to it -- a multi-day stay at a Disney World hotel with Park Hopper will cost loads more than a one-day visit. But the general idea is that Disney wants to convert its customers from behind the screen to an in-person experience.
Tying it all together
Disney's direct-to-consumer (DTC) segment, of which Disney+ is a major part, lost $1.4 billion in the first half of Disney's fiscal 2022. However, Disney+ is expected to be profitable by fiscal 2024. Uncertainty surrounding the DTC segment's long-term profitability, along with inflation and a potential recession, are some of the biggest reasons why Disney stock is struggling right now.
Investors should hold Disney accountable for making Disney+ profitable and keeping it profitable. But Disney+ doesn't need the same profit margins as Netflix or any other streaming service. You could even argue that if Disney+ simply broke even, it would be a huge success.
It's hard to quantify the role that Disney+ plays in parks and experiences attendance. But the potential impact of Disney+ on a single person or family is undeniably larger than any other streaming service. If Disney+ helps persuade a family to go to Disney World or take a cruise, that could be a $10,000-plus vacation. It would take decades for Netflix or another service to make that much revenue from a single family.
In its second-quarter fiscal 2022earnings call Disney reaffirmed guidance that it expects Disney+ subscribers to reach 230 million to 260 million by fiscal 2024. That is a massive pool of people that are engaging more with Disney. Disney+ plans to roll out an ad-supported tier domestically by the end of 2022 and internationally in 2023 -- which has been met with some opposition from investors who believe subscribers will simply save money and downgrade to the ad-supported tier. But I would argue that Disney should do everything it can to get subscribers in the door because each subscriber expands its "sales funnel" and enhances Disney's brand.
Wall Street is undervaluing the role that Disney+ plays in the company's broader media suite. Retail investors would be wise not to make the same blunder. With the stock down 45% from its all-time high, Disney offers a compelling risk-reward for long-term investors.
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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. Daniel Foelber has the following options: long January 2024 $120 calls on Walt Disney, long January 2024 $145 calls on Walt Disney, long January 2024 $155 calls on Walt Disney, long July 2022 $145 calls on Walt Disney, long June 2022 $170 calls on Walt Disney, short January 2024 $125 calls on Walt Disney, short January 2024 $150 calls on Walt Disney, short January 2024 $160 calls on Walt Disney, short July 2022 $150 calls on Walt Disney, and short June 2022 $175 calls on Walt Disney. 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. | Disney is built differently Disney's bundle of streaming offerings (Disney+, ESPN+, and Hulu) is often compared to other streaming services -- namely, Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL) TV, Amazon (NASDAQ: AMZN) Prime Video, AT&T's (NYSE: T) HBO Max, Peacock, and Paramount+. Ultra-satisfied customers may be inclined to book a trip with Adventures by Disney, a vacation planning company that provides family packages for domestic and international travel. The funnel isn't necessarily in order of price and has a lot of variance to it -- a multi-day stay at a Disney World hotel with Park Hopper will cost loads more than a one-day visit. | Disney is built differently Disney's bundle of streaming offerings (Disney+, ESPN+, and Hulu) is often compared to other streaming services -- namely, Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL) TV, Amazon (NASDAQ: AMZN) Prime Video, AT&T's (NYSE: T) HBO Max, Peacock, and Paramount+. Daniel Foelber has the following options: long January 2024 $120 calls on Walt Disney, long January 2024 $145 calls on Walt Disney, long January 2024 $155 calls on Walt Disney, long July 2022 $145 calls on Walt Disney, long June 2022 $170 calls on Walt Disney, short January 2024 $125 calls on Walt Disney, short January 2024 $150 calls on Walt Disney, short January 2024 $160 calls on Walt Disney, short July 2022 $150 calls on Walt Disney, and short June 2022 $175 calls on 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. | Disney is built differently Disney's bundle of streaming offerings (Disney+, ESPN+, and Hulu) is often compared to other streaming services -- namely, Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL) TV, Amazon (NASDAQ: AMZN) Prime Video, AT&T's (NYSE: T) HBO Max, Peacock, and Paramount+. Disney+ offers an easily accessible way to engage with hundreds of millions of consumers, archive content, introduce new content, expand storylines, and ultimately increase the chance that a customer sees a Disney movie, attends a Disney performance, goes to a Disney store, or buys some sort of licensed Disney product, etc. Daniel Foelber has the following options: long January 2024 $120 calls on Walt Disney, long January 2024 $145 calls on Walt Disney, long January 2024 $155 calls on Walt Disney, long July 2022 $145 calls on Walt Disney, long June 2022 $170 calls on Walt Disney, short January 2024 $125 calls on Walt Disney, short January 2024 $150 calls on Walt Disney, short January 2024 $160 calls on Walt Disney, short July 2022 $150 calls on Walt Disney, and short June 2022 $175 calls on Walt Disney. | Disney is built differently Disney's bundle of streaming offerings (Disney+, ESPN+, and Hulu) is often compared to other streaming services -- namely, Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL) TV, Amazon (NASDAQ: AMZN) Prime Video, AT&T's (NYSE: T) HBO Max, Peacock, and Paramount+. And it starts from the customer engagement arc that Disney can take with any single person or family. It would take decades for Netflix or another service to make that much revenue from a single family. |
20788.0 | 2022-06-09 00:00:00 UTC | Implied IXN Analyst Target Price: $62 | AAPL | https://www.nasdaq.com/articles/implied-ixn-analyst-target-price%3A-%2462 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Global Tech ETF (Symbol: IXN), we found that the implied analyst target price for the ETF based upon its underlying holdings is $62.45 per unit.
With IXN trading at a recent price near $50.71 per unit, that means that analysts see 23.15% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IXN's underlying holdings with notable upside to their analyst target prices are Global Payments Inc (Symbol: GPN), Ceridian HCM Holding Inc (Symbol: CDAY), and Apple Inc (Symbol: AAPL). Although GPN has traded at a recent price of $127.73/share, the average analyst target is 40.24% higher at $179.12/share. Similarly, CDAY has 33.57% upside from the recent share price of $56.90 if the average analyst target price of $76.00/share is reached, and analysts on average are expecting AAPL to reach a target price of $187.60/share, which is 26.75% above the recent price of $148.01. Below is a twelve month price history chart comparing the stock performance of GPN, CDAY, and AAPL:
Combined, GPN, CDAY, and AAPL represent 20.12% of the iShares Global Tech ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares Global Tech ETF IXN $50.71 $62.45 23.15%
Global Payments Inc GPN $127.73 $179.12 40.24%
Ceridian HCM Holding Inc CDAY $56.90 $76.00 33.57%
Apple Inc AAPL $148.01 $187.60 26.75%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of GPN, CDAY, and AAPL: Combined, GPN, CDAY, and AAPL represent 20.12% of the iShares Global Tech ETF. iShares Global Tech ETF IXN $50.71 $62.45 23.15% Global Payments Inc GPN $127.73 $179.12 40.24% Ceridian HCM Holding Inc CDAY $56.90 $76.00 33.57% Apple Inc AAPL $148.01 $187.60 26.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IXN's underlying holdings with notable upside to their analyst target prices are Global Payments Inc (Symbol: GPN), Ceridian HCM Holding Inc (Symbol: CDAY), and Apple Inc (Symbol: AAPL). | Three of IXN's underlying holdings with notable upside to their analyst target prices are Global Payments Inc (Symbol: GPN), Ceridian HCM Holding Inc (Symbol: CDAY), and Apple Inc (Symbol: AAPL). Below is a twelve month price history chart comparing the stock performance of GPN, CDAY, and AAPL: Combined, GPN, CDAY, and AAPL represent 20.12% of the iShares Global Tech ETF. iShares Global Tech ETF IXN $50.71 $62.45 23.15% Global Payments Inc GPN $127.73 $179.12 40.24% Ceridian HCM Holding Inc CDAY $56.90 $76.00 33.57% Apple Inc AAPL $148.01 $187.60 26.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, CDAY has 33.57% upside from the recent share price of $56.90 if the average analyst target price of $76.00/share is reached, and analysts on average are expecting AAPL to reach a target price of $187.60/share, which is 26.75% above the recent price of $148.01. Three of IXN's underlying holdings with notable upside to their analyst target prices are Global Payments Inc (Symbol: GPN), Ceridian HCM Holding Inc (Symbol: CDAY), and Apple Inc (Symbol: AAPL). Below is a twelve month price history chart comparing the stock performance of GPN, CDAY, and AAPL: Combined, GPN, CDAY, and AAPL represent 20.12% of the iShares Global Tech ETF. | Below is a twelve month price history chart comparing the stock performance of GPN, CDAY, and AAPL: Combined, GPN, CDAY, and AAPL represent 20.12% of the iShares Global Tech ETF. Three of IXN's underlying holdings with notable upside to their analyst target prices are Global Payments Inc (Symbol: GPN), Ceridian HCM Holding Inc (Symbol: CDAY), and Apple Inc (Symbol: AAPL). Similarly, CDAY has 33.57% upside from the recent share price of $56.90 if the average analyst target price of $76.00/share is reached, and analysts on average are expecting AAPL to reach a target price of $187.60/share, which is 26.75% above the recent price of $148.01. |
20789.0 | 2022-06-09 00:00:00 UTC | Will the New M2 MacBook Air Be Enough to Kickstart Apple? | AAPL | https://www.nasdaq.com/articles/will-the-new-m2-macbook-air-be-enough-to-kickstart-apple | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On June 6, Apple Inc (NASDAQ:AAPL) held its second major event of the year. The keynote to its WWDC22 developer conference has a software focus, but it traditionally provides big hints of what Apple is up to in terms of the next “big thing.” The company also occasionally uses this event to take the wraps off of new hardware. WWDC can be a big deal for AAPL stock.
This year, the rumor mill has been running in high gear for an Apple augmented reality (AR) headset. The company is widely expected to release one soon, taking advantage of the metaverse hype. However, the Apple AR headset was completely absent from WWDC22. No images, no prototypes, no mention. However, Apple did show off two products of note: the new M2 processor, and an all-new, M2-powered MacBook Air.
These two alone won’t be enough to move the AAPL stock needle in a big way, but each is very important to the company. With Apple shares still trading down 17% since the start of 2022, now is a good time for growth investors to buy AAPL stock for their portfolio. With the biggest products of the year for Apple to still be announced, and that potentially game-changing AR headset lurking in the wings, long-term growth is a solid bet.
AAPL Apple Inc. $148.18
Big Product Announcements
Back in 2020, I wrote about the importance of the M1 processor to Apple. This was the company’s first custom processor for its Mac computers. The M1 seriously outperformed competition, while allowing Apple an even greater degree of integration between software and hardware — an advantage that helped to make the iPhone such an unstoppable force.
The move proved to be a smart one. In the first quarter, while global PC shipments shrank by over 7%, Apple’s Mac sales increased by 8.6%.
7 High-Yielding Monthly Dividend Stocks to Buy in June
On Monday, Apple unveiled the second generation of its custom processor: the M2. Made with a 5nm process, it is even more power efficient, supports more shared memory, and increases the transistor count over the M1 by 25%. The M2 shows that Apple was just getting started with the M1. And it shows the company can move quickly on new processors, a big advantage given the delays that competition has faced.
The company also showed off an all-new version of its MacBook Air, equipped with an M2. The MacBook Air is Apple’s most popular computer, and now it is even more compelling. A complete re-design (the first in over a decade) got rid of the familiar wedge shape for a flat and super-thin laptop that weighs just 2.7 pounds, can drive a 6K monitor and goes for 18 hours on a battery charge. Starting at $1,199, these things will sell like hotcakes. The company also updated the existing 13-inch MacBook Pro with an M2 processor.
Look for both laptops to be in high demand for back-to-school.
Apple Has a Whole Lot More Up Its Sleeve for 2022
The M2 and M2 MacBook Air may not be enough to meaningfully move the AAPL stock needle on their own. However, they are just part of a massive product release schedule for 2022. It started in March with a new M1 iPad Air, and will continue in September with the iPhone 14 series. Also expected are the latest Apple Watch and AirPod Pro earbuds. Other distinct possibilities include a new Mac Pro, iMac Pro, iPad Pro and possibly even new Apple TV models.
And don’t forget about that Apple AR headset that seems ready to make an appearance at any time.
Bottom Line: Should You Buy AAPL Stock?
Apple stock has been a solid growth pick since the iPhone began to dominate the nascent smartphone market. The company has all the pieces in place to continue that growth, despite the temporary setback of 2022.
This Portfolio Grader “B” rated stock still has some challenges to face in 2022. We got a very real reminder of that — specifically the ongoing supply chain issues in China — when Apple announced the new M2 MacBook Air and M2 MacBook Pro would not even be available to order until July. It seems unlikely (the current lockdowns are winding down), but any supply challenges around this fall’s iPhone 14 release would be bad news for Apple investors.
However, despite challenges like these, the long-term growth picture for AAPL remains solid. If you can ride out any turbulence through 2022, the company’s lineup of constantly improving products like the M2 MacBook Air and iPhone 14 will keep Apple fans buying. Services will continue to monetize that hardware after the initial sale. And new products like the expected Apple AR headset will keep the growth going into the foreseeable future.
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 Will the New M2 MacBook Air Be Enough to Kickstart Apple? 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 On June 6, Apple Inc (NASDAQ:AAPL) held its second major event of the year. WWDC can be a big deal for AAPL stock. These two alone won’t be enough to move the AAPL stock needle in a big way, but each is very important to the company. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On June 6, Apple Inc (NASDAQ:AAPL) held its second major event of the year. With Apple shares still trading down 17% since the start of 2022, now is a good time for growth investors to buy AAPL stock for their portfolio. AAPL Apple Inc. $148.18 Big Product Announcements Back in 2020, I wrote about the importance of the M1 processor to Apple. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On June 6, Apple Inc (NASDAQ:AAPL) held its second major event of the year. AAPL Apple Inc. $148.18 Big Product Announcements Back in 2020, I wrote about the importance of the M1 processor to Apple. Apple Has a Whole Lot More Up Its Sleeve for 2022 The M2 and M2 MacBook Air may not be enough to meaningfully move the AAPL stock needle on their own. | With Apple shares still trading down 17% since the start of 2022, now is a good time for growth investors to buy AAPL stock for their portfolio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On June 6, Apple Inc (NASDAQ:AAPL) held its second major event of the year. WWDC can be a big deal for AAPL stock. |
20790.0 | 2022-06-09 00:00:00 UTC | Wall Street slips as growth stocks struggle amid rising bond yields | AAPL | https://www.nasdaq.com/articles/wall-street-slips-as-growth-stocks-struggle-amid-rising-bond-yields | nan | nan | By Devik Jain and Mehnaz Yasmin
June 9 (Reuters) - Wall Street's main indexes slipped in choppy trading on Thursday as technology and growth stocks struggled for direction amid rising bond yields and weaker risk appetite on concerns around surging inflation and aggressive interest rate hikes.
Nine of the 11 major S&P sectors declined in morning trade, with energy .SPNY and materials .SPLRCM among the biggest losers. Defensive consumer staples sector .SPLRCS was the top gainer, up 0.5%.
Apple Inc AAPL.O and Amazon.com AMZN.O fell 1%, dragging the S&P 500 and the Nasdaq indexes lower. Bank of America BAC.N slipped 1.7%, while the broader banks index .SPXBK shed 1.2%.
Rate-sensitive growth stocks are under pressure from the benchmark U.S. 10-year Treasury yield US10YT=RR, which climbed as much as 3.07% to its highest level since May 11.
Inflation worries came to fore ahead of U.S. consumer price index report on Friday as Brent crude prices LCOc1 rose above $123 a barrel.
Investors fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market.
"We're not going to see the market enjoy a robust recovery until there is a sense the inflationary pressures are easing as that will suggest the Fed has been moving in the right direction and the weakening of the economy has not been drastic," said Quincy Krosby, chief equity strategist at LPL Financial.
"The market has been in a tight trading range. The volume in either scenario, buying or selling, has been weak and that is indicative of a market without commitment."
The U.S. central bank has raised its short-term interest rate by three-quarters of a percentage point this year and intends to keep at it with 50 basis points increases at its meeting next week and again in July.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI was down 60.73 points, or 0.18%, at 32,850.17, the S&P 500 .SPX was down 9.04 points, or 0.22%, at 4,106.73, and the Nasdaq Composite .IXIC was down 30.00 points, or 0.25%, at 12,056.27.
Tesla Inc TSLA.O rose 3.9% as the electric automaker sold 32,165 China-made vehicles last month, up sharply from 1,152 in April. Brokerage UBS upgraded the stock to "buy" and raised its profit estimates for the next three years.
Alibaba Group BABA.N slipped 1.6% after its affiliate Ant Group said it has no plan to initiate an initial public offering.
Reuters reported China's central leadership has given a tentative green light to Jack Ma's Ant Group to revive its initial public offering in Shanghai and Hong Kong.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose after two straight days of fall and was last trading at 24.63 points.
Declining issues outnumbered advancers for a 3.30-to-1 ratio on the NYSE and for a 2.73-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 30 new lows, while the Nasdaq recorded 11 new highs and 56 new lows.
(Reporting by Devik Jain and Mehnaz Yasmin 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 Amazon.com AMZN.O fell 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes slipped in choppy trading on Thursday as technology and growth stocks struggled for direction amid rising bond yields and weaker risk appetite on concerns around surging inflation and aggressive interest rate hikes. "We're not going to see the market enjoy a robust recovery until there is a sense the inflationary pressures are easing as that will suggest the Fed has been moving in the right direction and the weakening of the economy has not been drastic," said Quincy Krosby, chief equity strategist at LPL Financial. | Apple Inc AAPL.O and Amazon.com AMZN.O fell 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes slipped in choppy trading on Thursday as technology and growth stocks struggled for direction amid rising bond yields and weaker risk appetite on concerns around surging inflation and aggressive interest rate hikes. Inflation worries came to fore ahead of U.S. consumer price index report on Friday as Brent crude prices LCOc1 rose above $123 a barrel. | Apple Inc AAPL.O and Amazon.com AMZN.O fell 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes slipped in choppy trading on Thursday as technology and growth stocks struggled for direction amid rising bond yields and weaker risk appetite on concerns around surging inflation and aggressive interest rate hikes. Investors fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market. | Apple Inc AAPL.O and Amazon.com AMZN.O fell 1%, dragging the S&P 500 and the Nasdaq indexes lower. By Devik Jain and Mehnaz Yasmin June 9 (Reuters) - Wall Street's main indexes slipped in choppy trading on Thursday as technology and growth stocks struggled for direction amid rising bond yields and weaker risk appetite on concerns around surging inflation and aggressive interest rate hikes. Investors fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market. |
20791.0 | 2022-06-09 00:00:00 UTC | A Netflix-Roku Deal Isn't Going to Happen | AAPL | https://www.nasdaq.com/articles/a-netflix-roku-deal-isnt-going-to-happen | nan | nan | The Wall Street rumor mill went into overdrive Wednesday.
Shares of Roku (NASDAQ: ROKU), the leading streaming-device maker, jumped 9.1% on talk of an acquisition by Netflix (NASDAQ: NFLX), the leading streaming service.
According to Business Insider, Roku employees have been buzzing about a possible acquisition, focusing their attention on Netflix -- in response to management closing down all employee trading of the stock, a sign that it could have big news to share.
There are a number of reasons a Netflix-Roku tie-up could make sense. Roku used to be part of Netflix before being spun off in 2008, and the stock is now on sale, having plunged 80% since last fall. Netflix is also angling to launch an advertising business, and Roku is one of the top ad tech players in connected TV.
However, before investors start salivating over a deal that would combine the streaming distribution and content leaders, a reality check seems in order.
Why a deal is unlikely
First off, the Insider report was thin on details that could indicate real talks are taking place between the two companies. The report focused only on Roku employees but not management talking about an acquisition, possibly by Netflix. There was no comment on management shopping for a buyer, or Netflix looking to take over the company. The bulk of the article was discussion of the logic behind a possible deal and third-party commentary on whether it would make sense.
Notably, no other media outlet confirmed a potential buyout, which is typical when stories like this break. If the rumor had legs to it, an organization like The Wall Street Journal, Bloomberg, or Thomson Reuters would have likely confirmed the scoop with its own reporting. That didn't happen.
And the notion that employee scuttlebutt is linked to an actual deal seems like a stretch. Roku employees would probably love a buyout at this point after watching the stock plunge 80%, but that doesn't mean it's going to happen.
Beyond the report itself, the timing for a blockbuster deal would be odd for Netflix. The company has never made an acquisition of more than $1 billion, and its business is in disarray after the stock plunged on a surprise subscriber drop in the first quarter. Management has been desperate to shave costs, issuing two rounds of layoffs while chopping dozens of TV and film projects.
Netflix management now understands that it underestimated the impact of competition, and that it overspent on content for several years. The company needs to rightsize its content budget and focus on growing its subscriber base again. Buying Roku won't help Netflix solve those problems.
Finally, acquiring Roku, which currently has a market cap of $14 billion, would be expensive. An all-stock deal would dilute Netflix shareholders by 15.5% to acquire a company that's expected to lose money this year and next, and financing the purchase would be difficult because Netflix already has $14.5 billion in debt from its content binge.
If Roku were to seek a buyer, it would likely demand a steep premium because the business is still growing rapidly. It has not been impaired the way Netflix is.
The biggest hurdle to a deal
The real reason why a deal won't happen has to do with competition. Roku has become the leading streaming platform by forging deals with top streaming services including Netflix, Disney+, HBO Max (owned by Warner Bros. Discovery), Peacock (owned by Comcast), Paramount+, Apple TV+, and Amazon Prime Video, among others. Some of those deals, including with HBO Max and Peacock, only took place after weeks of intense negotiations over advertising revenue share.
Many of Netflix's streaming competitors would likely balk at a Roku takeover. Some could even leave the platform, or at the very least renegotiate those advertising deals and other data-sharing arrangements. It's unlikely that HBO Max, for example, would be comfortable with Netflix knowing how users interact with its content.
For similar reasons, a Netflix-Roku combination would be likely to pique the interest of antitrust regulators. Combining a distribution leader with the product leader sounds like an antitrust issue in any industry, but especially in video streaming, where the table stakes have skyrocketed with the entry of so many major players in recent years. There's no reason for regulators to allow Netflix to tip the scales by taking over Roku, and Netflix would likely have to pay Roku a large breakup fee if a deal was blocked. It's not worth the risk to the streamer.
Rumors of a deal could continue to swirl over the next few weeks, and Roku stock may remain elevated by the chatter, but there are a lot of reasons why no deal will happen.
With Roku stock down 80%, that's good news for Roku investors: They'll probably get a better payoff in the long run without a buyer.
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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. Jeremy Bowman has positions in Amazon, Netflix, Roku, and Walt Disney.
The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast and Warner Bros. Discovery, 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. | However, before investors start salivating over a deal that would combine the streaming distribution and content leaders, a reality check seems in order. If the rumor had legs to it, an organization like The Wall Street Journal, Bloomberg, or Thomson Reuters would have likely confirmed the scoop with its own reporting. Some of those deals, including with HBO Max and Peacock, only took place after weeks of intense negotiations over advertising revenue share. | Roku has become the leading streaming platform by forging deals with top streaming services including Netflix, Disney+, HBO Max (owned by Warner Bros. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. Discovery, 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. | Shares of Roku (NASDAQ: ROKU), the leading streaming-device maker, jumped 9.1% on talk of an acquisition by Netflix (NASDAQ: NFLX), the leading streaming service. There's no reason for regulators to allow Netflix to tip the scales by taking over Roku, and Netflix would likely have to pay Roku a large breakup fee if a deal was blocked. Rumors of a deal could continue to swirl over the next few weeks, and Roku stock may remain elevated by the chatter, but there are a lot of reasons why no deal will happen. | The report focused only on Roku employees but not management talking about an acquisition, possibly by Netflix. Roku employees would probably love a buyout at this point after watching the stock plunge 80%, but that doesn't mean it's going to happen. Roku has become the leading streaming platform by forging deals with top streaming services including Netflix, Disney+, HBO Max (owned by Warner Bros. |
20792.0 | 2022-06-09 00:00:00 UTC | China's smartphone makers chip away at Samsung, Apple's Russian market share | AAPL | https://www.nasdaq.com/articles/chinas-smartphone-makers-chip-away-at-samsung-apples-russian-market-share | nan | nan | June 9 (Reuters) - China's market share in the Russian smartphone market jumped significantly in May as manufacturers like Apple APPL.O and Samsung 005930.KS paused new sales in Russia and Western sanctions weighed on the Russian economy.
Chinese manufacturers Xiaomi 1810.HK, Realme and Honor accounted for 42% of Russia's smartphone sales in May 2022, according to data from mobile network MTS shared with Reuters, - up from 28% during the same month last year.
South Korea's Samsung lost its spot as the market leader, with 14% of devices sold versus 28% last year, and Apple's share dropped to 9% from 12%.
Overall smartphone sales were down 26% year-on-year, MTS said, as Western sanctions and supply chain disruptions have severely hit Russia's consumer economy.
Apple and Samsung stopped new product sales in Russia after Moscow sent its army into Ukraine in late February, but retailers have been able to use up existing stocks.
The Kremlin has also moved to allow Russian companies to ship in some products, including smartphones, without the license holder's permission in a so-called "parallel imports" scheme.
(Reporting by Reuters)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Chinese manufacturers Xiaomi 1810.HK, Realme and Honor accounted for 42% of Russia's smartphone sales in May 2022, according to data from mobile network MTS shared with Reuters, - up from 28% during the same month last year. Overall smartphone sales were down 26% year-on-year, MTS said, as Western sanctions and supply chain disruptions have severely hit Russia's consumer economy. The Kremlin has also moved to allow Russian companies to ship in some products, including smartphones, without the license holder's permission in a so-called "parallel imports" scheme. | June 9 (Reuters) - China's market share in the Russian smartphone market jumped significantly in May as manufacturers like Apple APPL.O and Samsung 005930.KS paused new sales in Russia and Western sanctions weighed on the Russian economy. Chinese manufacturers Xiaomi 1810.HK, Realme and Honor accounted for 42% of Russia's smartphone sales in May 2022, according to data from mobile network MTS shared with Reuters, - up from 28% during the same month last year. Apple and Samsung stopped new product sales in Russia after Moscow sent its army into Ukraine in late February, but retailers have been able to use up existing stocks. | June 9 (Reuters) - China's market share in the Russian smartphone market jumped significantly in May as manufacturers like Apple APPL.O and Samsung 005930.KS paused new sales in Russia and Western sanctions weighed on the Russian economy. Chinese manufacturers Xiaomi 1810.HK, Realme and Honor accounted for 42% of Russia's smartphone sales in May 2022, according to data from mobile network MTS shared with Reuters, - up from 28% during the same month last year. Overall smartphone sales were down 26% year-on-year, MTS said, as Western sanctions and supply chain disruptions have severely hit Russia's consumer economy. | June 9 (Reuters) - China's market share in the Russian smartphone market jumped significantly in May as manufacturers like Apple APPL.O and Samsung 005930.KS paused new sales in Russia and Western sanctions weighed on the Russian economy. Chinese manufacturers Xiaomi 1810.HK, Realme and Honor accounted for 42% of Russia's smartphone sales in May 2022, according to data from mobile network MTS shared with Reuters, - up from 28% during the same month last year. Apple and Samsung stopped new product sales in Russia after Moscow sent its army into Ukraine in late February, but retailers have been able to use up existing stocks. |
20793.0 | 2022-06-09 00:00:00 UTC | Down 43%, Should Investors Buy the Dip in Meta Platforms? | AAPL | https://www.nasdaq.com/articles/down-43-should-investors-buy-the-dip-in-meta-platforms | nan | nan | Meta Platforms (NASDAQ: FB) has had an unfortunate year up to this point. The dominant social media platform's stock has plunged 43% year to date, which is quite a collapse compared to the S&P 500 and Nasdaq Composite, which have declined 14% and 24% over the same time period, respectively. The company is struggling in part due to the broader retreat from technology stocks that has resulted from high inflation, the Federal Reserve's decision to raise interest rates in response, and global impacts from the war between Russia and Ukraine.
But the social media company is facing many internal problems as well, and its drastic shift toward the metaverse adds just another layer of risk to its current investment profile. It's important to keep a long-term mindset, however, especially during times of great economic uncertainty. And while Meta's current situation is far from ideal, I think the sell-off has been overdone. This is a stock I see rebounding nicely in the coming years, and one that could provide monstrous returns for patient investors who buy into the company at existing price levels.
Let's dive into Meta's present state and examine why it may offer investors a unique buying opportunity today.
Image source: Getty Images.
Breaking down Meta's business
It's no secret by now: The world's No. 1 social media company is facing an assortment of challenges. On its first-quarterearnings call CEO Mark Zuckerberg mentioned Meta-specific obstacles like its transition to short-form video, and industrywide hurdles like Apple's iOS privacy changes and softness in e-commerce, that continue to adversely impact the company's growth rates in the near term. At the moment, the company's Reels business, which competes directly with TikTok, monetizes at a slower rate than other segments. That said, Zuckerberg reaffirmed his optimism for Reels and persisted in noting that it's a vital shift for Meta's long-term success.
In Q1, total revenue increased 6.6% year over year to $27.9 billion, and although diluted earnings per share decreased 17.6% to $2.72, the company beat Wall Street's earnings estimate by 8%. The company's operating margin dropped to 30.5% -- down from 43% in the year-ago period and 37% in the fourth quarter of 2021 -- as Meta continues its aggressive investments into the Reality Labs segment. Research and development expense climbed 48.3% year over year to $7.7 billion, and the Reality Labs business remains highly unprofitable for now, generating a loss of $3 billion in the first quarter alone.
On the Facebook platform, daily active users and monthly active users grew a modest 4.4% and 2.9% year over year, up to 2 billion and 2.9 billion, respectively. In fiscal year 2022, analysts estimate total sales to expand 7.4% year over year to $126.6 billion and earnings per share to retreat 13.9% to $11.85. Next year, which is when unfavorable comparable metrics will stabilize, analysts' forecasts tell a different story. Wall Street expects revenue to rise 16.5% to $147.6 billion in fiscal 2023, and earnings per share to grow 18.1% to $13.99.
Short-term headwinds will inflict growing pains on Meta for now, but the company's business is poised to bounce back in the future. And I'm not too concerned about its hefty investments into the metaverse. The social media juggernaut has nearly $15 billion in cash and cash equivalents and generated $8.5 billion in free cash flow (FCF) in Q1. This company is built to last and well-equipped to ride out any economic storm.
Meta's valuation is screaming "buy me"
I'm not sure Meta shares have ever appeared more enticing than now. The stock has a price-to-earnings multiple of just 14.7, representing a significant discount to its five-year mean of 27.9. While growth is expected to be patchy for the foreseeable future, it's challenging to justify such a low valuation today.
FB PE Ratio data by YCharts
This is especially the case when you understand Meta's elite market positioning and untapped potential of the future. Trading almost 50% off its 52-week high, this stock grants investors a robust margin of safety today.
Over the long run, I still like Meta
I'm not overly concerned about Meta's path to a sound recovery. And given its all-time low valuation, I feel comfortable recommending this stock to investors today. By employing a long-term investment approach, you can eliminate much of the noise that is governing the company's share price movement right now. Yes, you may need to buckle up for the near term, but Meta investors should see smooth sailing over the long haul.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Luke Meindl has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The dominant social media platform's stock has plunged 43% year to date, which is quite a collapse compared to the S&P 500 and Nasdaq Composite, which have declined 14% and 24% over the same time period, respectively. The company is struggling in part due to the broader retreat from technology stocks that has resulted from high inflation, the Federal Reserve's decision to raise interest rates in response, and global impacts from the war between Russia and Ukraine. On its first-quarterearnings call CEO Mark Zuckerberg mentioned Meta-specific obstacles like its transition to short-form video, and industrywide hurdles like Apple's iOS privacy changes and softness in e-commerce, that continue to adversely impact the company's growth rates in the near term. | In Q1, total revenue increased 6.6% year over year to $27.9 billion, and although diluted earnings per share decreased 17.6% to $2.72, the company beat Wall Street's earnings estimate by 8%. In fiscal year 2022, analysts estimate total sales to expand 7.4% year over year to $126.6 billion and earnings per share to retreat 13.9% to $11.85. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In Q1, total revenue increased 6.6% year over year to $27.9 billion, and although diluted earnings per share decreased 17.6% to $2.72, the company beat Wall Street's earnings estimate by 8%. In fiscal year 2022, analysts estimate total sales to expand 7.4% year over year to $126.6 billion and earnings per share to retreat 13.9% to $11.85. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | 10 stocks we like better than Meta Platforms, Inc. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. |
20794.0 | 2022-06-09 00:00:00 UTC | Alphabet’s Stock Split Could Be a Major Catalyst | AAPL | https://www.nasdaq.com/articles/alphabets-stock-split-could-be-a-major-catalyst | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of Google parent company Alphabet (NASDAQ:GOOGL) are about to get a lot more affordable. On July 15, GOOGL shares will split on a 20-for-1 basis. It will be the first time the Mountain View, California-based technology giant has split its stocks since 2014, shortly before the company rebranded itself as “Alphabet” to reflect its increasing expansion beyond its online search engine.
Already down 19% year to date, the upcoming stock split would take Alphabet’s share price to $113.89 based on its current level of $2,277.84 a share. While the split doesn’t change the underlying fundamentals at the company, it will make shares in the company much easier to acquire, particularly for individual retail investors.
And that could be the catalyst that shakes Alphabet stock out of its current funk and leads to the share price moving higher.
GOOGL Alphabet $2,277.84
Misleading Results
Stock split aside, there remain a lot of reasons to be bullish on GOOGL stock. The company continues to excel in all areas of its business — from its signature ad-supported Google search engine and cloud computing, to its Pixel smartphones and “other bets” unit that includes self-driving cars.
7 Top-Rated Large-Cap Stocks to Buy and Hold
To be sure, the company reported first-quarter earnings that missed Wall Street expectations, sending its stock lower. But on close inspection, Alphabet’s Q1 print was not that bad and mostly due to a decline in advertising revenue for its YouTube channel. Investors who read the earnings headlines would miss the fact that Alphabet continues to grow in several important areas.
Although, Alphabet’s first quarter revenue of $68.01 billion missed analyst forecasts of $68.11 billion, it still grew 23% from the same period a year earlier. The company’s advertising revenue for the quarter came in at $54.66 billion, up 18% from $44.68 billion in Q1 2021.
And revenue for the Google Cloud segment, which is widely seen as a key area of future growth for the company, came in at $5.82 billion, which was up 44% from a year ago and better than the $5.76 billion that had been expected on the Street.
Had it not been for a downturn in advertising revenue on YouTube, which has slowed as the pandemic fades and people spend less time amusing themselves online, Alphabet would have beaten analysts expectations for its first quarter earnings.
Low Valuation
Alphabet’s stock split not only comes with is share price knocked lower this year, but with the company’s valuation near historic lows. Alphabet’s shares currently trade at 20 times expected earnings, which is among the lowest levels in the company’s 18-year history as a public company.
By comparison, Amazon (NASDAQ:AMZN), which is also splitting its stock on a 20-for-1 basis, is trading at 47 times expected earnings, more than double Alphabet’s level. Analysts by and large agree that GOOGL stock is undervalued at current levels.
The median price target on the stock among 45 analysts who cover the company is 40% higher than where it currently trades. The shares only recently bounced off a 52-week low of $2,037.69 a share.
Another reason for investors to be excited about Alphabet’s upcoming stock split is that it could make GOOGL stock eligible to join the Dow Jones Industrial Average, a price-weighted index of 30 prominent blue-chip companies.
Being added to the Dow could lead to increased buying of Alphabet’s stock as exchange traded funds (ETFs) and mutual funds that track the index would need to purchase the company’s shares. Buying among retail investors should also spike.
At its current price above $2,000 a share, only about 1.7 million Alphabet shares change hands each day. That is a fraction of the average daily volume of 85 million shares of Apple (NASDAQ:AAPL) that are traded each day. After splitting in August 2020, AAPL stock currently trades at just under $150 per share.
Buy GOOGL Stock Once It Splits
Alphabet remains a leading technology company that is dominant in most areas in which it competes. Highly profitable with plenty of free cash flow, Alphabet is the type of mature mega-cap technology company that delivers solid returns to investors.
And while its share price has suffered this year amid the broad-based market selloff, the upcoming 20-for-1 stock split could prove to be the catalyst that’s needed. Given how cheap it currently is, investors should definitely plan to buy GOOGL stock once it splits and becomes more affordable.
On the date of publication, Joel Baglole held long positions in GOOGL and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Alphabet’s Stock Split Could Be a Major Catalyst 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. | That is a fraction of the average daily volume of 85 million shares of Apple (NASDAQ:AAPL) that are traded each day. After splitting in August 2020, AAPL stock currently trades at just under $150 per share. On the date of publication, Joel Baglole held long positions in GOOGL and AAPL. | That is a fraction of the average daily volume of 85 million shares of Apple (NASDAQ:AAPL) that are traded each day. After splitting in August 2020, AAPL stock currently trades at just under $150 per share. On the date of publication, Joel Baglole held long positions in GOOGL and AAPL. | That is a fraction of the average daily volume of 85 million shares of Apple (NASDAQ:AAPL) that are traded each day. After splitting in August 2020, AAPL stock currently trades at just under $150 per share. On the date of publication, Joel Baglole held long positions in GOOGL and AAPL. | That is a fraction of the average daily volume of 85 million shares of Apple (NASDAQ:AAPL) that are traded each day. After splitting in August 2020, AAPL stock currently trades at just under $150 per share. On the date of publication, Joel Baglole held long positions in GOOGL and AAPL. |
20795.0 | 2022-06-09 00:00:00 UTC | Did Apple Just Put a Nail in Matterport's Coffin? | AAPL | https://www.nasdaq.com/articles/did-apple-just-put-a-nail-in-matterports-coffin | nan | nan | It can be tough for technology start-ups that have a limited ability to defend their niches from the incursions of rivals. We live in a world where massive tech powerhouses have hundreds of billions of dollars in resources at their disposal. A tiny business can spend years gradually developing a useful new service and building the market for it, only to suddenly find itself competing with a tech titan.
Take Matterport (NASDAQ: MTTR), for example.
The company's cameras and software help clients map out and create virtual representations of real-world spaces, and its spatial data platform has been winning over lots of fans. But high-growth tech companies -- especially ones that aren't generating profits -- have fallen out of favor among many investors in the current macroeconomic environment, and Matterport's share prices are down 75% so far in 2022.
The stock took another tumble after Apple (NASDAQ: AAPL) debuted a rudimentary tool that could compete with Matterport's at its Worldwide Developers Conference (WWDC) 2022 earlier this week. Could this signal that the end is near for Matterport?
A new competitor with a massive user base
Matterport helps its clients create "digital twins" of real-world physical spaces -- homes, office buildings, malls, construction sites, and so on. Companies like Nvidia have touted their benefits as planning tools. Before making a change to a site in the physical world, owners can test it out in a virtual one. Matterport's platform greatly accelerates the speed at which these digital twins can be created.
In the first quarter, Matterport grew its revenue by just 6% year over year to $28.5 million, but its total subscriber base soared by 70% to 562,000, and "spaces under management" (virtual rooms, buildings, and locations managed in Matterport's software suite) increased by 49% to 7.3 million. The company is losing money right now, but it had $402 million in cash and short-term investments and another $198 million in long-term investments on its books as of the end of March. This little business has a lot of promise, and it could be a beneficiary as organizations attempt to translate their real-world properties into digital locations in the metaverse.
Enter Apple with its own competing offering. At its big developers' event, it showed off RoomPlan -- a new feature for the iPhone that uses its ARKit (or "augmented reality kit," for developers that want to integrate camera and motion features into their apps). RoomPlan is rudimentary compared to Matterport's platform, but it makes use of an iPhone's camera and LiDAR to map spaces in 3D.
I'll emphasize the word "rudimentary" here. Matterport's offering is best-in-class, and a simple room scan with an iPhone isn't going to top it. But RoomPlan is an API -- an application programming interface. In other words, it's a simple feature designed to be added to apps, and is meant to be improved upon by software developers. The fact that there are hundreds of millions of iPhones in use worldwide only adds to the lucrative appeal of building new digital twin services in the Apple ecosystem. In short, Apple just opened the door for lots of potential competition for Matterport.
Matterport's business isn't out, but be leery of the stock
To be fair, Apple's foray into digital twin creation could simply have the effect of accelerating the adoption of the technology. If RoomPlan gives consumers and businesses a taste of how powerful and useful virtual re-creations of real-world spaces can be, they might go searching for an even more powerful tool -- and land at leading player Matterport.
But for now, Apple's simple flip-of-the-switch to unlock new uses for the massive base of iPhone owners illustrates the challenge small tech companies like Matterport face. As good a service and hardware platform as it may be, maintaining an early lead can be an uphill battle when tech behemoths can dedicate what, for them, are minimal resources to offer an alternative.
And with Matterport trading at over 11 times trailing 12-month sales and far from turning a profit, I'd be leery about owning the stock at this juncture.
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Nicholas Rossolillo and his clients have positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Matterport, Inc., and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock took another tumble after Apple (NASDAQ: AAPL) debuted a rudimentary tool that could compete with Matterport's at its Worldwide Developers Conference (WWDC) 2022 earlier this week. The company's cameras and software help clients map out and create virtual representations of real-world spaces, and its spatial data platform has been winning over lots of fans. A new competitor with a massive user base Matterport helps its clients create "digital twins" of real-world physical spaces -- homes, office buildings, malls, construction sites, and so on. | The stock took another tumble after Apple (NASDAQ: AAPL) debuted a rudimentary tool that could compete with Matterport's at its Worldwide Developers Conference (WWDC) 2022 earlier this week. The company's cameras and software help clients map out and create virtual representations of real-world spaces, and its spatial data platform has been winning over lots of fans. A new competitor with a massive user base Matterport helps its clients create "digital twins" of real-world physical spaces -- homes, office buildings, malls, construction sites, and so on. | The stock took another tumble after Apple (NASDAQ: AAPL) debuted a rudimentary tool that could compete with Matterport's at its Worldwide Developers Conference (WWDC) 2022 earlier this week. In the first quarter, Matterport grew its revenue by just 6% year over year to $28.5 million, but its total subscriber base soared by 70% to 562,000, and "spaces under management" (virtual rooms, buildings, and locations managed in Matterport's software suite) increased by 49% to 7.3 million. Matterport's business isn't out, but be leery of the stock To be fair, Apple's foray into digital twin creation could simply have the effect of accelerating the adoption of the technology. | The stock took another tumble after Apple (NASDAQ: AAPL) debuted a rudimentary tool that could compete with Matterport's at its Worldwide Developers Conference (WWDC) 2022 earlier this week. The company's cameras and software help clients map out and create virtual representations of real-world spaces, and its spatial data platform has been winning over lots of fans. RoomPlan is rudimentary compared to Matterport's platform, but it makes use of an iPhone's camera and LiDAR to map spaces in 3D. |
20796.0 | 2022-06-09 00:00:00 UTC | US STOCKS-Futures rebound as Tesla, other growth stocks gain | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-rebound-as-tesla-other-growth-stocks-gain | 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 0.48%, S&P 0.54%, Nasdaq 0.61%
June 9 (Reuters) - U.S. stock index futures rose on Thursday, led by Tesla and other growth shares following a broad selloff on Wall Street on worries over surging inflation and the path for interest rate hikes.
The electric-vehicle maker's shares TSLA.O jumped 3.5% in premarket trading as it sold 32,165 China-made vehicles last month, up sharply from 1,152 in April.
UBS also upgraded Tesla's stock to "buy" and raised its profit estimates for the next three years.
Shares of other megacap companies, including Microsoft Corp MSFT.O and Apple Inc AAPL.O, gained 0.4% and 0.7%, respectively.
The S&P 500 closed down 1.1% on Wednesday, dragged lower by chipmakers after a bearish brokerage report by Citi Research on Intel Corp INTC.O and elevated U.S. Treasury yields.
A spike in Brent crude prices LCOc1 above an eye-watering $123 a barrel has made investors anxious ahead of the U.S. consumer price index report on Friday.
Market participants fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market.
On Wednesday, International Monetary Fund First Deputy Managing Director Gita Gopinath said U.S. inflation could remain above the Fed's 2% target for a long time based on current projections, and overall, the risks are towards the possibility that this will require much more steeper increases in rates.
The U.S. central bank has raised its short-term interest rate by three-quarters of a percentage point this year and intends to keep at it with 50 basis points increases at its meeting next week and again in July.
At 6:58 a.m. ET, Dow e-minis 1YMcv1 were up 158 points, or 0.48%, S&P 500 e-minis EScv1 were up 22.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were up 76.5 points, or 0.61%.
Alibaba BABA.N fell 3.5% after China's securities regulator said it had not conducted any assessment regarding a revival of Ant Group's initial public offering (IPO).
Bloomberg News reported earlier that Chinese financial regulators have started early-stage discussions on a potential revival of Ant Group's IPO.
A reading on weekly jobless claims data is due at 08:30 a.m. ET.
(Reporting by Devik Jain and Mehnaz Yasmin 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. | Shares of other megacap companies, including Microsoft Corp MSFT.O and Apple Inc AAPL.O, gained 0.4% and 0.7%, respectively. The S&P 500 closed down 1.1% on Wednesday, dragged lower by chipmakers after a bearish brokerage report by Citi Research on Intel Corp INTC.O and elevated U.S. Treasury yields. On Wednesday, International Monetary Fund First Deputy Managing Director Gita Gopinath said U.S. inflation could remain above the Fed's 2% target for a long time based on current projections, and overall, the risks are towards the possibility that this will require much more steeper increases in rates. | Shares of other megacap companies, including Microsoft Corp MSFT.O and Apple Inc AAPL.O, gained 0.4% and 0.7%, respectively. Futures up: Dow 0.48%, S&P 0.54%, Nasdaq 0.61% June 9 (Reuters) - U.S. stock index futures rose on Thursday, led by Tesla and other growth shares following a broad selloff on Wall Street on worries over surging inflation and the path for interest rate hikes. A spike in Brent crude prices LCOc1 above an eye-watering $123 a barrel has made investors anxious ahead of the U.S. consumer price index report on Friday. | Shares of other megacap companies, including Microsoft Corp MSFT.O and Apple Inc AAPL.O, gained 0.4% and 0.7%, respectively. Futures up: Dow 0.48%, S&P 0.54%, Nasdaq 0.61% June 9 (Reuters) - U.S. stock index futures rose on Thursday, led by Tesla and other growth shares following a broad selloff on Wall Street on worries over surging inflation and the path for interest rate hikes. Market participants fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market. | Shares of other megacap companies, including Microsoft Corp MSFT.O and Apple Inc AAPL.O, gained 0.4% and 0.7%, respectively. The electric-vehicle maker's shares TSLA.O jumped 3.5% in premarket trading as it sold 32,165 China-made vehicles last month, up sharply from 1,152 in April. Market participants fear a hot reading on inflation could keep the U.S. Federal Reserve on its path to raise interest rates aggressively against the backdrop of a volatile stock market, strong consumer spending and tight labor market. |
20797.0 | 2022-06-09 00:00:00 UTC | Top Stock Market News For Today June 9, 2022 | AAPL | https://www.nasdaq.com/articles/top-stock-market-news-for-today-june-9-2022 | nan | nan | Stock Market Futures Inch Higher After Snapping Two-Day Winning Streak
U.S. stock futures are edging up in early morning trading today. This would continue the ongoing uncertainty across the stock market. Between talks of inflation, growing economic headwinds, and the possibility of a recession, this is not that surprising. Not to mention, retailers such as Scotts Miracle-Gro (NYSE: SMG) and Target (NYSE: TGT) continue to slash their financial outlooks. Both of these firms, as of this week, are doing so because of excessive inventory issues.
Overall, as inflation and interest rate expectations remain persistent concerns for investors, economic data releases would be among the market movers to consider. In particular, the Bureau of Labor Statistics is set to release its Consumer Price Index (CPI) reading for May on Friday. By current consensus economist forecasts, we could see the CPI ease marginally month-over-month.
Meanwhile, mentions of some potential M&A action between Roku (NASDAQ: ROKU) and Netflix (NASDAQ: NFLX) are also making the rounds in the stock market this week. Should the latter be looking to acquire Roku, it would mark a massive event for streaming stocks in general. While taking all this information in, investors also have plenty ofstock market newsto keep up with today. As of 6:51 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.54%, 0.61%, and 0.69% respectively.
Apple Advances Fintech Strategy With In-House Lending Solutions
Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). Notably, the company’s WWDC continues to bring massive announcements, mostly across its software offerings. Aside from the slew of key updates to its iOS and MacBook divisions, Apple is also making leaps on the fintech front. With regards to its new buy-now-pay-later (BNPL) solution, Apple Pay Later (APL), a wholly owned subsidiary of Apple will check user credit and extend short-term loans to users of APL. For one thing, this announcement would be a sizable shake up in the industry.
All in all, Apple’s latest move would put it in direct competition with fintech giants such as Affirm (NASDAQ: AFRM) and PayPal (NASDAQ: PYPL). As it stands, Apple is planning to release these new fintech features alongside its latest iOS 16 iPhone software. This would serve to significantly expand Apple Pay’s current list of services. In particular, APL will allow Apple Pay users to pay for purchases across four equal payments over six weeks. Moreover, the company is currently working with Mastercard (NYSE: MA) to enable its BNPL service. Meanwhile, Goldman Sachs (NYSE: GS) will remain the issuer for the company’s Apple Card. As such, investors would likely continue to tune in to AAPL stock now.
Source: TradingView
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Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract
In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. According to the Financial Times, the big data analytics firm is bringing on senior National Health Service (NHS) officials to its team. Accordingly, this could be part of the company’s plans to secure a $450 million contract to manage the U.K.’s health care data. For a sense of scale, this would involve the medical data of millions of patients in the U.K. If anything, Palantir is already the NHS’s go-to data analytics solutions provider, starting from the earlier days of the pandemic.
Through its latest employment moves, Palantir has been and will likely continue to bid for the five-year $450 million health care contract. This will revolve around the management of the Federated Data Platform (FDP). In brief, the FDP is a cutting-edge tool that connects and integrates patient data across the national health care system. Thanks to this feature, health care officials ranging from clinicians to bureaucrats can make real-time decisions. Should things go as planned, Palantir will likely receive an update on this in November later this year. With all this in mind, PLTR stock could be in focus at the opening bell later today.
Source: TradingView
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DocuSign Earnings Preview: What To Know Beyond The Microsoft Deal Expansion
On the earnings front today, DocuSign (NASDAQ: DOCU) could be worth checking out as well. In general, this could be the case seeing as it is set to report its latest quarterly earnings after the closing bell. Getting into the details, consensus figures on Wall Street are earnings of $0.46 per share on revenue of $581.85 million. Should this be the case, it would add up to year-over-year gains of 4.5% and 24% respectively. On the whole, investors will likely be keen to see how this pandemic-era tech darling performed for the quarter. After all, the likes of Zoom (NASDAQ: ZM) did post a sizable earnings beat in its latest quarterly update last month.
Also worth mentioning, DOCU stock appears to be on a roll at the moment. Over the past month, the company’s shares are up by over 25%. Among the latest catalysts for this growth would be the company’s latest work with Microsoft (NASDAQ: MSFT). Just yesterday, the duo revealed that they would be expanding their global strategic partnership. As a result of the agreement, users of Microsoft’s enterprise solutions now have access to more of DocuSign’s offerings. Mainly, this includes new integrations with the DocuSign Agreement Cloud. After considering all of this, I could see DOCU stock gaining attention in the stock market now.
Source: TradingView
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Stock Market Earnings To Watch Today
Aside from DocuSign, here are the other notable companies reporting earnings today. In the pre-market hours, FuelCell Energy (NASDAQ: FCEL), Bilibili (NASDAQ: BILI), and Signet Jewelers (NYSE: SIG) will be on tap. Additionally, Nio (NYSE: NIO), a leading electric vehicle (EV) firm will also be reporting its latest figures during that time. As lockdowns in China continue to ease, names such as Nio could be worth noting in the market now. Alternatively, after the closing bell, there are several other firms to look out for as well. Namely, Vail Resorts (NYSE: MTN), Stitch Fix (NASDAQ: SFIX), and Rent The Runway (NASDAQ: RENT) are among said firms. Between ever-present economic concerns, earnings, and companies making moves, investors have plenty to consider in thestock market today
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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 Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. Overall, as inflation and interest rate expectations remain persistent concerns for investors, economic data releases would be among the market movers to consider. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. 5 Chinese Stocks For Your Watchlist Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. 5 Chinese Stocks For Your Watchlist Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. In general, this could be the case seeing as it is set to report its latest quarterly earnings after the closing bell. |
20798.0 | 2022-06-09 00:00:00 UTC | 7 Stocks That Look Like Big Bargains Right Now | AAPL | https://www.nasdaq.com/articles/7-stocks-that-look-like-big-bargains-right-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Wall Street is acting confused, which is perfect for active traders. But this makes long-term investing very difficult because of the whipsaw price action. Luckily this back-and-forth process created opportunities in the form of a bunch of bargain stocks to buy.
Investors still need to be careful. We are still under fire from a very hostile U.S. Federal reserve policy in the name of controlling inflation. Nobel-prize-winning economist Milton Friedman believed that only the government can create inflation. In September of 2012 he said that “inflation is created in Washington because only Washington can create money.”
Luckily, the private sector is slightly more decisive with its policies. As a result, most large companies will likely survive the tighter spending conditions. But meanwhile, their equities have suffered enough to where they’ve become bargain stocks. Nevertheless I would not take the entire position at once.
7 High-Quality Dividend Stocks With High Yields
Here are the stocks I see as the biggest bargain stocks right now.
SHOP Shopify $390.95
ROKU Roku $104.93
BABA Alibaba $116.03
UPST Upstart $45.47
TWLO Twilio $45.16
DIS Disney $107.76
ADBE Adobe $429.11
Shopify (SHOP)
Source: Beyond The Scene / Shutterstock.com
Shopify (NYSE:SHOP) is having a rough time lately. From last year’s high, it fell more than 80% and it still can’t find footing. It hasn’t had two green weeks in a row in 29 weeks.
But unless the equity markets or Shopify itself are going to collapse, this has to eventually end. Meanwhile, it shall remain on a list of bargain stocks to buy in my book. Its value is not obvious because it carries a high stock price at nearly $400. Furthermore its price-to-earnings ratio is super high because it focuses on growth.
The right metric here is the price-to-sales ratio, and that’s single digits. This puts it 30% cheaper than Tesla (NASDAQ:TSLA). For now, Shopify should focus on growth and should spend a lot to get it. The profitability metrics like P/E can normalize later.
SHOP stock now sits at the base of the pandemic bottom. If there is any more downside from here it should be shallow. Therefore the upside opportunity is favorable.
Roku (ROKU)
Source: JHVEPhoto / Shutterstock.com
I was a skeptic of Roku (NASDAQ:ROKU) for a long time, mainly because they were in business for 16 years without turning a profit.
Then the market came to them, and they shut me up. In the last three years, management tripled sales without creating bloat.
ROKU stock is part of the bargain stocks posse for two simple reasons. Its price-to-sales is only 4.5, and it can create roughly $250 million in cash from operations. The reason it has fallen out of favor with investors is pure fear. Experts worry about the chip shortage negatively impacting its performance.
7 Cheap Growth Stocks That Won't Stay That Way for Long
Until I see significant bearish evidence in the financials, I will give ROKU the benefit of the doubt. Thanks to a 75% stock correction, it looks very affordable.
Alibaba (BABA)
Source: Shutterstock
This next of our bargain stocks rallied hard on Monday along with other Chinese stocks. But Alibaba (NYSE:BABA) still carries extra risk because of its nationality.
For more than a year, equities from China have suffered a string of political blows. Meanwhile, BABA’s business continues to thrive. There is divergence between the stock blight and the business success. This is enough to earn it a place on our list of bargain stocks.
Fundamentally, BABA stock is now extra cheap with a price-to-sales below 2. This means investors’ expectations are rock bottom, so it will be hard to disappoint them from here. BABA’s 6% rally on Monday could lead to a small pullback for a breather. But in the long run, it has a long way to go.
It most likely won’t recover all of its prior glory but this fast grower ought to command a better premium. After all, not many companies can almost quadruple in size in five years while netting a profit the whole time, with $20 billion in cash from operations. Their singles day holiday sales topped $100 billion.
Upstart (UPST)
Source: rafapress / Shutterstock.com
Upstart’s (NASDAQ:UPST) management reported earnings last month and it was a disasterous reaction. Notice I didn’t say the results were bad, because they were not. In fact they grew revenues over 150%, yet UPST stock lost 60% of its value.
A principle driving factor behind the fall was experts fearing potential loan defaults from loans they carried too long.
The rising interest rates are also drying up the appetite to lend. This put a crimp of the available loan buyers for UPST.
Revenues are now four times bigger than 2020, and they still carry a low price-to-sales under 5. For this discrepancy I placed it on my list of bargain stocks today. Once it stabilizes from its walloping, investors are likely to realize they sold a quality opportunity too cheaply.
I am not expecting its all-time highs to return. Those too were also wrong at the time. But somewhere in the middle will lie the truth for this fast grower. Rising above $55 per share may bring out the momentum buyers to try and fill the gap — and it is a massive one that could bring 30% of upside quickly.
Twilio (TWLO)
Source: Piotr Swat / Shutterstock.com
Twilio (NYSE:TWLO) has all the right buzzwords. It is a cloud communication company right in the thick of the right trends. This hasn’t stopped its stock from heading straight down since February of last year. The selling intensified last summer, so now it sits 74% below its high-water mark.
This tremendous devastation has created a relative bargain stock scenario. Its price-to-sales ratio is now less than half that of 2019 and 2018. The pandemic rally created bloat in it, like most other cloud stocks. That situation has normalized, and the pendulum has swung too far the other way.
TWLO stock being a momentum stock, it moves extremely fast, so it is daunting to trade. That’s why it is important that we don’t go all in even when the value proposition is favorable.
While the indices are struggling to stabilize, TWLO could easily revisit its recent lows. This by definition leaves another 10% of downside potential risk. But when markets recover, it will likely be among the leaders.
For what it’s worth, Ark Invest is still accumulating shares.
Disney (DIS)
Source: nikkimeel / Shutterstock.com
This is not the old Disney (NYSE:DIS) stock. It is now a streaming powerhouse chasing Netflix (NASDAQ:NFLX). But it has fallen on hard times of late, partly through non-business headlines. It is in a political shouting match with the state of Florida.
Meanwhile, this is distracting from its accomplishments for the last two years. The global shutdown had the potential to deal a deadly blow to its theme park business. Disney made a living out of packing people shoulder to shoulder. Somehow it emerged from the test without too much damage, and perhaps even stronger.
I doubt that it will face tougher circumstances that that for a long while.
The value in the stock comes from the fact that it’s still profitable. It also generated over $5 billion in cash from operations last year. And somehow, the price-sales ratio is under 3.
Revenues for the last 12 months are 11% larger than before the pandemic. However, DIS stock is still down 30% for the year to date. This suggests that there should be plenty of room to run in the long term.
Adobe (ADBE)
Source: r.classen / Shutterstock.com
Adobe (NASDAQ:ADBE) stock fell back into levels not seen since 2020, so it has shed the stock froth from last year. Its tangible fundamental value has also benefited from this equity shellacking. As a result it now has its cheapest price-to-earnings ratio in at least seven years.
That alone doesn’t ensure a bottom for the stock. However it suggests that owning a partial position now is not an obvious mistake.
This is a growth stock and such stocks tend to fall precipitously and surprise investors. Timing their bottoms perfectly is nearly impossible. We should therefore resolve ourselves to finding potential zones of contention. They tend to act as strong support which can turn into a bottom in hindsight.
This is one, provided the indices don’t have far more to fall.
Management has delivered more than 20% growth for years, with a big net income to boot. With more than $7 billion in cash from operations ,they leave no doubt over their competence.
ADBE reports earnings soon and those add another layer of doubt. The reactions to them is binary, but maybe it pops like Salesforce.com (NYSE:CRM) did.
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 7 Stocks That Look Like Big Bargains Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Luckily this back-and-forth process created opportunities in the form of a bunch of bargain stocks to buy. 7 Cheap Growth Stocks That Won't Stay That Way for Long Until I see significant bearish evidence in the financials, I will give ROKU the benefit of the doubt. On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. | SHOP Shopify $390.95 ROKU Roku $104.93 BABA Alibaba $116.03 UPST Upstart $45.47 TWLO Twilio $45.16 DIS Disney $107.76 ADBE Adobe $429.11 Shopify (SHOP) Source: Beyond The Scene / Shutterstock.com Shopify (NYSE:SHOP) is having a rough time lately. Upstart (UPST) Source: rafapress / Shutterstock.com Upstart’s (NASDAQ:UPST) management reported earnings last month and it was a disasterous reaction. Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) stock fell back into levels not seen since 2020, so it has shed the stock froth from last year. | 7 High-Quality Dividend Stocks With High Yields Here are the stocks I see as the biggest bargain stocks right now. Alibaba (BABA) Source: Shutterstock This next of our bargain stocks rallied hard on Monday along with other Chinese stocks. Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) stock fell back into levels not seen since 2020, so it has shed the stock froth from last year. | 7 High-Quality Dividend Stocks With High Yields Here are the stocks I see as the biggest bargain stocks right now. After all, not many companies can almost quadruple in size in five years while netting a profit the whole time, with $20 billion in cash from operations. However, DIS stock is still down 30% for the year to date. |
20799.0 | 2022-06-09 00:00:00 UTC | IVV, JDST: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/ivv-jdst%3A-big-etf-inflows | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 18,350,000 units, or a 2.5% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is off about 0.7%, and Microsoft is up by about 0.6%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 2X SH, which added 2,100,000 units, for a 35.7% increase in outstanding units.
VIDEO: IVV, JDST: 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 IVV, in morning trading today Apple is off about 0.7%, and Microsoft is up by about 0.6%. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 2X SH, which added 2,100,000 units, for a 35.7% increase in outstanding units. VIDEO: IVV, JDST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 18,350,000 units, or a 2.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 2X SH, which added 2,100,000 units, for a 35.7% increase in outstanding units. VIDEO: IVV, JDST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 18,350,000 units, or a 2.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 2X SH, which added 2,100,000 units, for a 35.7% increase in outstanding units. VIDEO: IVV, JDST: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 18,350,000 units, or a 2.5% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is off about 0.7%, and Microsoft is up by about 0.6%. And on a percentage change basis, the ETF with the biggest increase in inflows was the DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 2X SH, which added 2,100,000 units, for a 35.7% increase in outstanding units. |
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