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14200.0
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2023-08-22 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-7
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nan
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nan
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Many companies have dabbled in virtual reality (VR) over the years, releasing various headsets and using different strategies in an effort to convince consumers to adopt the technology. Meta and Sony recently dominated the industry with their respective devices. Yet even these tech giants have been unable to achieve much success in the market, as consumers seem unconvinced by the utility of VR.
However, technological advances and the entrance of new companies into the market have renewed interest in VR. Data from Fortune Business Insights shows the virtual reality market is projected to expand at a compound annual growth rate of 45% through 2029, hitting $227 billion. As a result, the industry makes for an exciting and potentially lucrative investment opportunity.
Here are two stocks to invest in virtual reality this August.
1. Apple
Filed patents and various acquisitions over the years all but confirmed Apple's (NASDAQ: AAPL) plans to venture into virtual reality. However, the speculation finally became a reality at the company's Worldwide Developer Conference this past June when it unveiled its first-ever headset, the Vision Pro.
The new device appeared to take leaps in innovation, offering features never before seen in competing headsets. The Vision Pro is expected to launch in 2024 and will offer both VR and augmented reality (AR) capabilities.
The device utilizes the same chip currently in the MacBook Air, giving it the full power of a computer. As such, the headset will run on an operating system similar to MacOS, giving users access to a wide range of computing activities and popular Apple applications.
Everyday functions such as video calling, editing, word processing, web browsing, and different entertainment options set the Vision Pro apart from other headsets.
Meanwhile, the many capabilities show Apple employing a product strategy it has used successfully in the past. When the Apple Watch first launched, critics voiced concerns that it didn't have an obvious use. As a result, Apple pumped the smartwatch full of different features and allowed consumers to decide its best use case.
Apple has seemingly done the same with the Vision Pro. Investors might not know how it will improve consumers' lives yet, but it could be a game changer in the coming years. The Vision Pro will start at $3,499, pricing out many consumers. However, the company will likely bring down the cost with future generations.
Apple's history of dominance and immense success in consumer tech bode well for the long-term performance of the headset.
If Apple can replicate its history of entering new product markets and growing into a position of dominance, the company and its investors could profit substantially from the development of VR.
2. Advanced Micro Devices
As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) likely has a crucial role in VR's future. The tech giant has become a go-to for companies seeking high-powered chips, with AMD supplying its hardware to countless devices across the industry.
The company exclusively supplies chips to Sony's PlayStation 5 and Microsoft's Series X|S game consoles. The partnerships have made gaming AMD's highest-earning segment, reporting $1.7 billion in revenue in the third quarter of 2023. Meanwhile, AMD's collaboration with Sony has proven its chips are capable of running VR workloads, as the PlayStation VR 2 headset is run directly off of the PlayStation 5.
As the VR market develops, more companies will likely turn to AMD to take their headsets to the next level. Meta's Oculus Quest 2 headset is currently run on Qualcomm's Snapdragon XR2, based on a 2020 smartphone chip. With Apple upping the game by offering the power of a full computer in its coming headset, Meta and other companies will want to match that power in future headsets, and AMD has the chips capable of doing just that.
AMD has solid positions in multiple areas of tech, forming partnerships with countless companies across the sector. Its powerful chips give it a strong outlook in VR, making its stock an excellent way to invest in the burgeoning industry.
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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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, and Qualcomm. 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 Filed patents and various acquisitions over the years all but confirmed Apple's (NASDAQ: AAPL) plans to venture into virtual reality. Data from Fortune Business Insights shows the virtual reality market is projected to expand at a compound annual growth rate of 45% through 2029, hitting $227 billion. As such, the headset will run on an operating system similar to MacOS, giving users access to a wide range of computing activities and popular Apple applications.
|
Apple Filed patents and various acquisitions over the years all but confirmed Apple's (NASDAQ: AAPL) plans to venture into virtual reality. Advanced Micro Devices As a leading chipmaker, Advanced Micro Devices (NASDAQ: AMD) likely has a crucial role in VR's future. With Apple upping the game by offering the power of a full computer in its coming headset, Meta and other companies will want to match that power in future headsets, and AMD has the chips capable of doing just that.
|
Apple Filed patents and various acquisitions over the years all but confirmed Apple's (NASDAQ: AAPL) plans to venture into virtual reality. Meanwhile, AMD's collaboration with Sony has proven its chips are capable of running VR workloads, as the PlayStation VR 2 headset is run directly off of the PlayStation 5. With Apple upping the game by offering the power of a full computer in its coming headset, Meta and other companies will want to match that power in future headsets, and AMD has the chips capable of doing just that.
|
Apple Filed patents and various acquisitions over the years all but confirmed Apple's (NASDAQ: AAPL) plans to venture into virtual reality. Here are two stocks to invest in virtual reality this August. With Apple upping the game by offering the power of a full computer in its coming headset, Meta and other companies will want to match that power in future headsets, and AMD has the chips capable of doing just that.
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d2d21741-b527-4de9-95d3-89fccf4bcb83
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14201.0
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2023-08-21 00:00:00 UTC
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Tesla shares gain as Baird Equity adds stock to 'best ideas' list
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AAPL
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https://www.nasdaq.com/articles/tesla-shares-gain-as-baird-equity-adds-stock-to-best-ideas-list
|
nan
|
nan
|
Aug 21 (Reuters) - Electric-vehicle maker Tesla's TSLA.O shares rose 4.5% on Monday, snapping a six-session losing streak, after brokerage Baird Equity Research added the stock to its "best ideas" list.
The brokerage said price cuts and their impact on margins will drive the narrative in the second half of the year but other potential catalysts for the stock include the launch of Cybertruck, wider adoption of Full Self-Driving and expansion into new markets.
Tesla's shares have risen about 85% so far this year on the back of growing sales despite a margin squeeze and hopes of wider adoption of its autonomous driving software.
Bearish investors will point to lower production, said Baird, but added Tesla was still on pace to achieve its production forecast of 1.8 million vehicles this year.
Tesla sparked a price war earlier this year and last week slashed prices of three models in China. It also launched a cheaper version of the Model S sedan and Model X SUV on Aug. 14 as it looks to stoke demand and grab a larger share of the market.
The world's most valuable automaker's shares have a forward price-to-earnings multiple, a widely used benchmark to value stocks, of 50.15, compared to 26.58 for Apple AAPL.O and 6.14 for Ford Motor F.N, making it pricier.
The brokerage also said sentiment for electric pickup truck maker Rivian Automotive's RIVN.O stock was improving, adding that cost improvements have begun to materialize as it brings production of key components in-house.
(Reporting by Akash Sriram and Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter; +91-74116-87774;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The world's most valuable automaker's shares have a forward price-to-earnings multiple, a widely used benchmark to value stocks, of 50.15, compared to 26.58 for Apple AAPL.O and 6.14 for Ford Motor F.N, making it pricier. Aug 21 (Reuters) - Electric-vehicle maker Tesla's TSLA.O shares rose 4.5% on Monday, snapping a six-session losing streak, after brokerage Baird Equity Research added the stock to its "best ideas" list. The brokerage said price cuts and their impact on margins will drive the narrative in the second half of the year but other potential catalysts for the stock include the launch of Cybertruck, wider adoption of Full Self-Driving and expansion into new markets.
|
The world's most valuable automaker's shares have a forward price-to-earnings multiple, a widely used benchmark to value stocks, of 50.15, compared to 26.58 for Apple AAPL.O and 6.14 for Ford Motor F.N, making it pricier. Aug 21 (Reuters) - Electric-vehicle maker Tesla's TSLA.O shares rose 4.5% on Monday, snapping a six-session losing streak, after brokerage Baird Equity Research added the stock to its "best ideas" list. Bearish investors will point to lower production, said Baird, but added Tesla was still on pace to achieve its production forecast of 1.8 million vehicles this year.
|
The world's most valuable automaker's shares have a forward price-to-earnings multiple, a widely used benchmark to value stocks, of 50.15, compared to 26.58 for Apple AAPL.O and 6.14 for Ford Motor F.N, making it pricier. Aug 21 (Reuters) - Electric-vehicle maker Tesla's TSLA.O shares rose 4.5% on Monday, snapping a six-session losing streak, after brokerage Baird Equity Research added the stock to its "best ideas" list. The brokerage said price cuts and their impact on margins will drive the narrative in the second half of the year but other potential catalysts for the stock include the launch of Cybertruck, wider adoption of Full Self-Driving and expansion into new markets.
|
The world's most valuable automaker's shares have a forward price-to-earnings multiple, a widely used benchmark to value stocks, of 50.15, compared to 26.58 for Apple AAPL.O and 6.14 for Ford Motor F.N, making it pricier. Aug 21 (Reuters) - Electric-vehicle maker Tesla's TSLA.O shares rose 4.5% on Monday, snapping a six-session losing streak, after brokerage Baird Equity Research added the stock to its "best ideas" list. The brokerage said price cuts and their impact on margins will drive the narrative in the second half of the year but other potential catalysts for the stock include the launch of Cybertruck, wider adoption of Full Self-Driving and expansion into new markets.
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1828a261-7bb8-46dc-9cbf-ef9371ebdfba
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14202.0
|
2023-08-21 00:00:00 UTC
|
Apple and Spotify: 2 AI Stock Plays in Music Streaming
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AAPL
|
https://www.nasdaq.com/articles/apple-and-spotify%3A-2-ai-stock-plays-in-music-streaming
|
nan
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nan
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The artificial intelligence (AI) revolution is underway, and it's already made a lot of money for investors who recognized its potential early in the game. With shares of AI frontrunners like Nvidia (NVDA) doubling up many times over in a matter of months, it's not hard to see why so many investors want to stay in the tech scene, despite the potential for further interest rate increases.
With so many technology companies committed to investing in their AI capabilities, investors shouldn't narrow their focus on the few AI winners that have been leading the pack in recent quarters. Arguably, investors should at least be equal-weight in the mega-cap tech heroes of the so-called “Magnificent Seven” to benefit from the continued rise of AI. At the same time, investors should also seek value in areas of the market where the long-term benefits of incorporating AI tech aren't yet fully recognized.
Indeed, Nvidia stands out as one of the AI plays of the present. After such a historic ascent, though, I'm starting to think the opportunity over at Nvidia has come and gone. For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. Coincidentally, both tech companies are bitter rivals in the music streaming market, which could evolve as generative AI makes its mark.
Apple
Apple is the gadget maker whose shares corrected violently following a quarterly earnings report that showed iPhone sales missing the mark. Though the tech titan is no longer worth $3 trillion following the latest slump, I still think it's a mistake to give up on a company that could rise up to become one of the market's biggest AI innovators over the next decade.
www.barchart.com
Apple typically isn't a stock that comes up in the AI conversation, at least not to the extent of its competitors in the “Magnificent Seven.” Indeed, to say that Apple's AI assistant Siri isn't at the level of ChatGPT would be a colossal understatement. Despite the lack of jaw-dropping AI announcements relative to other tech companies - and the current state of Siri, which some folks, including Microsoft (MSFT) top boss Satya Nadella, may consider as “dumb as a rock,” I still view Apple as a company that has managed a lot of innovation on the AI front.
Sure, Apple doesn't blast every AI feature it comes up with on the megaphone. It doesn't have to gather a crowd of excited investors! It's Apple, the world's largest company. If anything, I'm sure Apple would rather its stock price not skyrocket into the stratosphere, given its propensity to buy back considerable sums of its own shares.
And earlier this month, Apple quietly launched its Discovery station on Apple Music to outdo its top rival, Spotify. As Apple leverages AI to better cater to its service users, I do think Apple could continue to tilt the tables further on its side.
Spotify
Spotify is another company that's investing quite a bit in AI technologies to improve the experience for its customers, as the company has faced rising competition in the music streaming industry in recent years. Fortunately, many loyal Spotify users stand by the company's impressive music discovery algorithms. With a treasure trove of data on its users, I think it's getting tougher by the day for competitors to convince a Spotify premium user to switch.
Spotify is down significantly in the past month, after it reported second-quarter results on July 25th. However, I think this drop is short-sighted and this is a buy the dip opportunity.
Looking ahead, AI could take the Swedish music streamer into new frontiers. Spotify recently announced plans to expand its AI-enhanced DJ feature across 50 countries. It's an intriguing new feature that could draw plenty of interest - though whether it's enough to cause Apple Music users to jump ship remains another question.
In the meantime, I like where Spotify is headed when it comes to AI. Earlier this year, the company quietly scooped up a text-to-speech AI startup called Sonantic. Indeed, such an acquisition could help turn an AI DJ into a remarkable success.
The Bottom Line
Apple and Spotify are music streaming rivals that seem to be leveraging the power of AI to improve and add to their premium services. With shares having retreated from their recent highs alongside the Nasdaq 100 Index ($IUXX), I'd be a buyer on the dip.
On the date of publication, Joey Frenette had a position in: AAPL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . With shares of AI frontrunners like Nvidia (NVDA) doubling up many times over in a matter of months, it's not hard to see why so many investors want to stay in the tech scene, despite the potential for further interest rate increases.
|
For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . Coincidentally, both tech companies are bitter rivals in the music streaming market, which could evolve as generative AI makes its mark.
|
For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . www.barchart.com Apple typically isn't a stock that comes up in the AI conversation, at least not to the extent of its competitors in the “Magnificent Seven.” Indeed, to say that Apple's AI assistant Siri isn't at the level of ChatGPT would be a colossal understatement.
|
For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . At the same time, investors should also seek value in areas of the market where the long-term benefits of incorporating AI tech aren't yet fully recognized.
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4171fa2c-ec07-4155-8371-524625f17394
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14203.0
|
2023-08-21 00:00:00 UTC
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Lawsuit claiming Apple Watch sensor exhibits 'racial bias' is dismissed
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AAPL
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https://www.nasdaq.com/articles/lawsuit-claiming-apple-watch-sensor-exhibits-racial-bias-is-dismissed
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nan
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nan
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By Jonathan Stempel
NEW YORK, Aug 21 (Reuters) - Apple AAPL.O on Monday won the dismissal of a lawsuit claiming that the blood oxygen sensor on its Apple Watch exhibits "racial bias" against people with darker skin tones.
U.S. District Judge Jed Rakoff in Manhattan dismissed the proposed class action with prejudice, meaning it cannot be brought again. He plans to explain his reasons by Aug. 31.
The plaintiff Alex Morales, a resident of Manhattan's Upper East Side, said he paid an inflated price for his Apple Watch based on his mistaken belief that its blood oxygen app would measure blood oxygen levels "without regard to skin tone."
His amended complaint, filed in May, cited decades of reports that similar pulse oximetry devices were "significantly less accurate" when measuring blood oxygen levels of nonwhite people.
Morales said the real-world impact of this bias was not addressed until the COVID-19 pandemic led to "greater awareness of structural racism" in society.
Apple said Morales failed to make any allegations supporting his fraud claim, or show that it exposed him to anything misleading before his purchase.
Morales' lawyer did not immediately respond to requests for comment.
Doctors have long known that pulse oximeters, which help assess potential heart and respiratory problems, are less accurate in estimating blood oxygen of non-white patients.
The pandemic exposed some of the devices' shortcomings, with some patients facing treatment delays or being discharged from emergency rooms too soon.
The case is Morales v Apple Inc, U.S. District Court, Southern District of New York, No. 22-10872.
(Reporting by Jonathan Stempel in New York; Editing by Andy Sullivan)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Jonathan Stempel NEW YORK, Aug 21 (Reuters) - Apple AAPL.O on Monday won the dismissal of a lawsuit claiming that the blood oxygen sensor on its Apple Watch exhibits "racial bias" against people with darker skin tones. His amended complaint, filed in May, cited decades of reports that similar pulse oximetry devices were "significantly less accurate" when measuring blood oxygen levels of nonwhite people. Morales said the real-world impact of this bias was not addressed until the COVID-19 pandemic led to "greater awareness of structural racism" in society.
|
By Jonathan Stempel NEW YORK, Aug 21 (Reuters) - Apple AAPL.O on Monday won the dismissal of a lawsuit claiming that the blood oxygen sensor on its Apple Watch exhibits "racial bias" against people with darker skin tones. The plaintiff Alex Morales, a resident of Manhattan's Upper East Side, said he paid an inflated price for his Apple Watch based on his mistaken belief that its blood oxygen app would measure blood oxygen levels "without regard to skin tone." His amended complaint, filed in May, cited decades of reports that similar pulse oximetry devices were "significantly less accurate" when measuring blood oxygen levels of nonwhite people.
|
By Jonathan Stempel NEW YORK, Aug 21 (Reuters) - Apple AAPL.O on Monday won the dismissal of a lawsuit claiming that the blood oxygen sensor on its Apple Watch exhibits "racial bias" against people with darker skin tones. The plaintiff Alex Morales, a resident of Manhattan's Upper East Side, said he paid an inflated price for his Apple Watch based on his mistaken belief that its blood oxygen app would measure blood oxygen levels "without regard to skin tone." His amended complaint, filed in May, cited decades of reports that similar pulse oximetry devices were "significantly less accurate" when measuring blood oxygen levels of nonwhite people.
|
By Jonathan Stempel NEW YORK, Aug 21 (Reuters) - Apple AAPL.O on Monday won the dismissal of a lawsuit claiming that the blood oxygen sensor on its Apple Watch exhibits "racial bias" against people with darker skin tones. U.S. District Judge Jed Rakoff in Manhattan dismissed the proposed class action with prejudice, meaning it cannot be brought again. His amended complaint, filed in May, cited decades of reports that similar pulse oximetry devices were "significantly less accurate" when measuring blood oxygen levels of nonwhite people.
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14c853d9-d3ce-4c18-a6ed-3da58dcbe22a
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14204.0
|
2023-08-21 00:00:00 UTC
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QQQ vs. RSP : Which Is the Better ETF Investment Now?
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AAPL
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https://www.nasdaq.com/articles/qqq-vs.-rsp-%3A-which-is-the-better-etf-investment-now
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nan
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nan
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(1:30) - What Is Driving QQQ Outperformance?
(8:30) - What Could Help Drive Positive Performance For The Rest of The Year?
(13:20) - Has QQQ Become Too Expensive Right Now or Is It Reasonably Priced?
(16:15) - The Innovation Suite: What Kind of R&D Spending Is Happening Right Now Within The QQQ?
(18:05) - The QQQ Rebalancing: Everything Investors Should Know
(26:00) - How Should Investors Be Using These Investment Products?
(29:15) - Invesco S&P 500 Equal Weight ETF: RSP
(33:45) - How Concentrated Is The S&P 500 Right Now?
(37:35) - Why Should Investors Consider Adding RSP To Their Portfolios?
(43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs
(51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes.
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QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs (51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (18:05) - The QQQ Rebalancing: Everything Investors Should Know (26:00) - How Should Investors Be Using These Investment Products?
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (1:30) - What Is Driving QQQ Outperformance?
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10b2b364-6cb2-4835-8845-e198d0c3ffb9
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14205.0
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2023-08-21 00:00:00 UTC
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Apple and Spotify: 2 Music Streaming AI Stocks to Scoop Up in August
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AAPL
|
https://www.nasdaq.com/articles/apple-and-spotify%3A-2-music-streaming-ai-stocks-to-scoop-up-in-august
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nan
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nan
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The artificial intelligence (AI) revolution is underway, and it's already made a lot of money for investors who recognized its potential early in the game. With shares of AI frontrunners like Nvidia (NVDA) doubling up many times over in a matter of months, it's not hard to see why so many investors want to stay in the tech scene, despite the potential for further interest rate increases.
With so many technology companies committed to investing in their AI capabilities, investors shouldn't narrow their focus on the few AI winners that have been leading the pack in recent quarters. Arguably, investors should at least be equal-weight in the mega-cap tech heroes of the so-called “Magnificent Seven” to benefit from the continued rise of AI. At the same time, investors should also seek value in areas of the market where the long-term benefits of incorporating AI tech aren't yet fully recognized.
Indeed, Nvidia stands out as one of the AI plays of the present. After such a historic ascent, though, I'm starting to think the opportunity over at Nvidia has come and gone. For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. Coincidentally, both tech companies are bitter rivals in the music streaming market, which could evolve as generative AI makes its mark.
Apple
Apple is the gadget maker whose shares corrected violently following a quarterly earnings report that showed iPhone sales missing the mark. Though the tech titan is no longer worth $3 trillion following the latest slump, I still think it's a mistake to give up on a company that could rise up to become one of the market's biggest AI innovators over the next decade.
www.barchart.com
Apple typically isn't a stock that comes up in the AI conversation, at least not to the extent of its competitors in the “Magnificent Seven.” Indeed, to say that Apple's AI assistant Siri isn't at the level of ChatGPT would be a colossal understatement. Despite the lack of jaw-dropping AI announcements relative to other tech companies - and the current state of Siri, which some folks, including Microsoft (MSFT) top boss Satya Nadella, may consider as “dumb as a rock,” I still view Apple as a company that has managed a lot of innovation on the AI front.
Sure, Apple doesn't blast every AI feature it comes up with on the megaphone. It doesn't have to gather a crowd of excited investors! It's Apple, the world's largest company. If anything, I'm sure Apple would rather its stock price not skyrocket into the stratosphere, given its propensity to buy back considerable sums of its own shares.
And earlier this month, Apple quietly launched its Discovery station on Apple Music to outdo its top rival, Spotify. As Apple leverages AI to better cater to its service users, I do think Apple could continue to tilt the tables further on its side.
Spotify
Spotify is another company that's investing quite a bit in AI technologies to improve the experience for its customers, as the company has faced rising competition in the music streaming industry in recent years. Fortunately, many loyal Spotify users stand by the company's impressive music discovery algorithms. With a treasure trove of data on its users, I think it's getting tougher by the day for competitors to convince a Spotify premium user to switch.
Spotify is down significantly in the past month, after it reported second-quarter results on July 25th. However, I think this drop is short-sighted and this is a buy the dip opportunity.
Looking ahead, AI could take the Swedish music streamer into new frontiers. Spotify recently announced plans to expand its AI-enhanced DJ feature across 50 countries. It's an intriguing new feature that could draw plenty of interest - though whether it's enough to cause Apple Music users to jump ship remains another question.
In the meantime, I like where Spotify is headed when it comes to AI. Earlier this year, the company quietly scooped up a text-to-speech AI startup called Sonantic. Indeed, such an acquisition could help turn an AI DJ into a remarkable success.
The Bottom Line
Apple and Spotify are music streaming rivals that seem to be leveraging the power of AI to improve and add to their premium services. With shares having retreated from their recent highs alongside the Nasdaq 100 Index ($IUXX), I'd be a buyer on the dip.
On the date of publication, Joey Frenette had a position in: AAPL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . With shares of AI frontrunners like Nvidia (NVDA) doubling up many times over in a matter of months, it's not hard to see why so many investors want to stay in the tech scene, despite the potential for further interest rate increases.
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For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . Coincidentally, both tech companies are bitter rivals in the music streaming market, which could evolve as generative AI makes its mark.
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For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . www.barchart.com Apple typically isn't a stock that comes up in the AI conversation, at least not to the extent of its competitors in the “Magnificent Seven.” Indeed, to say that Apple's AI assistant Siri isn't at the level of ChatGPT would be a colossal understatement.
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For investors who'd rather focus on what comes next, I do believe Apple (AAPL) and Spotify (SPOT) stand out as tech firms with underappreciated AI potential. On the date of publication, Joey Frenette had a position in: AAPL . At the same time, investors should also seek value in areas of the market where the long-term benefits of incorporating AI tech aren't yet fully recognized.
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e12a4990-57fd-4b85-9461-bc9f923c5032
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14206.0
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2023-08-21 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $1,699.45K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%241699.45k
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nan
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nan
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On August 21, 2023 at 15:29:41 ET an unusually large $1,699.45K block of Call contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 515 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.22 sigmas above the mean, placing it in the 90.98th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6393 funds or institutions reporting positions in Apple. This is an increase of 26 owner(s) or 0.41% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.06%, an increase of 11.28%. Total shares owned by institutions decreased in the last three months by 0.29% to 9,883,172K shares.
The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 13.87% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 13.87% from its latest reported closing price of 174.49.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm decreased its portfolio allocation in AAPL by 53.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Press release issued by Apple Inc. on May 4, 2023.
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On August 21, 2023 at 15:29:41 ET an unusually large $1,699.45K block of Call contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 515 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.22 sigmas above the mean, placing it in the 90.98th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.06%, an increase of 11.28%.
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On August 21, 2023 at 15:29:41 ET an unusually large $1,699.45K block of Call contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 515 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.22 sigmas above the mean, placing it in the 90.98th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.06%, an increase of 11.28%.
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On August 21, 2023 at 15:29:41 ET an unusually large $1,699.45K block of Call contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 515 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.22 sigmas above the mean, placing it in the 90.98th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.06%, an increase of 11.28%.
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On August 21, 2023 at 15:29:41 ET an unusually large $1,699.45K block of Call contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 515 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.22 sigmas above the mean, placing it in the 90.98th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.06%, an increase of 11.28%.
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ede1f106-4980-4f8d-ad8b-4fa513f42ef0
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14207.0
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2023-08-21 00:00:00 UTC
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Berkshire's Johns Manville unit to face revived antitrust lawsuit
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AAPL
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https://www.nasdaq.com/articles/berkshires-johns-manville-unit-to-face-revived-antitrust-lawsuit
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nan
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nan
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By Jonathan Stempel
Aug 21 (Reuters) - A federal appeals court on Monday revived an antitrust lawsuit accusing Johns Manville, a unit of billionaire Warren Buffett's Berkshire Hathaway BRKa.N, of monopolizing the market for calcium silicate, a substance used in thermal pipe insulation.
The 10th U.S. Circuit Court of Appeals in Denver said a trial judge in that city erred in dismissing the lawsuit by rival Chase Manufacturing, also known as Thermal Pipe Shields (TPS).
TPS entered the calcium silicate market in 2018, with a product imported from China that it claimed was better and cost 20% to 25% less.
It accused Johns Manville of threatening to stop doing business with distributors if they bought TPS' calcium silicate, and that the threats enabled Johns Manville to still command 97.3% of the market by August 2021.
Writing for a three-judge appeals court panel, Circuit Judge Gregory Phillips found sufficient evidence that Johns Manville coerced distributors as it exercised monopoly power.
He cited testimony that Johns Manville enjoyed much higher gross margins on calcium silicate than on other products where it faced more competition.
Phillips also cited an email just after TPS entered the market, in which Johns Manville told sales staff they might need to "bring the sword" and warn distributors that their relationship might change "significantly" if they bought TPS' product.
"Viewing the evidence most favorably to TPS, we see JM as leaving its distributors with an all-or-nothing choice: stop doing business with TPS or lose access to JM's enormous thermal-insulation inventory," Phillips wrote.
The appeals court also upheld the dismissal of a claim that Johns Manville might have tied sales of other products to distributors agreeing not to buy TPS' calcium silicate.
TPS had sought at least $60 million in damages.
"We are carefully reviewing the opinion and considering our next steps," Johns Manville spokesman Eric Brown said in an email.
Luke Hasskamp, a lawyer for TPS, declined to comment.
Berkshire owns dozens of businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple AAPL.O. It bought Johns Manville for about $1.8 billion in 2001.
The case is Chase Manufacturing Inc v Johns Manville Corp, 10th U.S. Circuit Court of Appeals, No. 22-1164.
(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire owns dozens of businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple AAPL.O. By Jonathan Stempel Aug 21 (Reuters) - A federal appeals court on Monday revived an antitrust lawsuit accusing Johns Manville, a unit of billionaire Warren Buffett's Berkshire Hathaway BRKa.N, of monopolizing the market for calcium silicate, a substance used in thermal pipe insulation. Circuit Court of Appeals in Denver said a trial judge in that city erred in dismissing the lawsuit by rival Chase Manufacturing, also known as Thermal Pipe Shields (TPS).
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Berkshire owns dozens of businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple AAPL.O. It accused Johns Manville of threatening to stop doing business with distributors if they bought TPS' calcium silicate, and that the threats enabled Johns Manville to still command 97.3% of the market by August 2021. Writing for a three-judge appeals court panel, Circuit Judge Gregory Phillips found sufficient evidence that Johns Manville coerced distributors as it exercised monopoly power.
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Berkshire owns dozens of businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple AAPL.O. It accused Johns Manville of threatening to stop doing business with distributors if they bought TPS' calcium silicate, and that the threats enabled Johns Manville to still command 97.3% of the market by August 2021. Phillips also cited an email just after TPS entered the market, in which Johns Manville told sales staff they might need to "bring the sword" and warn distributors that their relationship might change "significantly" if they bought TPS' product.
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Berkshire owns dozens of businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple AAPL.O. Circuit Court of Appeals in Denver said a trial judge in that city erred in dismissing the lawsuit by rival Chase Manufacturing, also known as Thermal Pipe Shields (TPS). It accused Johns Manville of threatening to stop doing business with distributors if they bought TPS' calcium silicate, and that the threats enabled Johns Manville to still command 97.3% of the market by August 2021.
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aaf1acc4-a9bc-4382-8993-28d275ed1f73
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14208.0
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2023-08-21 00:00:00 UTC
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Option Volatility and Earnings Report for August 21 - 25
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AAPL
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https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-august-21-25
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nan
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nan
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We have some big tech names in focus this week with Nvidia (NVDA), Snowflake (SNOW), Zoom (ZM), Marvell Technologies (MRVL) all set to report.
We also have some other important names including Affirm Holdings (AFRM), Peloton (PTON), Lowes (LOW), Dick’s Sporting Goods (DKS), Medtronic (MDT) and Ulta Beauty (ULTA).
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
ZM – 10.8%
Tuesday
BIDU – 6.6%
MDT – 4.3%
LOW – 4.2%
DKS – 6.9%
Wednesday
NVDA – 11.3%
SNOW – 11.7%
PTON – 20.4%
FL – 11.8%
ADSK – 6.5%
Thursday
DLTR – 7.7%
MRVL – 10.0%
ULTA – 6.7%
Friday
None
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000Market Cap: Greater than 40 billionIV Percentile: Greater than 70%
This screener produces the following results sorted by IV Percentile.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s actual versus expected moves are shown below:
SU -1.6% vs 4.2% expected
HD +0.7% vs 3.9% expected
NU -3.4% vs 9.2% expected
ONON -14.0% vs 12.8% expected
SE -28.7% vs 15.3% expected
CSCO +3.3% vs 4.7% expected
JD -3.0% vs 7.7% expected
TGT +3.0% vs 7.7% expected
TJX +4.1% vs 4.1% expected
AMAT +3.7% vs 5.6% expected
BILL +9.3% vs 15.0% expected
WMT -2.2% vs 3.7% expected
DE -5.3% vs 4.6% expected
EL -3.3% vs 7.2% expected
PANW +11.2% vs 9.9% expected
Overall, there were 11 out of 15 that stayed within the expected range.
Changes In Open Interest
JNJ, AMC, KVUE, AAPL, JD, SNAP and SOFI saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Jackson Hole Meeting, Earnings and Other Key Themes to Watch This Week Chevron Stock Still Looks Cheap To Value Investors and Short-Put Traders Unveiling a Bullish Seasonal Pattern: Can it Save the Stock Market? Stocks Settle Mixed on Lower Bond Yields
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Changes In Open Interest JNJ, AMC, KVUE, AAPL, JD, SNAP and SOFI saw some of the largest changes in open interest last week. We have some big tech names in focus this week with Nvidia (NVDA), Snowflake (SNOW), Zoom (ZM), Marvell Technologies (MRVL) all set to report. Other stocks with large changes in open interest are shown below: Please remember that options are risky, and investors can lose 100% of their investment.
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Changes In Open Interest JNJ, AMC, KVUE, AAPL, JD, SNAP and SOFI saw some of the largest changes in open interest last week. Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
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Changes In Open Interest JNJ, AMC, KVUE, AAPL, JD, SNAP and SOFI saw some of the largest changes in open interest last week. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility. Last Week’s Earnings Moves Last week’s actual versus expected moves are shown below: SU -1.6% vs 4.2% expected HD +0.7% vs 3.9% expected NU -3.4% vs 9.2% expected ONON -14.0% vs 12.8% expected SE -28.7% vs 15.3% expected CSCO +3.3% vs 4.7% expected JD -3.0% vs 7.7% expected TGT +3.0% vs 7.7% expected TJX +4.1% vs 4.1% expected AMAT +3.7% vs 5.6% expected BILL +9.3% vs 15.0% expected WMT -2.2% vs 3.7% expected DE -5.3% vs 4.6% expected EL -3.3% vs 7.2% expected PANW +11.2% vs 9.9% expected Overall, there were 11 out of 15 that stayed within the expected range.
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Changes In Open Interest JNJ, AMC, KVUE, AAPL, JD, SNAP and SOFI saw some of the largest changes in open interest last week. Let’s take a look at the expected range for these stocks. Friday None Option traders can use these expected moves to structure trades.
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5474c8ed-d9a2-47a5-9c39-8b23eba52742
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14209.0
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2023-08-21 00:00:00 UTC
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It's Time to Load Up on Apple Stock
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AAPL
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https://www.nasdaq.com/articles/its-time-to-load-up-on-apple-stock
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nan
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nan
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Following the tech-heavy Nasdaq's pullback last week, featuring four consecutive trading days of negative returns, many investors may be planning to sell stocks and buy less risky assets like short-term treasury bonds. After all, T-bills with a year or less time horizon are currently yielding more than 5%. That's a compelling alternative to stocks.
While it always makes sense to have some cash, cash equivalents, and lower-risk investments in a portfolio, this may not be the time to double down on cash, despite the attractive yields in T-bills. Indeed, August's decline has already surfaced some great opportunities. Take Apple (NASDAQ: AAPL) stock, for instance. The iPhone maker's shares have pulled back 10%.
Though it's impossible to know when the bottom of any stock's pullback will be, one thing is clear: the decline has made the tech stock look compelling again.
The simple case for long-term investors
Trading at about 30 times earnings, Apple shares may not look like a bargain. But they at least look reasonably attractive as a long-term investment.
Flipping the price-to-earnings metric upside down, you'll get earnings yield. Doing this quickly puts into perspective why stocks generally outperform T-bills over the long haul. Apple's earnings yield, which can be found by taking the company's trailing-12-month earnings per share of $5.98 divided by the current stock price of $174.49, is 3.4%. While this earnings yield is lower than the 5%-plus rates available in treasuries, there's a critical difference in this earnings yield relative to T-bill yields: Apple's business is a going concern, so it will generate earnings for decades. In addition, it's a going concern likely to grow over time. One-year T-bills, on the other hand, last only one year. Further, their coupons do not grow. And since bonds eventually mature, their capital must be regularly redeployed. And there's reinvestment risk when capital is deployed because no one knows what yields will be available at that point in the future.
Investors who buy Apple stock today, therefore, get access to:
A solid earnings yield that could last decades.
Long-term earnings growth potential
A dividend.
For investors willing to hold for the long haul and endure volatility, these facets of Apple stock combine to make shares a better alternative to T-bills than it might appear at first glance.
Looking ahead
Sure, there's a lot more risk to owning individual stocks than there is to T-bills. Apple's earnings, for instance, could perform worse than anticipated, stagnating or even declining in the years ahead.
But recently Apple is giving investors good reasons to bet on the company, despite the risks involved in doing so. For instance, consider how the tech giant managed to grow earnings per share 5% year over year during its most recent quarter, even as it faced substantial foreign exchange headwinds and a difficult macroeconomic environment. Growing its bottom line in a market like this makes it seem unlikely that Apple won't be able to grow its earnings meaningfully over the next five to 10 years.
Further, it's worth emphasizing that analysts expect Apple's earnings to grow handsomely in the coming years. Earnings growth should help support long-term stock price appreciation. On average, analysts expect Apple's earnings per share in just four years to be about 50% higher than they are today. This is the power of compounding. This is why, despite the risks and the unavoidable volatility, it might make sense for long-term investors to load up on some Apple stock today.
10 stocks we like better than Apple
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Take Apple (NASDAQ: AAPL) stock, for instance. Following the tech-heavy Nasdaq's pullback last week, featuring four consecutive trading days of negative returns, many investors may be planning to sell stocks and buy less risky assets like short-term treasury bonds. For investors willing to hold for the long haul and endure volatility, these facets of Apple stock combine to make shares a better alternative to T-bills than it might appear at first glance.
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Take Apple (NASDAQ: AAPL) stock, for instance. The simple case for long-term investors Trading at about 30 times earnings, Apple shares may not look like a bargain. Investors who buy Apple stock today, therefore, get access to: A solid earnings yield that could last decades.
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Take Apple (NASDAQ: AAPL) stock, for instance. Apple's earnings yield, which can be found by taking the company's trailing-12-month earnings per share of $5.98 divided by the current stock price of $174.49, is 3.4%. While this earnings yield is lower than the 5%-plus rates available in treasuries, there's a critical difference in this earnings yield relative to T-bill yields: Apple's business is a going concern, so it will generate earnings for decades.
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Take Apple (NASDAQ: AAPL) stock, for instance. The simple case for long-term investors Trading at about 30 times earnings, Apple shares may not look like a bargain. While this earnings yield is lower than the 5%-plus rates available in treasuries, there's a critical difference in this earnings yield relative to T-bill yields: Apple's business is a going concern, so it will generate earnings for decades.
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80ed4060-ee11-4e19-9230-9cdd185ab552
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14210.0
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2023-08-21 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-7
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of iPhones, iPads and other products have returned -9.1%, compared to the Zacks S&P 500 composite's -3.9% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 9.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.37 per share, indicating a change of +6.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $6.04 for the current fiscal year indicates a year-over-year change of -1.2%. This estimate has changed +0.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.59 indicates a change of +9% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $88.95 billion indicates a year-over-year change of -1.3%. For the current and next fiscal years, $382.69 billion and $405.07 billion estimates indicate -3% and +5.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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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.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. EPS of $1.26 for the same period compares with $1.20 a year ago.
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2023-08-21 00:00:00 UTC
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Will Apple's iPhone 15 Launch & AI Innovations Spark New Uptrend?
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AAPL
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https://www.nasdaq.com/articles/will-apples-iphone-15-launch-ai-innovations-spark-new-uptrend
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Will the Apple Inc. (NASDAQ: AAPL) iPhone 15 be enough to get the stock back into rally mode?
Will some kind of AI implementation be the key to the stock’s eventual upward reversal?
Or will other institutions take a cue from Warren Buffett, whose Berkshire Hathaway Inc. (NYSE: BRK.B) counts Apple as its biggest holding by market value, accounting for more than half of the firm’s equity position?
Since Berkshire purchased Apple in 2016, it’s notched strong appreciation, but for investors looking to add to their stake right now, there are some quandaries to consider.
Stock Skidded Since July 19 Peak
To understand the stock’s current prospects, take a look at the Apple chart. The stock is down 12% since its July 19 peak of $198.23, gapping down 4.80% on August 4, following a quarterly earnings report that failed to light a fire under investors, as revenue slipped by 1% in the quarter as iPhone sales decreased.
It was the third quarter in a row that device sales and total revenue declined year-over-year. The MarketBeat’s Apple earnings data show, however, that the stock beat revenue and net income views.
But the company said it expects some weakness in the current quarter: Despite forecasting that iPhone sales will pick up, the company expects a drop in tablet and Mac revenue.
Apple stock is down 2.10% in the past week and 10.18% in the past month. Year-to-date, it’s maintained a gain of 34.46%.
Apple Shares Stagnant Over Past Year
But if you take a longer-term view of the Apple chart and its return, it gets interesting: On a one-year basis, Apple shares are up only 0.22%. The stock is trading almost exactly where it was on August 19, 2022. So there’s been essentially no return to speak of in a year.
Apple stock has behaved like this before. For example, the stock began meandering sideways in April 2015, then pulled into a correction that lasted until February 2017. During previous broad market pullbacks, such as the early 2000s and the broad meltdown from 2007 through 2009, Apple also remained mired in corrections.
Obviously, those situations resolved themselves, and Apple has posted a 15-year return of 25.14%.
But with the iPhone 15 launch coming up in September, does the current pullback offer a buy opportunity?
Analysts Have "Moderate Buy" Consensus
On the one hand, the company is saying not to expect a blowout quarter. On the other hand, MarketBeat’s Apple analyst ratings show a consensus view of “moderate buy,” with a price target of $198.86, an upside of 14.02%. That price would take the stock to a new high, clearing the previous peak from July 19.
However, analysts have mixed forecasts when it comes to iPhone 15 sales, and about the company’s prospects in the coming months. After the fiscal third-quarter report, four analysts boosted their price targets on the stock, while three lowered their targets.
Analyst ratings generally take into account price movement that’s expected over the next 12 to 18 months.
Analysts and investors are looking to what’s in the immediate future, namely, the iPhone 15.
Apple's Machine Learning Capabilities
But much of the tech rally this year has been due to something that Apple isn’t particularly known for, which is AI.
According to reports, at a June presentation at its Worldwide Developers Conference, Apple mentioned the term “machine learning” without specifically mentioning AI, although the terms are essentially interchangeable.
Apple’s iPhone, Mac, and iPad products are built using Neural Engine, a chip designed for machine learning applications.
Developing AI Chatbot
Apple isn’t known for its initiatives in generative AI, but the company has reportedly been developing an AI-fueled chatbot that’s being tested internally, but the company has no plans to release it anytime soon.
As all investors know by now, Apple is not a company to sit on its laurels and deny technological changes. While it’s not actively touting AI capabilities, it stands to reason that it’s been integrating machine learning into its products, as well as developing a chatbot.
All of this means that the current pullback could well be a buying opportunity, although more cautious investors may want to wait for the stock to turn higher before diving in, which could be some added insurance that the rally has some legs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the Apple Inc. (NASDAQ: AAPL) iPhone 15 be enough to get the stock back into rally mode? Or will other institutions take a cue from Warren Buffett, whose Berkshire Hathaway Inc. (NYSE: BRK.B) counts Apple as its biggest holding by market value, accounting for more than half of the firm’s equity position? Apple’s iPhone, Mac, and iPad products are built using Neural Engine, a chip designed for machine learning applications.
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Will the Apple Inc. (NASDAQ: AAPL) iPhone 15 be enough to get the stock back into rally mode? On the other hand, MarketBeat’s Apple analyst ratings show a consensus view of “moderate buy,” with a price target of $198.86, an upside of 14.02%. According to reports, at a June presentation at its Worldwide Developers Conference, Apple mentioned the term “machine learning” without specifically mentioning AI, although the terms are essentially interchangeable.
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Will the Apple Inc. (NASDAQ: AAPL) iPhone 15 be enough to get the stock back into rally mode? Stock Skidded Since July 19 Peak To understand the stock’s current prospects, take a look at the Apple chart. Apple Shares Stagnant Over Past Year But if you take a longer-term view of the Apple chart and its return, it gets interesting: On a one-year basis, Apple shares are up only 0.22%.
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Will the Apple Inc. (NASDAQ: AAPL) iPhone 15 be enough to get the stock back into rally mode? The stock is down 12% since its July 19 peak of $198.23, gapping down 4.80% on August 4, following a quarterly earnings report that failed to light a fire under investors, as revenue slipped by 1% in the quarter as iPhone sales decreased. However, analysts have mixed forecasts when it comes to iPhone 15 sales, and about the company’s prospects in the coming months.
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14212.0
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2023-08-21 00:00:00 UTC
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The 3 Most Undervalued Manufacturing Stocks to Buy Now: August 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-most-undervalued-manufacturing-stocks-to-buy-now%3A-august-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The manufacturing sector has been hit hard in recent years, manufacturing stocks are having quite a time.
The global pandemic precipitated incessant supply chain disruptions and forced many manufacturers to delay orders, resulting in lower revenues and margins.
In 2022, these supply chain disruptions coupled with elevated commodities prices increased global inflation to a point at which central banks around the world needed to react by raising interest rates.
Fast forward to 2023, interest rate levels remain elevated, but inflation is falling and so is economic activity. Some companies have overcome these challenges and deliver strong financial performance and growth prospects.
In this article, we will look at three undervalued manufacturing stocks that equity investors should buy in August.
Hyundai Motor Company (HYMTF)
Source: shutterstock.com/AntonovVitalii
Hyundai Motor Company (OTCPK:HYMTF) is a South Korean automaker that manufactures and sells passenger cars, commercial vehicles, and electric vehicles.
The automaker has a diversified portfolio of brands, including Hyundai, Kia, Genesis, and IONIQ. Hyundai reported impressive global sales results for 2022, despite the challenging business environment.
The company sold 3.94 million vehicles in 2022, up 1.4% year-over-year. Its overseas sales increased 2.9% to 3.26 million units, thanks to the strong demand for its flagship and new models.
Overall, the company reported revenue of KRW 142.53 trillion (about $113 billion), up 14.8% year-over-year, and its net income rose 41% to KRW 7.08 trillion (approximately $3.8 billion). The company achieved revenue growth and gross margin expansion across all regions, as well as EPS growth of 40%.
The company also accelerated its transition to electrification, selling over 100,000 units of its IONIQ 5 and IONIQ 6 models in 2022.
In 2023, Hyundai aims to sell 4.32 million vehicles globally, with a focus on expanding its market share and operating profitability-oriented businesses.
The company plans to launch new models such as the all-new KONA, SANTA FE, and IONIQ 5 N, as well as solidify its leadership in the eco-friendly mobility market.
Hyundai’s stock is currently up nearly 24% year-to-date, but valuation remains cheap. The stock has a forward price-to-earnings (P/E) ratio of 4.7x forward earnings, which undervalued when compared to peers like Tesla (NASDAQ:TSLA), making it one of the manufacturing stocks to keep your eyes on.
Hollysys Automation Technologies (HOLI)
Source: shutterstock.com/A_B_C
Hollysys Automation Technologies (NASDAQ:HOLI) is a China-based company that provides automation and control solutions for various industries, such as railway, industrial, nuclear power, and subway.
The company’s products and services include distributed control systems, programmable logic controllers, train control centers, signaling systems, robotic systems, and cloud-based platforms.
Hollysys faced some headwinds in its recent fiscal year 2022 due to the slowdown in China’s economy, the trade tensions with the US, and the lockdowns related to the COVID-19 outbreak.
However, the company managed to maintain its profitability and cash flow generation, as well as diversify its revenue sources and expand its customer base.
At the end of their fiscal year 2023 (ended June 30), Hollysys reported revenue of $777 million, up nearly 10% year-over-year but nowhere near the double0digit growth numbers seen in prior fiscal years.
However, EBITDA margins were just above 13%, higher than the prior fiscal year. Net income margins also came higher than the prior fiscal year at nearly 14%.
China’s economic slowdown persists but will improve as the global economy recovers. In the meantime, Hollysys’ shares are only trading at a forward P/E ratio of 9.4x forward earnings, which provides patient investors with an opportunity to invest in relatively cheap shares.
Foxconn Technology (FXCOF)
Source: shutterstock.com/ZinetroN
Foxconn Technology (OTCPK:FXCOF) is a Taiwan-based company that provides contract manufacturing services for various electronics products, such as smartphones, tablets, laptops, TVs, servers, and automotive components.
The company is best known for being the main supplier of Apple’s (NASDAQ:AAPL) iPhones and iPads. Similar to Hollysys, Foxconn faced some challenges in 2022 due to what was occurring in the overall macro environment, namely the global chip shortage and covid-related lockdowns in China.
However, the company was able to mitigate some of these risks by increasing its production capacity in other regions, such as India, Vietnam, and Mexico.
Foxconn reported revenue of NT$6.6 trillion for 2022, up 11% year-over-year, and gross margins were slightly above 6.0%. Its net income was NT$141 billion, up 2.0% year-over-year.
In 2023, Foxconn expects revenue growth to be somewhat flat, driven softening demand for consumer electronics, but the company does see strong demand for cloud network and AI servers.
Foxconn’s stock is currently trading at only 4.0x forward EBITDA. While demand for manufacturing may be down, the company’s wide reach and relatively cheap valuation should get equity investors interested.
On the date of publication, Tyrik Torres 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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
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The post The 3 Most Undervalued Manufacturing Stocks to Buy Now: August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is best known for being the main supplier of Apple’s (NASDAQ:AAPL) iPhones and iPads. The global pandemic precipitated incessant supply chain disruptions and forced many manufacturers to delay orders, resulting in lower revenues and margins. In 2022, these supply chain disruptions coupled with elevated commodities prices increased global inflation to a point at which central banks around the world needed to react by raising interest rates.
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The company is best known for being the main supplier of Apple’s (NASDAQ:AAPL) iPhones and iPads. Hyundai Motor Company (HYMTF) Source: shutterstock.com/AntonovVitalii Hyundai Motor Company (OTCPK:HYMTF) is a South Korean automaker that manufactures and sells passenger cars, commercial vehicles, and electric vehicles. Hollysys Automation Technologies (HOLI) Source: shutterstock.com/A_B_C Hollysys Automation Technologies (NASDAQ:HOLI) is a China-based company that provides automation and control solutions for various industries, such as railway, industrial, nuclear power, and subway.
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The company is best known for being the main supplier of Apple’s (NASDAQ:AAPL) iPhones and iPads. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The manufacturing sector has been hit hard in recent years, manufacturing stocks are having quite a time. Hyundai Motor Company (HYMTF) Source: shutterstock.com/AntonovVitalii Hyundai Motor Company (OTCPK:HYMTF) is a South Korean automaker that manufactures and sells passenger cars, commercial vehicles, and electric vehicles.
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The company is best known for being the main supplier of Apple’s (NASDAQ:AAPL) iPhones and iPads. In this article, we will look at three undervalued manufacturing stocks that equity investors should buy in August. The company achieved revenue growth and gross margin expansion across all regions, as well as EPS growth of 40%.
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2023-08-21 00:00:00 UTC
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Taiwan July export orders drop for 11th month; Q3 outlook better on Q2
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AAPL
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https://www.nasdaq.com/articles/taiwan-july-export-orders-drop-for-11th-month-q3-outlook-better-on-q2
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nan
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Recasts, adds details throughout
July export orders -12.0 y/y vs -16.5% poll forecast
Export orders from China -4.2% y/y vs -19.7% in June
Ministry sees August orders between -10.2% and -13.9% y/y
Q3 seen better than Q2: ministry
TAIPEI, Aug 21 (Reuters) - Taiwan's export orders fell for the 11th straight month in July, as booming demand for the island's artificial intelligence (AI) supply chain continues to be eclipsed by macroeconomic factors including weak demand from China and high interest rates.
Taiwan's export orders, a bellwether for worldwide technology demand, fell 12.0% from a year ago to $47.73 billion, the Ministry of Economic Affairs said on Monday.
The decline was slower than the 24.9% drop in June and beat the 16.5% fall predicted in a Reuters poll.
The ministry reiterated that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to hinder economic growth in the months ahead.
"Export orders this month were better than expected. One of the reasons was the increase of information and telecommunications shipments boosted by severs for AI," said Huang Yu-ling, director of the ministry's statistics agency.
"There is still a busy season effect for the third quarter, which will be better than the second," added Huang, referring to the second half of the year when demand picks up for the traditional end-of-year shopping season in Western markets.
Soft demand for Taiwan's technology products amid global economic uncertainty prompted the government last week to forecast that its export-dependent economy will this year grow at its slowest pace in eight years.
Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies.
The ministry said it expected export orders in August to fall by between 10.2% and 13.9% from a year earlier.
July's orders for telecommunications products fell 14.9% and electronic products fell 0.4% from a year earlier, the ministry said.
Taiwan's July orders from China were 4.2% lower on year, narrowing from a 19.7% drop in the prior month.
Orders from the United States fell 18.6% from a year earlier, versus a 23.6% drop during the same period.
Orders from Europe fell 32.0% versus June's 44.2% slump. Orders from Japan dropped 6.7% year-on-year.
(Reporting by Jeanny Kao and Faith Hung; editing by Miral Fahmy)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Taiwan's export orders, a bellwether for worldwide technology demand, fell 12.0% from a year ago to $47.73 billion, the Ministry of Economic Affairs said on Monday. The ministry reiterated that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to hinder economic growth in the months ahead.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout July export orders -12.0 y/y vs -16.5% poll forecast Export orders from China -4.2% y/y vs -19.7% in June Ministry sees August orders between -10.2% and -13.9% y/y Q3 seen better than Q2: ministry TAIPEI, Aug 21 (Reuters) - Taiwan's export orders fell for the 11th straight month in July, as booming demand for the island's artificial intelligence (AI) supply chain continues to be eclipsed by macroeconomic factors including weak demand from China and high interest rates. Soft demand for Taiwan's technology products amid global economic uncertainty prompted the government last week to forecast that its export-dependent economy will this year grow at its slowest pace in eight years.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout July export orders -12.0 y/y vs -16.5% poll forecast Export orders from China -4.2% y/y vs -19.7% in June Ministry sees August orders between -10.2% and -13.9% y/y Q3 seen better than Q2: ministry TAIPEI, Aug 21 (Reuters) - Taiwan's export orders fell for the 11th straight month in July, as booming demand for the island's artificial intelligence (AI) supply chain continues to be eclipsed by macroeconomic factors including weak demand from China and high interest rates. Taiwan's export orders, a bellwether for worldwide technology demand, fell 12.0% from a year ago to $47.73 billion, the Ministry of Economic Affairs said on Monday.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout July export orders -12.0 y/y vs -16.5% poll forecast Export orders from China -4.2% y/y vs -19.7% in June Ministry sees August orders between -10.2% and -13.9% y/y Q3 seen better than Q2: ministry TAIPEI, Aug 21 (Reuters) - Taiwan's export orders fell for the 11th straight month in July, as booming demand for the island's artificial intelligence (AI) supply chain continues to be eclipsed by macroeconomic factors including weak demand from China and high interest rates. The ministry said it expected export orders in August to fall by between 10.2% and 13.9% from a year earlier.
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2023-08-21 00:00:00 UTC
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Best Dividend Stocks: Apple Stock vs. Microsoft Stock
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AAPL
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https://www.nasdaq.com/articles/best-dividend-stocks%3A-apple-stock-vs.-microsoft-stock
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nan
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Fool.com contributor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) on their dividend yields, profitability, and valuation.
*Stock prices used were the afternoon prices of Aug. 17, 2023. The video was published on Aug. 19, 2023.
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) on their dividend yields, profitability, and valuation. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) on their dividend yields, profitability, and valuation. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) on their dividend yields, profitability, and valuation. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Fool.com contributor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) on their dividend yields, profitability, and valuation. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Parkev Tatevosian, CFA has positions in Apple.
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2023-08-21 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, NVIDIA, Bank of America, Nike and Prologis
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-nvidia-bank-of-america-nike-and-prologis
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For Immediate Release
Chicago, IL – August 21, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, Bank of America Corp. BAC, Nike, Inc. NKE and Prologis, Inc. PLD.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Apple, NVIDIA and Bank of America
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, includingApple Inc., NVIDIA Corp. and Bank of America Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have struggled lately, with the stock losing losing -11.6% of its value since the start of August, lagging the Zacks Tech sector's -7.3% decline and the S&P 500 index's -4.6% pullback. This recent weakness notwithstanding, the stock has been a standout performer this year, handily outperforming the Tech sector as well as the broader market.
The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple's results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services' year-over-year growth to accelerate in fiscal fourth-quarter as compared with the June quarter.
However, revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt top-line.
(You can read the full research report on Apple here >>>)
As is the case with Apple, NVIDIA shares have struggled lately as well, with the stock lagging the Tech sector as well as the S&P 500 index this month (-9.4% vs. -7.3% for the Tech sector & -4.6% for the index). That said, Nvidia's performance this year is one for the record books, with the stock up +192.9% this year vs. +32.7% for the Tech sector and +15.2% for the market.
Nvidia has literally been in a league of its own since its last quarterly release on May 24th when it raised guidance by a magnitude that we have never seen from another company. With the company on deck to report results on Wednesday, August 23rd, it is under the spotlight as to whether the preceding quarter's numbers were a one-off or the start of a sustained period of outperformance.
The company is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space.
However, NVDA's near-term prospects look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past six months (-10.9% vs. -15.9%). The tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
Nevertheless, Higher interest rates and decent loan demand will likely keep aiding the company's net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include Nike, Inc. and Prologis, Inc.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, Bank of America Corp. BAC, Nike, Inc. NKE and Prologis, Inc. PLD. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. With the company on deck to report results on Wednesday, August 23rd, it is under the spotlight as to whether the preceding quarter's numbers were a one-off or the start of a sustained period of outperformance.
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Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, Bank of America Corp. BAC, Nike, Inc. NKE and Prologis, Inc. PLD. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Friday’s Analyst Blog: Top Stock Reports for Apple, NVIDIA and Bank of America The Zacks Research Daily presents the best research output of our analyst team.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, Bank of America Corp. BAC, Nike, Inc. NKE and Prologis, Inc. PLD. Here are highlights from Friday’s Analyst Blog: Top Stock Reports for Apple, NVIDIA and Bank of America The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA, Bank of America Corp. BAC, Nike, Inc. NKE and Prologis, Inc. PLD. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Friday’s Analyst Blog: Top Stock Reports for Apple, NVIDIA and Bank of America The Zacks Research Daily presents the best research output of our analyst team.
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62483bb6-7395-4444-98e2-e0fea8be1051
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14216.0
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2023-08-20 00:00:00 UTC
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3 Tech Stocks With More Potential Than Any Cryptocurrency
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-with-more-potential-than-any-cryptocurrency-8
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nan
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nan
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It wasn't too long ago that cryptocurrencies were one of the hottest investments, with the media filled with stories of people getting rich seemingly overnight. However, excitement in the industry has cooled considerably. Investors have become wary of its volatility, with prices too often reactive to the whims of what certain tech moguls post on social media and other difficult-to-track factors.
The price of the most popular cryptocurrency, Bitcoin, reflects this apprehension. Bitcoin hit an all-time high in November 2021, exceeding a value of $65,000 per coin. However, its price has since lost more than half that value and sits at about $26,500. The cryptocurrency has fallen about 10% in value in just the last five days alone, with the decline not out of the norm based on its 2023 performance.
Conversely, the tech industry has proven itself as one of the most reliable places to invest. The sector is in a near-constant state of innovation, which keeps companies growing over the long term and offers investors consistent gains.
Here are three tech stocks with more potential than any cryptocurrency.
1. Amazon
Amazon (NASDAQ: AMZN) had a challenging 2022, with macroeconomic headwinds causing steep declines in its e-commerce earnings. However, this year has been one of recovery and growth. The company's North America segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, up from a negative $627 million in the year-ago period.
The improvement has rallied investors, with Amazon shares up 7% since the start of August. A recovering e-commerce business is a massive win for the tech company as retail sales make up about 80% of its revenue.
Moreover, Amazon has made a significant push into artificial intelligence (AI) this year by adding new services to its cloud platform Amazon Web Services, and expanding into chip development. The company's potential in the high-growth market is promising for its long-term prospects, making its stock a more reliable investment than any cryptocurrency.
Demand for crypto appears to be on the decline. Meanwhile, Amazon is dominating two lucrative sectors, which could allow it to profit substantially over the long term. It's possible some cryptocurrencies may see unexpected spikes as they have done in the past. However, Amazon's solid position in tech makes it a more dependable and safer buy.
2. Advanced Micro Devices
Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry. The company has solid positions in different areas of tech, including AI, cloud computing, data centers, gaming, personal computers, and more. Its diverse business allows investors to profit from the growth of multiple industries over the long term.
Like Amazon, AMD has pivoted a large part of its business to AI this year. In June, the company unveiled a new chip that is meant to compete directly with industry leader Nvidia. Meanwhile, AMD plans to invest about $400 million in India by 2028 to build its largest design center and stake its claim in one of the fastest-growing cloud markets.
Data by YCharts.
Additionally, the chart above illustrates how AMD's stock has granted investors significantly more growth than Bitcoin over the last five years. With the power of AI and other high-growth markets, the company will likely continue outperforming the cryptocurrency over the long term.
3. Apple
As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company offers a consistency that is nearly impossible to find in the crypto market.
As a result, it's not surprising that famous investors like Warren Buffett have become massive proponents of Apple's stock. Buffett's holdings company Berkshire Hathaway has dedicated over 45% of its portfolio to the iPhone company, with its second-largest investment being Bank of America, with about 9%. Meanwhile, Apple shares have risen 582% since Berkshire Hathaway first invested in 2016.
Apple is one of the most recognizable brands in the world, with the popularity of its products achieving leading market shares in multiple areas of tech. The company has stumbled this year, with macroeconomic challenges causing declines in its product sales. However, its dominance in the industry continues to strengthen its long-term prospects.
Alongside growing businesses in AI and virtual/augmented reality, Apple's stock has far more growth potential than any cryptocurrency.
10 stocks we like better than Amazon.com
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Bitcoin, and Nvidia. 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 As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company's North America segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, up from a negative $627 million in the year-ago period. Meanwhile, AMD plans to invest about $400 million in India by 2028 to build its largest design center and stake its claim in one of the fastest-growing cloud markets.
|
Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. Advanced Micro Devices Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry. The company has solid positions in different areas of tech, including AI, cloud computing, data centers, gaming, personal computers, and more.
|
Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company's potential in the high-growth market is promising for its long-term prospects, making its stock a more reliable investment than any cryptocurrency. Advanced Micro Devices Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry.
|
Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The price of the most popular cryptocurrency, Bitcoin, reflects this apprehension. Here are three tech stocks with more potential than any cryptocurrency.
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e72a69c9-7f01-493f-ab20-6b3f26e23460
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14217.0
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2023-08-20 00:00:00 UTC
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3 Tech Stocks With More Potential Than Any Cryptocurrency
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AAPL
|
https://www.nasdaq.com/articles/3-tech-stocks-with-more-potential-than-any-cryptocurrency-7
|
nan
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nan
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It wasn't too long ago that cryptocurrencies were one of the hottest investments, with the media filled with stories of people getting rich seemingly overnight. However, excitement in the industry has cooled considerably. Investors have become wary of its volatility, with prices too often reactive to the whims of what certain tech moguls post on social media and other difficult-to-track factors.
The price of the most popular cryptocurrency, Bitcoin, reflects this apprehension. Bitcoin hit an all-time high in November 2021, exceeding a value of $65,000 per coin. However, its price has since lost more than half that value and sits at about $26,500. The cryptocurrency has fallen about 10% in value in just the last five days alone, with the decline not out of the norm based on its 2023 performance.
Conversely, the tech industry has proven itself as one of the most reliable places to invest. The sector is in a near-constant state of innovation, which keeps companies growing over the long term and offers investors consistent gains.
Here are three tech stocks with more potential than any cryptocurrency.
1. Amazon
Amazon (NASDAQ: AMZN) had a challenging 2022, with macroeconomic headwinds causing steep declines in its e-commerce earnings. However, this year has been one of recovery and growth. The company's North America segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, up from a negative $627 million in the year-ago period.
The improvement has rallied investors, with Amazon shares up 7% since the start of August. A recovering e-commerce business is a massive win for the tech company as retail sales make up about 80% of its revenue.
Moreover, Amazon has made a significant push into artificial intelligence (AI) this year by adding new services to its cloud platform Amazon Web Services, and expanding into chip development. The company's potential in the high-growth market is promising for its long-term prospects, making its stock a more reliable investment than any cryptocurrency.
Demand for crypto appears to be on the decline. Meanwhile, Amazon is dominating two lucrative sectors, which could allow it to profit substantially over the long term. It's possible some cryptocurrencies may see unexpected spikes as they have done in the past. However, Amazon's solid position in tech makes it a more dependable and safer buy.
2. Advanced Micro Devices
Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry. The company has solid positions in different areas of tech, including AI, cloud computing, data centers, gaming, personal computers, and more. Its diverse business allows investors to profit from the growth of multiple industries over the long term.
Like Amazon, AMD has pivoted a large part of its business to AI this year. In June, the company unveiled a new chip that is meant to compete directly with industry leader Nvidia. Meanwhile, AMD plans to invest about $400 million in India by 2028 to build its largest design center and stake its claim in one of the fastest-growing cloud markets.
Data by YCharts.
Additionally, the chart above illustrates how AMD's stock has granted investors significantly more growth than Bitcoin over the last five years. With the power of AI and other high-growth markets, the company will likely continue outperforming the cryptocurrency over the long term.
3. Apple
As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company offers a consistency that is nearly impossible to find in the crypto market.
As a result, it's not surprising that famous investors like Warren Buffett have become massive proponents of Apple's stock. Buffett's holdings company Berkshire Hathaway has dedicated over 45% of its portfolio to the iPhone company, with its second-largest investment being Bank of America, with about 9%. Meanwhile, Apple shares have risen 582% since Berkshire Hathaway first invested in 2016.
Apple is one of the most recognizable brands in the world, with the popularity of its products achieving leading market shares in multiple areas of tech. The company has stumbled this year, with macroeconomic challenges causing declines in its product sales. However, its dominance in the industry continues to strengthen its long-term prospects.
Alongside growing businesses in AI and virtual/augmented reality, Apple's stock has far more growth potential than any cryptocurrency.
10 stocks we like better than Amazon.com
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Bitcoin, and Nvidia. 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 As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company's North America segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, up from a negative $627 million in the year-ago period. Meanwhile, AMD plans to invest about $400 million in India by 2028 to build its largest design center and stake its claim in one of the fastest-growing cloud markets.
|
Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. Advanced Micro Devices Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry. The company has solid positions in different areas of tech, including AI, cloud computing, data centers, gaming, personal computers, and more.
|
Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The company's potential in the high-growth market is promising for its long-term prospects, making its stock a more reliable investment than any cryptocurrency. Advanced Micro Devices Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (NASDAQ: AMD) one of the biggest names in the industry.
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Apple As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (NASDAQ: AAPL) is one of the most reliable investments available. The price of the most popular cryptocurrency, Bitcoin, reflects this apprehension. Here are three tech stocks with more potential than any cryptocurrency.
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5281f9db-92da-4e3b-97e3-618046710b4d
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14218.0
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2023-08-20 00:00:00 UTC
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Should Apple Buy ESPN From Disney? Wall Street Analyst Dan Ives Thinks It's a "No-Brainer"
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AAPL
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https://www.nasdaq.com/articles/should-apple-buy-espn-from-disney-wall-street-analyst-dan-ives-thinks-its-a-no-brainer
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nan
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nan
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Many view ESPN as the crown jewel of Walt Disney's (NYSE: DIS) TV empire. But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL).
Wedbush's Dan Ives stated on CNBC's Last Call program last week, "I believe it's a matter of when, not if, ESPN and Apple get together." Ives is cheering on a deal, recently writing to clients that it's "a no-brainer."
Is he right?
Why Apple might be motivated
There have been rumors for years that Apple could acquire Disney outright. Ives doesn't think such a large transaction is likely. However, he believes that Apple would love to have ESPN.
Apple has already moved into streaming TV in a major way with Apple TV+. While Apple TV+ has attracted viewers with high-quality productions such as Ted Lasso and Severance, it has also expanded into live sports.
This move is already paying off nicely for Apple. MLS Season Pass subscriptions on Apple TV+ doubled since Lionel Messi joined Major League Soccer's Inter Miami franchise.
Ives argued on CNBC that "live sports content is the golden goose." ESPN ranks as the longtime leader in providing live sports content at the college and professional levels. The Wedbush analyst thinks that Apple and ESPN make "a perfect fit."
Big money for a big buy
Would Disney be interested in selling ESPN to Apple? Maybe not. Disney CEO Bob Iger said in the quarterly update earlier this month that the company is "considering potential strategic partnerships for ESPN, looking at distribution, technology, marketing, and content opportunities where we retain control of ESPN."
It's possible that Apple could be the strategic partner that Disney seeks. Ives, though, believes that an outright acquisition of ESPN by Apple is more likely.
Perhaps the right price could entice Iger to put ESPN up for sale. How much would a deal cost Apple? Probably in the ballpark of $50 billion, according to Ives.
That price tag isn't too much of a stretch for Apple. The tech giant's cash stockpile totaled nearly $59 billion as of July 1. Apple is on track to generate operating cash flow of around $120 billion in its current fiscal year.
A no-brainer deal?
Ives told CNBC, "[W]e believe an acquisition could clearly happen here as we look into the next six to nine months." However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company.
As Iger's comments in the recent quarterly conference call indicate, Disney is looking for a partner for ESPN, not a buyer. He said that the company has already "received notable interest from many different entities."
The integration between ESPN and ABC (which Disney also owns) could also present a problem. Iger has stated that all options are on the table with its linear networks, including a potential sale. However, ABC's value could be lower with access to ESPN's content. If Apple acquired ESPN without also buying ABC, it could complicate matters for Disney.
Apple could be more reluctant to fork out $50 billion or more to get ESPN than Ives thinks. The company's biggest acquisition so far was buying Beats in 2014 for $3 billion. Apple clearly hasn't been willing to pull the trigger on huge deals in the past.
A wild card
I do, however, think there's one wild card that just might tip the scales in favor of Apple acquiring ESPN: Apple plans to launch its Vision Pro mixed-reality headset next year.
Disney's streaming service, Disney+, will be integrated with Vision Pro in several ways. The opportunities to tie in live sports with the mixed-reality device could be so appealing that Apple decides to acquire ESPN.
Granted, Apple and Disney will probably work together on such integration anyway. One big hint: A video shown at Apple's 2023 Worldwide Developers Conference introducing Vision Pro showed a 3D view of a basketball game. However, if Apple owned ESPN, it would have full control over how it offers a huge array of sports content with Vision Pro.
So will Apple acquire ESPN? I'm not sure. Even if the deal doesn't happen, though, I'd be shocked if Apple doesn't at least walk away as the major strategic partner for ESPN that Disney says it wants. Either way, it could be good news for Apple shareholders.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Keith Speights has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). MLS Season Pass subscriptions on Apple TV+ doubled since Lionel Messi joined Major League Soccer's Inter Miami franchise. One big hint: A video shown at Apple's 2023 Worldwide Developers Conference introducing Vision Pro showed a 3D view of a basketball game.
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But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Many view ESPN as the crown jewel of Walt Disney's (NYSE: DIS) TV empire. If Apple acquired ESPN without also buying ABC, it could complicate matters for Disney.
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But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Why Apple might be motivated There have been rumors for years that Apple could acquire Disney outright. However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company.
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But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Ives, though, believes that an outright acquisition of ESPN by Apple is more likely. However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company.
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c3e7a12a-dca2-4a75-8585-a831a0936d2d
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14219.0
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2023-08-20 00:00:00 UTC
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If You Invested $1,000 in Berkshire Hathaway a Decade Ago, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%241000-in-berkshire-hathaway-a-decade-ago-this-is-how-much-you-would-have
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nan
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nan
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Over the stock market cycle between year-ends 2007 and 2013, we overperformed the S&P [500]. Through full cycles in future years, we expect to do that again. If we fail to do so, we will not have earned our pay. After all, you could always own an index fund and be assured of S&P results.
Investing great Warren Buffett wrote the above paragraph in his 2013 letter to shareholders of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). For those unaware, returns for an S&P 500 index fund will mirror the exact results of the S&P 500. Therefore, these results are considered average. But Buffett points out that investing in Berkshire Hathaway stock logically comes with an expectation for above-average returns.
With operations in seemingly stodgy industries like oil, banking, insurance, railroads, and more, one might think that Berkshire Hathaway stock is a poor idea for a market-beating investment. But in the near decade since he wrote these words, Buffett has indeed delivered for shareholders. If you invested $1,000 in this company 10 years ago, you'd have nearly $3,100 now. That's compared to the just $2,600 you'd have if you invested in an index fund (dividends excluded).
BRK.A data by YCharts
If you dissect Berkshire Hathaway into pieces -- and there are a lot -- you'll notice that the company is very different than it was 10 years ago. And this is because Buffett is determined to grow the per-share book value of the company at a market-beating pace, even if it means making changes.
How Berkshire Hathaway has changed
Berkshire Hathaway owns whole businesses outright and has a portfolio of publicly traded stocks. Buffett has said, "Our favorite holding period is forever." But regardless of that preference, he's still willing to make changes as needed to increase the company's book value.
On Aug 14, Berkshire Hathaway revealed the most recent update for its stock portfolio. The top five holdings by market value are currently Apple, Bank of America, American Express, Coca-Cola, and Chevron. But only two of these -- Coca-Cola and American Express -- were top 15 holdings back in 2013.
In 2013, Berkshire Hathaway's top five stocks by market value were Wells Fargo, Coca-Cola, American Express, Goldman Sachs, and Walmart. Given that Coca-Cola stock and American Express stock collectively pay $1.1 billion to Berkshire Hathaway every year through dividends, it makes sense that Buffett has held until now. But the company no longer owns any shares of the other three today.
Not only has Berkshire Hathaway's stock portfolio changed, but its wholly owned businesses also changed in importance. In 2013, Buffett referred to five companies (besides insurance) as his "Powerhouse Five" (MidAmerican Energy, Burlington Northern Santa Fe, Iscar, Lubrizol, and Marmon). Today he refers to just the "Big Four" (Burlington Northern, Berkshire Hathaway Energy, its insurance businesses, and Apple). But only two of the old Powerhouse Five -- BNSF railroad and Berkshire Hathaway Energy -- are part of the Big Four.
The Powerhouse Five were the companies providing Berkshire Hathaway with the highest earning power. That's what the Big Four do today.
Businesses and stocks that were once very important to Berkshire Hathaway a decade ago have dwindled in significance, whereas others have gained prominence. But all along, Buffett's decisions have been guided by increasing the company's per-share book value. And to that end, he's been quite successful, as the chart shows.
BRK.A Book Value (Per Share) data by YCharts
Some of Buffett's favorite investing metrics
Berkshire Hathaway is no growth stock, but returns have been sensational nevertheless thanks to savvy capital allocation by Warren Buffett. He spends money today to get more money later. That extra cash can come from the profits of his wholly-owned businesses. And it can also come from stock dividends.
By focusing on earnings, Buffett always has a pile of cash at his disposal. As of June 30, Berkshire Hathaway had over $130 billion in cash, cash equivalents, and short-term investments.
Moreover, by focusing on intrinsic value -- what he believes the company is worth -- Buffett has a good sense of when Berkshire Hathaway stock is undervalued. He uses these opportune moments to repurchases shares with his ample supply of cash.
As you may have noticed in the chart, Berkshire Hathaway has reduced its share count by nearly 12% over the last decade. This is why book value per share has grown faster than book value itself. And for what it's worth, Berkshire Hathaway's stock price has tracked closer to the book-value-per-share metric, as seen in the chart.
BRK.A data by YCharts
It's easy for investors to become enamored with the latest buzzworthy trend or the company with the hottest growth. But Berkshire Hathaway is a good reminder that market-beating investments don't necessarily always come from the next big thing. Buffett's approach can also lead to strong and steady gains in the stock market.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Goldman Sachs Group, and Walmart. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With operations in seemingly stodgy industries like oil, banking, insurance, railroads, and more, one might think that Berkshire Hathaway stock is a poor idea for a market-beating investment. In 2013, Berkshire Hathaway's top five stocks by market value were Wells Fargo, Coca-Cola, American Express, Goldman Sachs, and Walmart. In 2013, Buffett referred to five companies (besides insurance) as his "Powerhouse Five" (MidAmerican Energy, Burlington Northern Santa Fe, Iscar, Lubrizol, and Marmon).
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In 2013, Berkshire Hathaway's top five stocks by market value were Wells Fargo, Coca-Cola, American Express, Goldman Sachs, and Walmart. Given that Coca-Cola stock and American Express stock collectively pay $1.1 billion to Berkshire Hathaway every year through dividends, it makes sense that Buffett has held until now. BRK.A Book Value (Per Share) data by YCharts Some of Buffett's favorite investing metrics Berkshire Hathaway is no growth stock, but returns have been sensational nevertheless thanks to savvy capital allocation by Warren Buffett.
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How Berkshire Hathaway has changed Berkshire Hathaway owns whole businesses outright and has a portfolio of publicly traded stocks. Given that Coca-Cola stock and American Express stock collectively pay $1.1 billion to Berkshire Hathaway every year through dividends, it makes sense that Buffett has held until now. BRK.A Book Value (Per Share) data by YCharts Some of Buffett's favorite investing metrics Berkshire Hathaway is no growth stock, but returns have been sensational nevertheless thanks to savvy capital allocation by Warren Buffett.
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Given that Coca-Cola stock and American Express stock collectively pay $1.1 billion to Berkshire Hathaway every year through dividends, it makes sense that Buffett has held until now. BRK.A Book Value (Per Share) data by YCharts Some of Buffett's favorite investing metrics Berkshire Hathaway is no growth stock, but returns have been sensational nevertheless thanks to savvy capital allocation by Warren Buffett. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Goldman Sachs Group, and Walmart.
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7e95e1b3-d29b-4f80-856e-a277080a207c
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14220.0
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2023-08-20 00:00:00 UTC
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3 Top Stocks To Buy if There Is a Market Pullback
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-if-there-is-a-market-pullback-5
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nan
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nan
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In 2022, macroeconomic headwinds dragged down the Nasdaq Composite index by about 33%. Inflation hikes caused pullback from consumers and repeated declines in the quarterly earnings for countless companies.
Despite the challenges, last year was one of the best times to bulk up your portfolio, as stocks in many of the world's most valuable companies were essentially on sale. Those who invested amid the sell-off will have profited from the near-30% rise in the Nasdaq Composite index since the start of 2023. As a result, it's a good idea to become familiar with some of the best stocks to buy in the event of a market downturn to make the most of your holdings.
So here are three top stocks to buy if there is a market pullback.
1. Apple
Apple (NASDAQ: AAPL) has gained a reputation on Wall Street as one of the most reliable stocks. The company was one of the few to beat the market last year, with its stock falling a more moderate 27% throughout 2022. Consistent demand for its products and services kept it profitable even while its competitors faltered.
However, economic headwinds have caught up with Apple this year. The company reported sales declines across its product lineup in the third quarter of 2023. Yet it has continued to outperform its peers amid poor market conditions.
A study from Counterpoint Research shows smartphone shipments fell 24% year over year in Q2 2023. The declines saw Samsung and Motorola sales tumble 37% and 17%, respectively. However, Apple experienced decreased sales of 6% in the same period as its market share increased from 52% to 55%. Apple's Mac lineup similarly outperformed companies like Lenovo and Dell despite overall PC shipment declines.
Apple's dominance across tech has kept its stock consistently rising over the long term and meant its shares don't often go on sale. As a result, a market pullback is the perfect time to invest in this tech giant and benefit from its expansion into high-growth markets such as artificial intelligence (AI) and virtual reality.
2. Costco
Costco (NASDAQ: COST) shares have risen 142% over the last five years, significantly more than U.S. competitors like Walmart and Target. The company has proven itself as one of the best growth stocks in the retail industry, with its annual revenue rising 60% since 2018 and operating income up 74%. Investors have taken notice, as Costco's stock is rarely trading at a bargain, with its price-to-earnings (P/E) ratio often hovering around 35 to 40.
The company's history of reliable long-term growth makes it an attractive investment during a market pullback. Its international presence is made up of nearly 860 Costco locations in 14 countries across the globe, with plans for further expansion.
In six of those countries, Costco operates four or fewer locations. As a result, the company retains massive growth potential in multiple regions. In France alone, Costco runs two stores, with plans to open 15 units in the European country by 2025.
So if you're looking for a solid retail stock to hold for the long term and a sell-off has brought down prices, Costco is an excellent option.
3. Amazon
Amazon (NASDAQ: AMZN) has become a favorite on Wall Street this year, with its stock up roughly 60% since Jan. 1. The growth is in stark contrast to its 2022 performance, when its stock plunged 50% in a 12-month period. Macroeconomic headwinds brought steep declines in its e-commerce earnings and dragged down its stock. However, this year's recovery has shown why Amazon is one of the best companies to invest in during a market pullback.
Despite the recent rally, Amazon's stock remains 28% down from the all-time high it achieved in July 2021. Meanwhile, a steadily improving e-commerce business and expansion into AI give it a promising long-term outlook.
In Q2 2023, Amazon's highest-earning segment, North America, hit $3 billion in operating income after reporting losses of $627 million in the year-ago period. The improvement represents the second consecutive quarter of profit increases for Amazon's retail earnings, with easing inflation likely to keep the segment growing.
Moreover, Amazon is home to the world's biggest cloud platform with Amazon Web Services (AWS), which could be a massive advantage as it expands into AI in the coming years.
Amazon's performance this year has proved its resilience and ability to strategically restructure its business amid economically challenging conditions. The company's stock is an excellent option during a market pullback, but also right now, before its shares rise any higher.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 14, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has gained a reputation on Wall Street as one of the most reliable stocks. In Q2 2023, Amazon's highest-earning segment, North America, hit $3 billion in operating income after reporting losses of $627 million in the year-ago period. The improvement represents the second consecutive quarter of profit increases for Amazon's retail earnings, with easing inflation likely to keep the segment growing.
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Apple Apple (NASDAQ: AAPL) has gained a reputation on Wall Street as one of the most reliable stocks. So if you're looking for a solid retail stock to hold for the long term and a sell-off has brought down prices, Costco is an excellent option. Macroeconomic headwinds brought steep declines in its e-commerce earnings and dragged down its stock.
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Apple Apple (NASDAQ: AAPL) has gained a reputation on Wall Street as one of the most reliable stocks. Amazon Amazon (NASDAQ: AMZN) has become a favorite on Wall Street this year, with its stock up roughly 60% since Jan. 1. The company's stock is an excellent option during a market pullback, but also right now, before its shares rise any higher.
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Apple Apple (NASDAQ: AAPL) has gained a reputation on Wall Street as one of the most reliable stocks. The company reported sales declines across its product lineup in the third quarter of 2023. The company's history of reliable long-term growth makes it an attractive investment during a market pullback.
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7fa51b43-a61f-440e-b38d-7572e056a8d4
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14221.0
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2023-08-19 00:00:00 UTC
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These 3 Tech Stocks Are Building the Future
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AAPL
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https://www.nasdaq.com/articles/these-3-tech-stocks-are-building-the-future-11
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nan
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nan
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COVID-19 lockdowns in 2020 and 2021 forced countless businesses to move their work online, increasing demand for online services. Yet, even as the world opens up again, many companies have retained various aspects of working online.
That means demand for digital services will likely continue to rise over the long term. Industries such as artificial intelligence (AI), cloud computing, and virtual and augmented reality (VR/AR) have massive potential in the coming years and are attractive sectors for investment.
Companies innovating in these markets should make excellent stocks to hold over the long term as they profit from the development of tech. Here are three tech stocks that are building the future.
1. Apple
Apple (NASDAQ: AAPL) shares have soared 37% since the start of the year, rallying investors with expanding prospects in multiple high-growth sectors. The company is not always the first to a market, but it has proven talent at taking existing technology and presenting it in a way that attracts millions of consumers.
Apple has done just this with smartphones, tablets, smartwatches, and headphones, achieving leading market shares in each of these product categories.
Consequently, the company's recent venture into VR/AR looks promising. The VR market on its own is projected to expand at a compound annual growth rate of 45% through 2029. Meta Platforms and Sony have dominated the industry in recent years, but Apple has the brand loyalty and vast resources to eventually outperform these companies.
Moreover, the potency of Apple's products could see it become a leading driver in the adoption of AI services by the public. The company is gradually increasing its AI-enabled features across its product lineup and has built a framework for creating large language models similar to the ones running OpenAI's ChatGPT.
While its stock has risen 238% in the last five years, Apple remains a screaming buy as it continues to innovate and build the future.
2. Microsoft
As the home of such brands as Office, Windows, Azure, and Xbox, Microsoft (NASDAQ: MSFT) has become one of the biggest names in software. Its stature in tech has provided it with the resources to invest heavily in emerging markets and expand its business.
In 2019, the tech giant invested $1 billion in OpenAI, with that figure increasing by $10 billion after the launch of ChatGPT last year. The partnership has allowed Microsoft to obtain exclusive licenses to several of the start-up's AI models, giving it an edge over competitors like Amazon and Alphabet.
Microsoft has used OpenAI's technology to introduce artificial intelligence upgrades across its software lineup. Meanwhile, the company has increased its investment in the sector by backing chipmaker Advanced Micro Devices (NASDAQ: AMD). Microsoft is reportedly providing financial and engineering assistance to AMD in an effort to create an alternative to Nvidia when it comes to AI chips.
Thousands of businesses worldwide have come to depend on Microsoft's productivity software. As it continues to expand its catalog of AI services, revenue will likely continue rising alongside its stock price.
3. Advanced Micro Devices
A swiftly expanding tech industry has made it a no-brainer to add a chip stock to your portfolio. Many industries will require high-powered chips to move forward, and AMD is one of the biggest names in that market.
AMD has become a significant growth driver in tech by supplying its hardware across the industry. The company's chips can be found in countless devices, from game consoles to laptops, custom-built PCs, and data centers worldwide.
As a result, AMD has entered into lucrative partnerships with many of the world's most valuable companies. AMD supplies chips to Sony and Microsoft's PlayStation 5 and Xbox Series X|S game consoles. Meanwhile, the company's hardware powers cloud platforms such as Azure, Google Cloud, and Oracle.
Since the start of 2023, AMD has pivoted much of its business to AI as it works to steal market share from Nvidia. Many companies are rooting for AMD as increased competition will bring down the cost of chips.
As the semiconductor company continues to expand and chip demand rises across tech, AMD's stock appears a compelling investment.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) shares have soared 37% since the start of the year, rallying investors with expanding prospects in multiple high-growth sectors. Industries such as artificial intelligence (AI), cloud computing, and virtual and augmented reality (VR/AR) have massive potential in the coming years and are attractive sectors for investment. Meta Platforms and Sony have dominated the industry in recent years, but Apple has the brand loyalty and vast resources to eventually outperform these companies.
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Apple Apple (NASDAQ: AAPL) shares have soared 37% since the start of the year, rallying investors with expanding prospects in multiple high-growth sectors. COVID-19 lockdowns in 2020 and 2021 forced countless businesses to move their work online, increasing demand for online services. As the semiconductor company continues to expand and chip demand rises across tech, AMD's stock appears a compelling investment.
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Apple Apple (NASDAQ: AAPL) shares have soared 37% since the start of the year, rallying investors with expanding prospects in multiple high-growth sectors. Companies innovating in these markets should make excellent stocks to hold over the long term as they profit from the development of tech. As the semiconductor company continues to expand and chip demand rises across tech, AMD's stock appears a compelling investment.
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Apple Apple (NASDAQ: AAPL) shares have soared 37% since the start of the year, rallying investors with expanding prospects in multiple high-growth sectors. AMD has become a significant growth driver in tech by supplying its hardware across the industry. Since the start of 2023, AMD has pivoted much of its business to AI as it works to steal market share from Nvidia.
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98a500d1-f0cb-4dd9-ae8e-59b0e8ac5c09
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14222.0
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2023-08-19 00:00:00 UTC
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Elon Musk says X will strip ability to block accounts
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AAPL
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https://www.nasdaq.com/articles/elon-musk-says-x-will-strip-ability-to-block-accounts
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nan
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nan
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Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year.
The block function on X allows a user to restrict specific accounts from contacting them, seeing their posts or following them.
"Block is going to be deleted as a 'feature', except for DMs," Musk said in a post on the platform, referring to direct messages.
He said X would retain the mute function, which screens a user from seeing specified accounts but, unlike blocking, does not alert the other account to the action.
The billionaire owner has described himself as a free speech absolutist, but some critics have said his approach is irresponsible. Researchers have found an increase in hate speech and antisemitic content on the platform since he took over, and some governments have accused the company of not doing enough to moderate its content.
Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play.
Apple says apps with user-generated content must have the ability to block abusive users. Google Play Store says apps must provide an in-app system for blocking user-generated content and users.
X, Google and Apple did not immediately reply to requests for comment.
Responding to a post from anti-bullying activist Monica Lewinsky urging X to keep the "critical tool to keep people safe online", Chief Executive Linda Yaccarino defended Musk's move.
"Our users' safety on X is our number one priority. And we're building something better than the current state of block and mute. Please keep the feedback coming," Yaccarino posted.
The company has said Musk would lead the product and engineering teams, while Yaccarino would lead all other teams, including legal and sales.
(Reporting by Mrinmay Dey in Bengaluru; Editing by William Mallard)
((Mrinmay.Dey@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Google Play Store says apps must provide an in-app system for blocking user-generated content and users. Responding to a post from anti-bullying activist Monica Lewinsky urging X to keep the "critical tool to keep people safe online", Chief Executive Linda Yaccarino defended Musk's move.
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Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year. Google Play Store says apps must provide an in-app system for blocking user-generated content and users.
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Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year. Apple says apps with user-generated content must have the ability to block abusive users.
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Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. He said X would retain the mute function, which screens a user from seeing specified accounts but, unlike blocking, does not alert the other account to the action. Apple says apps with user-generated content must have the ability to block abusive users.
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14223.0
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2023-08-19 00:00:00 UTC
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Opinion: These Will Be the 5 Largest Stocks by 2030
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AAPL
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https://www.nasdaq.com/articles/opinion%3A-these-will-be-the-5-largest-stocks-by-2030
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nan
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nan
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At the beginning of 2010, the largest stock by market cap that traded on a U.S. stock exchange was an oil producer. Only two tech stocks ranked in the top five.
It's a much different story today. All five of the biggest stocks focus largely if not completely on technology. Will the future hold even greater surprises? Maybe, but I don't think so. These will be the five largest stocks by 2030, in my opinion.
1. Apple
Apple (NASDAQ: AAPL) is the biggest company in the world today with a market cap of $2.7 trillion. I expect it to hold onto this top spot through 2030 and likely beyond.
New versions of Apple's iPhone will almost certainly keep customers upgrading regularly for years to come. Services, including the App Store, Apple Card, and iCloud, already have become a huge growth driver for Apple and should continue to gain momentum.
I also anticipate that augmented reality and virtual reality could be major tailwinds for Apple later in the decade. The tech giant might not grow as fast as some of the others in the top five. But with Apple's current market-cap advantage, it doesn't have to.
2. Microsoft
Microsoft (NASDAQ: MSFT) trails behind Apple a bit right now with its market cap of $2.3 trillion. I won't be surprised if the company narrows the gap considerably over the next few years. Microsoft could even vault past Apple, but I suspect it will still come in a close second place.
The big growth driver for Microsoft is easy to identify: artificial intelligence (AI). Microsoft's partnership with (and significant investment in) OpenAI has turned out to be a brilliant move.
I look for Microsoft's Azure cloud platform to be a big winner from its integration with OpenAI's generative AI technology. Gaming is another big growth opportunity for Microsoft as well, especially with its pending acquisition of Activision Blizzard.
3. Alphabet
There's a sizable gap between the market caps of Microsoft and the current third-largest stock -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The Google parent is valued at more than $1.6 trillion right now. I predict that Alphabet will be much larger by 2030 but still lag behind Microsoft.
Earlier worries that generative AI would disrupt Google Search appear to have been overblown. Alphabet is receiving positive user feedback from its integration of generative AI with Google Search (called Search Generative Experience -- SGE). The company believes that SGE helps it deliver ads to users even more effectively.
AI should benefit from Alphabet's cloud-services business in a huge way. More than 70% of the generative AI unicorns use Google Cloud. I expect that Google Cloud will become a much larger growth driver for Alphabet over the next few years.
4. Amazon
Would it be shocking for Amazon (NASDAQ: AMZN) to claw its way into the top-three biggest stocks? Not at all. However, I still look for the e-commerce and cloud-services giant to take the No. 4 spot by 2030.
Amazon has room to grow further in e-commerce despite already dominating the market. It also has opportunities with expanding into new markets such as healthcare.
The primary growth engine for Amazon, though, will likely remain its cloud unit. Amazon Web Services (AWS) claims the largest market share today. Although it faces increasing competition from Microsoft Azure, Google Cloud, and others, I expect that AWS will continue to be the powerhouse behind Amazon's growth.
5. Nvidia
Nvidia (NASDAQ: NVDA) didn't crack the top five until earlier this year. But with the stock roughly tripling in value, Nvidia now has a solid spot among the biggest stocks trading on U.S. stock exchanges.
I know that some predict that Nvidia will move even higher in the ranking over the next few years. While I agree that's a possibility, my hunch is that the chip stock will instead retain its current position in 2030.
Nvidia certainly has tremendous growth prospects. Its graphics process units (GPUs) are well suited for AI apps. I don't expect that's going to change. And, like many, I think the demand for Nvidia's GPUs will increase significantly throughout the decade. However, much of the company's projected growth is already priced into the stock.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today with a market cap of $2.7 trillion. I look for Microsoft's Azure cloud platform to be a big winner from its integration with OpenAI's generative AI technology. Although it faces increasing competition from Microsoft Azure, Google Cloud, and others, I expect that AWS will continue to be the powerhouse behind Amazon's growth.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today with a market cap of $2.7 trillion. Alphabet There's a sizable gap between the market caps of Microsoft and the current third-largest stock -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Alphabet is receiving positive user feedback from its integration of generative AI with Google Search (called Search Generative Experience -- SGE).
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today with a market cap of $2.7 trillion. Alphabet There's a sizable gap between the market caps of Microsoft and the current third-largest stock -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). But with the stock roughly tripling in value, Nvidia now has a solid spot among the biggest stocks trading on U.S. stock exchanges.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today with a market cap of $2.7 trillion. Alphabet There's a sizable gap between the market caps of Microsoft and the current third-largest stock -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Nvidia Nvidia (NASDAQ: NVDA) didn't crack the top five until earlier this year.
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6c5ab621-835e-4fb0-abb1-7bbd7b9282bb
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14224.0
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2023-08-19 00:00:00 UTC
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2 Stocks Down 55% and 80% to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/2-stocks-down-55-and-80-to-buy-right-now
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nan
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nan
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The stock market is on the verge of a new bull market, but that doesn't mean there aren't bargains to be found.
Some stocks are still down by 50% or more from their pandemic-era peaks, setting up buying opportunities for companies that are poised to return to growth as the economy normalizes. Keep reading to see two stocks trading at a discount that are ready to pop.
Image source: Getty Images.
Disney's magic is far from over
Anders Bylund (Walt Disney): It's hard to believe, but Walt Disney's (NYSE: DIS) ultra-reliable stock is hanging out in Wall Street's bargain bin nowadays.
The media powerhouse's share price has been sliding downward since the spring of 2021, and the stock currently trades roughly 55% below that peak. Sure, the House of Mouse is facing some challenges right now, but most of them also apply to every competitor.
Streaming subscriber growth: The Disney+ video-streaming service used to add subscribers by the millions, but that torrent has slowed to a trickle. Well, the same is true for arch-rivals Netflix (NASDAQ: NFLX) and Warner Bros. Discovery (NASDAQ: WBD) -- this slowdown is industrywide and closely tied to the turbulent economy.
Ad sales: Disney's linear TV networks have a hard time selling ad-spot time to other companies. Again, this is a theme across every media platform and advertising opportunity these days. Businesses are holding back on their marketing budgets until people are ready to buy what they're selling again.
Merchandise: Likewise, people aren't buying a ton of Disney-branded T-shirts and lunchboxes in this shaky economy. Any retailer or maker of consumer goods will tell you the same story.
When the tide turns -- as it surely will, eventually -- Disney will ride its world-class brand name to a triumphant return. Don't forget that the company is back under the management of industry legend Bob Iger, who steered Disney through even rougher waters in the economic downturn of 2008.
And finally, Disney's bears and critics are ignoring the fact that several segments are doing just fine. For example, the cruise line is nearly sold out on a regular basis, with a 98% occupancy rate in the recently reported third quarter, and Disney World's revenue was 21% above its pre-COVID-19 level.
So Mickey Mouse has taken a few jabs, but he's ready to fight back. I expect big things from this little media giant in the long run, and Disney looks like a no-brainer buy in this enormous dip.
PayPal is ready for a payday
Jeremy Bowman (PayPal): Few big tech stocks have fallen as far as PayPal (NASDAQ: PYPL) in the post-pandemic sell-off.
The digital payments leader was a stock market darling for years, but a combination of slowing growth, competition from Apple and others, and questions about its leadership transition have pushed the stock down 80% since its peak in 2021.
Even as the Nasdaq has bounced back this year, PayPal has continued to decline, but that sets up a buying opportunity for patient investors.
First, the company still has a long runway of growth ahead as digital payments replace other forms of payment like cash and credit cards.
Second, the company's recent financial results are better than the stock's decline would indicate. Total payment volume was up 11% in the second quarter, and the company's revenue grew 7% to $7.3 billion. Adjusted operating income jumped 20%, driving a 24% increase in adjusted earnings per share.
Management also expects adjusted EPS of $4.95 this year, up 20% from 2022 levels.
Based on that forecast, the stock trades at a forward price-to-earnings (P/E) ratio of less than 13, which is a dirt-cheap valuation for a leader in the fintech space. The company is also putting that capital to good use with plans to buy back $5 billion in stock this year, which will reduce shares outstanding by roughly 7%.
After months of suspense, PayPal finally announced a new CEO, naming Alex Chriss as Dan Schulman's successor for the top job. Chriss has spent 19 years at Intuit, where he was most recently executive vice-president and general manager of Intuit's Small Business and Self-Employed Group. In that position, he's been responsible for more than half of the company's revenue, setting him up well to manage PayPal, which has a similar customer base.
PayPal has a well-known brand and a good product, and the company should benefit when the economy strengthens and spending on goods picks up again. Until then, investors can take advantage of the stock's dirt-cheap valuation, as its P/E isn't likely to be this low forever.
10 stocks we like better than Walt Disney
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 14, 2023
Anders Bylund has positions in Netflix and Walt Disney. Jeremy Bowman has positions in Netflix, PayPal, and Walt Disney. The Motley Fool has positions in and recommends Apple, Intuit, Netflix, PayPal, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends the following options: short September 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Don't forget that the company is back under the management of industry legend Bob Iger, who steered Disney through even rougher waters in the economic downturn of 2008. The company is also putting that capital to good use with plans to buy back $5 billion in stock this year, which will reduce shares outstanding by roughly 7%. After months of suspense, PayPal finally announced a new CEO, naming Alex Chriss as Dan Schulman's successor for the top job.
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See the 10 stocks *Stock Advisor returns as of August 14, 2023 Anders Bylund has positions in Netflix and Walt Disney. Jeremy Bowman has positions in Netflix, PayPal, and Walt Disney. The Motley Fool has positions in and recommends Apple, Intuit, Netflix, PayPal, Walt Disney, and Warner Bros.
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Disney's magic is far from over Anders Bylund (Walt Disney): It's hard to believe, but Walt Disney's (NYSE: DIS) ultra-reliable stock is hanging out in Wall Street's bargain bin nowadays. PayPal is ready for a payday Jeremy Bowman (PayPal): Few big tech stocks have fallen as far as PayPal (NASDAQ: PYPL) in the post-pandemic sell-off. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Anders Bylund has positions in Netflix and Walt Disney.
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Even as the Nasdaq has bounced back this year, PayPal has continued to decline, but that sets up a buying opportunity for patient investors. Management also expects adjusted EPS of $4.95 this year, up 20% from 2022 levels. The Motley Fool has positions in and recommends Apple, Intuit, Netflix, PayPal, Walt Disney, and Warner Bros.
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65a91541-e314-4b63-a000-7af93bd0107e
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14225.0
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2023-08-19 00:00:00 UTC
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Almost Half of Warren Buffett's $354 Billion Portfolio Is Invested in Only 1 Stock
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AAPL
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https://www.nasdaq.com/articles/almost-half-of-warren-buffetts-%24354-billion-portfolio-is-invested-in-only-1-stock
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nan
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nan
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Over his storied investment career that spans several decades, Warren Buffett has owned numerous businesses not only during his partnership days, but as the CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). His outstanding track record has gotten the attention of individual investors looking for new ideas.
First purchased in early 2016, Apple (NASDAQ: AAPL) has become one of the most successful investments Buffett has ever made based not only on the percentage return, but on the dollar value of the gains. The stock is up a whopping 577% since the start of 2016, crushing the 171% rise of the Nasdaq Composite Index.
As of this writing, Apple makes up 46% of the entire public equities portfolio at Berkshire, with a market value of $163 billion. The Oracle of Omaha is clearly still in love with the consumer tech giant.
Buffett's criteria
It's not difficult to figure out why Buffett was compelled to buy Apple's stock in the first place. The company has long possessed a powerful consumer brand thanks to its incredibly popular hardware products, like the iPhone, iPad, and Watch. While hardware sales made up 74% of revenue in the fiscal 2023 third quarter (ended July 1), the services segment is steadily becoming a more important piece of the pie. This has created a very sticky ecosystem.
Berkshire's portfolio is filled with strong consumer brands, so Apple fits right in. Among the top five holdings is Coca-Cola, which benefits from global recognition and proven pricing power, similar to Apple.
Buffett surely appreciates Apple's pristine balance sheet which currently carries a net cash balance of $57 billion. This ensures the company has the financial flexibility to weather economic downturns while at the same time continuing to invest in new technological innovations. Apple produced $111 billion of free cash flow last fiscal year, a level of outsized profitability that shareholders have grown accustomed to.
Besides its favorable characteristics that are obvious, Apple's shares were dirt cheap when Buffett first bought in, trading at an average trailing price-to-earnings (P/E) ratio of 10.6 during the first three months of 2016. Valuation is a priority for the Oracle of Omaha, and he was ready to pounce at the opportunity that Mr. Market offered him several years ago.
Apple's future
Buffett might've first purchased Apple shares at an extremely attractive valuation, but investors on the sidelines today aren't so lucky. After its 9% drop in August, the stock is still up 36% in 2023 (as of Aug. 16). So, shares currently trade at a trailing P/E ratio of 29.9. That's not only far more expensive than Apple's average valuation over the last 10 years, but it's a huge 50% premium to the S&P 500 index's trailing P/E multiple of 20.4.
Apple's market cap is roughly $2.8 trillion today, and the business generated $394 billion of revenue in fiscal 2022. A steep valuation, coupled with an already colossal enterprise, could limit growth potential going forward. Wall Street analysts seem to agree, as they forecast revenue and earnings per share to increase at an annualized pace of 6% and 8%, respectively, between fiscal 2022 and fiscal 2027.
Investors thinking about buying shares need to consider how Apple can move the financial needle. CFO Luca Maestri stated that there are currently more than 2 billion active Apple devices across the globe. To be fair, consumers have shown a propensity to want to keep buying the company's upgrades to its popular hardware line-up. But an easy argument can be made that double-digit revenue growth might be out of the picture as we look toward the next decade, even with AR/VR initiatives and the potential for artificial intelligence to provide a lift.
Buffett's Berkshire Hathaway is still a huge Apple shareholder, so investors might still be inclined to follow the market sage's actions.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 14, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First purchased in early 2016, Apple (NASDAQ: AAPL) has become one of the most successful investments Buffett has ever made based not only on the percentage return, but on the dollar value of the gains. Besides its favorable characteristics that are obvious, Apple's shares were dirt cheap when Buffett first bought in, trading at an average trailing price-to-earnings (P/E) ratio of 10.6 during the first three months of 2016. But an easy argument can be made that double-digit revenue growth might be out of the picture as we look toward the next decade, even with AR/VR initiatives and the potential for artificial intelligence to provide a lift.
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First purchased in early 2016, Apple (NASDAQ: AAPL) has become one of the most successful investments Buffett has ever made based not only on the percentage return, but on the dollar value of the gains. Buffett's Berkshire Hathaway is still a huge Apple shareholder, so investors might still be inclined to follow the market sage's actions. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Neil Patel has positions in Berkshire Hathaway.
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First purchased in early 2016, Apple (NASDAQ: AAPL) has become one of the most successful investments Buffett has ever made based not only on the percentage return, but on the dollar value of the gains. Buffett's criteria It's not difficult to figure out why Buffett was compelled to buy Apple's stock in the first place. Apple's future Buffett might've first purchased Apple shares at an extremely attractive valuation, but investors on the sidelines today aren't so lucky.
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First purchased in early 2016, Apple (NASDAQ: AAPL) has become one of the most successful investments Buffett has ever made based not only on the percentage return, but on the dollar value of the gains. That's not only far more expensive than Apple's average valuation over the last 10 years, but it's a huge 50% premium to the S&P 500 index's trailing P/E multiple of 20.4. That's right -- they think these 10 stocks are even better buys.
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89716dfd-0b08-4431-ae68-13932e718128
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14226.0
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2023-08-19 00:00:00 UTC
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FTHI ETF: Why Its 8%+ Dividend Yield May Not be Good Enough
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AAPL
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https://www.nasdaq.com/articles/fthi-etf%3A-why-its-8-dividend-yield-may-not-be-good-enough
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nan
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nan
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Investors are increasingly interested in dividend ETFs with high dividend yields that pay monthly, and the First Trust BuyWrite Income ETF (NASDAQ:FTHI) is one such option, with a monthly payout and an 8.5% dividend yield. However, FTHI may not be the best choice for income investors. Let's see why.
What is FTHI ETF’s Strategy?
According to First Trust, FTHI looks to generate income for its investors “by investing in equity securities listed on U.S. exchanges of all market capitalizations and by utilizing an ‘option strategy’ consisting of writing (selling) U.S. exchange-traded covered call options on the Standard & Poor's 500 Index (the "Index").”
This “option strategy” entails FTHI writing “U.S. exchange-traded covered call options on the Index in order to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis.”
This strategy is a great way to generate income, but investors should be aware that there is a tradeoff. By selling these covered calls, FTHI potentially leaves upside on the table. Selling covered calls can cap the upside from capital appreciation because if the price of the underlying stock rises beyond the strike price, FTHI investors forgo these additional gains.
To its credit, fund sponsor First Trust makes this clear right from the get-go, stating that “the fund’s primary investment objective is to provide current income,” while capital appreciation is its “secondary objective.”
FTHI's Portfolio
FTHI has a diverse and well-rounded portfolio. The income-oriented ETF holds 225 positions, and its top 10 holdings account for just 30.6% of the fund. You can check out an overview of FTHI’s top 10 holdings below using TipRanks’ holdings tool.
As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund (SPX), with mega-cap stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) populating the top 10.
Is FTHI Stock a Buy, According to Analysts?
Turning to Wall Street, FTHI has a Moderate Buy consensus rating, as 174 of analyst ratings are Buys, 49 are Holds, and three are Sells. At $23.95, the average FTHI stock price target implies 16.10% upside potential.
An Abundance of Alternatives
FTHI’s main drawback is its steep expense ratio of 0.85%. This is an actively-managed ETF that runs a fairly complex strategy, so it’s understandable that the fees will be more expensive than those of a typical index fund.
However, FTHI’s 0.85% expense ratio is also considerably higher than many of its actively-managed peers that employ similar strategies, pay dividends on a monthly basis, and sport high dividend yields. For example, the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), the largest and most popular ETF in this space, has a much lower expense ratio of 0.35%.
Similarly, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) also has an expense ratio of 0.35%. Even the NEOS S&P 500 High Income ETF (BATS:SPYI), a newer entrant into the space, which itself has a relatively high expense ratio of 0.68%, is comparatively cheaper than FTHI.
On the surface, the 0.85% expense ratio means that investors pay $85 in fees and expenses on a $10,000 investment in year one, which might not sound too bad in and of itself. But these expenses compound over time.
Over the course of 10 years, assuming that the fee stays where it is now and that the fund returns 5% per year, this same investor would pay an astounding $1,049 in fees or more than one-tenth of their initial investment. For comparison, an investor in JEPI or JEPQ would pay a far more reasonable $443 in fees over the course of 10 years.
Furthermore, in addition to having lower expense ratios, these three alternatives currently feature higher yields than FTHI’s current dividend yield of 8.5%. JEPI's dividend yield is 10.2%, while JEPQ currently yields 12%. SPYI’s dividend yield stands at 10.9%.
Below, you’ll find a comparison of FTHI and these alternatives from TipRanks’ ETF Comparison Tool, which allows investors to compare up to 20 ETFs based on a wide variety of criteria.
Past Performance
FTHI's performance in recent years has been decent, but it hasn't really done enough to justify its high fees. From the beginning of the year to the end of July, the fund's total return was a solid 15.1%. Over the past year, FTHI's total return was 9.5%, and its three-year annualized return was 9.2%, which are respectable returns.
However, over the longer term, FTHI's performance looks subpar, with a five-year annualized total return of just 4.5%. Keep in mind that these total returns take FTHI's dividend payments into account, so the performance has been pretty mediocre even with the dividend.
It's difficult to compare FTHI to its aforementioned peers, as JEPQ and SPYI are fairly new ETFs, and JEPI has only been around for three years, but we can still compare it to JEPI over that time frame. FTHI leads JEPI both year-to-date and over the past year (with respective total returns of 15.1% and 9.5% versus JEPI's 7.3% and 8.1%) but JEPI beats FTHI over a three-year time frame, with a superior total return of 11.5% versus FTHI's 9.2%.
Furthermore, FTHI has underperformed the broader market over time. The Vanguard S&P 500 ETF (NYSEARCA:VOO) boasts one-, three- and five-year annualized returns of 12.9%, 13.7%, and 12.2%, respectively, beating FTHI over each time frame.
The Takeaway
FTHI’s 8.5% dividend yield and monthly payout schedule are enticing, and the ETF offers investors ample diversification. However, the fund's performance over time doesn't do enough to justify its high fees. Additionally, for investors interested in monthly payouts and high yields, there are plenty of ETFs out there with similar strategies that feature both higher dividend yields and lower expense ratios, meaning that investors are likely better off with these alternatives.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund (SPX), with mega-cap stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) populating the top 10. This is an actively-managed ETF that runs a fairly complex strategy, so it’s understandable that the fees will be more expensive than those of a typical index fund. The Vanguard S&P 500 ETF (NYSEARCA:VOO) boasts one-, three- and five-year annualized returns of 12.9%, 13.7%, and 12.2%, respectively, beating FTHI over each time frame.
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As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund (SPX), with mega-cap stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) populating the top 10. Investors are increasingly interested in dividend ETFs with high dividend yields that pay monthly, and the First Trust BuyWrite Income ETF (NASDAQ:FTHI) is one such option, with a monthly payout and an 8.5% dividend yield. Furthermore, in addition to having lower expense ratios, these three alternatives currently feature higher yields than FTHI’s current dividend yield of 8.5%.
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As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund (SPX), with mega-cap stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) populating the top 10. Investors are increasingly interested in dividend ETFs with high dividend yields that pay monthly, and the First Trust BuyWrite Income ETF (NASDAQ:FTHI) is one such option, with a monthly payout and an 8.5% dividend yield. According to First Trust, FTHI looks to generate income for its investors “by investing in equity securities listed on U.S. exchanges of all market capitalizations and by utilizing an ‘option strategy’ consisting of writing (selling) U.S. exchange-traded covered call options on the Standard & Poor's 500 Index (the "Index").” This “option strategy” entails FTHI writing “U.S.
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As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund (SPX), with mega-cap stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) populating the top 10. Investors are increasingly interested in dividend ETFs with high dividend yields that pay monthly, and the First Trust BuyWrite Income ETF (NASDAQ:FTHI) is one such option, with a monthly payout and an 8.5% dividend yield. However, the fund's performance over time doesn't do enough to justify its high fees.
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f9c0fd2d-5c56-4d38-94b1-864b86b4752d
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14227.0
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2023-08-18 00:00:00 UTC
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US STOCKS-Wall St cuts losses as energy, defensive sectors counter megacap declines
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-cuts-losses-as-energy-defensive-sectors-counter-megacap-declines
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 18 (Reuters) - Wall Street's main indexes pared losses on Friday as weakness in megacap growth stocks was countered by gains in defensive sectors and energy firms, while investors looked forward to commentary by Federal Reserve Chair Jerome Powell next week.
Big technology and growth stocks such as Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O slipped between 0.4% and 1.4% as investors grew concerned that interest rates could stay higher for longer.
The S&P 500 communication services .SPLRCL and technology .SPLRCT sectors housing major growth stocks fell 0.9% and 0.2% respectively.
Defensive plays such as consumer staples .SPLRCS and utilities .SPLRCU kept losses in check, with gains in firms such as retailer Walmart WMT.N helping keep the Dow Jones .DJI afloat.
Energy shares .SPNYalso rose 0.8% in another boost to the cyclicals-heavy Dow.
With no major catalysts driving markets on Friday, focus has shifted to Fed Chair Powell's speech at the Jackson Hole economic symposium next week as well as earnings from chip designer Nvidia NVDA.O.
The three main U.S. stock indexes are on track for sharp weekly losses as a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields.
"People are kind of waking up to the reality of no Fed rate cuts anytime soon, or even be able to really think about it happening," said David Russell, global head of market strategy at TradeStation.
The yield on the 10-year Treasury note US10YT=RR hit a ten-month high of 4.328% in the previous session and came within a whisker of its highest level since 2007. However, yields took a breather on Friday. US/
Traders see a nearly 91% chance of the Fed holding rates at current levels at its September meeting, according to the CME Group's FedWatch tool.
The CBOE volatility index .VIX hit its highest in nearly three months, reflecting rising investor anxiety.
Risk sentiment has also been hurt in recent days by China's sluggish economic recovery, with U.S.-listed shares of Chinese companies JD.Com JD.O and Alibaba Group BABA.Nfalling 5% and 2.9% respectively.
At 12:00 p.m. ET, the Dow Jones Industrial Average .DJI was up 55.07 points, or 0.16%, at 34,529.90, the S&P 500 .SPX was down 0.62 points, or 0.01%, at 4,369.74, and the Nasdaq Composite .IXIC was down 41.53 points, or 0.31%, at 13,275.40.
Hawaiian ElectricHE.Nshares jumped 10.1% after the utility firm said its goal was not to restructure the company.
Advancing issues outnumbered decliners by a 1.40-to-1 ratio on the NYSE and by a 1.30-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 17 new lows, while the Nasdaq recorded 16 new highs and 191 new lows.
Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Aug 18 (Reuters) - Wall Street's main indexes pared losses on Friday as weakness in megacap growth stocks was countered by gains in defensive sectors and energy firms, while investors looked forward to commentary by Federal Reserve Chair Jerome Powell next week. With no major catalysts driving markets on Friday, focus has shifted to Fed Chair Powell's speech at the Jackson Hole economic symposium next week as well as earnings from chip designer Nvidia NVDA.O. The three main U.S. stock indexes are on track for sharp weekly losses as a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields.
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By Amruta Khandekar and Shristi Achar A Aug 18 (Reuters) - Wall Street's main indexes pared losses on Friday as weakness in megacap growth stocks was countered by gains in defensive sectors and energy firms, while investors looked forward to commentary by Federal Reserve Chair Jerome Powell next week. The S&P 500 communication services .SPLRCL and technology .SPLRCT sectors housing major growth stocks fell 0.9% and 0.2% respectively. Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70 (Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Aug 18 (Reuters) - Wall Street's main indexes pared losses on Friday as weakness in megacap growth stocks was countered by gains in defensive sectors and energy firms, while investors looked forward to commentary by Federal Reserve Chair Jerome Powell next week. The three main U.S. stock indexes are on track for sharp weekly losses as a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields. Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70 (Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Shristi Achar A Aug 18 (Reuters) - Wall Street's main indexes pared losses on Friday as weakness in megacap growth stocks was countered by gains in defensive sectors and energy firms, while investors looked forward to commentary by Federal Reserve Chair Jerome Powell next week. The S&P 500 communication services .SPLRCL and technology .SPLRCT sectors housing major growth stocks fell 0.9% and 0.2% respectively. The yield on the 10-year Treasury note US10YT=RR hit a ten-month high of 4.328% in the previous session and came within a whisker of its highest level since 2007.
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80535dc7-c3a1-49ee-bfa3-2d42b55481c4
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14228.0
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2023-08-18 00:00:00 UTC
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DBMF Holds Steady While Tech, Agg Slip in August
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AAPL
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https://www.nasdaq.com/articles/dbmf-holds-steady-while-tech-agg-slip-in-august
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nan
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nan
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The Nasdaq Composite closed down for the week in its third straight week of losses as broad equities slipped as well. Investors looking for portfolio diversifiers and stabilizers as tech and equities slide and yields rise in bonds in August should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), given the fund’s performance month-to-date.
This week marks the longest the Nasdaq has closed at a weekly loss consecutively since December. Broad equities closed down for the third week in a row as well, its longest losing streak since February.
“I feel like the markets are rethinking their optimism from July, where we had the soft landing narrative,” Michelle Cluver, senior portfolio strategist at Global X ETFs, told CNBC.
Second quarter earnings season mainly brought positive results for mega-cap tech companies. Alphabet (GOOGL) reported revenue and profit beats, Meta (META) revealed double-digit revenue growth year-over-year, and Apple (APPL) beat earnings and sales forecasts.
That said, Apple sales dropped YoY by 1% and forecast lower revenue in the current quarter. Microsoft (MSFT) also reported reduced revenue growth for the current quarter and slowing growth for three consecutive quarters.
DBMF Holds Steady While Tech Bonds Falls in August
As of August 18, 2023, the Invesco QQQ Trust (QQQ) is down 6.44% on a price basis. Tech’s slide has pulled down the S&P 500 as well, with the SPDR S&P 500 ETF Trust (SPY) down 4.38% for the month on a price basis.
On the bonds side, yields continue to soar. Investors were confronted with the potential for further interest rate hikes this year in the wake of July's FOMC minutes. Yields and prices move inversely to each other within bonds: the IShares Core US Aggregate Bond ETF (AGG) is down 1.18% this month.
While equities and bonds fell this month, the iMGP DBi Managed Futures Strategy ETF (DBMF) remained steady. As of August 18, the fund is up 0.32% on a price basis.
DBMF is an actively managed fund that uses long and short positions within derivatives (mostly futures contracts) and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestically managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds. DBE then determines a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF has a management fee of 0.85%.
For more news, information, and analysis, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors looking for portfolio diversifiers and stabilizers as tech and equities slide and yields rise in bonds in August should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), given the fund’s performance month-to-date. “I feel like the markets are rethinking their optimism from July, where we had the soft landing narrative,” Michelle Cluver, senior portfolio strategist at Global X ETFs, told CNBC. While equities and bonds fell this month, the iMGP DBi Managed Futures Strategy ETF (DBMF) remained steady.
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Investors looking for portfolio diversifiers and stabilizers as tech and equities slide and yields rise in bonds in August should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), given the fund’s performance month-to-date. Alphabet (GOOGL) reported revenue and profit beats, Meta (META) revealed double-digit revenue growth year-over-year, and Apple (APPL) beat earnings and sales forecasts. While equities and bonds fell this month, the iMGP DBi Managed Futures Strategy ETF (DBMF) remained steady.
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Investors looking for portfolio diversifiers and stabilizers as tech and equities slide and yields rise in bonds in August should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), given the fund’s performance month-to-date. While equities and bonds fell this month, the iMGP DBi Managed Futures Strategy ETF (DBMF) remained steady. DBMF is an actively managed fund that uses long and short positions within derivatives (mostly futures contracts) and forward contracts.
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Investors looking for portfolio diversifiers and stabilizers as tech and equities slide and yields rise in bonds in August should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), given the fund’s performance month-to-date. Microsoft (MSFT) also reported reduced revenue growth for the current quarter and slowing growth for three consecutive quarters. While equities and bonds fell this month, the iMGP DBi Managed Futures Strategy ETF (DBMF) remained steady.
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b673c1b3-211f-4ee5-86fe-d7ece853a34d
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14229.0
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2023-08-18 00:00:00 UTC
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1 Top Tech Stock to Buy During a Recession
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AAPL
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https://www.nasdaq.com/articles/1-top-tech-stock-to-buy-during-a-recession
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nan
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nan
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In order to curb soaring inflation, the Federal Reserve embarked on an aggressive path of raising interest rates that started in early 2022. The pace of rate hikes has been the fastest in history, and some market participants are still worried that a recession could be on the horizon, despite the resilient U.S. economy.
Unemployment is still low, inflation is cooling down, and the labor market is strong. But investors shouldn't rest on their laurels. The best course of action is to prepare for a negative scenario so that your portfolio can be properly positioned.
When looking at stocks to buy during a recession, the top priority should be financial strength. That's why Apple (NASDAQ: AAPL) is a no-brainer portfolio addition during economic downturns. Let's take a closer look at the top FAANG stock.
Apple's strong financial position
When you're considering which businesses to own during a recession, it's absolutely critical to consider financial strength. Apple is arguably in the best position of any corporation in the world in this regard. As of July 1, the company had a net cash position of $57 billion.
Moreover, the business produces ridiculous amounts of free cash flow (FCF), which essentially measures the amount of cash profits a company has left over after reinvesting for growth. In fiscal 2022 (ended Sept. 24, 2022), Apple generated $111 billion of FCF, with $90.6 billion produced through the first three quarters of fiscal 2023.
Why does this favorable financial position matter so much? Well, in a recession, capital markets typically tighten as lenders and investors operate with more rigid standards. And this makes it much more difficult to raise capital at attractive terms in order to fund a company's ongoing operations or growth investments.
Just look at Carvana, which has been dealing with a massive debt burden, forcing management to try and find ways to alleviate the problem. Even though it has restructured some of its debt, the company's long-term survival still isn't guaranteed.
Apple doesn't have to worry about borrowing more money from lenders or issuing new shares to equity investors because it has more existing capital than it knows what to do with. This is beneficial to shareholders because it means the business should have zero problems weathering any prolonged economic downturn.
The iPhone maker has the financial resources to not only survive but thrive. It will be able to play offense and invest in new initiatives, while struggling rivals won't be so fortunate.
Demand trends matter
Besides wanting to invest in companies that have strong balance sheets and the ability to generate copious amounts of FCF, investors are looking for durable demand. If the business sees customer interest in its products and services tank during a recession, then its revenue and earnings prospects will surely take a hit as well. Plus, resilient consumer demand means that investors don't have to waste one second figuring out what the economy is going to do next because the company should perform well regardless.
Skeptics could argue that Apple's expensive product offerings (an iPhone 14 Pro and MacBook Pro cost $1,000 or more, for example) will struggle to sell in a recession. That's a fair assessment, but it's worth pointing out that Apple posted double-digit revenue growth during the Great Financial Crisis more than a decade ago. And because Apple customers are generally more affluent than the average consumer, they're better equipped from a financial perspective to continue spending on tech products.
Additionally, Apple's strong brand will help power it through a recessionary period. It's such an obvious characteristic that it might get overlooked. But people will continue flocking to the newest hardware or software launches that Apple reveals each year and be willing to pay good money for them. This makes the stock a no-brainer buy during a recession.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's why Apple (NASDAQ: AAPL) is a no-brainer portfolio addition during economic downturns. In order to curb soaring inflation, the Federal Reserve embarked on an aggressive path of raising interest rates that started in early 2022. And this makes it much more difficult to raise capital at attractive terms in order to fund a company's ongoing operations or growth investments.
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That's why Apple (NASDAQ: AAPL) is a no-brainer portfolio addition during economic downturns. In fiscal 2022 (ended Sept. 24, 2022), Apple generated $111 billion of FCF, with $90.6 billion produced through the first three quarters of fiscal 2023. Plus, resilient consumer demand means that investors don't have to waste one second figuring out what the economy is going to do next because the company should perform well regardless.
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That's why Apple (NASDAQ: AAPL) is a no-brainer portfolio addition during economic downturns. Apple's strong financial position When you're considering which businesses to own during a recession, it's absolutely critical to consider financial strength. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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That's why Apple (NASDAQ: AAPL) is a no-brainer portfolio addition during economic downturns. Apple's strong financial position When you're considering which businesses to own during a recession, it's absolutely critical to consider financial strength. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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6c4da3f1-209f-4a59-816c-87b4e779765d
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14230.0
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2023-08-18 00:00:00 UTC
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After Hours Most Active for Aug 18, 2023 : MRCY, KMI, RLJ, CHK, EGHT, JNJ, AVPT, TSN, AAPL, PANW, D, WEAV
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-18-2023-%3A-mrcy-kmi-rlj-chk-eght-jnj-avpt-tsn-aapl-panw-d
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 7.39 to 14,702.23. The total After hours volume is currently 83,083,604 shares traded.
The following are the most active stocks for the after hours session:
Mercury Systems Inc (MRCY) is unchanged at $37.53, with 5,445,444 shares traded. As reported in the last short interest update the days to cover for MRCY is 7.126289; this calculation is based on the average trading volume of the stock.
Kinder Morgan, Inc. (KMI) is unchanged at $17.43, with 5,053,258 shares traded. KMI's current last sale is 87.15% of the target price of $20.
RLJ Lodging Trust (RLJ) is unchanged at $9.68, with 4,543,494 shares traded. RLJ's current last sale is 69.14% of the target price of $14.
Chesapeake Energy Corporation (CHK) is -0.53 at $85.40, with 4,494,552 shares traded. As reported in the last short interest update the days to cover for CHK is 7.882032; this calculation is based on the average trading volume of the stock.
8x8 Inc (EGHT) is unchanged at $3.50, with 4,404,392 shares traded. As reported in the last short interest update the days to cover for EGHT is 15.579868; this calculation is based on the average trading volume of the stock.
Johnson & Johnson (JNJ) is unchanged at $172.49, with 3,113,815 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.75. JNJ's current last sale is 93.74% of the target price of $184.
AvePoint, Inc. (AVPT) is unchanged at $6.64, with 2,325,912 shares traded. As reported in the last short interest update the days to cover for AVPT is 9.004902; this calculation is based on the average trading volume of the stock.
Tyson Foods, Inc. (TSN) is unchanged at $54.63, with 1,929,699 shares traded. TSN's current last sale is 104.06% of the target price of $52.5.
Apple Inc. (AAPL) is -0.04 at $174.45, with 1,872,104 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Palo Alto Networks, Inc. (PANW) is +18.81 at $228.50, with 1,733,847 shares traded. As reported by Zacks, the current mean recommendation for PANW is in the "buy range".
Dominion Energy, Inc. (D) is unchanged at $48.43, with 1,608,537 shares traded. D's current last sale is 87.26% of the target price of $55.5.
Weave Communications, Inc. (WEAV) is unchanged at $10.51, with 1,524,188 shares traded. As reported by Zacks, the current mean recommendation for WEAV is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.04 at $174.45, with 1,872,104 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for MRCY is 7.126289; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.04 at $174.45, with 1,872,104 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for MRCY is 7.126289; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.04 at $174.45, with 1,872,104 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for CHK is 7.882032; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.04 at $174.45, with 1,872,104 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,083,604 shares traded.
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0e1f3a4a-1ba0-46d0-85bf-43efe82abced
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14231.0
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2023-08-18 00:00:00 UTC
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S&P 500 ends near flat as energy, defensive sectors counter megacap declines
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AAPL
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https://www.nasdaq.com/articles/sp-500-ends-near-flat-as-energy-defensive-sectors-counter-megacap-declines
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nan
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nan
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By Saeed Azhar and Amruta Khandekar
NEW YORK, Aug 18 (Reuters) - The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell.
According to preliminary data, the S&P 500.SPX gained 0.24 points, or 0.01%, to end at 4,370.60 points, while the Nasdaq Composite .IXIC lost 25.81 points, or 0.19%, to 13,291.12. The Dow Jones Industrial Average .DJI rose 34.29 points, or 0.10%, to 34,510.38.
The CBOE volatility index .VIX hit its highest in nearly three months, reflecting rising investor anxiety.
Nvidia's shares fell but still notched a weekly gain. Nvidia has had a spectacular rally on expected growth in artificial intelligence, nearly tripling in value year to date.
Defensive sectors such as consumer staples .SPLRCS and utilities .SPLRCU rose, with gains in firms such as retailer Walmart WMT.N helping the Dow Jones Industrial Average .DJI.
The S&P 500 energy index .SPNYrose, with Exxon Mobil XOM.N among leading gainers.
The three main U.S. stock indexes posted sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields.
"We've long been overdue for a correction in equities, and it's clear that higher rates have now become the catalyst for that," said Michael Reynolds, vice president investment strategy
at investment and wealth advisory firm Glenmede.
"When the opportunity cost for capital becomes more competitive, valuations should correct on risk bearing assets, especially large cap equities which have been trading at significant premiums this year."
Benchmark 10-year U.S. Treasury yields dropped from 10-month highs after they approached - but failed to break through - levels that would have been the highest since 2007 on Thursday.
Traders see a nearly 91% chance of the Fed holding rates at current levels at its September meeting, according to the CME Group's FedWatch tool.
Hawaiian ElectricHE.Nshares surged after the utility firm said its goal was not to restructure the company.
Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru and Saeed Azhar in New York; Editing by Maju Samuel and David Gregorio)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Saeed Azhar and Amruta Khandekar NEW YORK, Aug 18 (Reuters) - The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The three main U.S. stock indexes posted sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields. "When the opportunity cost for capital becomes more competitive, valuations should correct on risk bearing assets, especially large cap equities which have been trading at significant premiums this year."
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By Saeed Azhar and Amruta Khandekar NEW YORK, Aug 18 (Reuters) - The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average .DJI rose 34.29 points, or 0.10%, to 34,510.38. Defensive sectors such as consumer staples .SPLRCS and utilities .SPLRCU rose, with gains in firms such as retailer Walmart WMT.N helping the Dow Jones Industrial Average .DJI.
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By Saeed Azhar and Amruta Khandekar NEW YORK, Aug 18 (Reuters) - The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The three main U.S. stock indexes posted sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields. Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70 (Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru and Saeed Azhar in New York; Editing by Maju Samuel and David Gregorio) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Saeed Azhar and Amruta Khandekar NEW YORK, Aug 18 (Reuters) - The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average .DJI rose 34.29 points, or 0.10%, to 34,510.38. Defensive sectors such as consumer staples .SPLRCS and utilities .SPLRCU rose, with gains in firms such as retailer Walmart WMT.N helping the Dow Jones Industrial Average .DJI.
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be41461b-786b-4974-b5b1-2311669e74e2
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14232.0
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2023-08-18 00:00:00 UTC
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Netflix Stock (NASDAQ:NFLX): The Growth Phase is Over. Time to Sell?
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AAPL
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https://www.nasdaq.com/articles/netflix-stock-nasdaq%3Anflx%3A-the-growth-phase-is-over.-time-to-sell
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nan
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nan
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Netflix's (NASDAQ:NFLX) growth phase has undoubtedly come to an end. Not too long ago, Netflix stood out as one of Nasdaq's (NDX) fastest-growing companies. Yet, the substantial surge in competition in recent years has flooded the SVOD/streaming sector, halting Netflix's once-unbridled growth trajectory. Despite the now-oversaturated SVOD industry looking increasingly worse, NFLX stock has rallied more than 67% over the past year. This could be a strong selling opportunity. Thus, I am bearish on NFLX stock.
Netflix's Growth Era is Likely Over
Netflix's era of growth was truly spectacular, with the company's competitive offering disrupting the much less convenient and value-for-money cable TV. Impressively, its compound annual revenue growth rate (CAGR) between 2010 and 2020 was 20.7% -- a massive rate to sustain over such a prolonged period. Even in subsequent years, particularly during the COVID-19 pandemic, Netflix grew swiftly, capitalizing on the constraints imposed on out-of-home entertainment and solidifying its status as an essential service.
Sadly, these days are now behind us. Not only has Netflix already captured a massive chunk of its addressable market, but the surge in competition over the past few years has completely blocked its growth prospects.
Giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), alongside numerous smaller players, have penetrated the market, prompting consumers to subscribe to multiple services. In the meantime, all services have been hiking their prices rapidly. How is this different from cable TV, excluding the on-demand element?
Therefore, it's no wonder that Netflix has an extremely hard time growing in the current market landscape. The consistent deceleration in revenue growth is proof of this. In its most recent Q2-2023 results, revenue growth came in at just 2.7%. This compares with 8.6%, 19.4%, 24.9%, and 26.0% achieved in equivalent periods of 2022, 2021, 2020, and 2019 respectively. The consistent year-to-year deceleration in revenue growth is unmistakable.
Based on the current trajectory, it looks like Netflix is likely to experience declining revenues sooner than later. Don't forget that Disney+'s (NYSE:DIS) subscribers have been declining as well, as they fell by 12 million to 146.1 million quarter-over-quarter, according to Disney's Fiscal Q3 report, coming in way below the forecast of 154.8 million. This clearly illustrates the ongoing market havoc in the streaming industry. Netflix may prove more resilient due to its long-standing brand and staple-like nature, but for how long?
Extended Rally Offers Opportunity for an Exit
Given the less-than-rosy outlook for the streaming industry, it might seem logical for investors to be hastily divesting from Netflix stock. While shares are certainly trading well below their peak pandemic levels, they have still managed to record an impressive rally of more than 70% over the past year. This resurgence likely owes itself to the Nasdaq's broader recovery during this period, alongside the fact that investors might be gravitating toward the one profitable streaming company among the junk.
This paradoxical event may offer investors a great opportunity to exit the stock, especially those who made some series gains during this rally. With growth having essentially ceased while the stock's valuation has once again ascended to astronomical heights, convincing reasons are not hard to come by. In particular, Netflix stock is currently trading at nearly 36 times this year's projected earnings. This multiple is utterly unjustifiable, with revenue growth down the drain and interest rates rising.
One could argue that investors are betting on earnings growth, but ultimately, this is highly speculative. If anything, a halt in revenue growth could compress margins against rising costs, leaving shareholders with a stagnated company that trades at a very premium valuation. This sounds like the perfect formula for a significant share price plunge. It certainly doesn't like the place I would want to have my money invested.
Is NFLX Stock a Buy, According to Analysts?
Wall Street seems to have a different view on Netflix, as the stock has attracted a Moderate Buy consensus rating based on 19 Buys, 13 Holds, and two Sells assigned in the past three months. At $466.39, the average Netflix stock forecast implies 15.1% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell NFLX stock, the most accurate analyst covering the stock (on a one-year timeframe) is Jason Helfstein from Oppenheimer, with an average return of 32.07% per rating and an 88% success rate. Click on the image below to learn more.
The Takeaway
Netflix's meteoric growth phase has undoubtedly concluded, marked by surging competition and a decelerating revenue trajectory. The streaming landscape, once ripe for disruption, has transformed into a crowded arena where established giants and nimble newcomers vie for subscribers' attention and dollars. While NFLX stock has displayed an unexpected rally, the underlying reality remains clear: the industry shift and valuation metrics are compelling signals for a prudent exit.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), alongside numerous smaller players, have penetrated the market, prompting consumers to subscribe to multiple services. Even in subsequent years, particularly during the COVID-19 pandemic, Netflix grew swiftly, capitalizing on the constraints imposed on out-of-home entertainment and solidifying its status as an essential service. The streaming landscape, once ripe for disruption, has transformed into a crowded arena where established giants and nimble newcomers vie for subscribers' attention and dollars.
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Giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), alongside numerous smaller players, have penetrated the market, prompting consumers to subscribe to multiple services. Netflix's (NASDAQ:NFLX) growth phase has undoubtedly come to an end. In particular, Netflix stock is currently trading at nearly 36 times this year's projected earnings.
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Giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), alongside numerous smaller players, have penetrated the market, prompting consumers to subscribe to multiple services. Netflix's Growth Era is Likely Over Netflix's era of growth was truly spectacular, with the company's competitive offering disrupting the much less convenient and value-for-money cable TV. Extended Rally Offers Opportunity for an Exit Given the less-than-rosy outlook for the streaming industry, it might seem logical for investors to be hastily divesting from Netflix stock.
|
Giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), alongside numerous smaller players, have penetrated the market, prompting consumers to subscribe to multiple services. Not too long ago, Netflix stood out as one of Nasdaq's (NDX) fastest-growing companies. Extended Rally Offers Opportunity for an Exit Given the less-than-rosy outlook for the streaming industry, it might seem logical for investors to be hastily divesting from Netflix stock.
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a149d5ec-c7f8-4179-a853-f92089713487
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14233.0
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2023-08-18 00:00:00 UTC
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US STOCKS-Wall St mixed as energy, defensive sectors counter megacap declines
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-mixed-as-energy-defensive-sectors-counter-megacap-declines
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nan
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nan
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By Amruta Khandekar and Saeed Azhar
Aug 18 (Reuters) - Wall Street's main indexes were mixed and close to unchanged on Friday as weakness in megacap growth stocks offset gains in defensive sectors and energy, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell.
Megacap technology-related growth stocks dipped, with Alphabet GOOGL.O down 2.1% and Tesla TSLA.O off 1.8%, as investors fretted that interest rates could stay higher for longer.
The S&P 500 communication services .SPLRCLindex fell 1.2%, the deepest decline among 11 sector indexes.
Defensive plays such as consumer staples .SPLRCS and utilities .SPLRCU kept losses in check, with gains in firms such as retailer Walmart WMT.N helping keep the Dow Jones Industrial Average .DJI afloat.
The S&P 500 energy index .SPNYrose 0.7%, with Exxon Mobil XOM.N climbing 1.3%.
The S&P 500 was down 0.09% at 4,366.49 points.
The Nasdaq declined 0.24% to 13,285.04 points, while the Dow was up 0.01% at 34,477.17 points.
The three main U.S. stock indexes are on track for sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields.
"We've long been overdue for a correction in equities, and it's clear that higher rates have now become the catalyst for that," said Michael Reynolds, vice president investment strategy
at investment and wealth advisory firm Glenmede.
"When the opportunity cost for capital becomes more competitive, valuations should correct on risk bearing assets, especially large cap equities which have been trading at significant premiums this year."
Benchmark 10-year U.S. Treasury yields dropped from 10-month highs after they approached - but failed to break through - levels that would have been the highest since 2007 on Thursday. US/
Traders see a nearly 91% chance of the Fed holding rates at current levels at its September meeting, according to the CME Group's FedWatch tool.
The CBOE volatility index .VIX hit its highest in nearly three months, reflecting rising investor anxiety.
Hawaiian ElectricHE.Nshares jumped 13% after the utility firm said its goal was not to restructure the company.
Advancing issues outnumbered declining ones on the NYSE by a 1.25-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and 17 new lows; the Nasdaq Composite recorded 18 new highs and 211 new lows.
Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru and Saeed Azhar in New York; Editing by Maju Samuel and David Gregorio)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Saeed Azhar Aug 18 (Reuters) - Wall Street's main indexes were mixed and close to unchanged on Friday as weakness in megacap growth stocks offset gains in defensive sectors and energy, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. Defensive plays such as consumer staples .SPLRCS and utilities .SPLRCU kept losses in check, with gains in firms such as retailer Walmart WMT.N helping keep the Dow Jones Industrial Average .DJI afloat. The three main U.S. stock indexes are on track for sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields.
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By Amruta Khandekar and Saeed Azhar Aug 18 (Reuters) - Wall Street's main indexes were mixed and close to unchanged on Friday as weakness in megacap growth stocks offset gains in defensive sectors and energy, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The three main U.S. stock indexes are on track for sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields. Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70 (Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru and Saeed Azhar in New York; Editing by Maju Samuel and David Gregorio) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Saeed Azhar Aug 18 (Reuters) - Wall Street's main indexes were mixed and close to unchanged on Friday as weakness in megacap growth stocks offset gains in defensive sectors and energy, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The three main U.S. stock indexes are on track for sharp weekly losses after a spate of strong economic data caused investors to dial back expectations of rate cuts and drove up government bond yields. Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70 (Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru and Saeed Azhar in New York; Editing by Maju Samuel and David Gregorio) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar and Saeed Azhar Aug 18 (Reuters) - Wall Street's main indexes were mixed and close to unchanged on Friday as weakness in megacap growth stocks offset gains in defensive sectors and energy, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell. The S&P 500 communication services .SPLRCLindex fell 1.2%, the deepest decline among 11 sector indexes. Defensive plays such as consumer staples .SPLRCS and utilities .SPLRCU kept losses in check, with gains in firms such as retailer Walmart WMT.N helping keep the Dow Jones Industrial Average .DJI afloat.
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14234.0
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2023-08-18 00:00:00 UTC
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4 Sectors Warren Buffett Binges On: ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/4-sectors-warren-buffett-binges-on%3A-etfs-in-focus
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nan
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nan
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Billionaire investor Warren Buffett is known for his value investing style. Many want to mirror the legend’s investing strategy and emerge a winner. Buffett’s company Berkshire Hathaway’s latest 13-F filing showed that Berkshire’s $348 billion portfolio was invested in 48 companies in the second quarter of 2023. Berkshire was a net seller of about $8 billion in stocks during the quarter.
The top 5 holdings make up about 79% of the total portfolio. These five stocks are Apple AAPL, Bank of America BAC, American Express AXP, Coca-Cola KO, and Chevron CVX. Apart from these, Berkshire has significant weights in Occidental Petroleum OXY and Kraft Heinz KHC.
With this, Buffett’s portfolio is heavy on the below-mentioned sectors and ETFs. Let’s delve a little deeper.
Information Technology
Berkshire Hathaway has 51% of weights in Apple. Apple shares have been performing better than the industry year to date. It is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.
Apple’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. Apple-heavy ETF iShares U.S. Technology ETF IYW has a Zacks Rank #1 (Strong Buy).
Financials
Buffett’s favorite America Express (with 7.59% exposure) has exposure to ETFMG Prime Mobile Payments Fund IPAY while Bank of America (Berkshire has 8.51% weights in BAC) is heavy on the likes of iShares U.S. Financial Services ETF IYG.
Digital payments have been in the front and center of consumer behavior lately. Apart from showing an increased interest in online shopping, customers are resorting to digital payments to clear their bills. Even, merchants and utility providers are increasingly advocating the same. This explains Buffett’s interest in this field.
As far as banking stocks are concerned, though flattening yield curve could spell trouble to banking stocks, big banks still have strength. Higher rates and decent loan demand will aid net interest income (NII). The opening of financial centers and improving digital capabilities will likely bolster the top line.
Energy
Berkshire invests 3.78% weights in Occidental Petroleum and 5.56% weights in Chevron. Chevron is heavy on energy ETFs like Energy Select Sector SPDR Fund XLE and iShares U.S. Energy ETF IYE. Occidental Petroleum has focus on First Trust Nasdaq Oil & Gas ETF FTXN.
Operating backdrop for the energy sector is also upbeat. Chances of a recession in several economies is also lower (which indicates decent demand for energy), though a soft landing is expected in many geographies.
Consumer Staples
This is a safe sector as it is non-cyclical in nature. The consumer staples sector tends to do well even amid economic growth slowdown and high inflation. Since consumers have to buy staples products even if they cut back on their discretionary spending, big manufacturers of food and beverages normally have the power to pass on the increase in costs to customers.
Buffett’s favorite Coca-Cola has substantial weight in ETFs like iShares U.S. Consumer Staples ETF (IYK). Kraft Heinz has a focus on Invesco Dynamic Food & Beverage ETF (PBJ).
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Kraft Heinz Company (KHC) : Free Stock Analysis Report
iShares U.S. Energy ETF (IYE): ETF Research Reports
iShares U.S. Financial Services ETF (IYG): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports
First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These five stocks are Apple AAPL, Bank of America BAC, American Express AXP, Coca-Cola KO, and Chevron CVX. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports iShares U.S. Financial Services ETF (IYG): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports To read this article on Zacks.com click here. Apple’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports iShares U.S. Financial Services ETF (IYG): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports To read this article on Zacks.com click here. These five stocks are Apple AAPL, Bank of America BAC, American Express AXP, Coca-Cola KO, and Chevron CVX. Financials Buffett’s favorite America Express (with 7.59% exposure) has exposure to ETFMG Prime Mobile Payments Fund IPAY while Bank of America (Berkshire has 8.51% weights in BAC) is heavy on the likes of iShares U.S. Financial Services ETF IYG.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports iShares U.S. Financial Services ETF (IYG): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports To read this article on Zacks.com click here. These five stocks are Apple AAPL, Bank of America BAC, American Express AXP, Coca-Cola KO, and Chevron CVX. Financials Buffett’s favorite America Express (with 7.59% exposure) has exposure to ETFMG Prime Mobile Payments Fund IPAY while Bank of America (Berkshire has 8.51% weights in BAC) is heavy on the likes of iShares U.S. Financial Services ETF IYG.
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These five stocks are Apple AAPL, Bank of America BAC, American Express AXP, Coca-Cola KO, and Chevron CVX. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Kraft Heinz Company (KHC) : Free Stock Analysis Report iShares U.S. Energy ETF (IYE): ETF Research Reports iShares U.S. Financial Services ETF (IYG): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports First Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research Reports To read this article on Zacks.com click here. Energy Berkshire invests 3.78% weights in Occidental Petroleum and 5.56% weights in Chevron.
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4fe1b8a9-9f59-4371-bc60-3a9cac87acd1
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14235.0
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2023-08-18 00:00:00 UTC
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Top Stock Reports for Apple, NVIDIA & Bank of America
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AAPL
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https://www.nasdaq.com/articles/top-stock-reports-for-apple-nvidia-bank-of-america
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nan
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nan
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Friday, August 18, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have struggled lately, with the stock losing losing -11.6% of its value since the start of August, lagging the Zacks Tech sector's -7.3% decline and the S&P 500 index's -4.6% pullback. This recent weakness notwithstanding, the stock has been a standout performer this year, handily outperforming the Tech sector as well as the broader market.
The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services’ year-over-year growth to accelerate in fiscal fourth-quarter as compared with the June quarter.
However, revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt top-line.
(You can read the full research report on Apple here >>>)
As is the case with Apple, NVIDIA shares have struggled lately as well, with the stock lagging the Tech sector as well as the S&P 500 index this month (-9.4% vs. -7.3% for the Tech sector & -4.6% for the index). That said, Nvidia's performance this year is one for the record books, with the stock up +192.9% this year vs. +32.7% for the Tech sector and +15.2% for the market.
Nvidia has literally been in a league of its own since its last quarterly release on May 24th when it raised guidance by a magnitude that we have never seen from another company. With the company on deck to report results on Wednesday, August 23rd, it is under the spotlight as to whether the preceding quarter's numbers were a one-off or the start of a sustained period of outperformance.
The company is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space.
However, NVDA’s near-term prospects look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past six months (-10.9% vs. -15.9%). The tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
Nevertheless, Higher interest rates and decent loan demand will likely keep aiding the company’s net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), NIKE, Inc. (NKE) and Prologis, Inc. (PLD).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Rate Hikes Aid Bank of America (BAC) Amid Market Volatility
Featured Reports
Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.
Improved Traffic & Digital Trends Aid NIKE (NKE) Direct
Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Gains in Digital business are also aiding growth at NIKE Direct
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, the fast adoption of e-commerce and high inventory levels will drive demand for Prologis' facilities in key markets. Rising supply and high interest rates are worrisome.
Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.
Sun Life Financial (SLF) Set to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set for grow on the strength of its Asia business that are expected to provide higher return and growth as well as expanding global asset management business.
Yum China (YUMC) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Yum China's focus on digital enhancements, logistics center openings and supply-chain security bode well. However, wage inflation is a concern.
Paramount Global (PARA) Banks on Paramount+, Streaming Portfolio
Per the Zacks analyst, Paramount is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV
New Upgrades
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea face disruption. The company's progress with the oncology portfolio & other candidates is also impressive
Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst thinks Diamondback Energy's extremely low breakeven oil prices, which require the commodity to trade for just $50 per barrel in order for the business to turn a profit.
Air Transport Services (ATSG) Soars on Freighter Demand
Air Transport Services is benefiting from an upbeat demand for mid-size air freighters. The Zacks analyst believes that the demand uptick is attributable to e-commerce growth.
New Downgrades
High Debt & Expenses Ail Canadian Pacific Kansas City (CP)
The Zacks analyst is worried about escalating operating expenses. Also, Canadian Pacific Kansas City's liquidity position is concerning.
Lower Construction Activities to Hurt Westlake (WLK)
Per the Zacks analyst, softer construction and industrial activities will continue to put pressure on Westlake's PVC resin, caustic soda and epoxy sales.
Lower COVID Sales Hurt Thermo Fisher (TMO), Forex Woes Ail
Per Zacks analyst, Thermo Fisher is experiencing a continuous decline in COVID testing-related demand and is expected to continue at much lower levels in 2023. Foreign exchange woes remain a concern.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14236.0
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2023-08-18 00:00:00 UTC
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US STOCKS-Wall St slides as megacap growth stocks drag on rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-megacap-growth-stocks-drag-on-rate-jitters
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nan
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nan
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By Amruta Khandekar
Aug 18 (Reuters) - Wall Street's main indexes fell on Friday, extending declines to the fourth session on a drag from megacap growth stocks, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer.
The three main U.S. stock indexes are on track for sharp weekly losses as a spate of strong economic data, including a fall in weekly jobless claims, caused investors to dial back expectations of rate cuts and drove up government bond yields.
The yield on the 10-year Treasury note US10YT=RR hit a ten-month high of 4.328% in the previous session and came within a whisker of its highest level since 2007. US/
"The drivers really have been of late the rising Treasury yields and that is signaling a more risk-off investor sentiment," said Art Hogan, chief market strategist at B Riley Wealth.
"Investors are looking at (better-than-expected economic data) and saying the Fed likely isn't restrictive enough yet."
Traders see a nearly 91% chance of the Fed holding rates at current levels at its September meeting, according to the CME Group's FedWatch tool.
On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.Oand Nvidia NVDA.O slipped between 0.7%and 2.8% even as Treasury yields took a breather.
The communication services .SPLRCL and technology .SPLRCT sectors housing major growth stocks fell 1.6% and 1.0% respectively.
The CBOE volatility index .VIX hit its highest in nearly three months, reflecting rising investor anxiety.
Risk sentiment has also been hurt in recent days by China's sluggish economic recovery and growing concerns about its property market. U.S.-listed shares of Chinese companies JD.Com JD.O and Alibaba Group BABA.N fell 5.1% and 3.5%, respectively.
Among major movers of the day, Estee LauderEL.N lost 3.2% after the cosmetics maker forecast its annual net sales and profit below Street estimates.
Applied Materials AMAT.O rose 1.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates.
With no major economic data due on Friday, focus will now shift to Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium next week as well as earnings from chip designer Nvidia NVDA.O.
At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was down 45.21 points, or 0.13%, at 34,429.62, the S&P 500 .SPX was down 18.06 points, or 0.41%, at 4,352.30, and the Nasdaq Composite .IXIC was down 118.29 points, or 0.89%, at 13,198.64.
Hawaiian ElectricHE.Nshares jumped 6.6% after the utility firm sought expert advice amid growing scrutiny over its role in the Maui wildfires, but said that its goal was not to restructure the company.
Declining issues outnumbered advancers for a 1.08-to-1 ratio on the NYSE and for a 1.00-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 17 new lows, while the Nasdaq recorded 10 new highs and 146 new lows.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.Oand Nvidia NVDA.O slipped between 0.7%and 2.8% even as Treasury yields took a breather. By Amruta Khandekar Aug 18 (Reuters) - Wall Street's main indexes fell on Friday, extending declines to the fourth session on a drag from megacap growth stocks, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer. US/ "The drivers really have been of late the rising Treasury yields and that is signaling a more risk-off investor sentiment," said Art Hogan, chief market strategist at B Riley Wealth.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.Oand Nvidia NVDA.O slipped between 0.7%and 2.8% even as Treasury yields took a breather. By Amruta Khandekar Aug 18 (Reuters) - Wall Street's main indexes fell on Friday, extending declines to the fourth session on a drag from megacap growth stocks, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer. The communication services .SPLRCL and technology .SPLRCT sectors housing major growth stocks fell 1.6% and 1.0% respectively.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.Oand Nvidia NVDA.O slipped between 0.7%and 2.8% even as Treasury yields took a breather. By Amruta Khandekar Aug 18 (Reuters) - Wall Street's main indexes fell on Friday, extending declines to the fourth session on a drag from megacap growth stocks, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer. The three main U.S. stock indexes are on track for sharp weekly losses as a spate of strong economic data, including a fall in weekly jobless claims, caused investors to dial back expectations of rate cuts and drove up government bond yields.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.Oand Nvidia NVDA.O slipped between 0.7%and 2.8% even as Treasury yields took a breather. The yield on the 10-year Treasury note US10YT=RR hit a ten-month high of 4.328% in the previous session and came within a whisker of its highest level since 2007. US/ "The drivers really have been of late the rising Treasury yields and that is signaling a more risk-off investor sentiment," said Art Hogan, chief market strategist at B Riley Wealth.
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e081dd4d-bc23-4cc6-97be-ab702a7da87d
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14237.0
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2023-08-18 00:00:00 UTC
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1.4 Trillion Reasons to Like PayPal Stock
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AAPL
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https://www.nasdaq.com/articles/1.4-trillion-reasons-to-like-paypal-stock
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nan
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nan
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During the second quarter, PayPal (NASDAQ: PYPL) reported revenue of $7.3 billion and adjusted earnings per share of $1.16, both of which exceeded Wall Street estimates. The stock hasn't performed well, though, and it's down 19% since the earnings announcement and 42% in the past 12 months.
Investors are probably concerned that this fintech company isn't producing double-digit top-line growth anymore, especially after the monster gains of the past several years. However, there are still 1.4 trillion reasons to like the stock.
Let's take a closer look at one key metric PayPal shareholders need to know about.
A large and growing network
In Q2, the business processed $377 billion in total payment volume (TPV), up 11% year over year and almost triple the amount from five years ago in the second quarter of 2018. In the past 12 months, PayPal handled a whopping $1.4 trillion in volume. Because it generates fees on the activity on its platform, the higher TPV goes, the better it is for the company and its ability to generate revenue.
For comparison's sake, Visa, Mastercard, and American Express, which operate different business models than PayPal, processed $3.2 trillion, $2.3 trillion, and $427 billion in payment volume, respectively, in the three-month period ended June 30.
But while those businesses focus mainly on debit and credit cards, PayPal is a business that continues to be an important player specifically in the digital payments landscape. It's a seamless checkout option that's trusted all over the world, so the company's platform will benefit from the ongoing growth of online shopping. In fact, PayPal's digital wallet is accepted at 79% of the top 1,500 retailers in North America and Europe, well ahead of Apple Pay, which is in second place.
And on the unbranded side, PayPal's Braintree service is registering tremendous growth, with TPV up 30% year over year in the first half of 2023. It commands a leading share of 41% in the online payment processing market.
It's encouraging to see that TPV continues increasing at a healthy clip, especially when you consider that PayPal's active account base shrank from 433 million during the first quarter this year to 431 million in the latest period. Dan Schulman, the departing chief executive officer who will be replaced by Alex Chriss from Intuit, has emphasized trying to get PayPal's existing users to transact more, as opposed to focusing entirely on account growth. The strategy is working, as transactions per active account rose 12% to 54.7 in Q2.
That's a possibly more lucrative strategy, because chances are that it's far more expensive to bring on a new customer than it is to find ways to incentivize an existing account to direct more of its spending and payments activity to PayPal's platform. This could be playing out right in front of our eyes, as sales and marketing expenses declined 24% year over year in the most recent quarter.
Is the stock a buy?
PayPal is in a position to gain once the macroeconomic picture improves and discretionary spending picks up again, but is that enough of a reason to buy the stock right now? The company is definitely a leader in the electronic payments industry, which is a powerful secular trend playing out across the global economy. PayPal is also profitable from a free-cash-flow perspective, which can't be said about a lot of fintech stocks. Additionally, shares trade at just 12 times forward earnings per share, creating added upside for investors.
But there are also risks, particularly in regard to the CEO change. A new leader is always cause for concern because it could have a major impact on PayPal's culture and strategic direction. Moreover, company profitability could be under pressure as a result of the growth of Braintree because this segment carries lower margins than the flagship PayPal branded checkout service.
Investors have to decide if the positive factors warrant buying the stock today.
10 stocks we like better than PayPal
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intuit, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short September 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dan Schulman, the departing chief executive officer who will be replaced by Alex Chriss from Intuit, has emphasized trying to get PayPal's existing users to transact more, as opposed to focusing entirely on account growth. That's a possibly more lucrative strategy, because chances are that it's far more expensive to bring on a new customer than it is to find ways to incentivize an existing account to direct more of its spending and payments activity to PayPal's platform. Moreover, company profitability could be under pressure as a result of the growth of Braintree because this segment carries lower margins than the flagship PayPal branded checkout service.
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For comparison's sake, Visa, Mastercard, and American Express, which operate different business models than PayPal, processed $3.2 trillion, $2.3 trillion, and $427 billion in payment volume, respectively, in the three-month period ended June 30. The Motley Fool has positions in and recommends Apple, Intuit, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short September 2023 $67.50 puts on PayPal.
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For comparison's sake, Visa, Mastercard, and American Express, which operate different business models than PayPal, processed $3.2 trillion, $2.3 trillion, and $427 billion in payment volume, respectively, in the three-month period ended June 30. 10 stocks we like better than PayPal When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of August 14, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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A large and growing network In Q2, the business processed $377 billion in total payment volume (TPV), up 11% year over year and almost triple the amount from five years ago in the second quarter of 2018. The strategy is working, as transactions per active account rose 12% to 54.7 in Q2. The Motley Fool has positions in and recommends Apple, Intuit, Mastercard, PayPal, and Visa.
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a3b30268-fb21-46c7-890e-c67c5619db0c
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14238.0
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2023-08-18 00:00:00 UTC
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US STOCKS-Wall St eyes lower open on jitters over higher-for-longer rates
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-on-jitters-over-higher-for-longer-rates
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 18 (Reuters) - Wall Street was set to open lower on Friday after a three-day selloff, with megacap growth stocks among lead decliners, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer.
The three main U.S. stock indexes have shed over 2% each this week after a spate of strong economic data, including a fall in weekly jobless claims, caused investors to dial back expectations of rate cuts and drove up government bond yields.
The yield on the 10-year Treasury note US10YT=RR hit a ten-month high of 4.328% in the previous session and came within a whisker of its highest level since 2007. US/
"The drivers really have been of late the rising Treasury yields and that is signaling a more risk-off investor sentiment," said Art Hogan, chief market strategist at B Riley Wealth.
"Investors are looking at (better-than-expected economic data) and saying the Fed likely isn't restrictive enough yet."
Traders see a nearly 91% chance of the Fed holding rates at current levels at its September meeting, according to the CME Group's Fedwatch tool.
On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O slipped between 1% and 2.6% in premarket trade even as Treasury yields took a breather.
The tech-heavy Nasdaq .IXIC had closed at a two-month low in the previous session.
Risk sentiment has also been hurt in recent days by China's sluggish economic recovery and growing concerns about its property market. U.S.-listed shares of Chinese companies JD.Com JD.O and Alibaba Group BABA.N fell 4.7% and 3.3% respectively.
Among major movers of the day, Applied Materials AMAT.O rose 0.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates and posted better-than-expected third-quarter earnings.
Estee LauderEL.N lost 7.0% after the cosmetics maker forecast its annual net sales and profit below Street estimates.
With no major economic data due on Friday, focus will now shift to Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium next week.
Earnings from chip designer Nvidia NVDA.O, which have rallied this year on enthusiasm around artificial intelligence, will also grab the spotlight in the coming days.
At 8:25 a.m. ET, Dow e-minis 1YMcv1 were down 173 points, or 0.5%, S&P 500 e-minis EScv1 were down 27.5 points, or 0.63%, and Nasdaq 100 e-minis NQcv1 were down 137.75 points, or 0.93%.
Shares of Keysight Technologies KEYS.N dropped 12.1% on the electronic equipment maker's downbeat fourth-quarter forecast.
Hawaiian ElectricHE.Nshares jumped 17.6% after the utility firm sought expert advice amid growing scrutiny over its role in the Maui wildfires, but said that its goal was not to restructure the company.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Bitfarms BITF.O and Riot Platforms Inc RIOT.O fell between 4% and 6% in premarket trading as bitcoin hit a fresh two-month low.
Major S&P 500 sectors decline this week https://tmsnrt.rs/3qAkW70
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O slipped between 1% and 2.6% in premarket trade even as Treasury yields took a breather. By Amruta Khandekar and Shristi Achar A Aug 18 (Reuters) - Wall Street was set to open lower on Friday after a three-day selloff, with megacap growth stocks among lead decliners, as evidence of a resilient U.S. economy fanned fears of interest rates staying higher for longer. Among major movers of the day, Applied Materials AMAT.O rose 0.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates and posted better-than-expected third-quarter earnings.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O slipped between 1% and 2.6% in premarket trade even as Treasury yields took a breather. Among major movers of the day, Applied Materials AMAT.O rose 0.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates and posted better-than-expected third-quarter earnings. Shares of Keysight Technologies KEYS.N dropped 12.1% on the electronic equipment maker's downbeat fourth-quarter forecast.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O slipped between 1% and 2.6% in premarket trade even as Treasury yields took a breather. The three main U.S. stock indexes have shed over 2% each this week after a spate of strong economic data, including a fall in weekly jobless claims, caused investors to dial back expectations of rate cuts and drove up government bond yields. Among major movers of the day, Applied Materials AMAT.O rose 0.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates and posted better-than-expected third-quarter earnings.
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On Friday, rate-sensitive big technology and growth stocks such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O slipped between 1% and 2.6% in premarket trade even as Treasury yields took a breather. Among major movers of the day, Applied Materials AMAT.O rose 0.5% after the chip equipment maker forecast fourth-quarter profit above analysts' estimates and posted better-than-expected third-quarter earnings. Shares of cryptocurrency firms such as Coinbase Global COIN.O, Bitfarms BITF.O and Riot Platforms Inc RIOT.O fell between 4% and 6% in premarket trading as bitcoin hit a fresh two-month low.
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2bdf7ef1-1c97-4350-a170-3b461d4fdc6d
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14239.0
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2023-08-18 00:00:00 UTC
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3 Top Tech Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-right-now-12
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nan
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nan
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With earnings season in full swing, many stocks are on the move. Macroeconomic headwinds have continued to plague companies in the tech industry this past quarter that otherwise have solid long-term outlooks. As a result, now is an excellent time to fill your portfolio with tech stocks that could offer massive gains once the market fully recovers.
Companies that are leading in industries such as artificial intelligence (AI), cloud computing, and e-commerce have vast potential in the coming years. These are some of the hottest sectors in 2023, making their stocks attractive investments. Here are three top tech stocks to buy right now.
1. Apple
Since the start of 2023, Apple's (NASDAQ: AAPL) stock has been on an upward trajectory, resulting in new all-time highs and an increase of 38% year to date. Yet so far in August, its share price has dipped roughly 10%, from $196 at the start of the month to around $177 today.
The price drop came after the company announced its financial results for the third quarter of 2023, which revealed revenue declines across its product segments. Despite the losses, though, earnings were better than expected.
Apple also warned that it expects sales to be down in Q4 2023. If the prediction holds up, that would make it four quarters in a row of declining sales.
The market's reaction to Apple's falling sales has been swift, but its long-term growth history suggests it could be an overreaction. The future remains bright for the company. Its services segment continues to rise quickly, there's incredible growth potential for next year's Apple Vision Pro, and it's also developing a position in artificial intelligence (AI).
This could be the best time to buy Apple stock since the start of summer, the last time it was trading in the $170-$180 range.
2. Amazon
Amazon (NASDAQ: AMZN) shares have climbed 5% since the company released earnings on Aug. 2. The retail giant revealed significant improvements in its e-commerce business, with its North American segment hitting over $3 billion in operating income after reporting negative $627 million a year ago.
Despite the rally, Amazon shares remain down roughly 28% from the all-time high they achieved in July 2021. The difference indicates there's still plenty of growth potential for the e-commerce company's stock.
Moreover, Amazon has made a massive push into AI this year, a market projected to expand at a compound annual growth rate of 37% through 2030. In June, the company unveiled several new AI tools on its cloud platform, Amazon Web Services. Then in July, Amazon announced it had developed two new AI chips, diversifying its position in the high-growth sector and going up against chipmakers like Nvidia.
A quickly recovering e-commerce business and growing role in AI give Amazon immense potential over the long term. The company's stock price is still significantly down from its high, so there's no better time to invest in this tech giant.
3. Intel
Overall, it's been an excellent year for Intel (NASDAQ: INTC) stockholders. The company's stock price is up 27% since January. And more recently the company has started to turn its business around.
Intel has struggled in recent years. Apple, previously the company's single largest customer, started making its own processors for its Mac lineup in 2020. Meanwhile, Intel's biggest x86 processor competitor, Advanced Micro Devices, grew its market share from just under 10% in 2018 to over 30% by the end of 2022. Almost all of that came from Intel's slice of the pie.
Consequently, Intel's stock is down nearly 30% in the last five years, even when accounting for its gains in 2023.
However, in its Q2 2023 earnings report, Intel announced a return to profitability and a stronger-than-expected forecast. Both of these bode well for the company's long-term outlook and continuing recovery in the coming years.
Intel's price-to-earnings (P/E) ratio of around 16 is significantly undervalued, compared to competitors like AMD's P/E of 484 and Nvidia's P/E of 226. If Intel's turnaround continues on its current trajectory, it could be one of the better tech stocks to buy right now.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Since the start of 2023, Apple's (NASDAQ: AAPL) stock has been on an upward trajectory, resulting in new all-time highs and an increase of 38% year to date. As a result, now is an excellent time to fill your portfolio with tech stocks that could offer massive gains once the market fully recovers. Its services segment continues to rise quickly, there's incredible growth potential for next year's Apple Vision Pro, and it's also developing a position in artificial intelligence (AI).
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Apple Since the start of 2023, Apple's (NASDAQ: AAPL) stock has been on an upward trajectory, resulting in new all-time highs and an increase of 38% year to date. Meanwhile, Intel's biggest x86 processor competitor, Advanced Micro Devices, grew its market share from just under 10% in 2018 to over 30% by the end of 2022. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, and Nvidia.
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Apple Since the start of 2023, Apple's (NASDAQ: AAPL) stock has been on an upward trajectory, resulting in new all-time highs and an increase of 38% year to date. See the 10 stocks *Stock Advisor returns as of August 14, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Apple Since the start of 2023, Apple's (NASDAQ: AAPL) stock has been on an upward trajectory, resulting in new all-time highs and an increase of 38% year to date. Despite the losses, though, earnings were better than expected. The company's stock price is still significantly down from its high, so there's no better time to invest in this tech giant.
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b8d26646-b578-4ddb-b60b-28f691127c99
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14240.0
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2023-08-18 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-9
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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e14ba96f-00c5-4f74-8722-94a408a52571
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14241.0
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2023-08-18 00:00:00 UTC
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3 Computer Stocks To Buy On The PC Pullback
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AAPL
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https://www.nasdaq.com/articles/3-computer-stocks-to-buy-on-the-pc-pullback
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nan
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nan
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The technology industry has seen its fair share of up and down this year, with companies like NVIDIA (NASDAQ: NVDA) swinging for a near tripling and other giant names like Apple (NASDAQ: AAPL) beginning to show double-digit pullbacks recently. As always, specific trends and pivots within the industry drive these price behaviors.
According to July's ISM manufacturing PMI report, the computer industry has been in a bit of a contraction lately, as respondents within the report pointed out that customers are "... reducing or not placing orders as forecast." a trend that was experienced in Apple's very own PC department.
Some less popular names in the industry are worth looking at, especially on forecasted price pullbacks from current resistance levels, a simple strategy enabling investors to catch high-quality names at reasonable prices right as the underlying industry begins to bottom out.
Hewlett Packard
Markets have been excited about one segment within a tried-and-tested industry name. Hewlett Packard Enterprise (NYSE: HPE) has some favorable tailwinds that can push the stock higher before the year ends. Considering that a good % of revenue, 18%, comes from the 'Intelligent Edge' segment, it would be beneficial to look at its trends.
According to the company's latest quarterly results, this segment grew by 56% over the year, pushed by trends in 'return to office' and back to school. Demand for this segment is rising, as it mainly provides network systems, namely Local Area Networks (LAN).
Another competing segment is the 'Computing' side of the business, which contracted by 3% as most of the market share went directly to names like NVIDIA. Analyst ratings suggested a 4.5% downside to the stock, perhaps driven by the will take for demand to hit coupled with current technical patterns.
Looking at Hewlett's chart, it will become evident that the current prices are facing strong resistance at $17.75 to $18.25 per share. Breaking past these levels won't be likely, considering earnings will be announced soon on August 29, and markets expect a slowdown, as the PMI report suggests.
The best thing investors can do is await the coming earnings announcement and consider purchase levels at the proximate support, which in this case happens to be the $12.50 to $13.50 range.
Once orders in the industry inevitably bottom and those overvalued names begin to fall, investors will have the chance to own this stock at the best possible price, considering it would be lower than today's already cheap forward P/E of 8.3x relative to the industry's 22.5x average.
HP
As a company that mainly derives its revenues from selling personal computers and accessories, it is no surprise that analyst ratings point to a net 6.7% downside in HP (NYSE: HPQ) stock today. However, the story begins to rhyme as investors have a chance to piece together one market-beating game plan around the name.
Despite posting massively positive second quarter 2023 earnings, where the company beat earnings per share guidance by more than double, markets don't seem too excited about the next quarter, due to be announced by August 29.
Considering that markets are only expecting a 6.3% growth in EPS for 2024, which is significantly inferior to the industry's average of 21.4%, it makes sense why this name will likely see a pullback upon announcing its subsequent earnings.
However, as demand inevitably comes around, sentiment will change, allowing investors to scoop one of America's most prominent computer names at fire sale prices. Again, a massively undervalued 9.0x forward P/E next to an industry average of 22.5x.
International Business Machines
While not as exposed to the PC market, International Business Machines (NYSE: IBM) suffers from a similar computing and software trend. Software revenue rose by 7% over the past year, while Infrastructure revenue declined by as much as 15% during the same period.
These results from the second quarter of 2023 will paint a reliable picture of the future. As long as NVIDIA keeps dominating the computing and infrastructure markets, all of these names will fall into the 'unpopular' list of needs.
However, this dark, cold corner of the markets is where value investors always thrive by purchasing high-quality assets that everyone else seems to be ignoring. So when it comes to October 25, IBM is expected to report a similar slowdown in its quarterly earnings, giving investors a better price to consider buying.
Considering IBM's chart, investors can see the level of resistance currently being encountered, a rejection and pullback that can be brought on by markets ignoring this titan of industry. A $145 to $150 per share buy for a breakout can be easily replaced for a $115 to $120 resistance buy for an upswing.
How can investors feel secure that there will be a pullback? Consider the EPS expected growth rate in 2024 of 4.3%, falling below the industry's 21.4% average. Money likes growth, and as long as IBM keeps posting its reliable double-digit advances in all the unpopular segments, markets won't see it as a famous name.
Again, value investors can thrive and acquire a market-beating asset at attractive valuations once the pullback is ignited by ignorance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The technology industry has seen its fair share of up and down this year, with companies like NVIDIA (NASDAQ: NVDA) swinging for a near tripling and other giant names like Apple (NASDAQ: AAPL) beginning to show double-digit pullbacks recently. As a company that mainly derives its revenues from selling personal computers and accessories, it is no surprise that analyst ratings point to a net 6.7% downside in HP (NYSE: HPQ) stock today. Considering that markets are only expecting a 6.3% growth in EPS for 2024, which is significantly inferior to the industry's average of 21.4%, it makes sense why this name will likely see a pullback upon announcing its subsequent earnings.
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The technology industry has seen its fair share of up and down this year, with companies like NVIDIA (NASDAQ: NVDA) swinging for a near tripling and other giant names like Apple (NASDAQ: AAPL) beginning to show double-digit pullbacks recently. Some less popular names in the industry are worth looking at, especially on forecasted price pullbacks from current resistance levels, a simple strategy enabling investors to catch high-quality names at reasonable prices right as the underlying industry begins to bottom out. Breaking past these levels won't be likely, considering earnings will be announced soon on August 29, and markets expect a slowdown, as the PMI report suggests.
|
The technology industry has seen its fair share of up and down this year, with companies like NVIDIA (NASDAQ: NVDA) swinging for a near tripling and other giant names like Apple (NASDAQ: AAPL) beginning to show double-digit pullbacks recently. Some less popular names in the industry are worth looking at, especially on forecasted price pullbacks from current resistance levels, a simple strategy enabling investors to catch high-quality names at reasonable prices right as the underlying industry begins to bottom out. Once orders in the industry inevitably bottom and those overvalued names begin to fall, investors will have the chance to own this stock at the best possible price, considering it would be lower than today's already cheap forward P/E of 8.3x relative to the industry's 22.5x average.
|
The technology industry has seen its fair share of up and down this year, with companies like NVIDIA (NASDAQ: NVDA) swinging for a near tripling and other giant names like Apple (NASDAQ: AAPL) beginning to show double-digit pullbacks recently. Some less popular names in the industry are worth looking at, especially on forecasted price pullbacks from current resistance levels, a simple strategy enabling investors to catch high-quality names at reasonable prices right as the underlying industry begins to bottom out. Once orders in the industry inevitably bottom and those overvalued names begin to fall, investors will have the chance to own this stock at the best possible price, considering it would be lower than today's already cheap forward P/E of 8.3x relative to the industry's 22.5x average.
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045f5669-ee75-4edc-bad3-4d439fb0e775
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14242.0
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2023-08-18 00:00:00 UTC
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This Tech Giant Stands Strong Amidst Recent Selloff
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AAPL
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https://www.nasdaq.com/articles/this-tech-giant-stands-strong-amidst-recent-selloff
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nan
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nan
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Amidst a wave of red dominating the market this week, the overall market has experienced a decline of over 2%. In comparison, the tech sector has suffered an even more substantial drop of nearly 3%. This recent selling has permeated various sectors and industries, affecting many companies. Notably, the technology sector has taken a significant hit over this week.
For instance, Invesco QQQ (NASDAQ: QQQ) has faced a decline of nearly 3% this week and a considerable 7% over the last month. The ETF's trading performance has dipped below its declining 20-day and 50-day simple moving averages (SMA) and slipped beneath its uptrend support.
The extent of this aggressive selling, which is verging on being characterized as more than just a routine pullback, has seen a majority of prominent large-cap tech stocks face similar declines. While many of the heavyweight constituents within both the ETF and the overall market have indeed experienced recent sell-offs, there exists one technology behemoth that bucks this trend.
Impressively, not only has this particular stock managed to avoid a sell-off, but it has also sustained positive weekly and monthly performance, showcasing a noteworthy degree of relative strength.
Alphabet’s Incredible Relative Strength
Alphabet (NASDAQ: GOOGL) relative strength stands out from the beginning of August when it began disconnecting from the tech sector and many other heavyweight, sector-leading names, like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Year-to-date, the stock has impressed, with shares up over 47%. However, almost equally as impressive is its shorter-term performance. On the week, the QQQs are down nearly 3%, AAPL is down over 2% and 10.81% over the last month, while GOOGL is positive on the week and up 6.47% over the last month.
Analysts See Further Upside
As has been the case for the past several years, the consensus analyst price target continues to be considerably higher than GOOGL’s current share price, with the current price target at $142,19, predicting a 9.45% upside for the stock. Based on the thirty-four analyst ratings, the stock has a Moderate Buy rating, with twenty-nine analysts rating the stock as a Buy, four as a Hold, and one as a Strong Buy.
Most recently, on July 26, the Royal Bank of Canada boosted its price target from $145 to $155, and on August 11, Needham & Company reiterated its rating as a Buy and price target of $140.
Institutional flow has been favorable, too, with total institutional inflows of $242.27 billion over the previous twelve months compared to outflows of $41.67 billion. Currently, institutional ownership stands at 35.38%.
Critical Levels For GOOGL Going Forward
GOOGL shares maintain a robust position, comfortably above its uptrend line and critical moving averages, including the 50-day and 200-day simple moving averages (SMA). For investors to maintain their faith in the stock's relative strength and superior performance, it will be imperative for the stock to sustain its position above the uptrend line and the stabilizing 50-day SMA, around $124.
Should the stock manage to hold within or find support near this level, there's a potential scenario where, upon the overall market finding its own support, GOOGL could sustain its outperformance and potentially make a move beyond the $132 mark.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet’s Incredible Relative Strength Alphabet (NASDAQ: GOOGL) relative strength stands out from the beginning of August when it began disconnecting from the tech sector and many other heavyweight, sector-leading names, like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). On the week, the QQQs are down nearly 3%, AAPL is down over 2% and 10.81% over the last month, while GOOGL is positive on the week and up 6.47% over the last month. The ETF's trading performance has dipped below its declining 20-day and 50-day simple moving averages (SMA) and slipped beneath its uptrend support.
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Alphabet’s Incredible Relative Strength Alphabet (NASDAQ: GOOGL) relative strength stands out from the beginning of August when it began disconnecting from the tech sector and many other heavyweight, sector-leading names, like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). On the week, the QQQs are down nearly 3%, AAPL is down over 2% and 10.81% over the last month, while GOOGL is positive on the week and up 6.47% over the last month. Analysts See Further Upside As has been the case for the past several years, the consensus analyst price target continues to be considerably higher than GOOGL’s current share price, with the current price target at $142,19, predicting a 9.45% upside for the stock.
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Alphabet’s Incredible Relative Strength Alphabet (NASDAQ: GOOGL) relative strength stands out from the beginning of August when it began disconnecting from the tech sector and many other heavyweight, sector-leading names, like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). On the week, the QQQs are down nearly 3%, AAPL is down over 2% and 10.81% over the last month, while GOOGL is positive on the week and up 6.47% over the last month. Impressively, not only has this particular stock managed to avoid a sell-off, but it has also sustained positive weekly and monthly performance, showcasing a noteworthy degree of relative strength.
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Alphabet’s Incredible Relative Strength Alphabet (NASDAQ: GOOGL) relative strength stands out from the beginning of August when it began disconnecting from the tech sector and many other heavyweight, sector-leading names, like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). On the week, the QQQs are down nearly 3%, AAPL is down over 2% and 10.81% over the last month, while GOOGL is positive on the week and up 6.47% over the last month. For instance, Invesco QQQ (NASDAQ: QQQ) has faced a decline of nearly 3% this week and a considerable 7% over the last month.
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c43dd755-b7f0-445e-94ba-53b21f5aa920
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14243.0
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2023-08-18 00:00:00 UTC
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Should WisdomTree U.S. Total Dividend ETF (DTD) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-total-dividend-etf-dtd-be-on-your-investing-radar-8
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.09 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 16.30% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 22.62% of total assets under management.
Performance and Risk
DTD seeks to match the performance of the WisdomTree U.S. Dividend Index before fees and expenses. The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
The ETF return is roughly 3.50% so far this year and is up about 0.81% in the last one year (as of 08/18/2023). In the past 52-week period, it has traded between $54.26 and $64.29.
The ETF has a beta of 0.91 and standard deviation of 15.09% for the trailing three-year period, making it a medium risk choice in the space. With about 823 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend 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, DTD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.89 billion in assets, Vanguard Value ETF has $100.29 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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75494b10-43f6-4523-8014-4c203ab5ff00
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14244.0
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2023-08-18 00:00:00 UTC
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Warren Buffett and Michael Burry Just Sent Wall Street a Grim Warning: The Stock Market May Be Headed Lower
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-and-michael-burry-just-sent-wall-street-a-grim-warning%3A-the-stock-market
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nan
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nan
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Many stocks are up sharply this year as signs of economic resilience reinvigorated investors. The broad-based S&P 500 is up 15% year to date, and the tech-heavy Nasdaq Composite is up 29%.
But Wall Street legends Warren Buffett and Michael Burry apparently see a reckoning for overvalued equities on the horizon, as both investors recently took steps to protect their portfolios from a stock market correction.
Here are the details.
Berkshire Hathaway is selling stocks
Warren Buffett is widely regarded as one of the greatest business minds in history, so many investors track the stocks Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) buys and sells each quarter, hoping to mimic his strategy and achieve a modicum of his success. But the latest quarterly Form 13F filed with the SEC included a subtle warning.
Berkshire invested $7.4 billion in stocks during the first half of 2023, far less than the $57.3 billion it had invested by the halfway point in 2022. Berkshire also sold $25.8 billion in stocks during the first half of this year, much more than the $12 billion it sold in the first half of last year.
So what? Berkshire was a net seller of stocks through the first half of 2023 (to the tune of $18 billion), but it was a net buyer of stocks through the first half of 2022 (to the tune of $45 billion). The implication here is simple: Buffett and fellow investment managers Todd Combs and Ted Weschler think stocks are overvalued. At the very least, they couldn't find many opportunities compelling enough to tap into the $147 billion in cash and short-term investments Berkshire has at its disposal.
Scion is betting on a stock market downturn
Michael Burry of Scion Asset Management made a fortune when he predicted the subprime mortgage crisis. In the early 2000s, soaring home prices and lax lending standards left many subprime borrowers with too much debt and credit rating agencies failed to sound the alarm when that bad debt was repackaged as mortgage-backed securities and sold to financial institutions like Lehman Brothers.
What happened next seems obvious in retrospect, but few saw it at the time. Those mortgage-backed securities became worthless when borrowers started to default, and the financial institutions that owned them lost trillions.
Those events ultimately led to the Great Recession, but Burry came out ahead. He pocketed $100 million in profit and earned $700 million for clients by betting against the subprime mortgage bonds, a decision that inspired the 2015 film The Big Short.
So what? Burry started betting against the stock market in the second quarter of this year, and his bets were aggressive. Scion invested $1.6 billion (94% of its assets) in put options on index funds that track the S&P 500 and the Nasdaq-100, according to the most recent Form 13F. A put option confers the right to sell a security at a predetermined strike price, so purchasing a put option only makes sense when the security is expected to lose value.
In this case, Burry is betting the S&P 500 and the Nasdaq 100 will decline, which is tantamount to betting against the U.S. stock market, especially the technology sector.
Is it safe to invest in the stock market?
Buffett and Burry have impressive track records, and their actions always warrant consideration. However, while some caution would undoubtedly be prudent in the current market environment, investors need not avoid stocks entirely.
Berkshire added to a few positions in the first half of the year, including Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), despite being a net seller. And Scion bought several stocks in the second quarter, including Expedia Group (NASDAQ: EXPE) and Charter Communications (NASDAQ: CHTR), despite hedging against the broader market.
Additionally, the latest Form 13Fs are a snapshot of the quarter that ended on June 30, so the information is already outdated to some degree. Buffett and Burry may have revised their strategies.
More importantly, history makes it crystal clear that time in the market (not timing the market) is what matters. The S&P 500 has been a profitable investment over every rolling 20-year year period since its creation in 1957, and its precursor was a profitable investment over every rolling 20-year period since its creation in 1926.
In other words, patient investors who buy an S&P 500 index fund today will almost certainly be better 20 years down the road.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire added to a few positions in the first half of the year, including Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), despite being a net seller. But Wall Street legends Warren Buffett and Michael Burry apparently see a reckoning for overvalued equities on the horizon, as both investors recently took steps to protect their portfolios from a stock market correction. Berkshire Hathaway is selling stocks Warren Buffett is widely regarded as one of the greatest business minds in history, so many investors track the stocks Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) buys and sells each quarter, hoping to mimic his strategy and achieve a modicum of his success.
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Berkshire added to a few positions in the first half of the year, including Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), despite being a net seller. Berkshire Hathaway is selling stocks Warren Buffett is widely regarded as one of the greatest business minds in history, so many investors track the stocks Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) buys and sells each quarter, hoping to mimic his strategy and achieve a modicum of his success. Scion is betting on a stock market downturn Michael Burry of Scion Asset Management made a fortune when he predicted the subprime mortgage crisis.
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Berkshire added to a few positions in the first half of the year, including Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), despite being a net seller. Berkshire Hathaway is selling stocks Warren Buffett is widely regarded as one of the greatest business minds in history, so many investors track the stocks Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) buys and sells each quarter, hoping to mimic his strategy and achieve a modicum of his success. Berkshire also sold $25.8 billion in stocks during the first half of this year, much more than the $12 billion it sold in the first half of last year.
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Berkshire added to a few positions in the first half of the year, including Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), despite being a net seller. Berkshire invested $7.4 billion in stocks during the first half of 2023, far less than the $57.3 billion it had invested by the halfway point in 2022. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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14245.0
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2023-08-18 00:00:00 UTC
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78% of Warren Buffett's $360 Billion Portfolio Is Invested in Only 6 Stocks
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AAPL
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https://www.nasdaq.com/articles/78-of-warren-buffetts-%24360-billion-portfolio-is-invested-in-only-6-stocks
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been nothing short of a money machine since taking the reins in 1965. As of the closing bell on Aug. 14, 2023, he's overseen a nearly 4,400,000% aggregate gain in the company's Class A shares (BRK.A). Further, through the end of 2022, Buffett and his investment team had doubled up the average annualized total return, including dividends paid, of the benchmark S&P 500 since he took over -- 19.8% vs. 9.9%.
The Oracle of Omaha's long-term outperformance is why so many investors attempt to ride his coattails and mirror his trades. Due to required quarterly 13F filings with the Securities and Exchange Commission (SEC), it's relatively easy to match Buffett's actions stride for stride.
Berkshire Hathaway's latest 13F, which was released after the closing bell this past Monday, Aug. 14, showed that he and his team opened new positions in a trio of homebuilders, as well as pared down their stakes in a couple of key holdings.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
More importantly, it re-emphasized Warren Buffett's love of portfolio concentration. Buffett and his right-hand man, Executive Vice Chairman Charlie Munger, have long believed that diversification is only necessary if you don't know what you're doing.
Despite overseeing a mammoth $360 billion investment portfolio, the Oracle of Omaha and his team have 78% of invested assets ($280.6 billion) tied up in only six stocks.
1. Apple: $164.3 billion (45.6% of invested assets)
The easiest way to tell that Warren Buffett has thrown the idea of diversification completely out the window is by taking a closer look at Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL). As of the closing bell on Aug. 14, it comprised close to 46% of invested assets.
It really shouldn't come as a surprise that Apple is Berkshire's largest holding given what Warren Buffett had to say about the company during Berkshire Hathaway's annual shareholder meeting. He referred to Apple as "a better business than any we own," which is a strong statement given that Berkshire also owns top-notch insurance company GEICO and railroad BNSF.
For well over a decade, physical product innovation is what's made Apple tick. The release of the iPhone in 2007 and the advent of the iPad tablet in 2010 have been significant milestones for the company that helped solidify its smartphone and tablet market share, as well as garnered the company a loyal following of consumers.
Looking ahead, Apple's future rests with its subscription-services segment. Services offer juicier operating margins and should help the company better navigate the revenue ebbs and flows often observed during iPhone replacement cycles.
Lastly, don't overlook Apple's market-leading capital-return program. The company has repurchased around $600 billion worth of its common stock since the start of 2013.
2. Bank of America: $31.9 billion (8.9% of invested assets)
Although Apple makes up an outsized portion of Warren Buffett's portfolio at Berkshire Hathaway, the Oracle of Omaha feels most at home putting money to work in the financial sector. That's why nearly $32 billion is currently invested in Bank of America (NYSE: BAC), which is more commonly known as "BofA."
Warren Buffett is a big believer in not betting against America. He also realizes that economic downturns are inevitable. Rather than trying to foolishly guess when recessions will occur, he buys time-tested, well-capitalized financial stocks that can take advantage of disproportionately long periods of expansion. Bank of America fits the bill.
Among large U.S. banks, none was arguably better positioned to take advantage of the most-aggressive Fed rate-hiking cycle in decades. A cumulative 525-basis-point jump in the federal funds rate and subsequent increase in interest rates on variable-rate loans is helping BofA collect billions of dollars in added net interest income each quarter.
Bank of America is inexpensive, too. Despite macro factors working in the company's favor, investors can buy shares of BofA right now for less than its book value and roughly 9x consensus earnings in 2023. Warren Buffett loves a good deal.
3. American Express: $25.2 billion (7% of invested assets)
Credit-services provider American Express (NYSE: AXP) is Berkshire Hathaway's third-largest holding by market value and a continuation of Buffett's love of financial stocks.
AmEx, as American Express is better known, has been a continuous holding of Berkshire's for the past 30 years. The fact that AmEx can play on both sides of the aisle is what really entices Warren Buffett.
Based on SEC filings from 2021, American Express was the clear No. 3 in credit card network purchase volume in the United States. No. 3 in the pecking order is still an envious and profitable position to be in when you're talking about the largest market for consumption globally. However, American Express is also a lender, which means it's collecting fees and interest from cardholders -- along with fees from merchants -- during transactions.
Furthermore, AmEx has long had a knack for attracting wealthy cardholders. High-earning workers are less likely to alter their spending habits during mild recessions than the average consumer, which leads to added operating stability for American Express.
Image source: Coca-Cola.
4. Coca-Cola: $24.4 billion (6.8% of invested assets)
If you haven't noticed by now, Warren Buffett prefers putting Berkshire Hathaway's capital to work in brand-name companies. Beverage stock Coca-Cola (NYSE: KO), which accounts for 6.8% of invested assets, is the longest-held stock in Berkshire's portfolio (since 1988).
Coca-Cola has its brand, cash-flow predictability, and top-tier marketing working in its favor. Among consumer goods companies, it's easily the most well-known brand worldwide.
More importantly, Coca-Cola has operations in all but three countries globally (North Korea, Cuba, and Russia). This allows it to generate predictable operating cash flow in developed markets while also taking advantage of an estimated 8% to 10% compound annual growth rate in emerging markets through 2026. Globally, Coke has 26 brands generating at least $1 billion in annual sales.
The company hasn't been afraid to spend in the digital arena to boost engagement, either. More than half of its marketing budget is digital, with Coke leaning on artificial intelligence to create and tailor content for consumers. However, Coca-Cola has a rich history, well-known ambassadors, and holiday tie-ins that help it to also continually connect with a more mature audience.
The icing on the cake is that Coca-Cola has increased its base annual dividend for 61 consecutive years.
Tight supply has provided a boost to the spot price of oil. WTI Crude Oil Spot Price data by YCharts.
5. Chevron: $20.2 billion (5.6% of invested assets)
Earlier this year, energy stock Chevron (NYSE: CVX) was challenging BofA for the No. 2 spot in Warren Buffett's portfolio. But following two quarters of being pared down, this integrated oil and gas giant is now Berkshire's fifth-biggest holding by market value.
To be clear, having more than $20 billion invested in Chevron isn't a dart throw. It looks like a calculated bet that the spot price for crude oil will remain above historic norms.
This thesis is supported by the ongoing war in Ukraine against Russia, as well as energy majors reducing their capital expenditures for years during the COVID-19 pandemic. A market where oil supply remains tight is typically a positive for spot prices.
But among oil stocks, Chevron tends to be one of the safest. It's an integrated operator, which means that, in addition to drilling oil and natural gas, it also operates transmission pipelines, refineries, and chemical plants. These midstream and downstream assets provide predictable cash flow or serve as a hedge to a decline in the spot price of crude oil and natural gas.
Energy stocks usually have meaningful capital-return programs, too. Earlier this year, Chevron's board OK'd up to $75 billion in share buybacks and raised the company's base annual dividend for a 36th consecutive year.
6. Occidental Petroleum: $14.6 billion (4.1% of invested assets)
The sixth-largest holding in Berkshire Hathaway's portfolio is oil stock Occidental Petroleum (NYSE: OXY). Unlike Chevron, which Buffett and his team have been paring down, Occidental has been a popular buy since the start of 2022.
Buffett's buy thesis for Occidental Petroleum is similar to Chevron's but comes with a couple of pretty big twists. For example, even though Occidental is an integrated operator, it generates a disproportionate amount of revenue from drilling. Compared to Chevron, its pendulum of outcomes is far more reliant on the spot price of crude oil.
Occidental's balance sheet isn't nearly as rock solid as Chevron's, either. Despite reducing its net long-term debt by more than $15 billion over the course of two years, Occidental still closed out June with $19.7 billion in net long-term debt. In short, it needs a favorable spot price for West Texas Intermediate crude to improve its balance sheet.
Lastly, Berkshire Hathaway holds warrants to purchase up to 83,858,848 shares of Occidental, with an exercise price of 59.624 per share. Buffett may continue buying shares of Occidental to help keep its share price well above this exercise price.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 14, 2023
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $164.3 billion (45.6% of invested assets) The easiest way to tell that Warren Buffett has thrown the idea of diversification completely out the window is by taking a closer look at Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway's latest 13F, which was released after the closing bell this past Monday, Aug. 14, showed that he and his team opened new positions in a trio of homebuilders, as well as pared down their stakes in a couple of key holdings. Bank of America: $31.9 billion (8.9% of invested assets) Although Apple makes up an outsized portion of Warren Buffett's portfolio at Berkshire Hathaway, the Oracle of Omaha feels most at home putting money to work in the financial sector.
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Apple: $164.3 billion (45.6% of invested assets) The easiest way to tell that Warren Buffett has thrown the idea of diversification completely out the window is by taking a closer look at Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL). American Express: $25.2 billion (7% of invested assets) Credit-services provider American Express (NYSE: AXP) is Berkshire Hathaway's third-largest holding by market value and a continuation of Buffett's love of financial stocks. Chevron: $20.2 billion (5.6% of invested assets) Earlier this year, energy stock Chevron (NYSE: CVX) was challenging BofA for the No.
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Apple: $164.3 billion (45.6% of invested assets) The easiest way to tell that Warren Buffett has thrown the idea of diversification completely out the window is by taking a closer look at Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL). Bank of America: $31.9 billion (8.9% of invested assets) Although Apple makes up an outsized portion of Warren Buffett's portfolio at Berkshire Hathaway, the Oracle of Omaha feels most at home putting money to work in the financial sector. American Express: $25.2 billion (7% of invested assets) Credit-services provider American Express (NYSE: AXP) is Berkshire Hathaway's third-largest holding by market value and a continuation of Buffett's love of financial stocks.
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Apple: $164.3 billion (45.6% of invested assets) The easiest way to tell that Warren Buffett has thrown the idea of diversification completely out the window is by taking a closer look at Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL). It really shouldn't come as a surprise that Apple is Berkshire's largest holding given what Warren Buffett had to say about the company during Berkshire Hathaway's annual shareholder meeting. See the 10 stocks *Stock Advisor returns as of August 14, 2023 American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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14246.0
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2023-08-18 00:00:00 UTC
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Norway fund wants more women on boards, concerned about excessive CEO pay
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AAPL
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https://www.nasdaq.com/articles/norway-fund-wants-more-women-on-boards-concerned-about-excessive-ceo-pay
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nan
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By Gwladys Fouche
ARENDAL, Norway, Aug 18 (Reuters) - Norway's $1.4 trillion wealth fund, the world's single largest stock market investor, is to step up pressure on the companies it invests in to have more women board members and to also reduce excessive executive pay, a top fund official said.
The fund is one of a growing number investors and policymakers pushing to put more women in company boardrooms. Having a broader range of experiences around a boardroom table has been shown to improve decision-making and corporate culture.
Since 2021, the fund has campaigned to boost the number of women on company boards and to consider targets if fewer than 30% of directors are female.
"This year we said (to companies) that 'if you don't have even one woman on the board, we will vote against you'. We will step that up next year," Carine Smith Ihenacho, the fund's chief governance and compliance officer, told Reuters in an interview.
She said specific details of how the fund will do this have not been decided. One option could be to expand the fund's focus to more countries - at the moment the fund concentrates on the United States, Europe and Japan.
"So far, we haven't looked at developing markets," said Smith Ihenacho. "We can (also) step it up in Japan, increase the (minimum) threshold from one to two (women on a board)."
The fund has also put executive pay in the spotlight and now plans to also step up the pressure, though details of how are not decided.
"We are concerned. The large packages are getting larger, and from the figures we have seen, the larger packages are increasing more than the median of packages, and more than inflation," said Smith Ihenacho.
So far this year, the fund voted against 1 in every 10 CEO pay packages, more than in recent years, and including against a growing number in the United States, its report showed.
This year for the first time the fund analysed the structure of all U.S. pay packages above $20 million to see if they aligned with long-term value creation.
As a result of its analysis, the fund voted against more than half of pay packages above this level, the report showed.
The fund voted against the pay of Coca-Cola's KO.N James Quincey, Apple's AAPL.O Tim Cook and PepsiCo's PEP.O Ramon Laguarta, the fund's voting record showed.
Norway wealth fund's analysis of voting in first half of 2023 https://www.nbim.no/contentassets/d9c4c0df94b748a293a4dd980d25e86e/our-voting-in-first-half-2023.pdf
EXCLUSIVE-Norway wealth fund tells firms: put more women on your boards https://www.reuters.com/article/us-norway-swf-exclusive-idUSKBN2AF0TX
Market value of Norway's wealth fund https://tmsnrt.rs/3iZIGOn
(Reporting by Gwladys Fouche in Arendal; editing by Jane Merriman)
((gwladys.fouche@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fund voted against the pay of Coca-Cola's KO.N James Quincey, Apple's AAPL.O Tim Cook and PepsiCo's PEP.O Ramon Laguarta, the fund's voting record showed. By Gwladys Fouche ARENDAL, Norway, Aug 18 (Reuters) - Norway's $1.4 trillion wealth fund, the world's single largest stock market investor, is to step up pressure on the companies it invests in to have more women board members and to also reduce excessive executive pay, a top fund official said. Since 2021, the fund has campaigned to boost the number of women on company boards and to consider targets if fewer than 30% of directors are female.
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The fund voted against the pay of Coca-Cola's KO.N James Quincey, Apple's AAPL.O Tim Cook and PepsiCo's PEP.O Ramon Laguarta, the fund's voting record showed. By Gwladys Fouche ARENDAL, Norway, Aug 18 (Reuters) - Norway's $1.4 trillion wealth fund, the world's single largest stock market investor, is to step up pressure on the companies it invests in to have more women board members and to also reduce excessive executive pay, a top fund official said. So far this year, the fund voted against 1 in every 10 CEO pay packages, more than in recent years, and including against a growing number in the United States, its report showed.
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The fund voted against the pay of Coca-Cola's KO.N James Quincey, Apple's AAPL.O Tim Cook and PepsiCo's PEP.O Ramon Laguarta, the fund's voting record showed. By Gwladys Fouche ARENDAL, Norway, Aug 18 (Reuters) - Norway's $1.4 trillion wealth fund, the world's single largest stock market investor, is to step up pressure on the companies it invests in to have more women board members and to also reduce excessive executive pay, a top fund official said. So far this year, the fund voted against 1 in every 10 CEO pay packages, more than in recent years, and including against a growing number in the United States, its report showed.
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The fund voted against the pay of Coca-Cola's KO.N James Quincey, Apple's AAPL.O Tim Cook and PepsiCo's PEP.O Ramon Laguarta, the fund's voting record showed. "So far, we haven't looked at developing markets," said Smith Ihenacho. So far this year, the fund voted against 1 in every 10 CEO pay packages, more than in recent years, and including against a growing number in the United States, its report showed.
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552da082-2cd8-4033-9678-a414998ba6d9
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14247.0
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2023-08-17 00:00:00 UTC
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Noteworthy ETF Inflows: IVV, AAPL, MSFT, AMZN
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AAPL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-ivv-aapl-msft-amzn
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.5 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 776,300,000 to 779,650,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 1.1%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.6%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $442.45. 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 »
Also see:
YY Videos
Top Ten Hedge Funds Holding CSP
ARRS market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 1.1%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.6%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. 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.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 1.1%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.6%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $442.45. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 1.1%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.6%. 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 500 ETF (Symbol: IVV) where we have detected an approximate $1.5 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 776,300,000 to 779,650,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $442.45.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 1.1%, Microsoft Corporation (Symbol: MSFT) is off about 0.3%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.6%. 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 500 ETF (Symbol: IVV) where we have detected an approximate $1.5 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 776,300,000 to 779,650,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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5ab3fa11-d4c9-4c98-92a1-a2ce93a5163f
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14248.0
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2023-08-17 00:00:00 UTC
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The 3 Most Undervalued Small-Cap Stocks to Buy Now: August 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-most-undervalued-small-cap-stocks-to-buy-now%3A-august-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At the core of the discussion, investors seeking undervalued small-cap stocks do so for one main reason: to maximize their return potential. Of course, such a directive inherently carries risks. Basically, less-proven enterprises often run on little else than a compelling narrative feature with very low predictability. But in exchange for this dubious profile, moonshots may be on the horizon.
Fundamentally, another reason to consider small-cap stocks centers on the targeting of hidden gems. For example, you can buy a sector leader like Apple (NASDAQ:AAPL) right now. However, if you had a time machine, you’d rather acquire AAPL when it was trading for pennies in the 1980s. Back then, few could have imagined the success the consumer technology giant would command.
Also, the benefit to acquiring undervalued small-cap stocks is that the crowd has likely not jumped on board yet. This framework gives you a chance to build a strong position so that if a mass wave of enthusiasm materializes, you’d be one of the top beneficiaries.
Again, though, it must be emphasized: companies with diminutive market capitalization tend to fail more often than succeed. If you’re okay with this reality, below are small-cap stocks to buy now.
Small-Cap Stocks: Ichor (ICHR)
Source: Shutterstock
Billed as an expert in critical systems engineering and manufacturing, Ichor (NASDAQ:ICHR) might not be a household name. However, it’s one of the quietly relevant enterprises that feed pertinent infrastructures. From semiconductor capital equipment to turnkey solutions for original equipment manufacturers (OEMs) to integrated outsourced systems, Ichor lays the groundwork for its many enterprise-level clients.
So far this year, ICHR has been on a respectable run, gaining a bit over 25% since the Jan. opener. However, in the trailing one-year period, shares faded by 6%. Nevertheless, the company’s wide relevance makes it one of the top small-cap stocks to consider.
Financially, Ichor prints a solid three-year revenue growth rate (per-share basis) of 17.5%, beating out 63.9% of its semiconductor peers. Nevertheless, ICHR trades at only 0.9X sales, comparing favorably to the sector median of 2.67x. Finally, Wall Street analysts peg ICHR as a consensus moderate buy with an average price target of $40.67, implying 22% upside potential.
Stem (STEM)
Source: Shutterstock
A wildly risky example of undervalued small-cap stocks, Stem (NYSE:STEM) on paper appears a viable opportunity. Marketing itself as a global leader in artificial intelligence-driven clean energy solutions and services, Stem specializes in multiple businesses. These include energy storage facilities and electric vehicle charging management systems. Through its Athena AI-based platform, Stem enables its clients to unlock flexibility across the clean energy value chain.
Scientifically, Stem hits all the right notes. Unfortunately, the market has been skeptical. Since the beginning of this year, STEM stock dropped nearly 35% of equity value. In the past 365 days, shares plunged more than 63%.
At the same time, Stem commands an extremely high-growth enterprise, featuring a three-year revenue growth rate of 86.3%. That beats out 97.28% of its peers. Still, shares only trade at 2.07x sales, which is contextually decent given the top-line expansion. Lastly, analysts peg STEM as a moderate buy with an average price target of $9.69, implying almost 76% upside potential.
Oatly (OTLY)
Source: Shutterstock
Priced at only a few cents above a buck, investors have more stable choices than Swedish food company Oatly (NASDAQ:OTLY). At the same time, for those seeking small-cap stocks to buy now, it’s difficult to turn your eyes away from OTLY if you’re the speculating type. Specializing in sustainable alternatives to dairy products Oatly aligns with the sensibilities of the modern young consumer.
I don’t think anyone will dispute that last sentence. However, OTLY is undeniably risky, dropping over 34% of equity value since the Jan. opener. Over the trailing one-year period, shares sank 65%, posing obvious worries about forward viability.
Still, when it comes to the actual product, Oatly scores highly. Apparently, the company’s vegan ice cream is exceptionally delectable. And while it suffers troubled financials, Oatly prints a three-year revenue growth rate of 52.4%. Even with that, the market prices OTLY at a sales multiple of only 1.04X, below 63% of its peers. In closing, analysts peg OTLY as a moderate buy with an average price target of $3.36, implying nearly 155% upside.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
More From InvestorPlace
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Most Undervalued Small-Cap Stocks to Buy Now: August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, you can buy a sector leader like Apple (NASDAQ:AAPL) right now. However, if you had a time machine, you’d rather acquire AAPL when it was trading for pennies in the 1980s. Finally, Wall Street analysts peg ICHR as a consensus moderate buy with an average price target of $40.67, implying 22% upside potential.
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For example, you can buy a sector leader like Apple (NASDAQ:AAPL) right now. However, if you had a time machine, you’d rather acquire AAPL when it was trading for pennies in the 1980s. Finally, Wall Street analysts peg ICHR as a consensus moderate buy with an average price target of $40.67, implying 22% upside potential.
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For example, you can buy a sector leader like Apple (NASDAQ:AAPL) right now. However, if you had a time machine, you’d rather acquire AAPL when it was trading for pennies in the 1980s. InvestorPlace - Stock Market News, Stock Advice & Trading Tips At the core of the discussion, investors seeking undervalued small-cap stocks do so for one main reason: to maximize their return potential.
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For example, you can buy a sector leader like Apple (NASDAQ:AAPL) right now. However, if you had a time machine, you’d rather acquire AAPL when it was trading for pennies in the 1980s. Nevertheless, the company’s wide relevance makes it one of the top small-cap stocks to consider.
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d0d526dc-f7de-45d1-a450-bf42a7a2c305
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14249.0
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2023-08-17 00:00:00 UTC
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Trillion-Dollar Trio: These 3 Super Growth Stocks Will Dominate the Market by 2035
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AAPL
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https://www.nasdaq.com/articles/trillion-dollar-trio%3A-these-3-super-growth-stocks-will-dominate-the-market-by-2035
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A trillion-dollar valuation by a single company was once unthinkable even just a few years ago. After all, the S&P 500 was created in 1957 when the total market capitalization of the index was $172 billion. Today, 41 of the stocks comprising the index have a valuation greater than that.
Now there are six stocks worth over $1 trillion. Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. It could lose more than half its valuation and still be worth more than $1 trillion!
Because companies continue to innovate, acquire, and grow, it’s natural and expected that we will see even more companies hit 13-figure valuations in the future. Over the next decade or so, the following three companies will become the next trillion-dollar stocks.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Top payment processor Visa (NYSE:V) is already almost halfway to the finish line at $488 billion. It will only require 6% compounded annual growth for it to cross over the threshold.
Wall Street forecasts that Visa will grow earnings 15% annually for the next five years, slightly less than the 20% annual growth it saw over the last five years. Yet it stands a greater chance of growing earnings faster than the forecast. Visa currently processes 86% more payments volume than nearest rival Mastercard (NYSE:MA), $10.9 trillion worth as of the end of 2021.
A bet on Visa becoming a trillion-dollar stock by 2035 is a bet on the long-term growth in U.S. consumer spending, and on an ever-expanding U.S. economy. Both seem like fairly safe bets. Not that it will occur in a straight line. It will likely even suffer periods of stagnation and decline. Overall, though, Visa seems an easy pick to hit a trillion-dollar valuation.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Facebook owner Meta Platforms (NASDAQ:META) can see the end goal in the distance because it has a $788 billion as of this writing. It also once was worth over a trillion dollar not that long ago before the stock retreated. To borrow a football metaphor, it should easily be able to move the chains down the field again.
Whatever the problems people have with social media, and they are legion, billions still use them on a daily basis. Meta is the premiere social media platform, for good or ill. Facebook, Instagram, and WhatsApp are a killer trio of apps that engage a combined 3.8 billion monthly active users.
It also recently launched so-called Twitter-killer Threads. While it did manage to sign up 100 million users in a few days of launching, the jury is still out on whether it has legs. And few companies have as much invested in the metaverse as Meta Platforms. If that pans out as expected — even goes half the way — Meta will score big and should readily see its valuation rise.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
The last potential trillion-dollar baby is AbbVie (NYSE:ABBV), the pharmaceutical stock spun off from Abbott Laboratories (NYSE:ABT) in 2013. With a market cap of just $268 billion, it is the one furthest away from achieving that valuation. Over the next dozen years, it will have to expand at a compounded rate of nearly 12% annually. That’s a tall order to be sure, but there is significant potential.
First, AbbVie has long relied upon its arthritis drug Humira for the bulk of its revenue. The therapy saw the first biosimilar hit the market in January after losing patent protection. Sales were already down by 25% by that point. Yet in the just completed second quarter, AbbVie still registered over $4 billion in net global Humira sales.
There will be more generic versions rolling out in the months and quarters to come. AbbVie, though, has a robust pipeline of drugs that will help fill the gap if not completely bridge it. It is also seeking to expand the drug’s indicated uses.
Plaque psoriasis treatment Skyrizi is a billion-dollar drug for AbbVie as is Rinvoq, a therapy for Crohn’s disease. More drugs are coming.
Whether any of them will be the massive hit Humira was remains to be seen. The continued advance of new therapies to market means AbbVie is an excellent growth stock to buy.
On the date of publication, Rich Duprey held a LONG position in ABBV stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Trillion-Dollar Trio: These 3 Super Growth Stocks Will Dominate the Market by 2035 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. Meta is the premiere social media platform, for good or ill. Facebook, Instagram, and WhatsApp are a killer trio of apps that engage a combined 3.8 billion monthly active users. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A trillion-dollar valuation by a single company was once unthinkable even just a few years ago. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Facebook owner Meta Platforms (NASDAQ:META) can see the end goal in the distance because it has a $788 billion as of this writing.
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Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A trillion-dollar valuation by a single company was once unthinkable even just a few years ago. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Facebook owner Meta Platforms (NASDAQ:META) can see the end goal in the distance because it has a $788 billion as of this writing.
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Apple (NASDAQ:AAPL) is worth $2.8 trillion itself, some 16 times more than the entire S&P 500 was worth nearly 70 years ago. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A trillion-dollar valuation by a single company was once unthinkable even just a few years ago. Overall, though, Visa seems an easy pick to hit a trillion-dollar valuation.
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2023-08-17 00:00:00 UTC
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Warren Buffett donates $27 mln Berkshire stock
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https://www.nasdaq.com/articles/warren-buffett-donates-%2427-mln-berkshire-stock
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Aug 17 (Reuters) - Warren Buffett donated nearly $27 million of Berkshire Hathaway BRKa.N stock this week to an unnamed charity, the latest move in the billionaire investor's plan to give away his fortune.
Berkshire disclosed Buffett's donation of 50 Class A shares in a Wednesday night filing with the U.S. Securities and Exchange Commission.
The donation was made on Aug. 15, when the shares closed at about $538,107.
It is separate from Buffett's annual gifts to the Bill & Melinda Gates Foundation and four charities overseen by his family. They have received more than $51 billion from Buffett since 2006.
Berkshire did not immediately respond on Thursday to a request for more details about the latest donation.
Buffett still owns 218,237 Class A shares of Berkshire, for an approximately 15% stake in the Omaha, Nebraska-based conglomerate he has run since 1965.
Forbes magazine on Wednesday estimated Buffett's net worth at $118.3 billion, ranking fifth worldwide.
Buffett has said more than 99% of his net worth will go to charity. He turns 93 on Aug. 30.
Berkshire owns several dozen businesses including the BNSF railroad, Geico car insurance and many energy, manufacturing and retail operations.
As of June 30 it also owned more than $353 billion of stocks, half of which was iPhone maker Apple AAPL.O.
(Reporting by Jonathan Stempel in New York; editing by Diane Craft)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of June 30 it also owned more than $353 billion of stocks, half of which was iPhone maker Apple AAPL.O. Aug 17 (Reuters) - Warren Buffett donated nearly $27 million of Berkshire Hathaway BRKa.N stock this week to an unnamed charity, the latest move in the billionaire investor's plan to give away his fortune. Berkshire disclosed Buffett's donation of 50 Class A shares in a Wednesday night filing with the U.S. Securities and Exchange Commission.
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As of June 30 it also owned more than $353 billion of stocks, half of which was iPhone maker Apple AAPL.O. Berkshire disclosed Buffett's donation of 50 Class A shares in a Wednesday night filing with the U.S. Securities and Exchange Commission. Buffett still owns 218,237 Class A shares of Berkshire, for an approximately 15% stake in the Omaha, Nebraska-based conglomerate he has run since 1965.
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As of June 30 it also owned more than $353 billion of stocks, half of which was iPhone maker Apple AAPL.O. Aug 17 (Reuters) - Warren Buffett donated nearly $27 million of Berkshire Hathaway BRKa.N stock this week to an unnamed charity, the latest move in the billionaire investor's plan to give away his fortune. Berkshire disclosed Buffett's donation of 50 Class A shares in a Wednesday night filing with the U.S. Securities and Exchange Commission.
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As of June 30 it also owned more than $353 billion of stocks, half of which was iPhone maker Apple AAPL.O. Berkshire disclosed Buffett's donation of 50 Class A shares in a Wednesday night filing with the U.S. Securities and Exchange Commission. They have received more than $51 billion from Buffett since 2006.
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34f0a5e0-06c0-428a-ba79-2a6e2b923ea7
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14251.0
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2023-08-17 00:00:00 UTC
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Striking writers take antitrust aim at Disney, Amazon, Netflix
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AAPL
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https://www.nasdaq.com/articles/striking-writers-take-antitrust-aim-at-disney-amazon-netflix
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nan
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nan
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By Lisa Richwine and Dawn Chmielewski
LOS ANGELES, Aug 17 (Reuters) - The striking Writers Guild of America (WGA) on Thursday urged federal regulators to increase their oversight of the streaming media business, saying Walt Disney DIS.N, Amazon.comAMZN.O and Netflix NFLX.O had amassed too much power.
The guild, which has been on strike since May 2, issued a report arguing that the three companies were poised to become "the new gatekeepers of media" and have abused their positions "to further disadvantage competitors, raise prices for consumers, and push down wages for the creative workforce."
The union urged regulators to block any further consolidation in the industry, "proactively investigate anti-competitive issues and outcomes" and increase regulation and oversight of the streaming business.
Representatives for Disney, Amazon and Netflix did not immediately respond to requests for comment.
A spokesperson for the Federal Trade Commission referred to recent comments in a podcast by Chair Linda Khan.
"The combination of this consolidation and vertical integration seems to have created a market structure where we hear about how writers and producers and showrunners are all making less, even as companies are charging customers more. And critics seem to say that the quality of content being produced is actually in decline," Khan told The Ankler podcast.
"So increasingly we see some of the red flags that suggest the market structure is not actually serving the creators or the ultimate viewers," Khan added.
The roughly 11,500 members of the WGA have called for higher compensation, staffing guarantees and protections around the use of artificial intelligence (AI), among other demands, in talks with Hollywood studios. The SAG-AFTRA actors union, which went on strike July 14, also is seeking an increase in base pay and residuals.
WGA and studio negotiators recently returned to the bargaining table but have yet to reach a deal.
The WGA letter did not single out other companies, including Apple AAPL.O, Google parent Alphabet GOOGL.O and Warner Bros Discovery WBD.O, which also offer streaming media options.
(Reporting by Lisa Richwine and Dawn Chmielewski; Editing by David Gregorio)
((lisa.richwine@thomsonreuters.com; Follow me on Twitter @LARichwine; 1-424-434-7324; Reuters Messaging: lisa.richwine.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The WGA letter did not single out other companies, including Apple AAPL.O, Google parent Alphabet GOOGL.O and Warner Bros Discovery WBD.O, which also offer streaming media options. By Lisa Richwine and Dawn Chmielewski LOS ANGELES, Aug 17 (Reuters) - The striking Writers Guild of America (WGA) on Thursday urged federal regulators to increase their oversight of the streaming media business, saying Walt Disney DIS.N, Amazon.comAMZN.O and Netflix NFLX.O had amassed too much power. The guild, which has been on strike since May 2, issued a report arguing that the three companies were poised to become "the new gatekeepers of media" and have abused their positions "to further disadvantage competitors, raise prices for consumers, and push down wages for the creative workforce."
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The WGA letter did not single out other companies, including Apple AAPL.O, Google parent Alphabet GOOGL.O and Warner Bros Discovery WBD.O, which also offer streaming media options. By Lisa Richwine and Dawn Chmielewski LOS ANGELES, Aug 17 (Reuters) - The striking Writers Guild of America (WGA) on Thursday urged federal regulators to increase their oversight of the streaming media business, saying Walt Disney DIS.N, Amazon.comAMZN.O and Netflix NFLX.O had amassed too much power. The union urged regulators to block any further consolidation in the industry, "proactively investigate anti-competitive issues and outcomes" and increase regulation and oversight of the streaming business.
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The WGA letter did not single out other companies, including Apple AAPL.O, Google parent Alphabet GOOGL.O and Warner Bros Discovery WBD.O, which also offer streaming media options. By Lisa Richwine and Dawn Chmielewski LOS ANGELES, Aug 17 (Reuters) - The striking Writers Guild of America (WGA) on Thursday urged federal regulators to increase their oversight of the streaming media business, saying Walt Disney DIS.N, Amazon.comAMZN.O and Netflix NFLX.O had amassed too much power. The guild, which has been on strike since May 2, issued a report arguing that the three companies were poised to become "the new gatekeepers of media" and have abused their positions "to further disadvantage competitors, raise prices for consumers, and push down wages for the creative workforce."
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The WGA letter did not single out other companies, including Apple AAPL.O, Google parent Alphabet GOOGL.O and Warner Bros Discovery WBD.O, which also offer streaming media options. By Lisa Richwine and Dawn Chmielewski LOS ANGELES, Aug 17 (Reuters) - The striking Writers Guild of America (WGA) on Thursday urged federal regulators to increase their oversight of the streaming media business, saying Walt Disney DIS.N, Amazon.comAMZN.O and Netflix NFLX.O had amassed too much power. The guild, which has been on strike since May 2, issued a report arguing that the three companies were poised to become "the new gatekeepers of media" and have abused their positions "to further disadvantage competitors, raise prices for consumers, and push down wages for the creative workforce."
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f590b950-db2e-471c-80c9-62be2e9b9897
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14252.0
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2023-08-17 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAPL, MMM, COIN
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aapl-mmm-coin
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 116.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 206.4% of AAPL's average daily trading volume over the past month, of 56.3 million shares. Especially high volume was seen for the $172.50 strike put option expiring August 18, 2023, with 95,860 contracts trading so far today, representing approximately 9.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange:
3M Co (Symbol: MMM) saw options trading volume of 57,782 contracts, representing approximately 5.8 million underlying shares or approximately 162.2% of MMM's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $95 strike call option expiring August 18, 2023, with 15,000 contracts trading so far today, representing approximately 1.5 million underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $95 strike highlighted in orange:
And Coinbase Global Inc (Symbol: COIN) saw options trading volume of 141,280 contracts, representing approximately 14.1 million underlying shares or approximately 151% of COIN's average daily trading volume over the past month, of 9.4 million shares. Particularly high volume was seen for the $75 strike put option expiring October 20, 2023, with 8,664 contracts trading so far today, representing approximately 866,400 underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for AAPL options, MMM options, or COIN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Low Beta Stocks
SGFY shares outstanding history
CPNG Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $172.50 strike put option expiring August 18, 2023, with 95,860 contracts trading so far today, representing approximately 9.6 million underlying shares of AAPL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 116.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 206.4% of AAPL's average daily trading volume over the past month, of 56.3 million shares.
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Especially high volume was seen for the $172.50 strike put option expiring August 18, 2023, with 95,860 contracts trading so far today, representing approximately 9.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 57,782 contracts, representing approximately 5.8 million underlying shares or approximately 162.2% of MMM's average daily trading volume over the past month, of 3.6 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 116.2 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 116.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 57,782 contracts, representing approximately 5.8 million underlying shares or approximately 162.2% of MMM's average daily trading volume over the past month, of 3.6 million shares. That number works out to 206.4% of AAPL's average daily trading volume over the past month, of 56.3 million shares.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $172.50 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 57,782 contracts, representing approximately 5.8 million underlying shares or approximately 162.2% of MMM's average daily trading volume over the past month, of 3.6 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 1.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 116.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 206.4% of AAPL's average daily trading volume over the past month, of 56.3 million shares.
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5003d88b-a1bb-4775-81fe-54454b8280c3
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14253.0
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2023-08-17 00:00:00 UTC
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Thursday's ETF with Unusual Volume: DJD
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-djd
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nan
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nan
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Thursday, with over 309,000 shares traded versus three month average volume of about 38,000. Shares of DJD were down about 0.1% on the day.
Components of that ETF with the highest volume on Thursday were Apple, trading off about 1.3% with over 37.7 million shares changing hands so far this session, and Johnson & Johnson, up about 1.1% on volume of over 35.1 million shares. Cisco Systems is the component faring the best Thursday, higher by about 3.9% on the day, while Walgreens Boots Alliance is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 3.3%.
VIDEO: Thursday's ETF with Unusual Volume: DJD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Thursday, with over 309,000 shares traded versus three month average volume of about 38,000. Components of that ETF with the highest volume on Thursday were Apple, trading off about 1.3% with over 37.7 million shares changing hands so far this session, and Johnson & Johnson, up about 1.1% on volume of over 35.1 million shares. Cisco Systems is the component faring the best Thursday, higher by about 3.9% on the day, while Walgreens Boots Alliance is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 3.3%.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Thursday, with over 309,000 shares traded versus three month average volume of about 38,000. Cisco Systems is the component faring the best Thursday, higher by about 3.9% on the day, while Walgreens Boots Alliance is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 3.3%. VIDEO: Thursday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Thursday, with over 309,000 shares traded versus three month average volume of about 38,000. Components of that ETF with the highest volume on Thursday were Apple, trading off about 1.3% with over 37.7 million shares changing hands so far this session, and Johnson & Johnson, up about 1.1% on volume of over 35.1 million shares. Cisco Systems is the component faring the best Thursday, higher by about 3.9% on the day, while Walgreens Boots Alliance is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 3.3%.
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Components of that ETF with the highest volume on Thursday were Apple, trading off about 1.3% with over 37.7 million shares changing hands so far this session, and Johnson & Johnson, up about 1.1% on volume of over 35.1 million shares. Cisco Systems is the component faring the best Thursday, higher by about 3.9% on the day, while Walgreens Boots Alliance is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 3.3%. VIDEO: Thursday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4dc24540-aab6-446c-a336-438161f64993
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14254.0
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2023-08-17 00:00:00 UTC
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US STOCKS-Wall Street dips on healthcare losses, interest rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-dips-on-healthcare-losses-interest-rate-jitters
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Cisco gains on quarterly results beat
CVS hurt by Blue Shield of California's move to cut reliance
Higher oil prices lift energy shares
Initial weekly jobless claims drop more than expected
Indexes: Dow -0.42%, S&P 500 -0.33%, Nasdaq -0.67%
Updated at 2:04 pm ET/ 1804 GMT
By Amruta Khandekar, Shristi Achar A and Saeed Azhar
Aug 17 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer.
Weighing heavily on the S&P 500, CVS Health CVS.N tumbled 8.7% on that Blue Shield of California plans to cut its reliance on the company as its pharmacy benefit manager (PBM) and work with others including Amazon.com AMZN.O.
Shares of major health insurers UnitedHealth UNH.N and Cigna CI.N, which also have PBM units, fell almost 2% and almost 7% respectively, pushing the broader S&P 500 healthcare index .SPXHC down 0.6%.
Higher oil prices lifted shares of Exxon Mobil XOM.N and Chevron CVX.N by over 2% each as commodities were helped by hopes that China's central bank was seeking to bolster the property market and wider economy.
Pressuring equities further, the yield on 10-year U.S. Treasury notes US10YT=RR hit its highest level since October as a raft of strong economic data this week has stoked concerns the Fed could keep interest rates at the current level for longer.
"The rise in bond yields, following years of a low-rate environment, changes the calculus in how financial markets re-adjust projections for cost of capital, earnings," said Quincy Krosby, chief global strategist for LPL Financial.
Analysts said the higher yield will continue to put pressure on banks as depositors seek higher returns elsewhere.
The S&P 500 bank index .SPXBK was down 0.2%, with JPMorgan JPM.N down 0.6%.
A report from the Labor Department showed a fall in jobless claims last week, signaling the labor market remained tight.
Minutes from the Fed's July meeting released on Wednesday showed most policymakers prioritizing the battle against inflation, adding to uncertainty about the central bank's interest rate path.
So far this week, the S&P 500 .SPX has lost about 1.7%, and the Nasdaq .IXIC has declined 1.9%.
The reason for the stock market's weakness in recent days is that robust U.S. economic growth means the Fed is likely going to embrace "high rates for longer," said Barry Bannister, chief equity strategist at Stifel.
Keeping a lid on losses, Cisco Systems CSCO.O gained almost 4% after the networking equipment maker's fourth-quarter results beat estimates, and its CEO talked up artificial intelligence opportunities.
Megacap growth stocks were mixed, with Apple AAPL.O down 1.4%, Amazon.com AMZN.O down 0.5 and Alphabet GOOGL.O up 1.1%.
While retail heavyweight Walmart WMT.Nraised its full-year forecasts after beating second-quarter sales estimates, its shares fell almost 1.8%.
Shares of Ball Corp BALL.N climbed 2.1% after Britain's BAE Systems BAES.Lagreed to buy the beer can supplier's aerospace assets for about $5.55 billion.
Declining issues outnumbered advancing ones on the NYSE by a 1.67-to-1 ratio; on Nasdaq, a 1.59-to-1 ratio favored decliners.
The S&P 500 posted two new 52-week highs and 15 new lows; the Nasdaq Composite recorded 19 new highs and 214 new lows.
S&P 500 components so far in 2023 https://tmsnrt.rs/47zvTGF
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Deepa Babington)
((Amruta.Khandekar@thomsonreuters.com; Shisti.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth stocks were mixed, with Apple AAPL.O down 1.4%, Amazon.com AMZN.O down 0.5 and Alphabet GOOGL.O up 1.1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Cisco gains on quarterly results beat CVS hurt by Blue Shield of California's move to cut reliance Higher oil prices lift energy shares Initial weekly jobless claims drop more than expected Indexes: Dow -0.42%, S&P 500 -0.33%, Nasdaq -0.67% Updated at 2:04 pm ET/ 1804 GMT By Amruta Khandekar, Shristi Achar A and Saeed Azhar Aug 17 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer. Higher oil prices lifted shares of Exxon Mobil XOM.N and Chevron CVX.N by over 2% each as commodities were helped by hopes that China's central bank was seeking to bolster the property market and wider economy.
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Megacap growth stocks were mixed, with Apple AAPL.O down 1.4%, Amazon.com AMZN.O down 0.5 and Alphabet GOOGL.O up 1.1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Cisco gains on quarterly results beat CVS hurt by Blue Shield of California's move to cut reliance Higher oil prices lift energy shares Initial weekly jobless claims drop more than expected Indexes: Dow -0.42%, S&P 500 -0.33%, Nasdaq -0.67% Updated at 2:04 pm ET/ 1804 GMT By Amruta Khandekar, Shristi Achar A and Saeed Azhar Aug 17 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer. Higher oil prices lifted shares of Exxon Mobil XOM.N and Chevron CVX.N by over 2% each as commodities were helped by hopes that China's central bank was seeking to bolster the property market and wider economy.
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Megacap growth stocks were mixed, with Apple AAPL.O down 1.4%, Amazon.com AMZN.O down 0.5 and Alphabet GOOGL.O up 1.1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Cisco gains on quarterly results beat CVS hurt by Blue Shield of California's move to cut reliance Higher oil prices lift energy shares Initial weekly jobless claims drop more than expected Indexes: Dow -0.42%, S&P 500 -0.33%, Nasdaq -0.67% Updated at 2:04 pm ET/ 1804 GMT By Amruta Khandekar, Shristi Achar A and Saeed Azhar Aug 17 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer. Higher oil prices lifted shares of Exxon Mobil XOM.N and Chevron CVX.N by over 2% each as commodities were helped by hopes that China's central bank was seeking to bolster the property market and wider economy.
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Megacap growth stocks were mixed, with Apple AAPL.O down 1.4%, Amazon.com AMZN.O down 0.5 and Alphabet GOOGL.O up 1.1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Cisco gains on quarterly results beat CVS hurt by Blue Shield of California's move to cut reliance Higher oil prices lift energy shares Initial weekly jobless claims drop more than expected Indexes: Dow -0.42%, S&P 500 -0.33%, Nasdaq -0.67% Updated at 2:04 pm ET/ 1804 GMT By Amruta Khandekar, Shristi Achar A and Saeed Azhar Aug 17 (Reuters) - Wall Street's main indexes fell in choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer. Shares of major health insurers UnitedHealth UNH.N and Cigna CI.N, which also have PBM units, fell almost 2% and almost 7% respectively, pushing the broader S&P 500 healthcare index .SPXHC down 0.6%.
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2a6cbe84-5401-4259-9713-ff332cafb8bd
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14255.0
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2023-08-17 00:00:00 UTC
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3 Tech Stocks You’ll Regret Not Buying Soon
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-youll-regret-not-buying-soon
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With skepticism about the United States facing a possible recession, Cathie Wood, renowned CEO of Ark Invest, has thought otherwise. Wood speculates a soft landing for the U.S. economy if companies accept lower margins without cutting staff, preventing an unemployment rise. This thinking could prevent a sharp downturn – or even a recession. Wood’s optimism on the Federal Reserve’s monetary policy could drive economic growth and market expansion in the next 18 months. This optimism might lead to increased investor confidence in sectors with growth potential, such as the technology sector. Add these top tech stocks to your portfolio to ensure adequate returns in the face of potential economic improvement.
Apple (APPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013.
The consumer electronics market is very mature and it is forecasted to grow at a 2.32% CAGR from 2023 to 2028. Apple reported strong Q3 financials, with quarterly revenue of $81.8 billion down 1% YoY and EPS of $1.26 up 5% YoY. Apple also ended with $26 billion in operating cash flow and returned over $24 billion to shareholders.
Recently, Apple has announced a project to develop optimization standards for 3D content on mixed-reality devices. This is in partnership with Adobe (NASDAQ:ADBE), Autodesk (NASDAQ:ADSK), Disney’s (NYSE:DIS) Pixar and Nvidia (NASDAQ:NVDA). This will create a path for innovation and creativity among these companies and set global 3D product standards.
Moreover, Apple is also preparing to release the Apple Vision Pro early next year. The Apple Vision Pro’s augmented reality feature is predicted to replace our daily smartphones and computers. This will further boost financials for Apple, as the company is now at the forefront of the worldwide digitalization trend with this new product.
Yahoo! Finance reports 40 analysts with a 1-year mean price target of $196.43, ranging from lows of $140.00 to highs of $240.00. APPL’s innovation while maintaining stable financials makes it one of the top tech stocks to invest in.
Applied Materials Incorporated (AMAT)
Source: michelmond / Shutterstock.com
Applied Materials (NASDAQ:AMAT) is an American corporation that provides equipment and software for the manufacture of semiconductor chips. AMAT stock is up 50.58% YTD with Yahoo! Finance reporting that 25 analysts had a 1-year mean price target for AMAT stock to be at $142.64. The range spans from a low of $87.00 and a high of $175.00. AMAT has already surpassed the mean price target as of this article.
The semiconductor industry is projected to grow at a 12.2% CAGR from 2022 to 2029. Applied Materials Q2 earnings had a revenue of $6.64 billion, up 6.16% YoY, beating expectations by 4.07%. Additionally, the reports had a diluted EPS of $1.86 which is up 6.8% YoY, beating expectations by 9.49%. The company also boasted a net income of $1.58 billion, up 2.54% YoY.
Applied Materials has recently announced a $4 billion investment to establish the EPIC Center R&D platform in Silicon Valley by 2026. The EPIC Center would be the world’s most advanced facility for technology and equipment for semiconductor innovation. Furthermore, Applied Materials and Intel (NASDAQ:INTC) have partnered with Schneider Electric (OTCMKTS:SBGSY) to decarbonize the global semiconductor value chain. This should effectively address environmental, social and governance (ESG) concerns in the future. This new Catalyze program will assist suppliers, raise awareness of renewable energy in global regions and provide companies with information on developing carbon-suitable models for the foreseeable future.
Applied Materials’ transition to effectively address ESG concerns while investing in the EPIC research and development in Silicon Valley proves its leadership’s long-term growth-oriented strategies. AMAT has established itself as one of the top tech stocks stock as it has already surpassed analyst mean predictions, and will continue surpassing growth trends.
Palantir Technologies (PLTR)
Source: Iljanaresvara Studio / Shutterstock.com
The last of the top tech stocks we’ll discuss is Palantir Technologies (NYSE:PLTR), an American software company that specializes in big data analytics. The company’s stock is up a staggering $184.85% YTD, the highest it has been this year. Palantir’s financials have been excellent as its recent quarter revenue of $525.19 million is up 17.66% YoY, beating expectations by 3.80%. Additionally, its diluted EPS of $0.01 is up 120%, beating expectations by 25.03%.
The big data analytics market is projected to grow at a 13.5% CAGR from 2022 to 2030. Yahoo! Finance additionally reported 14 analysts having an average price target for PLTR stock to reach $12.54. PLTR stock as of this article is nearing the high predicted price threshold.
Palantir’s recently renewed partnership with WestTrac will in turn focus on incorporating Palantir Foundry, its SaaS platform, across core operation systems. Palantir is also expanding its new Artificial Intelligence Platform (AIP) with WestTrac to explore more big data and software solutions.
In addition, Palantir announced a new partnership with J.D. Power to engage in automotive data analysis. J.D. Power is utilizing Palantir Foundry to develop new insights into the automotive market. Palantir’s key partnerships with J.D. Power and WestTrac will provide unmatched big-data solutions that competitors cannot compare to.
On the date of publication, Michael Que 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 researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post 3 Tech Stocks You’ll Regret Not Buying Soon appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (APPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013. This new Catalyze program will assist suppliers, raise awareness of renewable energy in global regions and provide companies with information on developing carbon-suitable models for the foreseeable future.
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Apple (APPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013. Applied Materials Incorporated (AMAT) Source: michelmond / Shutterstock.com Applied Materials (NASDAQ:AMAT) is an American corporation that provides equipment and software for the manufacture of semiconductor chips.
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Apple (APPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013. AMAT has established itself as one of the top tech stocks stock as it has already surpassed analyst mean predictions, and will continue surpassing growth trends.
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Apple (APPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013. APPL’s innovation while maintaining stable financials makes it one of the top tech stocks to invest in.
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6f670af7-e990-4bfd-b3aa-4771a8a0dcab
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14256.0
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2023-08-17 00:00:00 UTC
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3 Top Semiconductor Stocks to Watch Right Now
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AAPL
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https://www.nasdaq.com/articles/3-top-semiconductor-stocks-to-watch-right-now
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nan
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nan
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Semiconductor stocks have been the darling of the stock market in 2023, thanks in large part to rising investor enthusiasm over increased adoption for artificial intelligence (AI) - which depends on specialized chips to deliver those high-powered computing results. And beyond the unavoidable AI headlines, semiconductors are already necessary equipment in everything from your smartphone to your car. In fact, rising auto demand was a key driver behind the ongoing semiconductor shortage in recent years.
However, the semiconductor rally has hit a speed bump this month. After gaining 54% through the first seven months of 2023, the iShares Semiconductor ETF (SOXX) - which tracks the performance of the 30 largest listed semiconductor companies in the U.S. - has tumbled 10.5% so far in August. That said, SOXX is still up 38% YTD, outperforming the Nasdaq Composite's ($NASX) rise of 28% over the same period.
And the recent weakness in semiconductor stocks hasn't been isolated. Broader markets have pulled back this month, with many traders taking profits off the table after a stellar first half for equities. The risk-off attitude has been exacerbated by uncertainty over further policy tightening by the Fed, troubling economic data out of China, and a poorly received earnings report from tech giant Apple (AAPL), to name a few contributing factors.
There may still be some additional volatility for semiconductor stocks in the immediate days ahead, as Nvidia's (NVDA) upcoming quarterly results on Aug. 23 will be closely watched as an indicator of actual AI demand vs. headline hype - and the bar is set quite high, as analysts are looking for staggering year-over-year earnings growth in excess of 400%.
All of that said, semiconductor demand isn't going anywhere - and the recent pullback could create opportunities to pick up some quality chip stocks at cheaper prices. Here's a look at three semiconductor stocks that are trading off their highs, and may soon find their footing near more attractive levels for investors looking to add exposure to the group.
ON Semiconductor
Founded 24 years ago as a spinoff of Motorola's Semiconductor Components Group, ON Semiconductor (ON) - popularly known as Onsemi - has come a long way since then, The $39.78 billion market cap company is now owned by Belgian foundry BelGaN Group BV. Onsemi's semiconductor chips have a wide variety of applications, including in smartphones, laptops, tablets, automobiles, industrial equipment, and medical devices among others.
Shares of Onsemi are up 45.2% YTD, including a 15.9% pullback so far during the month of August.
www.barchart.com
In the second quarter, the company posted strong numbers, with both revenue and earnings surpassing estimates - although they remained nearly flat on a yearly basis. Revenues for the quarter came in at $2.1 billion, unchanged from the prior year's figure. EPS came in at $1.33, in keeping with the previous year's figure.
Onsemi has strengthened its balance sheet by reducing the quantum of its long-term debt to roughly $2.5 billion from about $3 billion at the start of the year. However, the company's capability to generate cash from its operations was negatively impacted, as this metric slowed to $390.8 million for the April-June period, compared to $420.8 million a year ago. Worryingly, the company reported a free cash outflow of $39.8 million in the quarter, compared to a corresponding inflow of $202.7 million in the prior year.
On the plus side, the company has been making some notable operational moves to bolster its revenue in recent times. Onsemi is well-positioned to benefit from the rising demand for Silicon Carbide (SiC), primarily due to its applications in the EV and renewable energy spaces. Management remains confident about gaining market share in the EV space, in particular, due to its strong position in SiC-driven products. In fact, the company recently signed an agreement with Magna, an automotive supplier, to integrate Onsemi’s EliteSiC intelligent power solutions into its eDrive systems.
Analysts are expecting ON to report earnings growth of 2.27% for the next quarter, although the bottom line is expected to decline 2.63% overall in FY23.
www.barchart.com
Overall, analysts remain cautiously optimistic about the stock, maintaining a consensus rating of “Moderate Buy” with a mean target price of $118.23 - indicating upside potential of about 30% from current levels. Out of 26 analysts covering the stock, 17 have a “Strong Buy” rating, 1 have a “Moderate Buy” rating and 8 have a “Hold” rating.
www.barchart.com
NXP Semiconductors
Dutch semiconductor company NXP (NXPI) was founded in 2006 as a spin-off of Phillips. The company currently commands a market cap of $50.72 billion, and provides semiconductor solutions to the automotive, industrial, IoT, mobile, and communication infrastructure markets.
NXP has followed the same pattern as the broader semiconductor industry on the charts, giving up 12.6% in August but still resting on a year-to-date gain of 24.7%.
www.barchart.com
The company's latest quarterly results were impressive, even though the top line remained flat from the previous year. NXP reported revenues of $3.3 billion in the second quarter, while EPS arrived at $3.43 - down 2.6% YoY, but above the consensus estimate of $3.28. The trend in earnings has been strong, as NXPI has surpassed analysts' expectations in each of the past five quarters.
The slowdown in revenues can be attributed to a 19% yearly drop in the Industrial & IoT segment to $578 million. However, the automotive business - which forms the bulk of the company's revenues - grew 9% to $1.9 billion. To that end, the company also announced that Nio (NIO), one of the leading players in the smart EV market, will make use of NXP’s leading automotive radar technology in its vehicles, further strengthening its automotive business.
NXP also announced a strategic move in the memory space by partnering with one of the biggest semiconductor manufacturers in the world, Taiwan Semiconductor (TSM), to deliver the industry’s first automotive embedded MRAM (Magnetic Random Access Memory) in 16 nm FinFET technology. Although the usage of this tech is in its infancy, it is expected to have widespread applications in future memory functions.
NXP also reduced its long-term debt to $10.2 billion from $11.2 billion at the start of the year, while generating a free cash flow of $556 million (up from $551 million in the prior year) at the end of the second quarter.
However, analysts are not so upbeat about NXP's earnings growth prospects. They are projecting earnings to decline by 7.9% in the current quarter and by 13.5% in FY 23.
www.barchart.com
Neverthless, the consensus opinion on the stock is cautiously optimistic. Out of 23 analysts covering the stock, 9 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 12 have a “Hold” rating. NXPI's mean target price of $232.73 indicates expected upside potential of about 19% from current levels.
www.barchart.com
STMicroelectronics NV
Swiss semiconductor manufacturing company STMicroelectronics (STM) rounds out our list. Founded in 1987, the company has a market cap of $42.32 billion. It is the largest European semiconductor contract manufacturing and design company, and is a leading supplier of chips for a wide range of applications, including automotive, industrial, and consumer electronics.
From a technical standpoint, STM is down 14.1% over the past month, but still bests the broader Nasdaq with a gain of 30% year to date.
www.barchart.com
In its latest results for the second quarter, STM reported net revenues of $4.3 billion, up 12.7% on a YoY basis (and just above the consensus estimate of $4.27 billion). A 34.4% year-over-year jump in revenues for the Automotive segment to $1.95 billion contributed heavily to the top-line growth. EPS rose by 15.2% from the previous year to $1.06, missing the consensus estimate of $1.09. Notably, this was the first time in the last five quarters that STM missed its EPS estimates.
Long-term debt for the company declined slightly to $2.47 billion at the end of the June quarter from $2.54 billion at the beginning of the year. Cash flow from operating activities for the April-June period was $1.3 billion, up 24% from last year - but a 9.1% yearly decline in free cash flow to $209 million remains a concern.
STM has a somewhat evenly distributed customer base among the Top 10 OEMs (39%), Distribution (26%), and Other OEMs (25%). Moreover, it is also making its presence felt in the SiC space, thanks to an agreement to create a SiC device manufacturing factory in China, plus a cooperation agreement with airline manufacturer Airbus on aviation electrification.
However, earnings growth estimates are not optimistic for the company. Analysts are forecasting declines of 7.8% and 22.7% for the current and next quarters, respectively, resulting in expected earnings growth of just 2.4% for FY 2023.
www.barchart.com
Overall, analysts still like the stock, judging by the consensus “Moderate Buy” rating and mean target price of $61.50 - implying upside potential of about 33% from current levels. Out of 8 analysts covering the stock, 5 have a “Strong Buy” rating, 2 have a “Hold” rating and 1 has a “Strong Sell” rating.
www.barchart.com
Final Takeaway
The demand for semiconductors seems likely to rise globally, particularly given the rise of generative AI and increased usage in automotive manufacturing. Notably, all three companies mentioned above remain at the forefront of innovation in the semiconductor space, with a core focus on the relatively stable (and growing) automotive segment.
While additional short-term caution on semiconductors may be warranted, particularly ahead of next Wednesday's Nvidia earnings, investors who have been waiting for more attractive prices to add exposure to chip stocks should keep these names on watch as the August pullback begins to taper off.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The risk-off attitude has been exacerbated by uncertainty over further policy tightening by the Fed, troubling economic data out of China, and a poorly received earnings report from tech giant Apple (AAPL), to name a few contributing factors. There may still be some additional volatility for semiconductor stocks in the immediate days ahead, as Nvidia's (NVDA) upcoming quarterly results on Aug. 23 will be closely watched as an indicator of actual AI demand vs. headline hype - and the bar is set quite high, as analysts are looking for staggering year-over-year earnings growth in excess of 400%. While additional short-term caution on semiconductors may be warranted, particularly ahead of next Wednesday's Nvidia earnings, investors who have been waiting for more attractive prices to add exposure to chip stocks should keep these names on watch as the August pullback begins to taper off.
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The risk-off attitude has been exacerbated by uncertainty over further policy tightening by the Fed, troubling economic data out of China, and a poorly received earnings report from tech giant Apple (AAPL), to name a few contributing factors. www.barchart.com Overall, analysts remain cautiously optimistic about the stock, maintaining a consensus rating of “Moderate Buy” with a mean target price of $118.23 - indicating upside potential of about 30% from current levels. NXP also reduced its long-term debt to $10.2 billion from $11.2 billion at the start of the year, while generating a free cash flow of $556 million (up from $551 million in the prior year) at the end of the second quarter.
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The risk-off attitude has been exacerbated by uncertainty over further policy tightening by the Fed, troubling economic data out of China, and a poorly received earnings report from tech giant Apple (AAPL), to name a few contributing factors. ON Semiconductor Founded 24 years ago as a spinoff of Motorola's Semiconductor Components Group, ON Semiconductor (ON) - popularly known as Onsemi - has come a long way since then, The $39.78 billion market cap company is now owned by Belgian foundry BelGaN Group BV. NXP also reduced its long-term debt to $10.2 billion from $11.2 billion at the start of the year, while generating a free cash flow of $556 million (up from $551 million in the prior year) at the end of the second quarter.
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The risk-off attitude has been exacerbated by uncertainty over further policy tightening by the Fed, troubling economic data out of China, and a poorly received earnings report from tech giant Apple (AAPL), to name a few contributing factors. After gaining 54% through the first seven months of 2023, the iShares Semiconductor ETF (SOXX) - which tracks the performance of the 30 largest listed semiconductor companies in the U.S. - has tumbled 10.5% so far in August. Shares of Onsemi are up 45.2% YTD, including a 15.9% pullback so far during the month of August.
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6693298e-4e8e-418c-8286-1bf9d56da8e7
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14257.0
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2023-08-17 00:00:00 UTC
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The 3 Most Undervalued Blue-Chip Stocks to Buy Now: August 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-most-undervalued-blue-chip-stocks-to-buy-now%3A-august-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Smart investors understand the importance of blue-chip stocks in their portfolios, and that is why they load up on them regularly. Blue-chip companies bring stability and add strength to your portfolio. These are well-known companies with a solid history and an impressive balance sheet, promising growth and consistent success. While you may not see immediate growth or upside in blue-chip companies, you will have high safety and little risk — making them worth your money. If you are keen on investing in undervalued blue-chip stocks and do not know where to start, I’ll help you pick the finest of the lot. Let’s take a look at the three best blue-chip stocks to buy now.
Blue-Chip Stocks to Buy: Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Known as one of the most reliable companies in the industry, Apple (NASDAQ:AAPL) is here to stay for many years to come. The company is on par with some of the biggest tech giants and has a loyal customer base. The tech giant has a market cap of $2.74 trillion, and its stock has grown over 220% in the last five years. It dominates the tech space and is steadily increasing its market share. Besides a range of popular products, the company also offers unmatched services and has seen a rise in its services revenue segment.
In the recent quarterly results, the company had a dip in iPhone, iPad and Mac sales due to macroeconomic factors. With a drop in consumer spending, Apple saw a decline in product sales. However, the sales numbers were still better than those of its competitors. It reported a revenue of $81.8 billion, which was still in line with Wall Street estimates. The company’s earnings per share came in at $1.26, and it seems like a pretty decent quarter to me overall.
AAPL stock is trading at $176 right now and looks highly undervalued to me. The stock is up over 40% year to date and 19% in the past six months. When searching for blue-chip stocks to buy, a long-term outlook is necessary. While Apple may have struggled due to rising inflation, it is steadily moving ahead with new products, artificial intelligence (AI) and digital services. The stock could be worth much more in the next five years and is a solid addition to your portfolio. It also pays a quarterly dividend of $0.24 and a dividend yield of 0.54%. This is one stock to keep buying on every dip.
Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA) was my favorite stock even before it started making big news with AI. Today, the company is a leader in the AI race and dominates several markets. With a market cap of $1.07 trillion, Nvidia will only grow larger and wider. Having reported record sales in the first quarter this year, the company saw its stock moving upward, and it seems unstoppable. NVDA stock is on fire and is changing hands at $434 today. It is up over 200% year to date and is still lower than the 52-week high of $480.
Once a pioneer in the gaming industry, Nvidia has invested heavily in AI and is building chips used to run AI applications. The company enjoys a first-mover advantage in the industry and is already reaping the benefits. The company recently unveiled a new chip named GH200 Grace Hopper Superchip, which will speed up generative AI applications. The chip is suitable for large language models and will be available in the second quarter of 2024. Nvidia is also generating significant revenue from its data center business and has an envious clientele. Its upcoming earnings could have a huge impact on the entire market altogether.
The company has several opportunities in the cloud computing, gaming and AI segment. Nvidia reported revenue growth of 19% for the quarter, down 13% year-over-year. However, the company expects to hit $11 billion in revenue next quarter (give or take 2%). If it hits that goal, that would be a 53% jump. Yes, the stock isn’t cheap, but you will not regret adding it to your portfolio. The stock has huge upside potential, and you could take home big gains year after year — if you buy and hold.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
When it comes to blue-chip stocks, one cannot miss out on the tech dinosaur, Microsoft (NASDAQ:MSFT). The company has also taken big steps to incorporate AI in its applications and made multibillion-dollar investments in OpenAI. While the company already had a stronghold in the industry, it is trying to expand its AI offerings and has announced Copilot, a subscription service that will leverage AI in its wide suite of product offerings.
With Microsoft, the expectations are always sky-high. Whether the offering is a product or earnings, investors expect only the best from this company. That is why it is a must-buy. MSFT stock is trading at $320 today, down 7% over the past month. This dip is a buying opportunity. The stock dropped after its earnings outlook did not meet investor expectations, and I believe it’s a temporary drop.
The company saw an 8% increase in revenue year-over-year, reaching $56.2 billion. It also saw an 11% rise in gross profits to $39.4 billion, and earnings per share (EPS) came in at $2.69. MSFT is one of the best blue-chip stocks to buy now. While the financials are impressive, the investors weren’t happy with the management’s projections and outlook for the coming quarter.
As the economy improves and we see an increase in spending, Microsoft stock will start marching ahead. While the stock is already trading at a premium, if you look at the bigger picture, it looks undervalued to me and could hit a new high in the coming months.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post The 3 Most Undervalued Blue-Chip Stocks to Buy Now: August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Blue-Chip Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Known as one of the most reliable companies in the industry, Apple (NASDAQ:AAPL) is here to stay for many years to come. AAPL stock is trading at $176 right now and looks highly undervalued to me. In the recent quarterly results, the company had a dip in iPhone, iPad and Mac sales due to macroeconomic factors.
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Blue-Chip Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Known as one of the most reliable companies in the industry, Apple (NASDAQ:AAPL) is here to stay for many years to come. AAPL stock is trading at $176 right now and looks highly undervalued to me. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart investors understand the importance of blue-chip stocks in their portfolios, and that is why they load up on them regularly.
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Blue-Chip Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Known as one of the most reliable companies in the industry, Apple (NASDAQ:AAPL) is here to stay for many years to come. AAPL stock is trading at $176 right now and looks highly undervalued to me. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart investors understand the importance of blue-chip stocks in their portfolios, and that is why they load up on them regularly.
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Blue-Chip Stocks to Buy: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Known as one of the most reliable companies in the industry, Apple (NASDAQ:AAPL) is here to stay for many years to come. AAPL stock is trading at $176 right now and looks highly undervalued to me. Nvidia reported revenue growth of 19% for the quarter, down 13% year-over-year.
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850f60f3-8fbf-47ba-a6a2-a3e6e38e67a9
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14258.0
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2023-08-17 00:00:00 UTC
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SPY, RUNN: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-runn%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 7,000,000 units, or a 0.8% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 1.1%, and Microsoft is lower by about 0.3%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the RUNN ETF, which added 400,000 units, for a 36.4% increase in outstanding units.
VIDEO: SPY, RUNN: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 1.1%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the RUNN ETF, which added 400,000 units, for a 36.4% increase in outstanding units. VIDEO: SPY, RUNN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 7,000,000 units, or a 0.8% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the RUNN ETF, which added 400,000 units, for a 36.4% increase in outstanding units. VIDEO: SPY, RUNN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 7,000,000 units, or a 0.8% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the RUNN ETF, which added 400,000 units, for a 36.4% increase in outstanding units. VIDEO: SPY, RUNN: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 7,000,000 units, or a 0.8% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 1.1%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the RUNN ETF, which added 400,000 units, for a 36.4% increase in outstanding units.
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05583a77-4210-4f0a-a5c9-3edd5f78a6bb
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14259.0
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2023-08-17 00:00:00 UTC
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Wedbush Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-reiterates-apple-aapl-outperform-recommendation-2
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nan
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nan
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Fintel reports that on August 17, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 12.53% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 12.53% from its latest reported closing price of 176.57.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6394 funds or institutions reporting positions in Apple. This is an increase of 34 owner(s) or 0.53% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.67%. Total shares owned by institutions decreased in the last three months by 0.15% to 9,891,263K shares.
The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.82% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 17, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.67%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on August 17, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.67%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on August 17, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.67%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on August 17, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.67%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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a9a4f167-9a82-4706-99df-d9b9fa86e412
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14260.0
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2023-08-17 00:00:00 UTC
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3 Stocks I Will "Never" Sell
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AAPL
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https://www.nasdaq.com/articles/3-stocks-i-will-never-sell-5
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nan
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nan
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Never say never, right? I'm about to review three stocks that are in my portfolio now and that I expect will be in it 10 and 20 years from now -- if not 30 years from now. (I can't look much further out, as I'm not a spring chicken anymore.) I will sell them if, at any point, I no longer believe in their long-term potential, but I doubt that day will ever come.
See whether any of them deserve a berth in your own portfolio -- if they're not already there!
1. Apple
Apple (NASDAQ: AAPL) has been such an amazing performer in my portfolio that it has become one of my top holdings -- without my having spent a disproportionate sum buying its shares. The same thing happened to Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). It started buying shares back in 2016 when they were priced at around $109 apiece. They have been trading near $360 apiece recently, and Berkshire's stake recently represented fully 51% of the company's stock portfolio. (Berkshire owns about 5.6% of the nearly three-trillion-dollar company.)
So why do I own shares, and why do I plan to hang on? Well, the company has proven that it's terrific at innovation -- creating entirely new product categories in some cases, with its iPods, iTunes, iPads, iPhones, Apple Watches, and more. I expect more innovation in the future -- such as a glucose-monitoring feature that might be included in a future Apple Watch and could revolutionize diabetes care.
Apple has also created a very sticky "ecosystem," with its various products able to coordinate with each other, making customers less interested in switching to non-Apple offerings. There are some risks with Apple, of course, as with any other company. It relies heavily on China for manufacturing, for example -- though it's working on diversifying its supply chain. The stock doesn't appear to be a bargain at recent levels, either, so consider waiting for a pullback or perhaps building a position in installments.
2. Berkshire Hathaway
Berkshire Hathaway itself, meanwhile, deserves strong consideration for a berth in your portfolio. It's true that it's not likely to grow at quite the same rapid pace in the coming 50 years as it did in its previous 50 years, but Warren Buffett has assembled a powerful conglomerate with significant operations in vital, defensive industries such as insurance, energy, and transportation. (Its scores of wholly owned businesses include GEICO, Benjamin Moore, See's Candies, Fruit of the Loom, Clayton Homes, the McLane trucking company, and the entire BNSF railroad.) No matter what the economy is doing, Berkshire will likely do well. The company is built to last.
I bought my first shares of Berkshire in the 1990s, and it's very likely that most or all of them will be in my portfolio in the 2050s. For those who wish they could invest like Buffett, buying Berkshire is a savvy strategy, as you'll have Buffett and his lieutenants investing for you.
3. Costco
Then there's Costco (NASDAQ: COST), another company I greatly admire. I love that it aims to do right by all its constituents -- its shareholders, customers, and employees. Recently sporting a market value near a quarter of a trillion dollars, Costco's size enables it to take in massive sums from membership fees (more than $1 billion in the third quarter, for example), which in turn helps it to cap markups at about 14% for most of its products. That serves customers well, which keeps them coming, boosting the revenue and profits that reward shareholders. Meanwhile, Costco offers above-average wages and benefits, leading many workers to stick around and saving the company a lot in hiring costs. It's a rather beautiful business model.
Costco is growing its membership ranks (they rose by 7% year over year in the third quarter), growing its store count (aiming for 23 new locations this year), and growing internationally (having recently launched in China).
I expect Costco to keep growing and to keep rewarding shareholders like me -- and perhaps you. If you're thinking of buying shares now, know that they don't seem undervalued, though they don't seem wildly overvalued, either. If you're not sure about their valuation, you might wait for a lower price or buy in installments over time.
These are just a few of the many compelling companies out there -- and they're ones I'd be very reluctant to sell. Learn more about them and see whether you want to own them, too.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Selena Maranjian has positions in Apple, Berkshire Hathaway, and Costco Wholesale. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Costco Wholesale. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has been such an amazing performer in my portfolio that it has become one of my top holdings -- without my having spent a disproportionate sum buying its shares. Well, the company has proven that it's terrific at innovation -- creating entirely new product categories in some cases, with its iPods, iTunes, iPads, iPhones, Apple Watches, and more. (Its scores of wholly owned businesses include GEICO, Benjamin Moore, See's Candies, Fruit of the Loom, Clayton Homes, the McLane trucking company, and the entire BNSF railroad.)
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Apple Apple (NASDAQ: AAPL) has been such an amazing performer in my portfolio that it has become one of my top holdings -- without my having spent a disproportionate sum buying its shares. The same thing happened to Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). See the 10 stocks *Stock Advisor returns as of August 14, 2023 Selena Maranjian has positions in Apple, Berkshire Hathaway, and Costco Wholesale.
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Apple Apple (NASDAQ: AAPL) has been such an amazing performer in my portfolio that it has become one of my top holdings -- without my having spent a disproportionate sum buying its shares. They have been trading near $360 apiece recently, and Berkshire's stake recently represented fully 51% of the company's stock portfolio. Costco is growing its membership ranks (they rose by 7% year over year in the third quarter), growing its store count (aiming for 23 new locations this year), and growing internationally (having recently launched in China).
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Apple Apple (NASDAQ: AAPL) has been such an amazing performer in my portfolio that it has become one of my top holdings -- without my having spent a disproportionate sum buying its shares. I bought my first shares of Berkshire in the 1990s, and it's very likely that most or all of them will be in my portfolio in the 2050s. I expect Costco to keep growing and to keep rewarding shareholders like me -- and perhaps you.
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eed9dcfa-ae7e-42c1-a73f-3e8fdf4a0c33
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14261.0
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2023-08-17 00:00:00 UTC
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Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-8
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nan
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nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard S&P 500 Growth ETF (VOOG), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $7.86 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.98%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 35.40% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 45.56% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has added about 19.83% so far this year and is down about -1.38% in the last one year (as of 08/17/2023). In the past 52-week period, it has traded between $204.56 and $261.87.
The ETF has a beta of 1.05 and standard deviation of 22.37% for the trailing three-year period, making it a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOOG is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $90.16 billion in assets, Invesco QQQ has $198.13 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $7.86 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. While Vanguard Growth ETF has $90.16 billion in assets, Invesco QQQ has $198.13 billion.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard S&P 500 Growth ETF (VOOG), a passively managed exchange traded fund launched on 09/09/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard S&P 500 Growth ETF (VOOG), a passively managed exchange traded fund launched on 09/09/2010.
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16036353-268f-454a-856a-24ee5b7ec73a
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14262.0
|
2023-08-17 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): Near-Term Headwinds Fuel Cautious Sentiment
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-near-term-headwinds-fuel-cautious-sentiment
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nan
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nan
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Apple (NASDAQ:AAPL) stock has declined 7% since the company cautioned investors about a continued decline in revenue in the September quarter, which would mark the fourth consecutive quarter of lower top line for the tech giant. Wall Street’s consensus rating for Apple has transitioned from a Strong Buy ahead of the earnings release to a Moderate Buy following the fiscal third-quarter print, reflecting a cautious approach over the near term even as the long-term growth story seems attractive.
Analysts’ Sentiment Post Q3 Print
Apple exceeded analysts’ estimates for the third quarter of Fiscal 2023 (ended July 1, 2023) despite a 1.4% decline in revenue to $81.8 billion. Lower revenue from iPhone, Mac, and iPad offset the growth in the Wearables, Home, and Accessories and Services segments.
Management expects September quarter year-over-year revenue performance to be similar to the June quarter, which indicates a continued decline in the top line. In particular, the company projects iPhone and Services Q4 FY23 revenue to accelerate year-over-year compared to the growth rates experienced in the June quarter. However, Mac and iPad revenues are expected to fall by double-digits year-over-year due to tough comparisons with the prior-year quarter.
In reaction to the Q3 FY23 results, Rosenblatt analyst Barton Crockett downgraded Apple to Hold from Buy on August 4, but maintained the price target at $198. The analyst said that his downgrade followed the company’s mixed results that highlight “the slowdown phase in which Apple now sits.”
Crockett thinks that a slowdown in Apple's U.S. business could last until a new product category takes hold. Given the uncertainty associated with the timing and success of a new launch, the analyst does not have a solid reason to favor AAPL shares, which he noted are now trading at near-peak absolute and relative multiples.
Meanwhile, UBS analyst David Vogt, who has a Hold rating on AAPL, thinks that foreign exchange trends and not demand shifts will drive any potential improvement in iPhone revenue. He argued that on a constant-currency basis, iPhone and Services growth in the September quarter will be similar to June, with no acceleration as guided by the company, which he feels is disappointing.
In contrast, Oppenheimer analyst Martin Yang raised his price target to $220 from $195 and reiterated a Buy rating on August 4. Given Apple's long-term opportunities, Yang thinks that the company’s “stagnating” revenue growth is not a matter of concern.
While Yang agrees that concerns about Apple’s lack of growth in FY23 not justifying its elevated multiple are understandable, he contends that such fears are immature due to the company’s solid competitive position in hardware and durable high-margin revenue growth from Services.
Yang continues to believe in Apple’s ability to deliver “superior long-term profit growth from hardware and services market-share gain.”
Is Apple a Buy, Sell, or Hold?
Wall Street’s Moderate Buy consensus rating on Apple is based on 22 Buys and eight Holds. The average price target of $208.13 implies about 18% upside. Shares have risen 36% year-to-date.
Conclusion
Several analysts remain confident about the long-term growth prospects of Apple based on its impressive brand name, solid track record, and continued innovation. That said, the consensus Wall Street rating indicates a cautiously optimistic sentiment on Apple due to the expected weakness in its revenue over the near term.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the uncertainty associated with the timing and success of a new launch, the analyst does not have a solid reason to favor AAPL shares, which he noted are now trading at near-peak absolute and relative multiples. Meanwhile, UBS analyst David Vogt, who has a Hold rating on AAPL, thinks that foreign exchange trends and not demand shifts will drive any potential improvement in iPhone revenue. Apple (NASDAQ:AAPL) stock has declined 7% since the company cautioned investors about a continued decline in revenue in the September quarter, which would mark the fourth consecutive quarter of lower top line for the tech giant.
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Apple (NASDAQ:AAPL) stock has declined 7% since the company cautioned investors about a continued decline in revenue in the September quarter, which would mark the fourth consecutive quarter of lower top line for the tech giant. Given the uncertainty associated with the timing and success of a new launch, the analyst does not have a solid reason to favor AAPL shares, which he noted are now trading at near-peak absolute and relative multiples. Meanwhile, UBS analyst David Vogt, who has a Hold rating on AAPL, thinks that foreign exchange trends and not demand shifts will drive any potential improvement in iPhone revenue.
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Apple (NASDAQ:AAPL) stock has declined 7% since the company cautioned investors about a continued decline in revenue in the September quarter, which would mark the fourth consecutive quarter of lower top line for the tech giant. Given the uncertainty associated with the timing and success of a new launch, the analyst does not have a solid reason to favor AAPL shares, which he noted are now trading at near-peak absolute and relative multiples. Meanwhile, UBS analyst David Vogt, who has a Hold rating on AAPL, thinks that foreign exchange trends and not demand shifts will drive any potential improvement in iPhone revenue.
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Apple (NASDAQ:AAPL) stock has declined 7% since the company cautioned investors about a continued decline in revenue in the September quarter, which would mark the fourth consecutive quarter of lower top line for the tech giant. Given the uncertainty associated with the timing and success of a new launch, the analyst does not have a solid reason to favor AAPL shares, which he noted are now trading at near-peak absolute and relative multiples. Meanwhile, UBS analyst David Vogt, who has a Hold rating on AAPL, thinks that foreign exchange trends and not demand shifts will drive any potential improvement in iPhone revenue.
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97964699-c4c5-4e97-b4e8-c2b8bdba1f92
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14263.0
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2023-08-17 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-61
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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77870e75-545b-4db3-a2e7-e5b1fa81bb09
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14264.0
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2023-08-17 00:00:00 UTC
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Got $5,000? 3 Stocks to Hold for the Next 20 Years.
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AAPL
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https://www.nasdaq.com/articles/got-%245000-3-stocks-to-hold-for-the-next-20-years.-0
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nan
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nan
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The world is inherently unpredictable. No one could have thought that a global pandemic would happen and bring the economy to a screeching halt. Moreover, supply chain issues, soaring inflation, and rapidly rising interest rates followed.
This makes trying to invest with a 20-year time horizon seem almost impossible. But there are some clues that investors can identify in specific businesses that warrant owning them for this long. It's all about durability.
Let's take a closer look at why Apple (NASDAQ: AAPL), Nike (NYSE: NKE), and Starbucks (NASDAQ: SBUX) are three stocks to evenly split a $5,000 investment in, with the intention of holding them for the next 20 years.
Apple
The past two decades have seen Apple introduce game-changing products like the iPod, iPhone, iPad, Watch, and AirPods, all to incredible enthusiasm from consumers. And in the past several years, the company's services segment has been posting strong growth, thanks to offerings like Music, TV+, and Pay. This successful history of innovation and focus on beautiful hardware and user-friendly software is exactly why Apple should remain one of the most valuable companies well into the future.
The powerful brand resonates with consumers, and it has created a business that seems to print money. Apple generated $111 billion of free cash flow in fiscal 2022 (ended Sept. 24). And as of July 1, the company had $166.5 billion of cash, cash equivalents, and marketable securities on its balance sheet compared to $105.3 billion of debt. This financial strength means that Apple has the resources to invest in new ideas that could move the needle from a growth perspective, like augmented and virtual reality initiatives.
After producing a stellar return of 243% in the last five years and a 38% return this year alone (as of Aug. 14), Apple shares aren't cheap, trading at a price-to-earnings ratio of 30. Nonetheless, it might be a safe stock to still consider buying.
Nike
Having been founded in 1964, Nike has the longest operating history of all the companies on this list. And that longevity has benefited the business in two ways. For starters, Nike's brand presence is unmatched. Its clothing and footwear products are in huge demand across the world, and customers are willing to pay premium prices for them. The company's quarterly gross margin has averaged 44.3% over the past five years.
Being successful for such a long period of time means that Nike has been forced to adapt to change in order to ensure its ultimate survival. The shift to digital and e-commerce and away from brick-and-mortar demonstrates management's ability to think about changes in consumer behavior. Nike is focused on relying less on wholesale distributors and instead leaning into its own channels.
The leadership team wants half of all revenue to eventually come from digital sales. This shouldn't be a problem considering that Nike's Consumer Direct Acceleration strategy, which started in 2020, prioritizes digitizing operations.
The next 20 years could look very different from the last 20. That's because most of Nike's gains are poised to come from the fast-growing Greater China region, which represented 14% of company revenue in the most recent fiscal quarter (the fourth quarter of 2023, ended May 31).
Starbucks
With over 37,000 stores worldwide as of July 2, Starbucks is already a ubiquitous brand. But executives believe the business can have 55,000 locations open by the end of 2030. Consequently, the expansionary runway still looks to be very big, with a lot of the growth coming from China.
Like Apple and Nike, Starbucks' brand is the key to its success. And it will continue to play a huge part in how the company fares going forward. Starbucks has been able to sell a commoditized product at premium prices, leading to sizable growth and profitability, primarily because it has found a way to encourage consumers to spend more.
Starbucks' top-notch rewards program, with 31.4 million active accounts in the U.S., is incredibly valuable. It not only drives customer loyalty that leads to repeat visits, but it also provides the company with an effective way to collect data that can inform product and marketing decisions.
With a high degree of certainty, investors can be sure that Starbucks will be doing the same thing in 20 years that it's doing today. By not inviting much technological disruption, the business is better insulated from the threat of competition. And this raises the chances that it is still a successful enterprise two decades from now.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nike, and Starbucks. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's take a closer look at why Apple (NASDAQ: AAPL), Nike (NYSE: NKE), and Starbucks (NASDAQ: SBUX) are three stocks to evenly split a $5,000 investment in, with the intention of holding them for the next 20 years. This financial strength means that Apple has the resources to invest in new ideas that could move the needle from a growth perspective, like augmented and virtual reality initiatives. Starbucks has been able to sell a commoditized product at premium prices, leading to sizable growth and profitability, primarily because it has found a way to encourage consumers to spend more.
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Let's take a closer look at why Apple (NASDAQ: AAPL), Nike (NYSE: NKE), and Starbucks (NASDAQ: SBUX) are three stocks to evenly split a $5,000 investment in, with the intention of holding them for the next 20 years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Neil Patel has no position in any of the stocks mentioned.
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Let's take a closer look at why Apple (NASDAQ: AAPL), Nike (NYSE: NKE), and Starbucks (NASDAQ: SBUX) are three stocks to evenly split a $5,000 investment in, with the intention of holding them for the next 20 years. Like Apple and Nike, Starbucks' brand is the key to its success. The Motley Fool has positions in and recommends Apple, Nike, and Starbucks.
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Let's take a closer look at why Apple (NASDAQ: AAPL), Nike (NYSE: NKE), and Starbucks (NASDAQ: SBUX) are three stocks to evenly split a $5,000 investment in, with the intention of holding them for the next 20 years. Its clothing and footwear products are in huge demand across the world, and customers are willing to pay premium prices for them. Like Apple and Nike, Starbucks' brand is the key to its success.
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7574cfce-278d-45fe-af0b-e5f8410dbd5b
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14265.0
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2023-08-17 00:00:00 UTC
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54.5% of Warren Buffett's $360 Billion Stock Portfolio Is in These 2 Blue Chip Stocks
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AAPL
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https://www.nasdaq.com/articles/54.5-of-warren-buffetts-%24360-billion-stock-portfolio-is-in-these-2-blue-chip-stocks
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nan
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nan
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Berkshire Hathaway CEO Warren Buffett has done an incredible job guiding his company to market-crushing success through the decades. Today, the investment giant has a market capitalization of more than $786 billion, ranks as the world's eighth-largest company, and has a stock portfolio worth roughly $360 billion.
Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders. With that in mind, read on for a look at the two blue chip stocks that Warren Buffett has incredible confidence in.
1. Apple
Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. Buffett's company first began investing in the mobile hardware leader in 2016, and it has continued to regularly buy shares through the years. Today, Apple stock accounts for 45.6% of Berkshire's portfolio -- making it the company's biggest stock holding by a wide margin.
Not only does Apple consistently serve up profits, it often ranks as the world's most profitable company. The blue chip tech company's dominant position in the smartphone market has been and continues to be the biggest driver of its success.
Thanks to its incredible brand strength and ability to reliably deliver products that delight consumers, the company's iPhone now accounts for roughly 55% of total smartphone unit sales in the U.S. Globally, the company is capturing 45% of total revenue in the category.
But just looking at the unit sales picture would actually undersell how powerful Apple is in the mobile market. The tech giant's iPhones account for 85% of total operating profits on smartphone sales worldwide. While most other players in the space have been pressured by commodification trends, Apple's sales cut and profitability in the category have continued to increase through the years.
And even though the iPhone is undoubtedly the centerpiece of the business, Apple is far from being a one-trick pony. In addition to other hardware devices including tablets, computers, and wearables, the company also has a highly profitable software and services business. The segment now has more than 1 billion subscription customers globally and recorded revenue of $21.8 billion last quarter -- about 26% of the $81.8 billion in sales posted in the period.
AAPL Dividend data by YCharts
Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. The company has raised its payout 153.6% since initiating a dividend in 2012, and 84.6% since Berkshire started buying the stock in Q1 2016.
Apple's incredible share price gains mean that the company's dividend yield has been pushed down to roughly 0.5%. But additional payout increases will mean that Buffett's company will continue to enjoy rising yield on shares it's already purchased.
2. Bank of America
Bank of America (NYSE: BAC) ranks as Berkshire's second-largest stock holding and currently accounts for 8.9% of the investment giant's portfolio. With a dividend yield of about 2.9%, it's also one of Buffett's biggest income generators.
Berkshire Hathaway currently owns more than 1.03 billion shares of B of A stock. Based on the bank's current annual dividend payout of $0.96 per share, Berkshire will receive just under $1 billion in annual payouts from its position. Given that Bank of America is such a large holding and cash generator for Berkshire, it's interesting to note that Buffett actually sold all of his company's position in the stock back in 2010.
At the start of the last decade, Bank of America was struggling as it dealt with conditions related to the financial crash and the Great Recession. In response to the challenges at hand, the company slashed its dividend, and Buffett closed out Berkshire's position in the stock in the fourth quarter of 2010.
But the Oracle of Omaha got in contact with Bank of America's CEO the following year to offer an investment olive branch that would provide the financial giant with some funding support. Berkshire wound up purchasing $5 billion worth of the company's preferred stock and received warrants to purchase 700 million shares of common stock at a price of $7.14 per share.
BAC Dividend data by YCharts
Roughly six years later, Bank of America stock was trading above $24 per share. Buffett exercised the warrants and immediately scored a massive paper profit on the deal. The move made his company Bank of America's largest shareholder. Berkshire has continued to increase its stake through the years, and it's continued to benefit from the bank's return to dividend growth.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders.
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Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Thanks to its incredible brand strength and ability to reliably deliver products that delight consumers, the company's iPhone now accounts for roughly 55% of total smartphone unit sales in the U.S. Globally, the company is capturing 45% of total revenue in the category.
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Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Today, Apple stock accounts for 45.6% of Berkshire's portfolio -- making it the company's biggest stock holding by a wide margin.
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Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders.
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cfe56719-08d1-4073-9832-734288bfd0b8
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14266.0
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2023-08-17 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-9
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $4.10 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 typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.44%.
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 29.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 35.15% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has added roughly 18.24% so far this year and is up about 5.02% in the last one year (as of 08/17/2023). In the past 52-week period, it has traded between $124.31 and $161.80.
The ETF has a beta of 0.99 and standard deviation of 18.39% for the trailing three-year period, making it a medium risk choice in the space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC 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 $344.27 billion in assets, SPDR S&P 500 ETF has $412.68 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $4.10 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
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b4f3f9ad-292f-4361-9cc1-7d1495c98e6e
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14267.0
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2023-08-17 00:00:00 UTC
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2 Breakout Growth Stocks You Can Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/2-breakout-growth-stocks-you-can-buy-and-hold-for-the-next-decade-11
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nan
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nan
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Now could be a great time to put some money to work in top growth stocks. The markets have a long history of growing in value for much longer stretches than when they fall. Adding shares of growth stocks that outperform coming out of a bear market can sometimes point you in the direction of a monster long-term winner.
That said, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Broadcom (NASDAQ: AVGO) are outperforming the market in 2023. These companies lead their respective industries in digital advertising and wireless semiconductors and could deliver terrific returns over the next decade.
Alphabet
Google parent Alphabet has outperformed the broader market this year, rising 46%, and reached another high following its second-quarter earnings report. The stock is still trading 14% off its previous high and still offers investors attractive growth prospects over the long term.
The stock fell last year as advertising spending dried up. Inflation and other macroeconomic headwinds caused brands to pull back on ad spending, which is how Alphabet makes money from its leading search engine, YouTube, Gmail, and other apps. But the company's second-quarter report showed revenue accelerating, indicating the advertising market is starting to turn around.
Google is one of the most recognizable brands in the world. Chrome is by far the most used internet browser, with a 63% share of the market, according to GlobalStats. It's even more dominant in search with a 92% share, while YouTube ranks alongside Netflix as the leading video streaming platform.
These are widely used services globally, which is why advertising dollars are flowing back to the company right now. Alphabet reported Google Search revenue grew 4.7% year over year in the second quarter, accelerating from 1.8% in the previous quarter. YouTube posted a small year-over-year increase, reversing last quarter's decline.
Revenue growth should accelerate further as the ad market picks up. Alphabet was consistently growing at double-digit rates through 2021. Google Cloud is another blossoming opportunity for the company, with revenue growth clocking in at 28% year over year in the second quarter, as companies invest in applying generative-AI models to their data.
The stock might be undervalued at a forward price-to-earnings ratio of 23, which doesn't seem like much of a premium for such a dominant business. The company's improving revenue growth shows it is well-positioned to deliver returns for investors.
Broadcom
Broadcom could be a great stock for investors looking for exposure to the AI boom. The shares are up 50% this year, driven by an upbeat earnings report earlier this year that revealed how AI could have a big impact on its future revenue growth. That's because Broadcom is a leading supplier of chips for advanced networking switches that are needed for the heavy data workloads that AI processing demands.
Broadcom's revenue slowed to 8% year over year in the fiscal second quarter, down from 16% in the previous quarter. This was due to lower revenue in the wireless networking business, where Broadcom is a key supplier of chips for Apple's iPhone. This is a seasonally slow quarter for wireless networking products.
Broadcom just recently signed a multiyear deal with Apple to supply 5G radio frequency components and other products for the iPhone. Despite the lower revenue in the last quarter, the wireless business is a steady source of growth for the company. Over the last six years, wireless revenue has grown from $1.15 billion to $1.6 billion in the fiscal second quarter.
But data center networking will become a bigger growth driver over the next decade. Networking revenue grew 20% year over year in the last quarter, representing 39% of total revenue. Specifically, demand for generative AI represents 15% of Broadcom's chip business. It was 10% last year, but management expects it to reach 25% by next year.
The final reason to consider Broadcom stock is how its market leadership in supplying niche products for complex solutions translates to extremely high profitability. Over the last year, the company produced $17 billion in free cash flow on $35 billion in revenue. That's a free cash flow margin of almost 50%, which is rare for any business.
The company distributed 43% of that free cash to shareholders, bringing the stock's dividend to an above-average yield of 2.1%. You won't find many AI stocks producing this level of free cash flow and paying out a generous dividend yield. Broadcom would make a great choice for investors looking for growth and income.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Netflix. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Inflation and other macroeconomic headwinds caused brands to pull back on ad spending, which is how Alphabet makes money from its leading search engine, YouTube, Gmail, and other apps. The final reason to consider Broadcom stock is how its market leadership in supplying niche products for complex solutions translates to extremely high profitability. You won't find many AI stocks producing this level of free cash flow and paying out a generous dividend yield.
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But the company's second-quarter report showed revenue accelerating, indicating the advertising market is starting to turn around. Alphabet reported Google Search revenue grew 4.7% year over year in the second quarter, accelerating from 1.8% in the previous quarter. Over the last year, the company produced $17 billion in free cash flow on $35 billion in revenue.
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Alphabet reported Google Search revenue grew 4.7% year over year in the second quarter, accelerating from 1.8% in the previous quarter. Google Cloud is another blossoming opportunity for the company, with revenue growth clocking in at 28% year over year in the second quarter, as companies invest in applying generative-AI models to their data. Broadcom's revenue slowed to 8% year over year in the fiscal second quarter, down from 16% in the previous quarter.
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Broadcom's revenue slowed to 8% year over year in the fiscal second quarter, down from 16% in the previous quarter. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Apple, and Netflix.
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22d5c938-4be3-45fc-a3aa-1258f5344bf3
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14268.0
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2023-08-17 00:00:00 UTC
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3 Warren Buffett Stocks You Can Buy in August and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-you-can-buy-in-august-and-hold-forever
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nan
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nan
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Warren Buffett has often said "forever" is his favorite stock holding period. He has always gravitated toward companies that make products that constantly stay in demand.
In truth, there are no actual "forever" stocks. Even a dominant company can move from the pinnacle of its industry into irrelevance, much like Sears or Kodak in decades past.
Fortunately, some Warren Buffett investments will likely remain fixtures in American business for decades. To that end, investors should look at Buffett-held companies such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND).
1. Apple
Apple makes up about 45% of the Berkshire Hathaway portfolio for good reasons. Its consumer products, such as the iPhone, have become necessities in today's connected society. And despite a market cap approaching $3 trillion, investors should still consider it a compelling choice.
Admittedly, in a sluggish world economy, the company's product lines do not draw the double-digit increases of past years. Nonetheless, its Apple Services division has picked up some of the slack. Apple Services, which includes AppleCare, iCloud, and Apple TV+, remains on a growth trajectory despite slower spending.
For the first nine months of fiscal 2023 (ended July 1), revenue was $294 billion, 3% lower than year-ago levels. Still, Apple Services revenue increased by 7% even as product sales fell. Moreover, operating costs rose 9% during that time, leading to its net income of $74 billion in the first three quarters of fiscal 2023. During that period, profits dropped by more than 6%.
That has not stopped Apple stock from rising almost 40% this year, taking the company's P/E ratio to around 30. Additionally, with $178 billion in liquidity, its solid balance sheet is likely one reason Buffett's team continues to hold a massive Apple position. That and continued demand for Apple's products arguably make it worth the premium cost.
2. Amazon
Another solid business that attracted the attention of Buffett and his team is Amazon -- but for reasons one may not expect. Most consumers know Amazon best for its e-commerce and services like Amazon Prime. Still, within its two e-commerce-related segments, its advertising, subscription, and third-party seller services may be masking sluggish online sales growth.
Instead, Amazon's strongest growth has come from its cloud infrastructure product, Amazon Web Services (AWS). It also accounts for the majority of the company's net operating income.
For the first two quarters of 2023, its $262 million in net sales grew 10% versus the same period in 2022. Amid slower growth in operating expenses, it also returned to profitability. Amazon earned $9.9 billion for the first six months of the year, reversing the $5.9 billion loss for the same time frame in 2022.
Not surprisingly, AWS's operating profit of over $10 billion during that period carried the company. Nonetheless, investors should remember that online sales make the advertising, third-party seller services, and subscription businesses possible. For this reason, Amazon can arguably justify mediocre returns or even modest losses in the online selling business.
Investors seem to agree, as the stock has risen nearly 70% this year despite a roughly 110 P/E ratio. As long as AWS and the site-related businesses can grow rapidly, Amazon should continue to have a bright future.
3. Floor & Decor
Floor & Decor may appeal to investors who missed the growth in Home Depot and Lowe's in decades past. It carved out niches in hard flooring, decoratives, and fixtures, offering more variety than general home improvement stores. That bulk buying allowed it to keep its costs low, thus keeping the company competitive.
Moreover, Floor & Decor is in the midst of a nationwide expansion. As of the end of Q2, its store count stood at 203 locations in 36 states. This number includes 14 of the 32 stores needed to meet its expansion goal for 2023.
That build-out helped its net sales for the first half of the year rise to $2.3 billion, a 7% increase from the same period in 2022. Admittedly, this lags behind the 24% sales growth reported in 2022, but the expansion continues despite rising interest rates and a sluggish economy. Also, investors may balk at paying 39 times earnings amid the slowdown, though that valuation is about average for Floor & Decor historically.
Still, the retail stock has risen 50% this year, indicating that Buffett's team made an excellent choice. As the company continues to expand to new markets and add stores within its footprint, Floor & Decor will likely continue heading higher.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Home Depot. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To that end, investors should look at Buffett-held companies such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND). Admittedly, in a sluggish world economy, the company's product lines do not draw the double-digit increases of past years. Additionally, with $178 billion in liquidity, its solid balance sheet is likely one reason Buffett's team continues to hold a massive Apple position.
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To that end, investors should look at Buffett-held companies such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND). Still, within its two e-commerce-related segments, its advertising, subscription, and third-party seller services may be masking sluggish online sales growth. Nonetheless, investors should remember that online sales make the advertising, third-party seller services, and subscription businesses possible.
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To that end, investors should look at Buffett-held companies such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND). Floor & Decor Floor & Decor may appeal to investors who missed the growth in Home Depot and Lowe's in decades past. See the 10 stocks *Stock Advisor returns as of August 14, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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To that end, investors should look at Buffett-held companies such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND). Still, Apple Services revenue increased by 7% even as product sales fell. That build-out helped its net sales for the first half of the year rise to $2.3 billion, a 7% increase from the same period in 2022.
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1b61ddc6-d8b3-411e-a6cf-c3b6b2c8f625
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14269.0
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2023-08-16 00:00:00 UTC
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AAPL Factor-Based Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-warren-buffett-4
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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bce4622d-1d29-4e39-9fa9-ac26004b90d6
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14270.0
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2023-08-16 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $37,350.00K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%2437350.00k
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nan
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nan
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On August 16, 2023 at 14:11:36 ET an unusually large $37,350.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 2 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 54.31 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6393 funds or institutions reporting positions in Apple. This is an increase of 33 owner(s) or 0.52% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.64%. Total shares owned by institutions increased in the last three months by 0.12% to 9,919,461K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 11.97% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 11.97% from its latest reported closing price of 177.45.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.82% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On August 16, 2023 at 14:11:36 ET an unusually large $37,350.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 2 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 54.31 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.64%.
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On August 16, 2023 at 14:11:36 ET an unusually large $37,350.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 2 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 54.31 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.64%.
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On August 16, 2023 at 14:11:36 ET an unusually large $37,350.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 2 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 54.31 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.64%.
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On August 16, 2023 at 14:11:36 ET an unusually large $37,350.00K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 2 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 54.31 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.02%, an increase of 10.64%.
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88cdd85a-5c8d-4aa6-a111-e66e0b7a211b
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14271.0
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2023-08-16 00:00:00 UTC
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3 Beaten-Down Value Stocks You’ll Regret Not Buying During This Nasdaq Correction
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AAPL
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https://www.nasdaq.com/articles/3-beaten-down-value-stocks-youll-regret-not-buying-during-this-nasdaq-correction
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After the stock market’s dismal performance in 2022, investors are savoring this year’s rally. The Nasdaq Composite Index surged 33% higher in the first half of the year, though the growth-oriented index seems to have stalled out since.
While both the S&P 500 and Dow Jones Industrial Average remain in positive territory for July and August, the Nasdaq Composite is down over 1%.
While that still places it well above the performance of its brethren for the year, the index remains almost 15% below the record high hit in November 2021. Sitting that far down means it is in a correction. It also means there are value stocks to buy on the dip.
The following three stocks are an unmatched opportunity to pick up good companies at an attractive price.
Walgreens Boots Alliance (WBA)
Source: saaton / Shutterstock.com
Struggling pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) is targeting $4.1 billion in annual cost savings by the end of fiscal 2024, or double its 2022 effort. Even so, it remains very profitable on an adjusted basis. It also pays a dividend yielding 6.6% annually.
Walgreens paid its first dividend back in the ’70s and started raising the payout three years later. It hasn’t stopped. That puts it on track to become a Dividend King — a stock that increases its dividend for 50 years or more.
Walgreens is also expanding its focus beyond its pharmacies. In 2021, Walgreens invested $5.2 billion into VillageMD to become the majority owner of the primary care practice. The investment took Walgreens’ stake from 30% to 63%. It intends to have 1,000 locations open by 2027.
VillageMD acquired Summit Health-CityMD last year, further expanding Walgreen’s reach into primary, specialty and urgent care. The move is a bid to gain a greater healthcare services market share.
Walgreens Boots Alliance stock is down 23% this year but trades at a fraction of sales and just eight times earnings. There’s rarely ever been a time when Walgreens was such a cheap value stock.
PayPal (PYPL)
Source: Michael Vi / Shutterstock.com
Fintech giant PayPal (NASDAQ:PYPL) is another beaten-down stock in the midst of a turnaround. Its shares are off 20% this year but 40% over the last 12 months. The decline means it’s trading at just 11 times next year’s earnings estimates.
Part of PayPal’s problems is the increased competition in payments. The fintech is no longer the only alternative at checkout. Apple (NASDAQ:AAPL) Pay and others are now giving consumers options.
Despite beating analyst expectations on the top and bottom line in the second quarter, PayPal reported its number of active accounts fell slightly from the previous quarter.
PayPal, though, still looks poised to regain its momentum. It might not be immediate but within the next quarter or two.
First, it just got a new chief executive officer (CEO). Alex Chriss came to the payments company from Intuit (NASDAQ:INTU). A fresh set of eyes could help rejuvenate the business and thwart Apple’s encroachment. Also, the better-than-forecast results show consumer spending is rising. Total payment volume jumped 10% last quarter. PayPal is often seen as a barometer of the direction the economy is heading. Confident consumers benefit from PayPal’s transaction-driven bottom line.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Smartphone chipmaker Qualcomm (NASDAQ:QCOM) is suffering from a crisis of confidence. The market is worried the smartphone market is saturated, and it will take some time to work off the overhang.
The market analysts at Omdia said global smartphone shipments fell 10% in the second quarter. All major manufacturers dropped compared to a year ago and the previous quarter. That marks the eighth consecutive quarter of year-over-year declines.
That’s a problem for Qualcomm. Apple and Samsung each account for more than 10% of Qualcomm’s revenue.
The industry concentration didn’t help its performance. The chipmaker’s fiscal third-quarter earnings report showed the effects. Revenue was down 23% for the period while profits were cut in half. So, what makes it a buy now?
The smartphone industry, while not exactly cyclical, goes through booms and busts. That said, the market isn’t collapsing. People will still want to upgrade their smartphones. Investors will just need a bit of patience.
Qualcomm is also branching out into the automotive sector and artificial intelligence. They’re still small businesses right now but are growing fast for Qualcomm.
President and CEO Cristiano Amon told investors, “on-device AI has the potential to drive an inflection point across all our products.” The automotive unit is also enjoying 11 straight quarters of year-over-year double-digit growth.
Qualcomm stock is down 25% over the last 12 months and should be seen as a value stock you will regret not buying on the dip.
On the date of publication, Rich Duprey held a long position in WBA stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 3 Beaten-Down Value Stocks You’ll Regret Not Buying During This Nasdaq Correction appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) Pay and others are now giving consumers options. VillageMD acquired Summit Health-CityMD last year, further expanding Walgreen’s reach into primary, specialty and urgent care. President and CEO Cristiano Amon told investors, “on-device AI has the potential to drive an inflection point across all our products.” The automotive unit is also enjoying 11 straight quarters of year-over-year double-digit growth.
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Apple (NASDAQ:AAPL) Pay and others are now giving consumers options. Walgreens Boots Alliance (WBA) Source: saaton / Shutterstock.com Struggling pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) is targeting $4.1 billion in annual cost savings by the end of fiscal 2024, or double its 2022 effort. PayPal (PYPL) Source: Michael Vi / Shutterstock.com Fintech giant PayPal (NASDAQ:PYPL) is another beaten-down stock in the midst of a turnaround.
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Apple (NASDAQ:AAPL) Pay and others are now giving consumers options. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After the stock market’s dismal performance in 2022, investors are savoring this year’s rally. PayPal (PYPL) Source: Michael Vi / Shutterstock.com Fintech giant PayPal (NASDAQ:PYPL) is another beaten-down stock in the midst of a turnaround.
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Apple (NASDAQ:AAPL) Pay and others are now giving consumers options. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After the stock market’s dismal performance in 2022, investors are savoring this year’s rally. Qualcomm stock is down 25% over the last 12 months and should be seen as a value stock you will regret not buying on the dip.
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dc0b4011-e0f9-4a92-90dd-c0d9d899a49a
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14272.0
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2023-08-16 00:00:00 UTC
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Will Apple Acquire Disney? Probably Not, and Here's Why
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AAPL
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https://www.nasdaq.com/articles/will-apple-acquire-disney-probably-not-and-heres-why
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nan
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nan
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The rumors of an Apple (NASDAQ: AAPL) acquisition of Disney (NYSE: DIS) are flying, and they're fun to talk about. But Travis Hoium highlights in this video that a union between the two doesn't make much sense when you think about it.
*Stock prices used were end-of-day prices of Aug. 12, 2023. The video was published on Aug. 15, 2023.
10 stocks we like better than Walt Disney
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Travis Hoium has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rumors of an Apple (NASDAQ: AAPL) acquisition of Disney (NYSE: DIS) are flying, and they're fun to talk about. 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 Walt Disney wasn't one of them!
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The rumors of an Apple (NASDAQ: AAPL) acquisition of Disney (NYSE: DIS) are flying, and they're fun to talk about. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Travis Hoium has positions in Apple and Walt Disney.
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The rumors of an Apple (NASDAQ: AAPL) acquisition of Disney (NYSE: DIS) are flying, and they're fun to talk about. 10 stocks we like better than Walt Disney When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Travis Hoium has positions in Apple and Walt Disney.
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The rumors of an Apple (NASDAQ: AAPL) acquisition of Disney (NYSE: DIS) are flying, and they're fun to talk about. See the 10 stocks *Stock Advisor returns as of August 14, 2023 Travis Hoium has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney.
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1d090745-886a-4d95-bc62-6348427d1eec
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14273.0
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2023-08-16 00:00:00 UTC
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7 Stocks to Buy as Back to School Spending Increases
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AAPL
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https://www.nasdaq.com/articles/7-stocks-to-buy-as-back-to-school-spending-increases
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Summer’s ending and school is right around the corner. From elementary entrants to grad students, learners of all ages and types are ready to hit the books and call an end to summer break.
These students, and their parents, are facing a much different economy than expected this time last year. Good news for investors, though – the surprise soft landing is ripe for substantial back-to-school spending.
Economic indicators alone imply a market ready for a back-to-school spending spree. Inflation’s cooled, although still a bit off the Fed’s target. Reduced gas and grocery prices over the past year mean families aren’t forced to buy bargain school supplies.
Underlining this point, the Consumer Confidence Index rebounded sharply since 2022’s lows.
We’re at the beginning of an imminent house-holder spending spree that won’t be matched until the holiday season, and these seven companies stand to benefit most.
Target (TGT)
Source: Robert Gregory Griffeth / Shutterstock.com
Target (NYSE:TGT) is arguably the king of back-to-school shopping.
Target’s stock took a beating this year, losing around 12% since January and nearly 50% below its all-time high.
Much of the stock suppression is due to recent economic conditions, as household spending dropped. Likewise, Target’s net income fell from $6.95 billion to $2.72 billion between 2022 and 2023.
Still, the company’s inventory turnover ratio remained consistent over the past five years. This consistency shows that management can accurately forecast and manage their stock to meet consumer demand without high inventory costs.
Target’s usually the go-to company stock for back-to-school shopping, and the company should be high on investors’ radar this year.
Walmart (WMT)
Source: Ken Wolter / Shutterstock.com
Walmart (NYSE:WMT) is another obvious back-to-school shopping stock play. Because of its discount-driven sales model, the stock fared better over the past year than its primary competitor, Target.
The company’s digital sales model also expanded heavily post-pandemic, and investments in their Walmart+ app and distribution network are paying off.
The company’s earnings remained fairly stable throughout recent economic turbulence. Walmart reported a whopping $11.68 billion income in 2023, only a 14% drop from 2022. Its inventory turnover ratio, 8.20, also remained on par with its historical levels.
Walmart also positions itself as inflation-friendly, announcing that all school supplies will be sold at last year’s prices.
This move will undoubtedly attract price-conscious consumers and steal customers from pricier providers. Combine the cut-rate pricing with a widespread surge in consumer spending, and Walmart is a no-brainer back-to-school stock.
Logitech (LOGI)
Source: Somphop Krittayaworagul / Shutterstock.com
Logitech (NASDAQ:LOGI) is a strong back-to-school stock, as an increasingly digitized classroom demands the peripherals Logitech offers. The company is also in a great financial position, beating analyst forecasts during July’s quarterly earnings report.
Logitech’s Chief Financial Officer, Chuck Boynton, specifically pointed to the company’s adaptation to changing conditions as key to its recent success. Specifically, the company increased efficiency across its warehouse and retail distribution chains.
Logitech is targeting a sales stat of around $4 billion for the year, and the company’s overall outlook improved.
“We entered the year with a lot of uncertainty and volatility, and in the last quarter we published quite good numbers relative to expectations,” he said.
But Logitech isn’t content to rest on its laurels and continues exploiting efficiencies to drive product sales and increase margins.
This year’s back-to-school shopping season will prove whether Logitech can keep up with its winning trend, but its outlook remains bright.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is everyone’s favorite stock this year as it became the first global company to hit a $1 trillion market cap. There’s little sign of slowing down, though, and Apple will get a boost from back-to-school shoppers replacing old computer equipment.
However, Apple’sglobal marketmakes it stand apart alongside domestic popularity compared to other US-centric back-to-school stocks.
Sales throughout India are booming; the country became one of Apple’s top five sales markets. Emerging market penetration is a difficult move to manage, particularly for pricier products like Apple, and this success points to a bright future for further geographic diversification.
Apple is also leaning on its subscription-based systems, which will likely get a back-to-school boost.
Notably, its iCloud service expanded rapidly throughout the past few years as digitized work and school environments demand greater computing storage and a need to simultaneously work across multiple hardware platforms.
While Apple’s current price is arguably overvalued, there’s also no denying the company is well-positioned to remain dominant. The upcoming school shopping season will demonstrate that for skeptical investors.
Office Depot (ODP)
Source: GaudiLab / Shutterstock
Office Depot (NASDAQ:ODP) beat earnings estimates at the beginning of of the month, forecasting a return to normalcy for the downtrodden stock.
Office Depot stock, alongside its obvious position as a back to school stock, also benefits investors seeking diversification between standard retail.
In 2022, Office Depot split its operational streams into its standard retail division (Office Depot), B2B contract sales (ODP Business Solutions), a managed supply chain (Veyer), and a B2B digital platform to facilitate buyer and supplier sales (Varis).
Broad diversification and delineation between revenue streams mean each can wholly focus on its core competencies. Before, management had to split attention and focus, trying to do everything at once.
Varis, in particular, is a substantial sales driver that provides a buffer to seasonal retail sales, including back-to-school shopping. Although fairly new, it’s headed up by former Amazon head Prentis Wilson.
Wilson brought his former employer more than $10 billion in annual sales within six years of rolling out the program at Amazon, and he’s ready to do the same for Office Depot.
He’s optimistic that 2023 will be the year Varis fully enters its market, as he expects “that this will be the peak year of investment for Varis as we ready the platform for launch, turn on the revenue flywheel and scale the business.”
We’ll have to wait to see whether Varis becomes the juggernaut Wilson expects but, in the meantime, the company’s back-to-school retail sales will help bridge the revenue gap.
Amazon (AMZN)
Source: Claudio Divizia / Shutterstock.com
Amazon (NASDAQ:AMZN) is another no-brainer back-to-school stock. The company’s dominant online position is the most accessible avenue for at-home shopping.
The digital retail giant’s recent retail sales remained somewhat flat, but this isn’t bad news. Instead, its 9% revenue increase, down from the previous year’s 17% jump, suggests the company can adapt to reduced spending in a tighter economy.
Amazon’s ongoing commitment to cloud services and AI for this school season. Cloud revenue alone is up 12%, further driving profit for its central Amazon Web Services division.
But, besides helping schools and students store and manage massive amounts of data, Amazon’s AI efforts make it a long-term, stable play for this market beyond back-to-school shopping.
As more and more companies develop proprietary AI platforms, and more consumers (including students) leverage the tools for everyday life, Amazon stands to profit.
Acknowledging the imminent profit boost, Amazon CEO Andrew Jassey told investors that, although they’re working on their own AI tools, “most will be built by other companies, and we’re optimistic that the largest number of these will be built on AWS.”
Positioning themselves for an AI revolution will help further diversify Amazon’s offerings. At the same time, Amazon’s ongoing retail dominance is top-of-mind for back-to-school shoppers.
Zoom (ZM)
Source: Michael Vi / Shutterstock.com
Zoom (NASDAQ:ZM) is well off its mid-pandemic high, but digital classrooms still have a place in today’s landscape, and this software stock is ready for school to start.
Zoom is the undisputed leader in videoconferencing software, with over 50% of the total market share as of 2022. This is a boon to the stock, as software of this type tends to be sticky.
If a school or workplace picks Zoom as its primary provider, they’re hard-pressed to pivot and adapt to a new offering across its educational ecosystem.
Its basic sales model relies heavily on consumer adoption and word-of-mouth spread. But, today, Zoom is also expanding its enterprise sales team.
This means that, although Zoom is a go-to option for individuals, small companies, and some schools, sales reps will begin targeting giant corporations that are increasingly going remote.
There’s stiff competition at the enterprise level, but Zoom’s dominant position for students and casual users makes it an easy sell at scale.
On the date of publication, Jeremy Flint held no position in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post 7 Stocks to Buy as Back to School Spending Increases appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is everyone’s favorite stock this year as it became the first global company to hit a $1 trillion market cap. But, besides helping schools and students store and manage massive amounts of data, Amazon’s AI efforts make it a long-term, stable play for this market beyond back-to-school shopping. This means that, although Zoom is a go-to option for individuals, small companies, and some schools, sales reps will begin targeting giant corporations that are increasingly going remote.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is everyone’s favorite stock this year as it became the first global company to hit a $1 trillion market cap. Logitech (LOGI) Source: Somphop Krittayaworagul / Shutterstock.com Logitech (NASDAQ:LOGI) is a strong back-to-school stock, as an increasingly digitized classroom demands the peripherals Logitech offers. Office Depot stock, alongside its obvious position as a back to school stock, also benefits investors seeking diversification between standard retail.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is everyone’s favorite stock this year as it became the first global company to hit a $1 trillion market cap. Target’s usually the go-to company stock for back-to-school shopping, and the company should be high on investors’ radar this year. He’s optimistic that 2023 will be the year Varis fully enters its market, as he expects “that this will be the peak year of investment for Varis as we ready the platform for launch, turn on the revenue flywheel and scale the business.” We’ll have to wait to see whether Varis becomes the juggernaut Wilson expects but, in the meantime, the company’s back-to-school retail sales will help bridge the revenue gap.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is everyone’s favorite stock this year as it became the first global company to hit a $1 trillion market cap. Target’s usually the go-to company stock for back-to-school shopping, and the company should be high on investors’ radar this year. Logitech is targeting a sales stat of around $4 billion for the year, and the company’s overall outlook improved.
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88b0d6c2-442e-428c-98a7-3b2cfcfef103
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14274.0
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2023-08-16 00:00:00 UTC
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3 Top Stocks Billionaires Are Loading Up On in 2023
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-billionaires-are-loading-up-on-in-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s face it; investing has us often peeking over the proverbial fence to see where the grass might be greener. Many gold standards of “green” can be found by tracking stocks billionaires are buying. With the power of the Internet and mandated Form 13F disclosures, anyone can delve into the top stocks to buy what billionaire are favoring. While diving into billionaire stocks may sound like a golden ticket, it comes with its caveats. Sure, billionaires might shrug off a few million lost in trades, but for the average investor, such a scenario is far from palatable. Yet, it’s essential to note that the wealthy didn’t amass their fortunes by being frivolous. They’ve historically had an eye for winning, which makes stocks favored by billionaires intriguing.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion
Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. Its innovative products, robust business model, and growing stock have made it a treasured pick in the portfolios of the world’s financial elites. From visionary investors such as Warren Buffett to tech-savvy venture capitalists, many have bitten into Apple’s success story.
The company is known for the iconic iPhone, but it has diversified into various other products and services that continue to generate growing cash flows. One thing that Apple has — and its competitors don’t have — is customer loyalty. The loyal and satisfied customer base is the company’s strength, and consumers are ready to pay a premium for its products.
The company rewards its shareholders through share buybacks and dividends. It has a dividend yield north of 0.5% and has recently paid a quarterly dividend of 24 cents. In the last quarter, it returned $24 billion to shareholders and has increased its dividend each year since 2013.
As always, AAPL stock was a hit with billionaire investors in the most recent quarter. Paul Tudor Jones and Jim Simons, two of the most powerful investors, increased their stakes in the company by more than triple-digit margins.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $32.5 billion
Once an eCommerce pure-play, Amazon (NASDAQ:AMZN) has become our era’s tech titan. Braving new challenges, the company showcased spectacular second-quarter results, surpassing EPS and revenue predictions. Amazon Web Services (AWS) wasn’t far behind either, surprising markets with its booming revenues. The firm’s second-quarter showing marked Amazon’s grandest earnings beat since the final quarter of 2020, a feat attributed to its disciplined cost management strategies.
Speaking of trust in this tech juggernaut, JPMorgan Chase (NYSE:JPM), steered by billionaire Jamie Dimon, placed a whopping $1.9 billion bet on Amazon. Furthermore, billionaire bigwigs such as George Soros, Mario Gabelli, and Louis Moore Bacon weren’t left behind, growing their stake by 8.8%, 3.8%, and 454.3%, respectively, in the second quarter, signaling its bullish sentiment on the tech titan’s future.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $43.9 billion
In a landscape where many tech giants scramble for supremacy, Microsoft (NASDAQ:MSFT) has effectively carved out its niche with an authoritative footing in pivotal sectors such as the cloud, AI, cybersecurity, and gaming. The company’s CEO, Satya Nadella, isn’t resting on past laurels, either, aiming for future financial windfalls.
Last quarter’s figures shine a spotlight on this trajectory. While Microsoft breezed past second-quarter earnings estimates, posting an EPS of $2.69 and revenue of $56.19 billion, the stock took a surprising 4% dip, mainly attributed to a less-than-stellar sales forecast. Yet, it’s hard to overlook the company’s roaring financial engine. An impressive jump in operating income swelled to $24 billion, accounting for a whopping 43% of sales. Microsoft remains a beacon of resilience for those with an eye on the tech horizon.
Regarding resilience, multiple billionaires and their investment firms loaded up on MSFT stock in the second quarter. Paul Tudor Jones, Louis Moore Bacon, and Jim Simons increased their stake in the stock by double-digit margins.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The $1 Investment You MUST Take Advantage of Right Now
The post 3 Top Stocks Billionaires Are Loading Up On in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. As always, AAPL stock was a hit with billionaire investors in the most recent quarter. Speaking of trust in this tech juggernaut, JPMorgan Chase (NYSE:JPM), steered by billionaire Jamie Dimon, placed a whopping $1.9 billion bet on Amazon.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. As always, AAPL stock was a hit with billionaire investors in the most recent quarter. Amazon (AMZN) Source: Tada Images / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $32.5 billion Once an eCommerce pure-play, Amazon (NASDAQ:AMZN) has become our era’s tech titan.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. As always, AAPL stock was a hit with billionaire investors in the most recent quarter. Amazon (AMZN) Source: Tada Images / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $32.5 billion Once an eCommerce pure-play, Amazon (NASDAQ:AMZN) has become our era’s tech titan.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. As always, AAPL stock was a hit with billionaire investors in the most recent quarter. While Microsoft breezed past second-quarter earnings estimates, posting an EPS of $2.69 and revenue of $56.19 billion, the stock took a surprising 4% dip, mainly attributed to a less-than-stellar sales forecast.
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16ef55dc-e342-4339-8be7-5b3c378d5bc5
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14275.0
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2023-08-16 00:00:00 UTC
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Pre-Market Most Active for Aug 16, 2023 : AAPL, NIO, SQQQ, TQQQ, TSLA, TGT, TSEM, MRVL, C, AMC, WMT, COHR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-16-2023-%3A-aapl-nio-sqqq-tqqq-tsla-tgt-tsem-mrvl-c-amc-wmt
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The NASDAQ 100 Pre-Market Indicator is down -12.43 to 15,025.22. The total Pre-Market volume is currently 43,992,785 shares traded.
The following are the most active stocks for the pre-market session:
Apple Inc. (AAPL) is -0.03 at $177.42, with 2,529,281 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is -0.63 at $11.20, with 2,430,260 shares traded. NIO's current last sale is 74.67% of the target price of $15.
ProShares UltraPro Short QQQ (SQQQ) is +0.08 at $19.54, with 2,420,229 shares traded. This represents a 19.29% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.171 at $38.98, with 1,956,139 shares traded. This represents a 142.11% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -4.76 at $228.20, with 1,856,762 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.22. TSLA's current last sale is 86.93% of the target price of $262.5.
Target Corporation (TGT) is +8.39 at $133.44, with 1,855,132 shares traded. Smarter Analyst Reports: Target Gains 10% on Outstanding Q4 Results & Positive Outlook
Tower Semiconductor Ltd. (TSEM) is -3.67 at $30.11, with 1,520,369 shares traded. TSEM's current last sale is 69.22% of the target price of $43.5.
Marvell Technology, Inc. (MRVL) is +0.13 at $59.25, with 1,519,374 shares traded. As reported by Zacks, the current mean recommendation for MRVL is in the "buy range".
Citigroup Inc. (C) is -0.02 at $43.19, with 1,102,916 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.31. C's current last sale is 85.95% of the target price of $50.25.
AMC Entertainment Holdings, Inc. (AMC) is +0.06 at $3.74, with 722,026 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $-0.02. AMC's current last sale is 204.93% of the target price of $1.825.
Walmart Inc. (WMT) is +1.12 at $160.30, with 545,037 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $1.69. WMT is scheduled to provide an earnings report on 8/17/2023, for the fiscal quarter ending Jul2023. The consensus earnings per share forecast is 1.69 per share, which represents a 177 percent increase over the EPS one Year Ago
Coherent Corp. (COHR) is -8.8098 at $38.20, with 524,306 shares traded. COHR's current last sale is 69.45% of the target price of $55.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.03 at $177.42, with 2,529,281 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Target Gains 10% on Outstanding Q4 Results & Positive Outlook
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Apple Inc. (AAPL) is -0.03 at $177.42, with 2,529,281 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.03 at $177.42, with 2,529,281 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.03 at $177.42, with 2,529,281 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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04b260ad-2e7a-4484-9470-8d5d1045333c
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14276.0
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2023-08-16 00:00:00 UTC
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Can Shiba Inu Reach $1?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%241-11
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nan
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nan
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Shiba Inu (CRYPTO: SHIB) was the talk of the crypto world a couple years ago, as it skyrocketed in 2021, hitting an all-time high price of $0.00008845 in October that year. But as of this writing, the token is 88% off that peak, a clear sign that investors have soured on the dog-inspired digital asset.
Shiba Inu bulls aren't deterred, however, thinking that its best days are still ahead. Can Shiba Inu one day reach $1 per token, which would equate to a rise of more than 111,000-fold? Speculators might hope for this lofty target to come true, but it's not probable. Let's take a closer look at this meme cryptocurrency.
Lack of adoption
While cryptocurrencies have loud believers, as well as fervent skeptics, what ultimately matters for their long-term viability is if more users adopt the technology in their daily lives. The thinking is that as more people use a particular cryptocurrency, demand rises, and so too should its price.
But Shiba Inu's major price run-up in 2021 was due mainly to speculative forces, driven by meme-stock mania that took hold of the markets at that time. In other words, Shiba Inu isn't gaining supporters because it has any valuable use cases.
The network is built on top of Ethereum's, so it opens up greater compatibility than its rival, Dogecoin. This gives Shiba Inu the ability to create and run smart contracts, which are just software programs that automatically execute when two parties satisfy their ends of a transaction. But according to cryptwerk.com, Shiba Inu is only accepted as a form of payment by 766 merchants worldwide.
Shiba Inu is trying to improve its standing. There is ShibaSwap, a decentralized exchange that lets people trade various digital assets without the need for a central authority. There's also a project called Shibarium on tap, which is a Layer-2 network that could help Shiba Inu process transactions faster and more cheaply, thus opening up use cases for things like non-fungible tokens, metaverse applications, and decentralized finance protocols. It's still unknown when this will be released.
The Shibarium project poses a lot of technical risk, as lots of things can go wrong with its implementation. Moreover, users and developers simply might not care enough to direct their attention and time to these updates. And this highlights the fact that Shiba Inu lacks any competitive edge. In a world where there are tens of thousands of different cryptocurrencies, investors are probably better off just focusing on the proven giants, like Bitcoin and Ethereum.
The numbers don't add up
If the downbeat outlook on Shiba Inu's challenges isn't enough for you to be bearish on the digital asset, an illuminating exercise is to just do the math. There are 589 trillion Shiba Inu tokens in circulation. That's down from the initial supply of 1 quadrillion, but it's nonetheless an astronomical figure. This means that if Shiba Inu can miraculously reach $1 per token, the entire network's market cap would total $589 trillion. That silly nominal sum isn't happening, even with a strategy in place to burn coins, taking them out of circulation.
At this monster valuation, Shiba Inu would command many times more than all of the world's net worth. It would be roughly 25 times the size of the U.S. economy in terms of gross domestic product. And it equates to about 210 times more than the world' most valuable company, Apple. Is it in the realm of possibilities that this speculative cryptocurrency surpasses the most successful enterprise of our time? There's not a chance.
Investors hoping that Shiba Inu can hit the $1 mark should seriously temper their expectations. This token isn't going to get there. The numbers just don't add up.
10 stocks we like better than Shiba Inu
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But Shiba Inu's major price run-up in 2021 was due mainly to speculative forces, driven by meme-stock mania that took hold of the markets at that time. This gives Shiba Inu the ability to create and run smart contracts, which are just software programs that automatically execute when two parties satisfy their ends of a transaction. There's also a project called Shibarium on tap, which is a Layer-2 network that could help Shiba Inu process transactions faster and more cheaply, thus opening up use cases for things like non-fungible tokens, metaverse applications, and decentralized finance protocols.
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Can Shiba Inu one day reach $1 per token, which would equate to a rise of more than 111,000-fold? There are 589 trillion Shiba Inu tokens in circulation. Investors hoping that Shiba Inu can hit the $1 mark should seriously temper their expectations.
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There's also a project called Shibarium on tap, which is a Layer-2 network that could help Shiba Inu process transactions faster and more cheaply, thus opening up use cases for things like non-fungible tokens, metaverse applications, and decentralized finance protocols. The numbers don't add up If the downbeat outlook on Shiba Inu's challenges isn't enough for you to be bearish on the digital asset, an illuminating exercise is to just do the math. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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There's also a project called Shibarium on tap, which is a Layer-2 network that could help Shiba Inu process transactions faster and more cheaply, thus opening up use cases for things like non-fungible tokens, metaverse applications, and decentralized finance protocols. This token isn't going to get there. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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95043311-f0b4-4e74-9dc1-1f8b3896d892
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14277.0
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2023-08-16 00:00:00 UTC
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More Reasons to Bite Into Apple (AAPL) Stock
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AAPL
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https://www.nasdaq.com/articles/more-reasons-to-bite-into-apple-aapl-stock
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nan
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L
ike many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month. In fact, Apple stock has given up close to 6% in thirty days, while the S&P 500 index has risen almost 1%. But don't expect that under-performance to continue, according to analyst Dan Ives of Wedbush Securities.
Citing what he calls the “AI gold-rush,” which he believes will propel tech stocks to add another 12% to 15% before the end of the year, Ives listed Apple among the tech stocks that should be bought on any pullback. "From the hundreds of conference calls we listened to over the past month [it's] clear that the AI theme is changing the enterprise and consumer landscape going forward and creating a bifurcated spending environments for the winners and losers in this backdrop," Ives wrote.
Apple which lost 22% of its value in 2022, has gained 37% year to date, besting the 16% rise in the S&P 500 index. Over the past six months, the stock has risen some 18%, while the S&P 500 index has risen 9%. However, since its Q3 earnings results, the stock has grossly under-performed. I believe some investors focused too much on iPhone unit sales and not enough on the bigger picture.
During the quarter, Apple’s consolidated revenues reached $81.8 billion, slightly beating the expected $81.7 billion. The adjusted EPS came in at $1.26, topping the $1.19 expected. But investors focused instead on the fact that revenue total of $81.8 billion marked a marginal 1.4% year-over-year decline. Some investors were seemingly disappointed in the iPhone segment, which suffered 2.5% year-over-year drop with revenue of $39.7 billion. Given that Apple is in a refresh cycle year with the iPhone 15 set to launch, the weakness in current iPhones was expected.
However, the most important aspect of the quarter were the positive side. For example, Apple's Services segment outperformed, generating $21.2 billion in revenue, surpassing the estimated $20.7 billion, all of which led to consolidated gross margins of 44.5%, reaching an all-time high. Calling this a remarkable feat would be an understatement. But it also highlights the strength of Apple’s management team and their ability to not only achieve supply chain efficiencies, but also their well-timed pivot towards the Services segment.
Currently on track to reach $100 billion in annual revenue by FY24, Apple’s Services segment, which grew 8% during the quarter, has become a dominant force, accounting for over 25% of its total revenue. But the good news didn't stop there. Apple surpassed the 1 billion paid subscribers mark. The management’s focus on emerging markets such as China and India, which were important regions for Apple during the quarter, has been justified.
On the balance sheet side of things, Apple's management team, which previously set a goal of achieving cash neutrality, is out-performing there as well. As of the end of fiscal Q3, Apple had a net cash position of $57 billion, including returning some $24 billion to shareholders through dividends and buybacks. The company is generating more than $25 billion in free cash flow each quarter, flexing some financial strength that gives Apple the capacity for future stock buybacks.
The upcoming iPhone 15 launch and other innovations are expected to drive demand. Furthermore, profitability is projected to increase, with margins approaching 26.0%, driven by operational leverage and favorable mix. So despite some short-term concerns, the recent pullback in the stock provides an opportunity. With the shares trading about 15% below my fair value estimation of $210 per share, Apple stock presents a strong value for the next 12 to 18 months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ike many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month. "From the hundreds of conference calls we listened to over the past month [it's] clear that the AI theme is changing the enterprise and consumer landscape going forward and creating a bifurcated spending environments for the winners and losers in this backdrop," Ives wrote. But it also highlights the strength of Apple’s management team and their ability to not only achieve supply chain efficiencies, but also their well-timed pivot towards the Services segment.
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ike many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month. During the quarter, Apple’s consolidated revenues reached $81.8 billion, slightly beating the expected $81.7 billion. But investors focused instead on the fact that revenue total of $81.8 billion marked a marginal 1.4% year-over-year decline.
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ike many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month. Citing what he calls the “AI gold-rush,” which he believes will propel tech stocks to add another 12% to 15% before the end of the year, Ives listed Apple among the tech stocks that should be bought on any pullback. During the quarter, Apple’s consolidated revenues reached $81.8 billion, slightly beating the expected $81.7 billion.
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ike many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month. Over the past six months, the stock has risen some 18%, while the S&P 500 index has risen 9%. During the quarter, Apple’s consolidated revenues reached $81.8 billion, slightly beating the expected $81.7 billion.
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0ef072ed-284a-469b-92df-1bf4b95b130f
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14278.0
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2023-08-16 00:00:00 UTC
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Want to Get Richer? 3 Best Stocks to Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-3-best-stocks-to-buy-and-hold-for-the-next-decade
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nan
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Today, I share the three best stocks to buy in August 2023, which I believe have significant upside for long-term investors. These stocks are attractive at today's prices and lower, and one is an under-the-radar small-cap stock that could be a hidden gem with 10x potential over the next decade. Please don't forget to subscribe to the channel for future updates.
*Stock prices used were the afternoon prices of Aug. 15, 2023. The video was published on Aug. 15, 2023.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Amazon.com, Apple, Celsius, Indie Semiconductor, Snowflake, and Tesla. The Motley Fool has positions in and recommends Amazon.com, Apple, Axon Enterprise, Celsius, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. *Stock Advisor returns as of August 14, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon.com, Apple, Axon Enterprise, Celsius, Snowflake, and Tesla.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Amazon.com, Apple, Celsius, Indie Semiconductor, Snowflake, and Tesla. The Motley Fool has positions in and recommends Amazon.com, Apple, Axon Enterprise, Celsius, Snowflake, and Tesla.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of August 14, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon.com, Apple, Axon Enterprise, Celsius, Snowflake, and Tesla.
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These stocks are attractive at today's prices and lower, and one is an under-the-radar small-cap stock that could be a hidden gem with 10x potential over the next decade. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Amazon.com, Apple, Celsius, Indie Semiconductor, Snowflake, and Tesla.
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c7f5d8da-1153-494c-92b3-398dbe3aa675
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14279.0
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2023-08-16 00:00:00 UTC
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These 3 Stocks Get High Grades for 2023 Back-to-School Shopping
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AAPL
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https://www.nasdaq.com/articles/these-3-stocks-get-high-grades-for-2023-back-to-school-shopping
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nan
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nan
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Yes, it’s that time of year already.
The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. Back-to-college shopping is forecast to surge 27% to $94 billion.
Like holiday shopping, consumers are getting an earlier start these days with memories of pandemic era ‘out of stock’ signs still fresh. And nowadays, BTS shopping is about more than new clothes, backpacks and pencils.
The NRF’s annual back-to-school survey revealed that 69% of shoppers expect to purchase electronics and computer accessories, the most in survey history. For K-12 students, laptops, tablets and calculators have become integral parts of the learning process. In addition, new phones and dorm room furnishings will be big outlays for college students.
The anticipated spending on big-ticket items is an unusual phenomenon. In an economy challenged by inflation and higher interest rates, consumers are paring back their discretionary spending in just about every other product category. But with classrooms back in session, retailers are finally getting the spending spree they’ve missed all year.
Make no mistake; frugality is the mantra of the 2023 BTS shopping season. Even as inflation cools, prices are still up. This means consumers will be seeking deals, using coupons, opting for private labels and doing online comparison shopping like never before.
So with price sensitivity the theme of this year’s major shopping event, stores that are all about lower prices should benefit — especially these three retailers.
What Is the Best Stock for Back-to-School Shopping?
Walmart Inc. (NYSE: WMT) wasted no time rolling out the BTS campaigns. During the first week of July, the world’s biggest retailer announced that it will offer backpacks and classroom supplies at 2022 prices. A ‘school supply basket’ of the 14 most popular school essentials for $12.94 is sure to be a big hit with budget-minded parents.
The company also launched Classroom Registry, a digital portal geared towards teachers that helps reduce expenses on classroom essentials. The tool lets teachers plan, shop and share their wish lists, which could have a snowball effect among like-minded educators.
Walmart has the electronics well-covered too. Its online store features more than 400 computers, laptops and tablets at consumer-friendly prices. A dedicated back-to-college hub packed with tech items and dorm essentials, including a $124 mini-fridge, is sure to be a popular online destination. And with physical retail locations strategically located within 10 miles of hundreds of college campuses, Walmart will be dishing out the savings and generating some serious revenue in the weeks ahead.
Is Amazon a Good Back-to-School Play?
Amazon.com (NASDAQ: AMZN) has long been the way to play the online comparison shopping trend, and this year’s BTS season is no exception. The company waited to launch its back-to-school marketing campaign until mid-July, but it has packed plenty of punch. Starring actor Randall Park, a series of TV, online video and social media ads encourage parents to take advantage of Amazon deals and spend less on school supplies.
With the e-commerce giant enacting mass layoffs and other cost-cutting measures of its own, it is well aware that saving people money is paramount to its BTS success. The BTS push follows Amazon's highly successful Prime Day event, during which shoppers bought more than 375 million items and made July 11 the company’s biggest sales day yet.
Earlier this month, Amazon introduced a limited-time ‘Stock Up and Save’ deal that gives Prime members 20% off when they spend $40 on school supplies. The offer includes over 1,000 items, including Amazon’s private label Basics and Basic Care brands. A record two-day Prime event and Prime savings for BTS shoppers should lead to some strong third-quarter results.
Is Costco Stock a BTS Winner?
Costco Wholesale Corporation (NASDAQ: COST) should also be a beneficiary of BTS frugality. A Deloitte back-to-school survey showed that 80% of shoppers will flock to mass merchants this season because of their competitive prices. This bodes well for several retailers, but especially a warehouse club like Costco.
Its wide assortment of low-priced electronics and BTS essentials make it an attractive one-stop shop for American families. And with most items offered in bulk quantities, parents, students and teachers may find it more economical to stock up for the entire school year rather than make smaller repeat purchases — especially when it comes to non-perishable groceries for school lunches.
This month, Costco reported that July 2023 sales were up 4.5% to $17.6 billion, with growth in both physical and online retail in all geographic regions. A big portion of sales undoubtedly went toward BTS electronics. The wholesaler is touting an extensive lineup of Apple iPads, MacBooks and AirPods for high-tech learners as well as cheap TVs for the dorm room. And with classes starting earlier than ever, Costco's expansion of same-day delivery could make it a go-to for last-minute shopping — and help it earn an A+ this BTS season.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Starring actor Randall Park, a series of TV, online video and social media ads encourage parents to take advantage of Amazon deals and spend less on school supplies. The wholesaler is touting an extensive lineup of Apple iPads, MacBooks and AirPods for high-tech learners as well as cheap TVs for the dorm room. And with classes starting earlier than ever, Costco's expansion of same-day delivery could make it a go-to for last-minute shopping — and help it earn an A+ this BTS season.
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The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. The offer includes over 1,000 items, including Amazon’s private label Basics and Basic Care brands. A record two-day Prime event and Prime savings for BTS shoppers should lead to some strong third-quarter results.
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The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. Amazon.com (NASDAQ: AMZN) has long been the way to play the online comparison shopping trend, and this year’s BTS season is no exception. The BTS push follows Amazon's highly successful Prime Day event, during which shoppers bought more than 375 million items and made July 11 the company’s biggest sales day yet.
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What Is the Best Stock for Back-to-School Shopping? During the first week of July, the world’s biggest retailer announced that it will offer backpacks and classroom supplies at 2022 prices. Earlier this month, Amazon introduced a limited-time ‘Stock Up and Save’ deal that gives Prime members 20% off when they spend $40 on school supplies.
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9ab9631e-e24a-43d4-80f6-c4527028f4fe
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14280.0
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2023-08-16 00:00:00 UTC
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Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-dividend-growth-etf-dgro-a-strong-etf-right-now-7
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nan
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nan
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Making its debut on 06/10/2014, smart beta exchange traded fund iShares Core Dividend Growth ETF (DGRO) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $23.94 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Morningstar US Dividend Growth Index.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.08%.
It's 12-month trailing dividend yield comes in at 2.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 19.50% of the portfolio. Financials and Information Technology round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.06% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ).
Performance and Risk
The ETF return is roughly 4.82% so far this year and it's up approximately 1.12% in the last one year (as of 08/16/2023). In the past 52-week period, it has traded between $44.47 and $53.28.
The ETF has a beta of 0.89 and standard deviation of 15.74% for the trailing three-year period, making it a medium risk choice in the space. With about 431 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares MSCI EAFE Growth ETF (EFG) tracks MSCI EAFE Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares MSCI EAFE Growth ETF has $12.29 billion in assets, Vanguard Dividend Appreciation ETF has $68.67 billion. EFG has an expense ratio of 0.36% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.06% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 06/10/2014, smart beta exchange traded fund iShares Core Dividend Growth ETF (DGRO) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.06% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Making its debut on 06/10/2014, smart beta exchange traded fund iShares Core Dividend Growth ETF (DGRO) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.06% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Making its debut on 06/10/2014, smart beta exchange traded fund iShares Core Dividend Growth ETF (DGRO) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.06% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 06/10/2014, smart beta exchange traded fund iShares Core Dividend Growth ETF (DGRO) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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97a8fc66-8f98-4161-8439-197b90aff9e8
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14281.0
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2023-08-16 00:00:00 UTC
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2 Growth Stocks That Could Beat the Market Over the Next 10 Years
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AAPL
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https://www.nasdaq.com/articles/2-growth-stocks-that-could-beat-the-market-over-the-next-10-years-1
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nan
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nan
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Investors have been on a roller-coaster ride in recent years, as the end of the COVID-19 pandemic sent many stocks skyrocketing in 2021. Then, macroeconomic headwinds the following year triggered a sell-off among some of the world's most valuable companies.
The volatility has highlighted the importance of grounding your portfolio with shares in historically reliable growth stocks. Doing so can help protect gains over the long term and safeguard your investments against temporary headwinds.
The tech industry is an excellent place to find such stocks, thanks to the innovative nature of the sector. Some of the biggest names in tech have a reputation for regularly outperforming the market, proven by the 389% rise of the Nasdaq-100 Technology Sector index over the last decade. Meanwhile, the Nasdaq Composite index has increased by 273% in the same period.
Here are two growth stocks that could beat the market over the next 10 years.
1. Apple
An economic downturn in 2022 caused reductions in consumer spending across tech, with repeated declines triggering a sell-off. The challenging conditions brought to light the vulnerability of some businesses and the strength of others.
Throughout the year, Apple (NASDAQ: AAPL) consistently outperformed the market and became a haven for investors. The chart below illustrates how Apple and Microsoft (NASDAQ: MSFT) were the only companies among the five biggest names in tech to beat the Nasdaq Composite index in 2022.
Data by YCharts.
Apple has long had a reputation on Wall Street for stellar stock growth. The tech giant's shares soared 244% since 2018, more than any of the companies in the chart above.
Popular devices, such as the iPhone, have built up immense brand loyalty with consumers and led the company to achieve leading market share across its product lineup. Consistent quality and an easy-to-use design language allow Apple to charge a premium for its offerings, bolstering its business amid economic hurdles.
The company has had a challenging year, with macroeconomic headwinds causing revenue declines in many of its product segments in the third quarter of 2023. As a result, Apple's stock is down 8% since the start of August.
However, the company's dominating position in tech and history of growth continues to make its stock a compelling buy and one likely to beat the market over the next decade.
2. Microsoft
Microsoft is the second-most-valuable company in the world, just after Apple, so it's hard to go wrong investing in the tech giant. The company is home to potent brands such as Windows, Office, Azure, Xbox, and LinkedIn, which have contributed to its stock soaring 198% over the last five years.
Moreover, a boom in artificial intelligence (AI) this year has played in Microsoft's favor. The company was an early investor in the industry, investing $1 billion in ChatGPT developer OpenAI in 2019. The partnership has allowed Microsoft to procure exclusive licenses on several of the start-up's AI models and beat competitors like Amazon and Alphabet to the market.
Microsoft has used OpenAI's technology to bring AI upgrades to many of its services, including Word, Excel, Azure, and Bing. The company's push into the high-growth sector has paid off in the form of cloud growth.
In fiscal 2022, revenue from server products and cloud services increased 19% year over year, mainly driven by Azure. As the AI market develops, Microsoft is well-positioned to profit substantially with the help of Azure and its collaboration with OpenAI.
Since 2019, Microsoft's revenue increased by 68%, while operating income has risen 106%. The company has proven to be one of the most reliable growth stocks, thanks to its commitment to innovation and investment in developing markets. Its history of offering investors consistent gains and resilience during last year's economic downturn makes Microsoft stock a screaming buy to hold over the next 10 years.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 14, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Throughout the year, Apple (NASDAQ: AAPL) consistently outperformed the market and became a haven for investors. Popular devices, such as the iPhone, have built up immense brand loyalty with consumers and led the company to achieve leading market share across its product lineup. Consistent quality and an easy-to-use design language allow Apple to charge a premium for its offerings, bolstering its business amid economic hurdles.
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Throughout the year, Apple (NASDAQ: AAPL) consistently outperformed the market and became a haven for investors. The company has had a challenging year, with macroeconomic headwinds causing revenue declines in many of its product segments in the third quarter of 2023. Its history of offering investors consistent gains and resilience during last year's economic downturn makes Microsoft stock a screaming buy to hold over the next 10 years.
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Throughout the year, Apple (NASDAQ: AAPL) consistently outperformed the market and became a haven for investors. The chart below illustrates how Apple and Microsoft (NASDAQ: MSFT) were the only companies among the five biggest names in tech to beat the Nasdaq Composite index in 2022. However, the company's dominating position in tech and history of growth continues to make its stock a compelling buy and one likely to beat the market over the next decade.
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Throughout the year, Apple (NASDAQ: AAPL) consistently outperformed the market and became a haven for investors. Here are two growth stocks that could beat the market over the next 10 years. In fiscal 2022, revenue from server products and cloud services increased 19% year over year, mainly driven by Azure.
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3a73bdde-54cf-4722-9ab2-f60729e44f01
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14282.0
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2023-08-16 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-9
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nan
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nan
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The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, 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 Vanguard. It has amassed assets over $329.89 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.03%, 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
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.55% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 25.9% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has gained about 16.71% so far this year and is up about 4.78% in the last one year (as of 08/16/2023). In the past 52-week period, it has traded between $327.64 and $420.68.
The ETF has a beta of 1 and standard deviation of 18.08% for the trailing three-year period, making it a medium risk choice in the space. With about 504 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $346.25 billion in assets, SPDR S&P 500 ETF has $416.42 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.55% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.55% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.55% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.55% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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b5f8c799-be80-417f-b268-b7e014016540
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14283.0
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2023-08-15 00:00:00 UTC
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Can the Rally in Amazon Continue?
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AAPL
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https://www.nasdaq.com/articles/can-the-rally-in-amazon-continue
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nan
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nan
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Shares of Amazon.com (AMZN) rallied to a 1-year high earlier this month and are up +67% this year due to resurgent profit and revenue growth. Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. However, some analysts are concerned that Amazon lacks additional catalysts to extend its rally.
Since posting a 3-1/4 year low in January, shares of Amazon have trended higher up to this month’s 1-year high. However, Ned Davis Research said the technology sector looks less attractive as it loses momentum and that mega-cap weakness and valuations “have the sector on a short leash for a downgrade.” Also, Bensignor Investment Strategies said, “With Amazon trading at the highest it’s been in a year, this is not the time or the place to be adding” new long positions.
After Amazon underperformed other mega-cap stocks for the past two years, the stock rallied sharply in Q2 this year and has continued to gain amid the company’s cost-cutting efforts and signs that its cloud business is stabilizing. According to 13F filings compiled by Bloomberg, hedge funds were net buyers of Amazon in the second quarter, with 172 institutional investors adding to positions, compared with 132 cutting positions.
Optimism in Amazon’s future earnings may help sustain a rally in the stock. The consensus for Amazon’s 2024 net earnings has risen by more than 20% over the past six months, and the company’s earnings are expected to grow at a double-digit pace each year over the next several years. Amazon’s revenue is also expected to accelerate, although its growth last year was the slowest in the company’s history. However, weakness in the global economy and rising interest rates threaten any sustainable rally in technology stocks.
Amazon has been trading around the $140 level since posting a 1-year high of $143.63 earlier this month. The stock is trading about 24% below its record high from July 2021, and if it can break out above the one-year high, it would be a bullish development that could spark additional fund buying. However, Bensignor Investment Strategies said, “This may be an occasion where it is safer to wait for a higher price, once a breakout has been confirmed, rather than bet on a breakout occurring in the first place.”
More Stock Market News from Barchart
3 Mega-Cap Tech Stocks with More Than 20% Upside Potential Stocks Fall on Weakness in Banks and Chinese Economic Concerns 2 U.S. Stocks to Buy as China Tensions Rise Home Depot Beats Expectations and Free Cash Flow Surges, Making HD a Value Play
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. Shares of Amazon.com (AMZN) rallied to a 1-year high earlier this month and are up +67% this year due to resurgent profit and revenue growth. However, weakness in the global economy and rising interest rates threaten any sustainable rally in technology stocks.
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Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. However, Ned Davis Research said the technology sector looks less attractive as it loses momentum and that mega-cap weakness and valuations “have the sector on a short leash for a downgrade.” Also, Bensignor Investment Strategies said, “With Amazon trading at the highest it’s been in a year, this is not the time or the place to be adding” new long positions. After Amazon underperformed other mega-cap stocks for the past two years, the stock rallied sharply in Q2 this year and has continued to gain amid the company’s cost-cutting efforts and signs that its cloud business is stabilizing.
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Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. However, Ned Davis Research said the technology sector looks less attractive as it loses momentum and that mega-cap weakness and valuations “have the sector on a short leash for a downgrade.” Also, Bensignor Investment Strategies said, “With Amazon trading at the highest it’s been in a year, this is not the time or the place to be adding” new long positions. After Amazon underperformed other mega-cap stocks for the past two years, the stock rallied sharply in Q2 this year and has continued to gain amid the company’s cost-cutting efforts and signs that its cloud business is stabilizing.
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Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. However, Ned Davis Research said the technology sector looks less attractive as it loses momentum and that mega-cap weakness and valuations “have the sector on a short leash for a downgrade.” Also, Bensignor Investment Strategies said, “With Amazon trading at the highest it’s been in a year, this is not the time or the place to be adding” new long positions. The consensus for Amazon’s 2024 net earnings has risen by more than 20% over the past six months, and the company’s earnings are expected to grow at a double-digit pace each year over the next several years.
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0521f968-c601-47fd-b78f-a796863ad23d
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14284.0
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2023-08-15 00:00:00 UTC
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How Active ETF TMSL Limits Concentration Risk
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AAPL
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https://www.nasdaq.com/articles/how-active-etf-tmsl-limits-concentration-risk
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nan
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nan
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The S&P 500 has grown more than 17% YTD, but is that rise deceptive? A significant amount of that growth owes to just a few key names. Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). Concentration risk like this can bee seen in indexes across all market capitalization sizes, including small-cap and mid-cap stocks. In fact, concentration risk poses an even larger liquidity challenge to small-cap and mid-cap index portfolios. In a market also threatened by continued rising rates, stubborn inflation, and a still-looming recession risk, finding the right ETF matters. The right active ETF can help mitigate that concentration risk while moving nimbly across opportunities.
Why go active? An active ETF comes with inherent advantages amid uncertainty. Its managers can lean on serious professional experience and their own track records. Meanwhile, they can adapt more quickly than investment committee-directed passive strategies. In this case, however, challenged by concentration risk, active strategies can have a particularly strong impact.
See more: “How Active ETFs Can Navigate the “September Effect”
While considering a stock with a bottom-up perspective, active flexibility can also consider whether an ETF portfolio may be too concentrated. Even better, perhaps, could be a strategy with an inherent focus on areas that end up less concentrated. The active ETF TMSL, the T. Rowe Price Small-Mid Cap ETF, builds a small and mid-cap portfolio that has the flexibility to navigate across both growth and value styles. TMSL considers stocks based on factors like relative valuation, profitability, stability, earnings quality, and more.
TMSL has just 34.6% of its assets in the top fifty stocks compared to 50.6% for its Factset Segment Average. That compares well to larger, passive strategies often seeing 100% of their assets in the most popular investments. TMSL has, in turn, returned 2.3% since it launched in June, charging only 0.55% (55 basis points) for an actively managed strategy.
TMSL’s approach can position it to do well should markets pull off a soft landing, too. Smaller cap firms with strong fundamentals could outlast the lagging impact of rate hikes before benefitting from future cuts. By combining an approach that limits concentration risk with a focus on fundamentals in firms with lots of potential, TMSL could be the active ETF to watch in its space for the months ahead.
For more news, information, and analysis, visit the Active ETF Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). In a market also threatened by continued rising rates, stubborn inflation, and a still-looming recession risk, finding the right ETF matters. Smaller cap firms with strong fundamentals could outlast the lagging impact of rate hikes before benefitting from future cuts.
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Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). Concentration risk like this can bee seen in indexes across all market capitalization sizes, including small-cap and mid-cap stocks. In fact, concentration risk poses an even larger liquidity challenge to small-cap and mid-cap index portfolios.
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Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). See more: “How Active ETFs Can Navigate the “September Effect” While considering a stock with a bottom-up perspective, active flexibility can also consider whether an ETF portfolio may be too concentrated. The active ETF TMSL, the T. Rowe Price Small-Mid Cap ETF, builds a small and mid-cap portfolio that has the flexibility to navigate across both growth and value styles.
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Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). Why go active? That compares well to larger, passive strategies often seeing 100% of their assets in the most popular investments.
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769200c6-43d5-45e2-be06-5cf27e76da2f
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14285.0
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2023-08-15 00:00:00 UTC
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3 Stocks to Own if Interest Rate Cuts Are on the Horizon
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-own-if-interest-rate-cuts-are-on-the-horizon
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many experts suggest the Federal Reserve will initiate rate cuts soon, making the stocks of rate-sensitive firms attractive. While terminal rate uncertainty remains, we are likely encroaching on the end of the rate hiking road.
The recent U.S. inflation report indicated lower-than-expected inflation, with core inflation and employment aligning with expectations. While a 25 basis-point hike remains possible, some officials were contemplating a pause earlier.
And so, it may be too late to buy stocks once the Federal Reserve reverts toward its playbook of cutting rates. For those looking to buy when the buying is good, consider these three stocks right now.
Shopify (SHOP)
Source: Burdun Iliya / Shutterstock.com
Shopify (NYSE:SHOP) shares surged as MoffettNathanson analyst Michael Morton upgraded the stock from “market perform” to “outperform”. With a $76 price target, it signaled a potential 15.9% increase. The analyst consensus is a “hold” with a lower average price prediction of $59.42 per share.
Shopify shares plummeted 86.6% in the 2022 bear market, a rarity for a stock still holding potential. With stock rebounding around 200% from its low, investor optimism is growing. Recent earnings beat with nearly 26% year over year (YoY) sales growth. Yet, managing costs for growth is crucial for pleasing shareholders.
Similar to Amazon, Shopify shares have risen for four consecutive months, experiencing a significant surge of almost three times from its low point. Analysts project approximately 20% revenue growth for this and next year. The latest earnings report emphasized sales growth and cost management. This indicates that Shopify’s growth may continue with the ongoing expansion of e-commerce.
PayPal (PYPL)
Source: Michael Vi / Shutterstock.com
PayPal (NASDAQ:PYPL) posted strong Q2 financial results with an 8% YoY revenue increase and a 24% rise in earnings per share (excluding certain items). The company’s extensive payment network comprises approximately 400 million active consumer accounts and around 35 million active merchant accounts. Leveraging the network effects and the growing adoption of digital payments, PayPal is poised for sustained, remarkable growth.
PYPL has stirred discussions in the crypto trading realm with the launch of its stablecoin, PayPal USD (PYUSD), in collaboration with Paxos Trust Company. The stablecoin is pegged to the U.S. dollar and enables easy exchange on a one-to-one basis. According to PayPal’s CEO, Dan Schulman, this move is aligned with the shift towards digital currencies, providing a stable and digitally native instrument that can connect seamlessly with fiat currency.
As inflation moderates, potential is increased for discretionary spending, boosting e-commerce. PayPal, a digital payment leader, stands to gain from this as a result. PayPal has shown robust revenue growth, effective expense control, and a focus on margin expansion. With ongoing investments in AI, innovation, and platform enhancements, the company is positioning itself for long-term success.
Unity Software (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) plays a vital role in the metaverse puzzle, capturing roughly half of the global game engine market. Its widespread usage allows the creation of diverse 3D experiences across platforms.
Also, Unity’s strong earnings, surpassing sales forecasts and raising revenue projections, underscore its growth momentum. Additionally, its partnership with Apple (NASDAQ:AAPL) for 3D apps adds to its achievements.
Unity’s strong ties to the gaming industry position it as a pioneer in the web3 realm. Its software has been instrumental in crafting over 60% of the world’s 3D content. This appeals not only to game creators but also to metaverse developers like BORN.
Moreover, Unity’s collaborations with platforms like Insomniac Events underscore its role in forging new virtual landscapes. As metaverses are closely aligned with gaming, Unity is poised to play a central role, aligning with Microsoft CEO Satya Nadella’s view that metaverses essentially form the basis of games.
On the date of publication, Chris MacDonald 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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Stocks to Own if Interest Rate Cuts Are on the Horizon appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Additionally, its partnership with Apple (NASDAQ:AAPL) for 3D apps adds to its achievements. PYPL has stirred discussions in the crypto trading realm with the launch of its stablecoin, PayPal USD (PYUSD), in collaboration with Paxos Trust Company. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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Additionally, its partnership with Apple (NASDAQ:AAPL) for 3D apps adds to its achievements. Shopify (SHOP) Source: Burdun Iliya / Shutterstock.com Shopify (NYSE:SHOP) shares surged as MoffettNathanson analyst Michael Morton upgraded the stock from “market perform” to “outperform”. PayPal (PYPL) Source: Michael Vi / Shutterstock.com PayPal (NASDAQ:PYPL) posted strong Q2 financial results with an 8% YoY revenue increase and a 24% rise in earnings per share (excluding certain items).
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Additionally, its partnership with Apple (NASDAQ:AAPL) for 3D apps adds to its achievements. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many experts suggest the Federal Reserve will initiate rate cuts soon, making the stocks of rate-sensitive firms attractive. PayPal (PYPL) Source: Michael Vi / Shutterstock.com PayPal (NASDAQ:PYPL) posted strong Q2 financial results with an 8% YoY revenue increase and a 24% rise in earnings per share (excluding certain items).
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Additionally, its partnership with Apple (NASDAQ:AAPL) for 3D apps adds to its achievements. PayPal (PYPL) Source: Michael Vi / Shutterstock.com PayPal (NASDAQ:PYPL) posted strong Q2 financial results with an 8% YoY revenue increase and a 24% rise in earnings per share (excluding certain items). Leveraging the network effects and the growing adoption of digital payments, PayPal is poised for sustained, remarkable growth.
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bb0baa05-ed9b-48ad-bef8-ff152fe1dccc
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14286.0
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2023-08-15 00:00:00 UTC
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Technology Sector Update for 08/15/2023: JMIA, SE, WLDS, AAPL, RUM
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-08-15-2023%3A-jmia-se-wlds-aapl-rum
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nan
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nan
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Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%.
In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier.
Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations.
Wearable Devices (WLDS) jumped almost 20%. The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks.
Rumble (RUM) shares were down nearly 15% after the company logged a wider Q2 loss year-over-year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%. Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier. Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier.
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720e29da-8929-46ba-9984-a2ae9b784f9b
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14287.0
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2023-08-15 00:00:00 UTC
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David Tepper Goes Full Bull Mode: Top-Ranked Stocks He is Buying
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AAPL
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https://www.nasdaq.com/articles/david-tepper-goes-full-bull-mode%3A-top-ranked-stocks-he-is-buying
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nan
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nan
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As one of Wall Street’s leading independent thinkers, David Tepper seems to always be one step ahead of everyone else. Evident from his 13f filing, a quarterly report filed by institutional investment managers, Tepper has initiated some big bets, and many of them have top Zacks Ranks.
David Tepper is a prominent hedge fund manager who has garnered the highest respect from the investing community, and rightfully so. Tepper takes a no-nonsense approach and has built an extremely impressive investment record, averaging ~25% annually over several decades. Tepper is a somewhat active investor, holding positions for a few quarters at a time, and often catching the meat of the move most years.
Going All in on Tech
In Q2 2023, he became exceedingly bullish, adding several billion dollars of exposure to mostly Technology and Semiconductor stocks.
He added massively to his largest portfolio positions, including more than 5xing his largest position in Nvidia NVDA, adding to Meta Platforms META, Microsoft MSFT, Amazon AMZN, Alibaba BABA, and Uber Technologies UBER and opening new positions in Marvell Technologies MRVL, Broadcom AVGO and Lam Research LRCX among others. Clearly Tepper isn’t afraid to chase momentum as many of these stocks are already up massively this year, demonstrating his strong conviction in these trades.
Tepper manages a fairly concentrated portfolio with the top ten holdings making up 62.5% of the total. The five largest positions are Nvidia, Meta Platforms, Microsoft, Amazon, and Alibaba in that order.
Many of these stocks have top Zacks Ranks, so we will cover some of the best picks below.
Image Source: Zacks Investment Research
Stocks With Zacks Rank #1 (Strong Buy)
Nvidia has been the unequivocal winning stock this year, as the best performing company in the S&P 500. Thanks to its leading chip technology, NVDA is several steps ahead of the competition in supplying semiconductors for the AI revolution.
Earnings are expected to blast higher over the coming quarters, and paired with upward revisions to earnings estimates, Nvidia enjoys a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings are projected to climb 304% YoY to $2.06 and have been revised higher by 1% over the last month.
Image Source: Zacks Investment Research
Uber Technologies has seen its earnings estimates absolutely explode higher over the last two months. Current quarterly earnings estimates have been upgraded by 225% and are projected to climb 121% YoY to $0.13 per share.
EPS for Uber Technologies are expected to grow by 44.5% annually over the next 3-5 years and sales are expected to increase in the high teens over the next two years.
Image Source: Zacks Investment Research
Amazon too has seen some stunning upgrades to its earnings estimates. Current quarter earnings estimates have been revised higher by 44% and are expected to grow 180% YoY to $0.56 per share while FY 23 earnings estimates have been upgraded by 38.5% and are forecast to grow 204% YoY to $2.16 per share.
EPS are expected to increase by 34% annually over the next 3-5 years for Amazon.
Image Source: Zacks Investment Research
Stocks With Zacks Rank #2 (Buy)
Tepper obviously wants to own more semiconductor stocks. In addition to Nvidia, he also bought stakes in Marvell Technology, Broadcom, and Lam Research.
He also doesn’t seem nervous about owning Chinese shares, or at least from its technology sector as he increased his Alibaba position by 4,400% and added a new position in JD.com JD.
Honorable Mention
While they don’t current boast top Zacks Ranks, David Tepper also bought shares in leading mega cap technology stocks, including Meta Platforms, Microsoft, Alphabet GOOGL, and Apple AAPL. It is hard to go wrong buying shares in these top-tier American companies.
Bottom Line
It is worth noting that this is exclusively hist equities portfolio, which is balanced by investments across asset classes. Additionally, the 13f released only quarterly, so the activity in between reports could completely shift the portfolio positioning and should be taken with a grain of salt. However, I believe it is clear Tepper is taking some big swings here, and his trades are valuable data.
With a heavy tilt toward technology and semiconductors, I think Tepper is keen on a continuation in the Artificial Intelligence boom. Nvidia, Microsoft, are Alphabet of course leading the way in this emerging sector, but AI will likely influence most if not all technology companies moving forward.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
JD.com, Inc. (JD) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Honorable Mention While they don’t current boast top Zacks Ranks, David Tepper also bought shares in leading mega cap technology stocks, including Meta Platforms, Microsoft, Alphabet GOOGL, and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report JD.com, Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood.
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Honorable Mention While they don’t current boast top Zacks Ranks, David Tepper also bought shares in leading mega cap technology stocks, including Meta Platforms, Microsoft, Alphabet GOOGL, and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report JD.com, Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. He added massively to his largest portfolio positions, including more than 5xing his largest position in Nvidia NVDA, adding to Meta Platforms META, Microsoft MSFT, Amazon AMZN, Alibaba BABA, and Uber Technologies UBER and opening new positions in Marvell Technologies MRVL, Broadcom AVGO and Lam Research LRCX among others.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report JD.com, Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Honorable Mention While they don’t current boast top Zacks Ranks, David Tepper also bought shares in leading mega cap technology stocks, including Meta Platforms, Microsoft, Alphabet GOOGL, and Apple AAPL. Image Source: Zacks Investment Research Stocks With Zacks Rank #1 (Strong Buy) Nvidia has been the unequivocal winning stock this year, as the best performing company in the S&P 500.
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Honorable Mention While they don’t current boast top Zacks Ranks, David Tepper also bought shares in leading mega cap technology stocks, including Meta Platforms, Microsoft, Alphabet GOOGL, and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report JD.com, Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. He added massively to his largest portfolio positions, including more than 5xing his largest position in Nvidia NVDA, adding to Meta Platforms META, Microsoft MSFT, Amazon AMZN, Alibaba BABA, and Uber Technologies UBER and opening new positions in Marvell Technologies MRVL, Broadcom AVGO and Lam Research LRCX among others.
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cf1407bb-f07d-4e09-baf9-84431480a26c
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14288.0
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2023-08-15 00:00:00 UTC
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Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-7
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $348.96 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 26.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 27.58% of total assets under management.
Performance and Risk
IVV seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added roughly 18.02% so far this year and is up about 6.48% in the last one year (as of 08/15/2023). In the past 52-week period, it has traded between $357.98 and $460.18.
The ETF has a beta of 1 and standard deviation of 18.12% for the trailing three-year period, making it a medium risk choice in the space. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track the same index. While Vanguard S&P 500 ETF has $333.69 billion in assets, SPDR S&P 500 ETF has $421.08 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Core S&P 500 ETF (IVV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Core S&P 500 ETF (IVV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
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3da3395b-87c7-4056-a081-6a6610b6cb57
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14289.0
|
2023-08-15 00:00:00 UTC
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Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-7
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nan
|
nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
The fund is sponsored by Fidelity. It has amassed assets over $5.05 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.79%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 45.60% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has added roughly 32.68% so far this year and was up about 6.81% in the last one year (as of 08/15/2023). In the past 52-week period, it has traded between $40.02 and $56.43.
The ETF has a beta of 1.12 and standard deviation of 23.80% for the trailing three-year period, making it a medium risk choice in the space. With about 1200 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ONEQ is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $91.84 billion in assets, Invesco QQQ has $203.80 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the Fidelity Nasdaq Composite Index ETF (ONEQ), a passively managed exchange traded fund launched on 09/25/2003.
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e4838189-9ee3-4cb5-a78f-598a1ab3d5ed
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14290.0
|
2023-08-15 00:00:00 UTC
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Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-8
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $421.08 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.54% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 29.12% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF return is roughly 18% so far this year and it's up approximately 6.45% in the last one year (as of 08/15/2023). In the past 52-week period, it has traded between $356.56 and $457.79.
The ETF has a beta of 1 and standard deviation of 18.13% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 500 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, SPY 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 Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $333.69 billion in assets, iShares Core S&P 500 ETF has $348.96 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.54% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
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Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.54% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
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Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.54% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.54% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Costs Investors should also pay attention to an ETF's expense ratio.
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a56f6f04-b9ef-4ced-b964-9f450971843e
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14291.0
|
2023-08-15 00:00:00 UTC
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Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-8
|
nan
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nan
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The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $91.84 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.61%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 42.60% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 51.08% of total assets under management.
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has gained about 33.25% so far this year and is up about 7.64% in the last one year (as of 08/15/2023). In the past 52-week period, it has traded between $208.44 and $293.50.
The ETF has a beta of 1.11 and standard deviation of 24.03% for the trailing three-year period, making it a medium risk choice in the space. With about 239 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Growth 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, VUG is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $70.30 billion in assets, Invesco QQQ has $203.80 billion. IWF has an expense ratio of 0.18% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Growth ETF (VUG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $91.84 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Growth ETF (VUG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Performance and Risk VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses.
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Click to get this free report Vanguard Growth ETF (VUG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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175fbed7-5d0e-4a9d-a249-e6f3913d9a73
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14292.0
|
2023-08-15 00:00:00 UTC
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Technology Sector Update for 08/15/2023: SE, WLDS, RUM, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-08-15-2023%3A-se-wlds-rum-aapl
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nan
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nan
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Tech stocks were lower Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the Philadelphia Semiconductor index falling 1.1%.
In company news, Sea (SE) shares slumped 29% after the company's Q2 revenue fell short of market expectations.
Wearable Devices (WLDS) jumped 19%. The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks.
Rumble (RUM) shares were down nearly 12% after the company logged a wider Q2 loss year-over-year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the Philadelphia Semiconductor index falling 1.1%. Rumble (RUM) shares were down nearly 12% after the company logged a wider Q2 loss year-over-year.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Sea (SE) shares slumped 29% after the company's Q2 revenue fell short of market expectations. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Sea (SE) shares slumped 29% after the company's Q2 revenue fell short of market expectations. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the Philadelphia Semiconductor index falling 1.1%. In company news, Sea (SE) shares slumped 29% after the company's Q2 revenue fell short of market expectations.
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3789c95c-440e-4956-9a20-7d2021fe5a08
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14293.0
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2023-08-15 00:00:00 UTC
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Research on the Natural Interest Rate Suggests Stocks Will Soon Soar
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AAPL
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https://www.nasdaq.com/articles/research-on-the-natural-interest-rate-suggests-stocks-will-soon-soar
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After soaring through the first seven months of 2023 in one of the strongest rallies ever, stocks have cooled off in August. So far this month, the Dow Jones, S&P 500, and Nasdaq are all in decline.
The big debate now is whether this is just a short-term pullback in a long-term uptrend – or the start of something much more sinister.
Our latest fundamental research strongly suggests the former.
If you regularly read our analysis, you know that we scrutinize the market through every lens that we can think of.
We’ve analyzed it through the lens of earnings, breadth, technicals, yields, and more.
Thus far, all that analysis has arrived at the same conclusions:
Rates and yields are maxed out.
Economic activity has bottomed.
Stocks are primed to soar into 2025 (at least).
But yesterday, for the first time ever, we conducted a comprehensive fundamental analysis on the market by focusing on a little-known yet super-important factor: the natural interest rate.
This may be the most important number you’ve never heard of before.
Understanding the Natural Interest Rate
The natural interest rate – or neutral interest rate – is the real interest rate in the U.S. economy that neither stimulates nor contracts the economy. It is the theoretical “perfect” real interest rate to support the economy at full employment while keeping inflation constant.
The natural interest rate is commonly denoted as R*.
While R* is not observable, there are multiple well-proven statistical models to estimate it. The most well-established of these is the Holston-Laubach-Williams (HLW) model. That model uses a variety of economic signals to estimate R* on a quarterly basis.
The most recent estimate from the HLW model is the Q1 estimate of 0.58%. In other words, the natural interest rate for the U.S. economy is presently estimated to be about 0.6%.
In the 1960s, R* was around 6%. But as economic productivity improved and natural inflationary pressures eased, it trended downward through the end of the 20th Century. Following the 2008 financial crisis, R* collapsed and stabilized around ultra-low levels of ~0.7%. Briefly, after the COVID-19 pandemic, R* spiked above 1%. And now it has fully returned to (and is actually below) pre-pandemic levels.
This is very important because the Fed has long said that once inflation does sustainably return to 2%, it wants to return the Fed Funds rate to the nominal neutral rate.
And of course, the nominal neutral rate is the real neutral rate plus the inflation rate – or R* + CPI.
It makes sense that the Fed wants to return rates to that level once inflation is eradicated because the sum of R* and CPI has always closely tracked the Fed Funds rate.
So, what does it mean if the Fed Funds rate drops back to the nominal neutral rate over the next two years?
A ton of rate cuts.
Why Rate Cuts Are Likely In Our Future
Let’s say R* stays around 0.5%. Let’s also say CPI returns to 2% within the next two years. That puts the sum of R* and CPI at 2.5%. The current Fed Funds rate is 5.25%. In order for the current Fed Funds rate to drop to the nominal neutral rate of 2.5%, the Fed would have to cut rates by 10 or 11 times over the next two years.
No wonder the market sees the Fed cutting rates a bunch into 2025. The Fed itself thinks it’ll be cutting rates next year, too.
Put simply, the Fed is very likely to cut interest rates starting next year and lasting into 2025.
What does that mean for stocks?
Well, so long as the economy avoids a recession, it means a stock market boom in 2024 and ‘25.
That is, the impact of rate cuts on the stock market is unclear because it depends on the economic context. Of course, when the Fed is cutting rates to fight a deep recession, stocks drop during the rate-cut cycle.
But every once in a while, the Fed will cut without a recession just to return rates to a neutral level.
When that happens, stocks boom.
An Incoming Stock Boom?
That is, whenever the Fed cuts rates and the economy avoids a recession, the stock market surges.
This happened in the mid-1980s and mid- and late 1990s. Most recently, it happened in 2019.
And every time, stocks soared.
It seems rate cuts + stable economic activity = stock market boom.
Therefore, it is reasonable to assume that if the Fed cuts rates over the next two years and the economy avoids a recession, stocks will soar.
The key question, then, is: Will the economy avoid a recession?
We think it will.
Our favorite indicator of future economic health is the Conference Board’s Leading Economic Indicators index (LEI). It is the most comprehensive and accurate indicator of the U.S. economy.
And the LEI suggests the economy will improve over the next two years.
In 2022, the LEI crashed, but it has stabilized in deeply negative territory here in 2023. Typically, when the index stabilizes like this, it takes a sharp turn higher and rebounds strongly over the following one to two years.
It increasingly looks like the economy has turned a corner. The worst of the economic slowdown appears to be over.
And it seems we’ve successfully avoided a recession.
The Final Word on the Natural Interest Rate
With a recession averted and rate cuts on the way, the stock market is primed to soar over the next two years.
Therefore, the August volatility we’ve seen in the stock market is just a healthy and natural short-term pullback in a long-term uptrend.
Take advantage of the pullback, and buy the dip.
And when stocks resume their uptrend, watch as the gains roll in.
Though dip-buying isn’t the only way to position your portfolio for those coming mega gains.
That’s why, today, I’m going to tell you about a ‘loophole’ I discovered that will allow you to invest in the company that kickstarted this whole stock market rally – OpenAI, the creator of ChatGPT.
Since ChatGPT’s launch in November 2022, OpenAI’s valuation has already doubled.
But this is just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
If so, this is your chance to invest in the next big thing.
Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Click here to learn more.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Research on the Natural Interest Rate Suggests Stocks Will Soon Soar appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. But yesterday, for the first time ever, we conducted a comprehensive fundamental analysis on the market by focusing on a little-known yet super-important factor: the natural interest rate. That’s why, today, I’m going to tell you about a ‘loophole’ I discovered that will allow you to invest in the company that kickstarted this whole stock market rally – OpenAI, the creator of ChatGPT.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Understanding the Natural Interest Rate The natural interest rate – or neutral interest rate – is the real interest rate in the U.S. economy that neither stimulates nor contracts the economy. In order for the current Fed Funds rate to drop to the nominal neutral rate of 2.5%, the Fed would have to cut rates by 10 or 11 times over the next two years.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Understanding the Natural Interest Rate The natural interest rate – or neutral interest rate – is the real interest rate in the U.S. economy that neither stimulates nor contracts the economy. In order for the current Fed Funds rate to drop to the nominal neutral rate of 2.5%, the Fed would have to cut rates by 10 or 11 times over the next two years.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. But every once in a while, the Fed will cut without a recession just to return rates to a neutral level. Therefore, it is reasonable to assume that if the Fed cuts rates over the next two years and the economy avoids a recession, stocks will soar.
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1112ed4f-b7e1-4a21-b95c-12f76d59945b
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14294.0
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2023-08-15 00:00:00 UTC
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Is Apple Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-1
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nan
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nan
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Apple (NASDAQ: AAPL) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. The tech giant has become the most valuable company in the world, achieving a market capitalization of $3 trillion earlier this year. However, its stock has slipped since the company released the earnings report for its fiscal 2023's third quarter, ended July 1.
As with many companies in consumer tech, macroeconomic headwinds have plagued Apple product segments as reductions in consumer spending have caused repeated revenue declines. However, poor market conditions won't last forever, and Apple's dominating brand is likely to grant investors substantial gains over the long term.
Here's why Apple's stock is a screaming buy after a recent dip.
A stock sell-off
Apple shares are down 9% since the start of August after the company released dismal quarterly results. In Q3 2023, revenue fell 1% year over year to $82 billion, marking the third consecutive quarter of slipping revenue. The tumble came as Apple experienced reduced sales in its iPhone, Mac, and iPad segments.
Falling product sales have become a persistent issue across tech over the past year, with smartphone shipments sliding 24% year over year in Q2 2023. The declines led Samsung and Motorola to experience smartphone sales declines of 37% and 17%, respectively, while Apple's fell a more moderate 6%.
Meanwhile, the MacBook company similarly outperformed its peers in personal computing. According to IDC, global PC shipments fell 13% in Q2 2023. However, Apple achieved 10% sales growth in the quarter even as competitors like Lenovo Group and Dell Technologies suffered double-digit declines.
Apple hasn't managed to avoid challenging market conditions completely, but its ability to consistently outperform its competitors strengthens its long-term outlook. The popularity of Apple's products has allowed it to charge a premium, safeguarding its business from the worst of the declines. Once the sector bounces back, its leading market shares across different product categories could pay off massively.
Expanding in a $137 billion industry
Artificial intelligence (AI) has become the leading driver of growth in the stock market this year. Data from Grand View Research shows the industry was worth about $137 billion in 2022 and is projected to expand at a compound annual rate of 37% through 2030. Apple is slightly late to the party, with companies like Microsoft and Amazon taking the lead. However, the iPhone maker has the dominance in tech and brand loyalty among consumers that could attract millions of users to its future services.
In Q3, the company spent $23 billion on research and development, an increase of about $3 billion from the previous year. CEO Tim Cook revealed in anearnings callthat the rise is primarily due to its growing venture in generative AI. The company has reportedly built a custom framework for creating large language models and developed a platform similar to OpenAI's ChatGPT, which engineers have nicknamed Apple GPT.
Moreover, Apple is gradually introducing AI-enabled features across its products. In June, the company debuted an overhaul of the iPhone's autocorrect, which uses a language model similar to ChatGPT to learn a user's texting style. Meanwhile, AirPod Pros will soon automatically turn off noise canceling once the wearer engages in a conversation.
Apple's stock dip has pushed its forward price-to-earnings ratio below 30 for the first time since June. While the stock isn't exactly a bargain buy, it rarely goes much lower. As a result, it's not a bad idea to consider buying the dip. Product sales are likely to recover alongside easing inflation over the next year. Additionally, buying Apple shares while it's still relatively early days for its venture into AI could offer substantial gains over the long term.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 1, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. However, poor market conditions won't last forever, and Apple's dominating brand is likely to grant investors substantial gains over the long term. Apple hasn't managed to avoid challenging market conditions completely, but its ability to consistently outperform its competitors strengthens its long-term outlook.
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Apple (NASDAQ: AAPL) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. However, poor market conditions won't last forever, and Apple's dominating brand is likely to grant investors substantial gains over the long term. Expanding in a $137 billion industry Artificial intelligence (AI) has become the leading driver of growth in the stock market this year.
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Apple (NASDAQ: AAPL) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. A stock sell-off Apple shares are down 9% since the start of August after the company released dismal quarterly results. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) has long had a reputation for offering investors consistent growth, with its stock up 243% since 2018. In Q3 2023, revenue fell 1% year over year to $82 billion, marking the third consecutive quarter of slipping revenue. Falling product sales have become a persistent issue across tech over the past year, with smartphone shipments sliding 24% year over year in Q2 2023.
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9847346d-0e0f-4781-b129-e0c49cba8c48
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14295.0
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2023-08-15 00:00:00 UTC
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With a Cash Pile of $118 Billion, Is Artificial Intelligence (AI) Stalwart Alphabet Poised to Start Paying a Dividend?
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AAPL
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https://www.nasdaq.com/articles/with-a-cash-pile-of-%24118-billion-is-artificial-intelligence-ai-stalwart-alphabet-poised-to
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nan
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nan
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Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has been making headlines this year, and investors are beginning to take notice. The company was reeling last year in the face of the worst economic downturn in a decade, which sent ad spending plummeting. Recent results suggest that the digital advertising market may be on the verge of a rebound. This would be a huge plus for the Google parent, which makes the vast majority of its revenue from online advertising.
Furthermore, Alphabet's ties to artificial intelligence (AI) have also been of keen interest to investors. Recent advancements in the field of generative AI captivated Wall Street and catapulted the stocks of numerous AI companies into the stratosphere. While estimates vary, a conservative forecast courtesy of Morgan Stanley suggests economic benefits of $6 trillion by 2030, and Alphabet is well positioned to participate in that windfall.
Given Alphabet's strong operating history and the vast opportunity AI provides, will the company begin paying a dividend? Let's take a look.
Image source: Getty Images.
A rock-solid balance sheet
Alphabet's recent results help make the case for the company to begin paying a dividend. In the second quarter, the company generated revenue of nearly $75 billion, up 7% year over year. This resulted in net income of more than $18 billion.
Yet that only tells part of the story. Because of its cloud computing and search businesses, Alphabet records billions of dollars in noncash expenses. Depreciation on its data centers and servers is a great example. As a result, the company is actually producing more cash than profits. Alphabet generated nearly $29 billion in operating cash and $22 billion in free cash flow during the quarter.
That brings the total cash and marketable securities on Alphabet's balance sheet to more than $118 billion -- and eventually, the company will have to do something with all that extra cash.
A revenue boost from AI?
AI has gone viral in 2023, and Alphabet is one of the companies best positioned to benefit from recent advancements in generative AI. Businesses are clamoring to benefit from the potential for significant productivity gains made possible by these next-generation algorithms.
As one of the "big three" cloud infrastructure providers, Alphabet is scrambling to make generative AI available via its Google Cloud, which will undoubtedly boost the company's fortunes. Daniel Loeb of Third Point agrees, calling Google Cloud one of the "picks and shovels of the AI gold rush," which will benefit no matter who else comes out ahead.
Furthermore, the company has added a host of new AI tools to its portfolio of products, including Bard chatbot, which launched internationally last month.
While it's nearly impossible to calculate, Alphabet has plenty to gain from its foray into AI -- and even more resources to initiate a dividend.
Why pay a dividend?
So why do companies pay a dividend? In the most general terms, it's a way to return capital to shareholders. A company will typically take this step when the amount of cash it takes in is more than it can use to generate additional growth.
Take Apple for example. In its fiscal third quarter (ended July 1), the company generated revenue of $83 billion. Even after spending nearly $7 billion on research and development and paying all its other expenses, Apple still had net income of $19 billion and operating cash flow of $26 billion.
There's a misconception among investors that once a company starts paying a dividend, its growth is over, but as Apple has shown over the past decade or so, that's patently untrue. The iPhone maker resumed paying a dividend in 2012 and, since that time, expanded its payouts by 154%. During the same period, its stock increased by 729% -- which should put to rest any fears about stalling growth.
Data by YCharts
Because of the company's significant cash generation, Apple uses just 16% of its profits -- called a payout ratio -- to fund its dividend. Let's use that as a starting point to estimate what Alphabet could pay.
Even amid the worst downturn in decades, Alphabet still generated net income of roughly $60 billion last year. If the company were to use 16% of that amount to fund a dividend, that works out to just under $10 billion or roughly $0.76 annually per share, with a yield of about 0.5% -- slightly higher than Apple's current yield of 0.4%. If Alphabet opted instead to pay out 25% of its profits, that would work out to about $15 billion, resulting in a payout of $1.19 per share annually, or a yield of about 1%.
Given what we know, Alphabet could undoubtedly afford to pay a dividend -- if it decided to do so.
Will Alphabet pay a dividend?
It seems the company has plenty of resources, so why doesn't Alphabet pay a dividend? In its 2022 annual report, management addressed the issue, writing: "We have never declared or paid any cash dividend on our common or capital stock. The primary use of capital continues to be to invest for the long-term growth of the business." That said, the company didn't rule out paying a dividend in the future: "We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders."
That's generally corporate double-talk for "not yet." However, given Alphabet's mounting cash pile, strong cash generation, and the additional opportunities afforded by AI, I would suggest that the question isn't if Alphabet will pay a dividend but when. In my opinion, it's only a matter of time.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While estimates vary, a conservative forecast courtesy of Morgan Stanley suggests economic benefits of $6 trillion by 2030, and Alphabet is well positioned to participate in that windfall. Daniel Loeb of Third Point agrees, calling Google Cloud one of the "picks and shovels of the AI gold rush," which will benefit no matter who else comes out ahead. Furthermore, the company has added a host of new AI tools to its portfolio of products, including Bard chatbot, which launched internationally last month.
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Given Alphabet's strong operating history and the vast opportunity AI provides, will the company begin paying a dividend? Even amid the worst downturn in decades, Alphabet still generated net income of roughly $60 billion last year. However, given Alphabet's mounting cash pile, strong cash generation, and the additional opportunities afforded by AI, I would suggest that the question isn't if Alphabet will pay a dividend but when.
|
Given Alphabet's strong operating history and the vast opportunity AI provides, will the company begin paying a dividend? AI has gone viral in 2023, and Alphabet is one of the companies best positioned to benefit from recent advancements in generative AI. However, given Alphabet's mounting cash pile, strong cash generation, and the additional opportunities afforded by AI, I would suggest that the question isn't if Alphabet will pay a dividend but when.
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AI has gone viral in 2023, and Alphabet is one of the companies best positioned to benefit from recent advancements in generative AI. Why pay a dividend? Even after spending nearly $7 billion on research and development and paying all its other expenses, Apple still had net income of $19 billion and operating cash flow of $26 billion.
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4d12f1a9-c02b-4559-b88c-37d161da55f8
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14296.0
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2023-08-15 00:00:00 UTC
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3 Mega-Cap Tech Stocks with More Than 20% Upside Potential
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AAPL
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https://www.nasdaq.com/articles/3-mega-cap-tech-stocks-with-more-than-20-upside-potential
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nan
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nan
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During the first six months of the year, the tech sector ripped higher, recovering from a lackluster 2022 performance as enthusiasm over widespread artificial intelligence (AI) adoption helped to revive investors' risk appetites. More recently, however, an uptick in economic uncertainties - punctuated by high-profile downgrades from Fitch and Moody's, along with a lackluster sales forecast from sector heavyweight Apple (AAPL) - has paused the breakout rally that characterized the first half of 2023.
However, there may still be some significant upside left in the mega-cap tech stocks, based on analysts' forecasts for the group - which means any pullbacks could be a buying opportunity for investors. Here's a look at three big tech stocks that Wall Street is expecting to rally 20% or more from current levels.
Alibaba
First on our list is Chinese internet giant Alibaba (BABA). The company has interests in e-commerce, financial services, retail, digital media, entertainment and cloud computing, and is a cultural behemoth in China. Outside the mainland, the company has operations in 13 other countries, including Australia, Brazil, and Japan. The Jack Ma-founded company currently commands a market cap of $239 billion.
Alibaba started FY 2024 on a strong note, with both revenue and earnings surpassing the estimates of the Street. Revenues for the April-June quarter rose 14% year-over-year to $32.3 billion, topping the consensus estimate of $31.02 billion as all major business segments recorded growth. Further, net income attributable to shareholders improved 51% to $4.7 billion, compared to the consensus estimate of $3.9 billion.
The company’s earnings have consistently exceeded analysts' estimates in all of the previous five quarters. Alibaba has reported earnings growth in four out of those five quarters, with revenue increasing only two out of the past four quarters.
The company's U.S. shares are currently trading at a forward p/e of 10.75, which is lower than the industry average of 15.92. However, the price/sales (p/s) ratio of 1.94 is higher than the industry average of 0.90. In terms of price/cash flow (p/cf), BABA's ratio of 8.98 is right on target with the industry mean of 8.88.
The stock has been quiet so far in 2023, rising just 3% year-to-date.
www.barchart.com
Much of this lackluster performance is due to a weakening Chinese economy. However, analysts remain bullish on BABA.
The consensus rating for BABA is a “Strong Buy,” with a mean target price of $142.87, indicating expected upside of more than 55% from current levels. Out of 14 analysts covering the stock, 12 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 1 has a “Hold” rating.
www.barchart.com
Advanced Micro Devices
Shares of chipmakers have been on a tear in 2023, supported by expectations for rising AI demand, and Advanced Micro Devices (AMD) has been no exception. AMD stock is up 70% YTD, considerably outpacing a 30% rise for the Nasdaq Composite ($NASX).
www.barchart.com
However, AMD has pulled back since reporting second-quarter results. The chipmaker, valued at $180 billion, reported an 18% year-over-year drop in revenues to $5.36 billion, while EPS fell 45% to $0.58. The slowdown in revenues can be attributed to sharp declines in key segments such as Client (down 53.6% YoY), Data Center (down 11.1% YoY), and Gaming (down 4.5% YoY). AMD's quarterly results managed to edge past the consensus estimates, though its third-quarter forecast was softer than anticipated.
AMD's earnings have surpassed consensus expectations in four out of the past five quarters, a time period during which the chip specialist has consistently reported lower earnings. Revenues have also been flat to lower in the past four quarters.
In terms of valuation, AMD appears a little stretched by some measures. The stock is trading at a forward p/e of 39.09 - much higher than the sector average of 23.03 - and a p/s of 7.36 (sector average of 2.72), though its p/cf is in line at 19.41 (sector average of 20.53).
However, analysts remain optimistic about the prospects for AMD - and specifically, its future prospects in the rapidly expanding AI space. The stock has earned a consensus “Strong Buy” rating from analysts, with a mean target price of $141.03 - indicating expected upside potential of nearly 28% from current levels.
Out of 28 analysts covering the stock, 21 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating and 6 have a “Hold” rating.
www.barchart.com
Taiwan Semiconductor
We round out the list with another chipmaker - and not any ordinary chipmaker, but one of the largest in the world in terms of revenue. We are talking about Taiwan Semiconductor (TSM), which makes chips for none other than trillion-dollar AI market leader Nvidia (NVDA).
From a technical perspective, shares of the $482 billion chipmaking behemoth are up 23% YTD, underperforming the broader Nasdaq.
www.barchart.com
Like AMD, shares of TSM have pulled back following its second-quarter results. The chipmaker reported consolidated revenues of $15.68 billion, down 13.7% from the prior year, while net income fell 23.3% to NT$181.8 billion. Even though both metrics came in above the expectations of Wall Street, investors were rattled by the tech giant's first profit decline in four years.
Moreover, Taiwan Semi cited adverse global economic conditions for the decline in revenues, and warned of “continued inventory adjustment” from customers. The company expects revenue to recover in the third quarter, ranging between US$16.7 billion and US$17.5 billion.
TSM has a history of surpassing analysts' expectations. EPS topped consensus expectations in each of the past five quarters, supported by fairly consistent year-over-year growth.
On a forward p/e basis, TSM is trading at 18.60 - lower than the industry average of 23.03 - while on a p/cf basis, TSM's ratio of 10.18 also compares favorably to the sector average of 20.53. However, TSM's p/s ratio of 6.71 is somewhat rich, compared to the sector average of 2.72.
Overall, analysts are positive about TSM's prospects. Wall Street has handed out a “Strong Buy” rating on the stock with a mean target price of $115, indicating expected upside potential of about 25% from current levels. Out of 6 analysts covering the stock, 4 have a “Strong Buy”, 1 has a “Moderate Buy,” and 1 has a “Hold” rating.
www.barchart.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More recently, however, an uptick in economic uncertainties - punctuated by high-profile downgrades from Fitch and Moody's, along with a lackluster sales forecast from sector heavyweight Apple (AAPL) - has paused the breakout rally that characterized the first half of 2023. During the first six months of the year, the tech sector ripped higher, recovering from a lackluster 2022 performance as enthusiasm over widespread artificial intelligence (AI) adoption helped to revive investors' risk appetites. The stock has earned a consensus “Strong Buy” rating from analysts, with a mean target price of $141.03 - indicating expected upside potential of nearly 28% from current levels.
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More recently, however, an uptick in economic uncertainties - punctuated by high-profile downgrades from Fitch and Moody's, along with a lackluster sales forecast from sector heavyweight Apple (AAPL) - has paused the breakout rally that characterized the first half of 2023. Out of 14 analysts covering the stock, 12 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 1 has a “Hold” rating. The stock has earned a consensus “Strong Buy” rating from analysts, with a mean target price of $141.03 - indicating expected upside potential of nearly 28% from current levels.
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More recently, however, an uptick in economic uncertainties - punctuated by high-profile downgrades from Fitch and Moody's, along with a lackluster sales forecast from sector heavyweight Apple (AAPL) - has paused the breakout rally that characterized the first half of 2023. Out of 14 analysts covering the stock, 12 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 1 has a “Hold” rating. The stock has earned a consensus “Strong Buy” rating from analysts, with a mean target price of $141.03 - indicating expected upside potential of nearly 28% from current levels.
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More recently, however, an uptick in economic uncertainties - punctuated by high-profile downgrades from Fitch and Moody's, along with a lackluster sales forecast from sector heavyweight Apple (AAPL) - has paused the breakout rally that characterized the first half of 2023. Alibaba has reported earnings growth in four out of those five quarters, with revenue increasing only two out of the past four quarters. In terms of price/cash flow (p/cf), BABA's ratio of 8.98 is right on target with the industry mean of 8.88.
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54d799ad-79b6-41c2-a810-67210f1190ef
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14297.0
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2023-08-15 00:00:00 UTC
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US STOCKS-Futures drop as yields rise ahead of July retail sales data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-drop-as-yields-rise-ahead-of-july-retail-sales-data
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 15 (Reuters) - U.S. stock index futures fell on Tuesday as government bond yields hit fresh highs ahead of July retail sales data that could offer clues on the Federal Reserve's interest rate path.
The Commerce Department's report due at 0830 a.m. ET (1230 GMT) is expected to show retail sales rose 0.4% last month after climbing 0.2% in June, likely adding to evidence that the U.S. economy remains on a strong footing.
"All eyes will be on the U.S. retail sales figures later today which could add another piece to the puzzle that determines whether the Fed hikes one more time in 2023 or not," Lukman Otunuga, senior research analyst at FXTM, said in a note.
"Should price pressures continue to ease and U.S. economic data show signs of weakness, this may eliminate the odds of another hike, especially when factoring in the Fed's current data dependence stance."
Rising Treasury yields have pressured equities after hotter-than-expected producer prices data last week stoked concerns the Fed could keep rates higher for longer than previously anticipated.
The S&P 500 .SPX and the Nasdaq .IXIC rose on Monday as Nvidia NVDA.O led gains among megacap growth stocks following a bullish note from Morgan Stanley ahead of the chip designer's earnings next week.
Nvidia was an outlier among major technology and growth stocks on Tuesday, rising 1.1% in premarket trading after UBS and Wells Fargo lifted their price target on the stock.
Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.5% and 0.7%, with the yield on the 10-year Treasury US10YT=RR note hitting a fresh nine-month high, last up at 4.23%.
Tesla TSLA.O slipped 1.3% after the electric automaker introduced two cheaper versions of its Model S sedan and Model X SUV in the United States.
U.S.-listed shares of Chinese companies JD.Com JD.O, Alibaba Group BABA.N and Bilibili BILI.O slid between 0.6% and 0.8%, following another round of disappointing economic data from China which prompted Beijing to cut key policy rates.
Investors will also monitor comments from Minneapolis Federal Reserve Bank President Neel Kashkari due later in the day for more clarity on the outlook for interest rates.
Traders' odds of a pause on hikes by the Fed at its September meeting currently stand at 89%, with a majority betting on rates to stay at that level for the rest of the year, according to CME Group's Fedwatch tool.
At 7:06 a.m. ET, Dow e-minis 1YMcv1 were down 238 points, or 0.67%, S&P 500 e-minis EScv1 were down 29.5 points, or 0.65%, and Nasdaq 100 e-minis NQcv1 were down 104.25 points, or 0.68%.
Among other stocks, General MotorsGM.N fell nearly 1% in premarket trading after Berkshire Hathaway BRKa.N cut its stake in the automaker.
Warren Buffett's Berkshire disclosed a new investment in homebuilder D.R. Horton DHI.N, lifting its shares up 2.7%.
U.S. Retail Sales https://tmsnrt.rs/3KDY1OU
(Reporting by Amruta Khandekar; Editing by Maju Samuel and Vinay Dwivedi)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.5% and 0.7%, with the yield on the 10-year Treasury US10YT=RR note hitting a fresh nine-month high, last up at 4.23%. By Amruta Khandekar and Shristi Achar A Aug 15 (Reuters) - U.S. stock index futures fell on Tuesday as government bond yields hit fresh highs ahead of July retail sales data that could offer clues on the Federal Reserve's interest rate path. "All eyes will be on the U.S. retail sales figures later today which could add another piece to the puzzle that determines whether the Fed hikes one more time in 2023 or not," Lukman Otunuga, senior research analyst at FXTM, said in a note.
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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.5% and 0.7%, with the yield on the 10-year Treasury US10YT=RR note hitting a fresh nine-month high, last up at 4.23%. By Amruta Khandekar and Shristi Achar A Aug 15 (Reuters) - U.S. stock index futures fell on Tuesday as government bond yields hit fresh highs ahead of July retail sales data that could offer clues on the Federal Reserve's interest rate path. ET (1230 GMT) is expected to show retail sales rose 0.4% last month after climbing 0.2% in June, likely adding to evidence that the U.S. economy remains on a strong footing.
|
Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.5% and 0.7%, with the yield on the 10-year Treasury US10YT=RR note hitting a fresh nine-month high, last up at 4.23%. By Amruta Khandekar and Shristi Achar A Aug 15 (Reuters) - U.S. stock index futures fell on Tuesday as government bond yields hit fresh highs ahead of July retail sales data that could offer clues on the Federal Reserve's interest rate path. Rising Treasury yields have pressured equities after hotter-than-expected producer prices data last week stoked concerns the Fed could keep rates higher for longer than previously anticipated.
|
Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.5% and 0.7%, with the yield on the 10-year Treasury US10YT=RR note hitting a fresh nine-month high, last up at 4.23%. By Amruta Khandekar and Shristi Achar A Aug 15 (Reuters) - U.S. stock index futures fell on Tuesday as government bond yields hit fresh highs ahead of July retail sales data that could offer clues on the Federal Reserve's interest rate path. Nvidia was an outlier among major technology and growth stocks on Tuesday, rising 1.1% in premarket trading after UBS and Wells Fargo lifted their price target on the stock.
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0574feb9-602c-435e-98b2-ee4e0e501c54
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14298.0
|
2023-08-15 00:00:00 UTC
|
AAPL Quantitative Stock Analysis - Warren Buffett
|
AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-5
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Financial Planning Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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5cf91fd0-939a-4ca3-927d-ab88e22d9753
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14299.0
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2023-08-15 00:00:00 UTC
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This Wall Street Strategist Predicted Apple's Ascent to $3 Trillion -- Now He Says 2 Artificial Intelligence (AI) Growth Stocks Will Win the Robotaxi Race
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AAPL
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https://www.nasdaq.com/articles/this-wall-street-strategist-predicted-apples-ascent-to-%243-trillion-now-he-says-2
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nan
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nan
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Wall Street strategist Gene Munster first recommended Apple (NASDAQ: AAPL) stock in June 2004, when it traded at a split-adjusted $0.50 per share. Investors who took that advice have made a lot of money. The stock has since returned 41,710%, meaning an initial investment of $2,500 would be worth $1 million today.
But there is a more interesting story here: After first recommending Apple, Munster made a number of prescient predictions. For instance, he became the first analyst to posit Apple as a $1 trillion company in 2012, a forecast that came to fruition in 2018. He then correctly called Apple's ascent to $2 trillion in 2020, and shortly thereafter, he upped his target to $3 trillion, a prediction that came to pass in 2023.
Suffice it to say Munster has a knack for remarkably good guesswork, and that makes his latest insight quite intriguing. He recently told CNBC that self-driving cars are inevitable. Munster admitted the technology is not quite there yet, but he said Tesla (NASDAQ: TSLA) and Waymo, a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), are the two companies best positioned to win the robotaxi race.
Here's what investors should know about these artificial intelligence stocks.
1. Tesla
The global electric vehicle market is expected to grow at 23% annually to reach $1.7 trillion by 2032, and Tesla is perhaps better positioned to benefit than any other company. Its market share in battery electric vehicles increased 60 basis points to 21.8% through the first half of the year, while its closest competitor BYD saw its market share slip 30 basis points to 15.1%. Tesla also reported the highest operating margin among volume carmakers last year, something CEO Elon Musk attributes to better manufacturing technology.
However, management believes full self-driving (FSD) technology will take margins even higher in the future, and several Wall Street strategists are equally optimistic on how self-driving cars might impact the business. Munster says FSD software could add $20 billion to revenue in five years and push operating profits to $100 billion in 10 years, implying 23% annual growth in operating income over the next decade.
Tesla will also monetize its FSD technology with an autonomous ride-hailing network. It has not provided much detail, but Musk says full autonomy is within reach this year and Tesla plans to mass produce a robotaxi next year. In any case, the company is well positioned to be a leader in the autonomous driving space.
Tesla has more autonomous driving data than its peers, which hints at better artificial intelligence (AI). So FSD technology could catalyze its booming evolution into a high-margin software and services business. Indeed, Ark Invest says robotaxi revenue could reach $9 trillion annually by 2030, and Musk says FSD software could push gross profit margin to 70% (or higher), up from 21.5% today.
Shares currently trade at 8.8 times sales, a discount to the three-year average of 16 times sales, but a very pricey valuation compared to other automakers. Investors that buy into the robotaxi narrative (as I do) should consider purchasing a few shares of Tesla stock today.
2. Alphabet
Alphabet subsidiary Waymo is an autonomous driving company built to disrupt transportation and mobility on two fronts: Waymo One will offer commercial ride-hailing services and Waymo Via will provide autonomous trucking and logistics services. Alphabet was building both segments in tandem, but it recently decided to delay its autonomous trucking timeline to prioritize ride-hailing.
That decision is likely aimed at maintaining its momentum, as Waymo was the first company to commercialize autonomous ride-hailing services. Its robotaxi program went live in Phoenix in 2018, but Waymo One has since branched in San Francisco (2022) and Los Angeles (2023). The company recently named Austin, Texas as its next destination.
Readers may wonder why Waymo is expanding city by city. Waymo uses lidar (a laser-based measurement technology) to create detailed maps before providing ride-hailing services in any metropolis. Its robotaxis need those maps to navigate much like trains need rails to move. The upside to that strategy is speed. Waymo beat Tesla to market. But the downside is the lack of scalability. Waymo must meticulously map and remap each city in which it operates, and its robotaxis will forever be confined by those maps.
Tesla takes a different tack by eschewing lidar in favor of computer vision. The logic there is simple: Humans use only two eyes to drive (no lidar), so a supercomputer with eight cameras should be up to the task, provided the underlying AI software is trained correctly. Tesla has undoubtedly chosen the more difficult strategy, but the benefit is scalability. Once Tesla perfects its FSD software, its entire fleet will become autonomous with the flip of a switch.
However, robotaxis are a small part of the investment thesis for Alphabet. Its primary growth engines are digital advertising and cloud computing. Its Google subsidiary is the largest ad tech company and third-largest cloud services provider on the planet, and both markets are forecasted to grow at 14% annually through 2030. Alphabet should be able to match that pace at a minimum, but sales could grow much faster if other bets like Waymo pay off.
Currently, shares trade at 6 times sales, a slight discount to the three-year average of 6.5 times sales. Investors should feel comfortable buying a small position in this growth stock right now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Tesla. The Motley Fool has positions in and recommends Alphabet, Apple, BYD, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street strategist Gene Munster first recommended Apple (NASDAQ: AAPL) stock in June 2004, when it traded at a split-adjusted $0.50 per share. Indeed, Ark Invest says robotaxi revenue could reach $9 trillion annually by 2030, and Musk says FSD software could push gross profit margin to 70% (or higher), up from 21.5% today. The logic there is simple: Humans use only two eyes to drive (no lidar), so a supercomputer with eight cameras should be up to the task, provided the underlying AI software is trained correctly.
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Wall Street strategist Gene Munster first recommended Apple (NASDAQ: AAPL) stock in June 2004, when it traded at a split-adjusted $0.50 per share. Munster says FSD software could add $20 billion to revenue in five years and push operating profits to $100 billion in 10 years, implying 23% annual growth in operating income over the next decade. Indeed, Ark Invest says robotaxi revenue could reach $9 trillion annually by 2030, and Musk says FSD software could push gross profit margin to 70% (or higher), up from 21.5% today.
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Wall Street strategist Gene Munster first recommended Apple (NASDAQ: AAPL) stock in June 2004, when it traded at a split-adjusted $0.50 per share. Munster admitted the technology is not quite there yet, but he said Tesla (NASDAQ: TSLA) and Waymo, a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), are the two companies best positioned to win the robotaxi race. Tesla The global electric vehicle market is expected to grow at 23% annually to reach $1.7 trillion by 2032, and Tesla is perhaps better positioned to benefit than any other company.
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Wall Street strategist Gene Munster first recommended Apple (NASDAQ: AAPL) stock in June 2004, when it traded at a split-adjusted $0.50 per share. Tesla The global electric vehicle market is expected to grow at 23% annually to reach $1.7 trillion by 2032, and Tesla is perhaps better positioned to benefit than any other company. Indeed, Ark Invest says robotaxi revenue could reach $9 trillion annually by 2030, and Musk says FSD software could push gross profit margin to 70% (or higher), up from 21.5% today.
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2959e506-6125-4f3e-8e81-b82ba622421c
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