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18300.0 | 2022-11-25 00:00:00 UTC | Technology Sector Update for 11/25/2022: COUP, AAPL, VEON, XLK, SOXX | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-11-25-2022%3A-coup-aapl-veon-xlk-soxx | nan | nan | Technology stocks were leaning lower premarket Friday. The Technology Select Sector SPDR ETF (XLK) was flat, and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.26%.
Coupa Software (COUP) was still climbing past 2% after Bloomberg News reported that Vista Equity Partners is mulling the acquisition of the software company.
Apple (AAPL) could see at least a 30% decrease in iPhone production at Foxconn's factory in Zhengzhou, China, for the month of November after worker protests disrupted operations, Reuters reported, citing an unnamed person with direct knowledge of the matter. Apple was down more than 1% recently.
VEON (VEON) was gaining over 33% in value after saying it has agreed to sell its Russian operations to certain senior members of PJSC VimpelCom's management team for 130 billion Russian rubles ($2.1 billion).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) could see at least a 30% decrease in iPhone production at Foxconn's factory in Zhengzhou, China, for the month of November after worker protests disrupted operations, Reuters reported, citing an unnamed person with direct knowledge of the matter. Coupa Software (COUP) was still climbing past 2% after Bloomberg News reported that Vista Equity Partners is mulling the acquisition of the software company. VEON (VEON) was gaining over 33% in value after saying it has agreed to sell its Russian operations to certain senior members of PJSC VimpelCom's management team for 130 billion Russian rubles ($2.1 billion). | Apple (AAPL) could see at least a 30% decrease in iPhone production at Foxconn's factory in Zhengzhou, China, for the month of November after worker protests disrupted operations, Reuters reported, citing an unnamed person with direct knowledge of the matter. The Technology Select Sector SPDR ETF (XLK) was flat, and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.26%. VEON (VEON) was gaining over 33% in value after saying it has agreed to sell its Russian operations to certain senior members of PJSC VimpelCom's management team for 130 billion Russian rubles ($2.1 billion). | Apple (AAPL) could see at least a 30% decrease in iPhone production at Foxconn's factory in Zhengzhou, China, for the month of November after worker protests disrupted operations, Reuters reported, citing an unnamed person with direct knowledge of the matter. The Technology Select Sector SPDR ETF (XLK) was flat, and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.26%. VEON (VEON) was gaining over 33% in value after saying it has agreed to sell its Russian operations to certain senior members of PJSC VimpelCom's management team for 130 billion Russian rubles ($2.1 billion). | Apple (AAPL) could see at least a 30% decrease in iPhone production at Foxconn's factory in Zhengzhou, China, for the month of November after worker protests disrupted operations, Reuters reported, citing an unnamed person with direct knowledge of the matter. Technology stocks were leaning lower premarket Friday. Coupa Software (COUP) was still climbing past 2% after Bloomberg News reported that Vista Equity Partners is mulling the acquisition of the software company. | 73cf1a93-fad1-4349-8c4d-c0ab65a80c07 |
18301.0 | 2022-11-25 00:00:00 UTC | 93% of Warren Buffett's Portfolio Is in These 4 Sectors | AAPL | https://www.nasdaq.com/articles/93-of-warren-buffetts-portfolio-is-in-these-4-sectors | nan | nan | Though there are a lot of great money managers, few can hold a candle to the Oracle of Omaha, Warren Buffett. Since becoming CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, Buffett has overseen the creation of more than $680 billion in shareholder value and delivered an aggregate return on his company's Class A shares (BRK.A) of better than 3,600,000%.
While there is a long list of reasons for Buffett's success, one of the most overlooked catalysts is portfolio concentration. Despite having more than $345 billion invested in around four dozen securities, 93% of Warren Buffett's portfolio can be traced to just four sectors.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Technology: 44.18% of invested assets
Although Buffett's company owns a half-dozen tech stocks, it's Apple (NASDAQ: AAPL) that accounts for the lion's share of Berkshire Hathaway's investment portfolio. As of this past weekend, Apple made up 40% of Berkshire's invested assets.
What makes Apple so special is its dominance in a variety of categories. It's widely regarded as the world's most valuable brand, and it has an exceptionally loyal customer base. Within the U.S., the company's iPhone accounts for more than half of all smartphone market share.
Beyond the physical products that brought the company fame, Apple CEO Tim Cook is leading a multiyear shift that's designed to promote subscription services. For Apple, subscription services should be a higher-margin segment that leads to predictable quarterly cash flow. In short, it's a way to mitigate revenue fluctuations tied to physical product replacement cycles.
The other intriguing investment within tech is Buffett's newest: Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is better known as TSMC. What makes this a seemingly no-brainer investment for Buffett is TSMC is the exclusive supplier of silicon processing chips used in Apple's products. If the Oracle of Omaha and his investment team expect Apple to outperform over the long run, it's only logical that its chip supplier would benefit, too.
Financials: 24.08% of invested assets
Without question, the least surprising aspect of Berkshire Hathaway's portfolio is that financial stocks play a key role. As of the end of last week, Buffett's company was invested in 17 financial securities (this includes two exchange-traded funds) that equated to about $83.3 billion in market value.
The reason Buffett loves putting Berkshire's money to work in financial stocks is that they get the benefit of time as an ally. Despite recessions being a regular part of the economic cycle, periods of expansion last considerably longer than recessions. Owning an assortment of banks, insurers, and payment providers allows Berkshire Hathaway to take advantage of the natural expansion in U.S. and global gross domestic product -- as well as consumer and enterprise spending -- over time.
The largest financial in Berkshire's investment portfolio is Bank of America (NYSE: BAC). At the moment, BofA's interest rate sensitivity is its biggest catalyst. No large bank stock will see its net interest income fluctuate more with changes to the yield curve than Bank of America. Considering that the Federal Reserve has no choice but to aggressively raise rates in order to tame historically high inflation, BofA is set to generate billions of dollars in added net interest income.
Credit-services provider American Express (NYSE: AXP) is another large and longtime holding. The beauty of AmEx's operating model is that the company is able to double dip during periods of expansion. In addition to bringing in merchant fees, it also collects interest income and cardholder fees as a lender.
Image source: Getty Images.
Energy: 12.99% of invested assets
Prior to 2022, energy stocks hadn't accounted for more than 8.9% of Warren Buffett's investment portfolio at any point this century. But that's changed in a big way, with energy stocks accounting for nearly 13% of invested assets as of this past week.
The real jaw-dropper is that the $44.9 billion Buffett and his team have apportioned to "energy stocks" are tied up in just two companies: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Berkshire Hathaway also holds $10 billion in preferred stock of Occidental Petroleum that yields 8% annually. This $10 billion isn't included in the $44.9 billion figure.
The only reason the Oracle of Omaha would make this bet is if he believed crude oil and natural gas prices would head higher or remain well above their historical average -- and there's certainly reason to believe that'll be the case. The pandemic forced most drilling, exploration, and energy infrastructure companies to significantly pare back their investments. When coupled with Russia invading Ukraine in February, it creates a situation where increasing the global oil and gas supply to meet growing demand becomes difficult. It's a simple situation of demand outpacing supply, with oil and natural gas prices heading higher as a result.
Additionally, Chevron and Occidental Petroleum are both integrated operators. Although drilling provides the best margins for oil and gas companies, integrated operators can lean on midstream assets, such as pipelines, or downstream assets, like refineries and chemical plants, if energy commodity prices fall.
Consumer staples: 11.38% of invested assets
The fourth sector that makes up a sizable portion of Warren Buffett's portfolio is consumer staples. Interestingly, though, the 11.38% weighting, as of last week, would be a low point this century.
The lure of consumer staples stocks is the predictability of their cash flow and profit potential. No matter how poorly the U.S. economy or stock market performs, people still need to purchase food, beverages, detergent, toothpaste, toilet paper, and so on. This is what makes this sector so appealing during periods of uncertainty, such as we're experiencing now.
Warren Buffett's longest-held stock, Coca-Cola (NYSE: KO), is a consumer staple. Coca-Cola is one of the most recognized brands in the world, which is a testament to its stellar marketing and its ability to cross generational gaps to engage with consumers.
Furthermore, Coca-Cola is about as geographically diversified as businesses get. With the exception of North Korea, Cuba, and Russia (the latter is due to its invasion of Ukraine), Coke has ongoing operations in every other country right now. This helps it take advantage of predictable cash flow in developed markets, as well as higher organic growth rates in emerging markets.
But it is worth noting that, with the exception of grocery chain Kroger, Buffett's company has shied away from buying consumer staple stocks in recent years. This could be an indication that Buffett's investing lieutenants, Todd Combs and Ted Weschler, are playing a bigger role in Berkshire Hathaway's investments. Combs and Weschler have demonstrated a larger appetite for risk-taking when compared to Warren Buffett.
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Bank of America and American Express 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, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Technology: 44.18% of invested assets Although Buffett's company owns a half-dozen tech stocks, it's Apple (NASDAQ: AAPL) that accounts for the lion's share of Berkshire Hathaway's investment portfolio. Owning an assortment of banks, insurers, and payment providers allows Berkshire Hathaway to take advantage of the natural expansion in U.S. and global gross domestic product -- as well as consumer and enterprise spending -- over time. Considering that the Federal Reserve has no choice but to aggressively raise rates in order to tame historically high inflation, BofA is set to generate billions of dollars in added net interest income. | Technology: 44.18% of invested assets Although Buffett's company owns a half-dozen tech stocks, it's Apple (NASDAQ: AAPL) that accounts for the lion's share of Berkshire Hathaway's investment portfolio. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Technology: 44.18% of invested assets Although Buffett's company owns a half-dozen tech stocks, it's Apple (NASDAQ: AAPL) that accounts for the lion's share of Berkshire Hathaway's investment portfolio. Energy: 12.99% of invested assets Prior to 2022, energy stocks hadn't accounted for more than 8.9% of Warren Buffett's investment portfolio at any point this century. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Technology: 44.18% of invested assets Although Buffett's company owns a half-dozen tech stocks, it's Apple (NASDAQ: AAPL) that accounts for the lion's share of Berkshire Hathaway's investment portfolio. Berkshire Hathaway CEO Warren Buffett. Energy: 12.99% of invested assets Prior to 2022, energy stocks hadn't accounted for more than 8.9% of Warren Buffett's investment portfolio at any point this century. | bb9832e6-6a49-4a01-9341-4f7439a1d5d8 |
18302.0 | 2022-11-25 00:00:00 UTC | 2 Warren Buffett Stocks That Everyone Should Own | AAPL | https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-everyone-should-own-0 | nan | nan | Since Warren Buffett took control of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) in 1965, the holding company has delivered an astounding average annual return of 20% to shareholders. That rate of increase doubles an investor's money every four years, which is nearly twice as fast as an index fund that tracks the broader market averages. It goes without saying that investors could do a lot worse than using Berkshire's stock holdings as a hunting ground for new ideas.
Berkshire's portfolio is a dynamic list of stocks from different industries. While investment managers Ted Weschler and Todd Combs handle a small amount of Berkshire's investments, Buffett is responsible for most of the company's stock holdings, which are worth almost $300 million at the end of the third quarter.
What follows is a discussion of two of Berkshire's largest investments. Either would make a great holding for any seasoned or new investor.
1. Apple: Buffett loves this iconic brand
To say that Buffett admires the business of Apple (NASDAQ: AAPL) might be an understatement. It's not only Berkshire's largest holding, sitting at a market value of $123 billion at the end of Q3, but it's also one of Buffett's most successful investments in recent years. The stock is up more than 400% since Buffett started buying in late 2016, and since Buffett is still holding the stock, that means he fully expects the business (and stock) to grow in value over time.
While demand for pricey iPhones can soften in a recessionary environment, Apple still generates a high sales volume of millions of iPhones, iPads, and Macs every year which makes the business largely resilient to an economic downturn. Apple's premium position in the marketplace and brand strength translates to enormous amounts of free cash flow every year that fund growing dividends to shareholders.
Buffett favors investing in industry leaders that consistently reward shareholders with capital returns, and Apple certainly fits that criteria. Apple just capped off a strong fiscal year, with revenue up 8%. Over a fifth of its revenue came from high-margin services, such as apps and subscriptions. Apple converted these profitable revenue streams to a whopping $111 billion in free cash flow, out of which it returned over $100 billion to shareholders.
Analysts are expecting iPhone sales to soften in the near term due to the economy, but this is why investors can buy the stock at a cheaper valuation. Apple now trades at a price-to-earnings (P/E) ratio of 25, which is a fair premium over the market average P/E of 21. Apple is definitely worth more than the average business.
The reason to be confident in Apple's future is that people can hardly get going in the morning without checking their iPhones. It's a daily utility that opens up lucrative revenue streams, such as additional device sales and apps through the App Store. It's this relationship that explains Buffett's thinking when he decided to start buying Apple stock in 2016. It's the tight customer relationships that will keep Apple growing its revenue over the long term and paying out more dividends, where it has already increased the payout by 46% in the last five years.
2. TSMC: The leading chip maker in the world
Berkshire Hathaway opened a new position in Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC, in the last quarter. At the end of Q3, Berkshire held just over 60 million shares worth $4.1 billion. Like Apple, it fits the type of industry leader that would appeal to Buffett.
TSMC is the largest chip foundry in the world. It manufactures high-performance processors for the leading chip designers in the world, including Nvidia and Intel. This is a cyclical business that can see revenue soften during economic downturns, but with the near-term outlook looking very gloomy into 2023, investors have a good opportunity to invest in the growing secular demand for advanced chips that are increasingly becoming vital to the global economy.
TSMC delivered 17% annualized revenue growth going back almost 30 years. The opportunities to provide the latest chip technologies for the growing demand in 5G wireless devices, data centers, and automotive applications should deliver more growth in revenue, profits, and dividends over the long term.
TSM data by YCharts
Investors can have confidence in TSMC's future due to its customer relationships and expertise in producing advanced process technologies. TSMC is also looking to expand its manufacturing footprint in the U.S., Japan, and China. These advantages allow TSMC to generate sky-high margins and pay regular dividends to shareholders. TSMC has raised the dividend by 61% over the last five years, bringing the current yield to 2.27%.
Even better, TSMC trades at a relatively low P/E of 14, which looks like a bargain as chip content increases in traditionally non-computing applications like transportation and industrial markets.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: Buffett loves this iconic brand To say that Buffett admires the business of Apple (NASDAQ: AAPL) might be an understatement. Apple's premium position in the marketplace and brand strength translates to enormous amounts of free cash flow every year that fund growing dividends to shareholders. This is a cyclical business that can see revenue soften during economic downturns, but with the near-term outlook looking very gloomy into 2023, investors have a good opportunity to invest in the growing secular demand for advanced chips that are increasingly becoming vital to the global economy. | Apple: Buffett loves this iconic brand To say that Buffett admires the business of Apple (NASDAQ: AAPL) might be an understatement. TSMC: The leading chip maker in the world Berkshire Hathaway opened a new position in Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC, in the last quarter. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Intel, Nvidia, and Taiwan Semiconductor Manufacturing. | Apple: Buffett loves this iconic brand To say that Buffett admires the business of Apple (NASDAQ: AAPL) might be an understatement. The stock is up more than 400% since Buffett started buying in late 2016, and since Buffett is still holding the stock, that means he fully expects the business (and stock) to grow in value over time. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. | Apple: Buffett loves this iconic brand To say that Buffett admires the business of Apple (NASDAQ: AAPL) might be an understatement. The stock is up more than 400% since Buffett started buying in late 2016, and since Buffett is still holding the stock, that means he fully expects the business (and stock) to grow in value over time. It's the tight customer relationships that will keep Apple growing its revenue over the long term and paying out more dividends, where it has already increased the payout by 46% in the last five years. | e19bc4c8-695e-4b1b-a0c8-f4cdad990ee6 |
18303.0 | 2022-11-25 00:00:00 UTC | Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-3 | nan | nan | The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, 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 Blackrock. It has amassed assets over $307.19 billion, making it the largest 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. 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
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 1.53%.
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 27.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 27.08% 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 lost about -14.81% so far this year and is down about -12.94% in the last one year (as of 11/25/2022). In the past 52-week period, it has traded between $357.98 and $479.84.
The ETF has a beta of 1 and standard deviation of 25.22% for the trailing three-year period, making it a medium risk choice in the space. With about 507 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 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 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 $276.07 billion in assets, SPDR S&P 500 ETF has $384.27 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.33% 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. The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. | 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 7.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. | 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 7.33% 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. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.33% 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. The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. | 677177b0-b3c3-46fe-95dc-0b3f93a83912 |
18304.0 | 2022-11-25 00:00:00 UTC | EXCLUSIVE-Foxconn woes could hit at least 30% of iPhone Nov shipments from China plant -source | AAPL | https://www.nasdaq.com/articles/exclusive-foxconn-woes-could-hit-at-least-30-of-iphone-nov-shipments-from-china-plant | nan | nan | TAIPEI, Nov 25 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by at least 30% at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday.
The estimate was an upward revision of an October internal forecast for production impact of up to 30% at the world's largest iPhone factory, said the source, who sought anonymity as the information was private.
Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month - a deadline it had set internally before Wednesday's wave of protests.
Foxconn declined to comment.
(Reporting by Yimou Lee and Taipei newsroom; Editing by Clarence Fernandez)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by at least 30% at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday. The estimate was an upward revision of an October internal forecast for production impact of up to 30% at the world's largest iPhone factory, said the source, who sought anonymity as the information was private. Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month - a deadline it had set internally before Wednesday's wave of protests. | TAIPEI, Nov 25 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by at least 30% at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday. The estimate was an upward revision of an October internal forecast for production impact of up to 30% at the world's largest iPhone factory, said the source, who sought anonymity as the information was private. Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month - a deadline it had set internally before Wednesday's wave of protests. | TAIPEI, Nov 25 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by at least 30% at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday. Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month - a deadline it had set internally before Wednesday's wave of protests. (Reporting by Yimou Lee and Taipei newsroom; Editing by Clarence Fernandez) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by at least 30% at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday. The estimate was an upward revision of an October internal forecast for production impact of up to 30% at the world's largest iPhone factory, said the source, who sought anonymity as the information was private. Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month - a deadline it had set internally before Wednesday's wave of protests. | eaa1f53d-31b5-4626-b1c8-7a8258dc8d84 |
18305.0 | 2022-11-25 00:00:00 UTC | Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-5 | nan | nan | If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $4.64 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 find themselves in the large cap category 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.
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. Further, growth stocks have a higher level of volatility associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.76%.
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 48.20% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 50.64% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has lost about -25.72% so far this year and is down about -24.33% in the last one year (as of 11/25/2022). In the past 52-week period, it has traded between $117.55 and $175.61.
The ETF has a beta of 1.06 and standard deviation of 27.97% for the trailing three-year period, making it a medium risk choice in the space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 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, IWY is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $71.98 billion in assets, Invesco QQQ has $163.53 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.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): 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. It has amassed assets over $4.64 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market. | Click to get this free report iShares Russell Top 200 Growth ETF (IWY): 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 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. | Click to get this free report iShares Russell Top 200 Growth ETF (IWY): 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 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): 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. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. | 9c5085bb-6da0-4fc6-8738-690b612ed7a2 |
18306.0 | 2022-11-25 00:00:00 UTC | Zacks Market Edge Highlights: The Walt Disney, Sony, Apple, Alphabet and Tesla | AAPL | https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-the-walt-disney-sony-apple-alphabet-and-tesla | nan | nan | For Immediate Release
Chicago, IL – November 25, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2021464/buy-this-stock-instead-of-that-one)
Buy This Stock Instead of That One
Welcome to Episode #338 of the Zacks Market Edge Podcast.
(0:30) - Finding Alternative Stock Investments To Troubled Companies
(4:45) - Stocks To Keep On Your Radar
(25:00) - Episode Roundup: DIS, SONY, APPL, GOOGL, TSLA, RACE
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss rejecting companies that may be struggling, or expensive, for those in the same industry that may not have the same problems.
It's kind of like the stock version of buy this, but not that.
Widen your lens when considering what companies to invest in. You might be surprised at some hidden gems and better buying opportunities.
Buy This Stock, Not That One
1. The Walt Disney Co. DIS and Sony SONY
Disney is in the headlines in 2022 thanks to the change in CEO back to Bob Iger, who led the company for over a decade.
Shares of Disney have plunged 39% year-to-date but aren't cheap, with a forward P/E of 23. Disney's Fiscal 2023 earnings estimates have been cut in the last 90 days, pushing the Zacks Consensus down to $4.20 from $6.50.
What about investing in Sony instead? Sony also has a big entertainment business with music, movies and gaming. Instead of participating in the streaming wars, Sony smartly decided to sell its movie content to others.
Shares of Sony are also down big in 2022, falling 36%. It's cheaper than Disney, however, with a forward P/E of 14.9.
Should investors be taking a second look at Sony?
2. Apple AAPL and Alphabet GOOGL
Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway's equity portfolio.
But even with Apple shares down 16% year-to-date, it's still not cheap, with a forward P/E of 23.7.
Earnings of Apple are expected to be up just 2.5% this fiscal year and only 8% next year. Analysts were also cutting Apple estimates over the last 60 days.
But maybe Alphabet is a better bet if you're looking to buy a hardware and content platform company? Alphabet owns powerhouse YouTube, which is making a big push into Apple's key podcast category. It's also a big player in music.
Alphabet shares have fallen 33.6% year-to-date and are slightly cheaper than Apple, with a forward P/E of 20.4.
However, Alphabet is a Zacks Rank #4 (Sell), whereas Apple is a #3 (Hold).
Is Alphabet a cheaper alternative to Apple in 2022?
3. Tesla, Inc. (TSLA)
Tesla has fans both in cars and technology but year-to-date, Tesla shares are down 52%.
Could this be a buying opportunity? Tesla shares are still pricey, with a forward P/E of 41.4. However, Tesla earnings are expected to be up 79% in 2022 and another 30.5% in 2023. Few companies have such a bullish outlook in the face of a China slowdown and a possible global recession.
Is there an alternative to Tesla in either cars or in its technology for those who want a value?
What Else Do You Need to Know About Buying This Stock Instead of That One?
Listen to this week's podcast to find out.
[In full disclosure, Tracey owns shares of GOOGL in her own personal portfolio.]
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway's equity portfolio. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway's equity portfolio. For Immediate Release Chicago, IL – November 25, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway's equity portfolio. (0:30) - Finding Alternative Stock Investments To Troubled Companies (4:45) - Stocks To Keep On Your Radar (25:00) - Episode Roundup: DIS, SONY, APPL, GOOGL, TSLA, RACE Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. | Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway's equity portfolio. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Buy This Stock, Not That One 1. | c98564f8-b752-4468-b17b-9a742863d6cc |
18307.0 | 2022-11-25 00:00:00 UTC | Should You Invest in the iShares Expanded Tech Sector ETF (IGM)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-4 | nan | nan | Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund launched on 03/13/2001.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $2.56 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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 0.40%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.32%.
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 in the Information Technology sector--about 77.60% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 9.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Performance and Risk
So far this year, IGM has lost about -32%, and is down about -32.11% in the last one year (as of 11/25/2022). During this past 52-week period, the fund has traded between $266.47 and $447.06.
The ETF has a beta of 1.14 and standard deviation of 31.28% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $41.30 billion in assets, Vanguard Information Technology ETF has $41.78 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Expanded Tech Sector ETF (IGM): 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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
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, Amazon Com Inc (AMZN) accounts for about 9.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $2.56 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 9.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund launched on 03/13/2001. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 9.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 9.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund launched on 03/13/2001. | b63d12ef-015c-4ba0-b146-997934ba989a |
18308.0 | 2022-11-24 00:00:00 UTC | Apple Reportedly Expresses Interest In Buying Manchester United | AAPL | https://www.nasdaq.com/articles/apple-reportedly-expresses-interest-in-buying-manchester-united | nan | nan | (RTTNews) - Apple Inc. (AAPL) has expressed interest in buying UK soccer team Manchester United for 5.8 billion pounds, according to several media reports citing people familiar with the matter.
A number of other parties also said to be interested in the potential acquisition.
Apple CEO Tim Cook is keen to explore the opportunities owning United could provide - and will line up talks with the banks appointed to oversee the sale, the reports said.
On Tuesday, Manchester United said that its board commenced a process to explore strategic alternatives for the club. It would consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Apple Inc. (AAPL) has expressed interest in buying UK soccer team Manchester United for 5.8 billion pounds, according to several media reports citing people familiar with the matter. Apple CEO Tim Cook is keen to explore the opportunities owning United could provide - and will line up talks with the banks appointed to oversee the sale, the reports said. On Tuesday, Manchester United said that its board commenced a process to explore strategic alternatives for the club. | (RTTNews) - Apple Inc. (AAPL) has expressed interest in buying UK soccer team Manchester United for 5.8 billion pounds, according to several media reports citing people familiar with the matter. On Tuesday, Manchester United said that its board commenced a process to explore strategic alternatives for the club. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Apple Inc. (AAPL) has expressed interest in buying UK soccer team Manchester United for 5.8 billion pounds, according to several media reports citing people familiar with the matter. Apple CEO Tim Cook is keen to explore the opportunities owning United could provide - and will line up talks with the banks appointed to oversee the sale, the reports said. On Tuesday, Manchester United said that its board commenced a process to explore strategic alternatives for the club. | (RTTNews) - Apple Inc. (AAPL) has expressed interest in buying UK soccer team Manchester United for 5.8 billion pounds, according to several media reports citing people familiar with the matter. A number of other parties also said to be interested in the potential acquisition. Apple CEO Tim Cook is keen to explore the opportunities owning United could provide - and will line up talks with the banks appointed to oversee the sale, the reports said. | 120d5bc5-b63b-417a-ba66-d7c481aee984 |
18309.0 | 2022-11-24 00:00:00 UTC | Disney's (DIS) New Avatar Movie to be Released in China | AAPL | https://www.nasdaq.com/articles/disneys-dis-new-avatar-movie-to-be-released-in-china | nan | nan | The Walt Disney’s DIS latest movie in the Avatar franchise is set to release in China along with the rest of the world on Dec 16.
Disney executives and movie theatre chains were keeping a close watch on the Chinese censors on the movies given the potential box office revenues from China.
The Chinese censors have been quite strict in recent years, disallowing various Hollywood studios to launch movies in the country, citing reasons such as sensitive political themes and statements to which the authorities object.
Strict censorship in China affected the global box office gross of the last seven superhero films produced by Marvel Studios, which is Disney’s most profitable film studio. For example, in July Marvel’s latest Thor movie underperformed at the international box office due to not receiving release dates in China.
While Disney did not reveal the budget of the Avatar sequel, James Cameron, the director of the movie, cited that it has to be the third or fourth highest-grossing movie to break even. Being allowed to open up in China might allow the franchise movie to live up to past performance expectations.
The first Avatar movie released in 2009 grossed nearly $2.9 billion worldwide, with $259 million coming from China, making it the highest-grossing movie of all time. It edged out “Avengers: Endgame” after a September 2022 rerelease as the movie added $73 million in ticket sales.
The launch of the first Avatar movie sparked a boom in multiplex construction in China which allowed U.S.-based multiplex businesses like IMAX IMAX to solidify their businesses in China.
Chinese theaters saw lines of up to six hours long for the Avatar movie. Before the movie, IMAX had 14 screens in China and currently has 800, with 200 more contracted to be built.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Further, this will allow Disney, which currently carries a Zacks Rank #3 (Hold), to diversify its income source into high-growth markets and economies, which will fund its key growth drivers like Disney+.
Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+ and is spending huge capital to bring out original content to fight against stiff competition in an extremely saturated market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disney Movie Release in China to Fund Disney+ Business
Disney is focusing on its streaming service, which will cost the company capital in terms of content and marketing to fend off competition from Netflix and Apple.
Netflix is considered a pioneer in the streaming space and is enjoying the first mover’s advantage in the industry. Its solid content portfolio is a major growth driver.
Since the launch of Apple TV+, several Apple original series and films have earned more than 240 awards and 950 nominations, including the acclaimed SAG Awards, Primetime Emmy Awards and Critics Choice Awards. These accolades are catching viewers’ attention and helping it to win market share from Netflix and Disney.
In order to fight peers, we expect Disney will expand its Direct-to-Consumer spending by 12.5% year over year. As a result, Direct-to-Consumer operating loss is expected to be $4.88 billion for fiscal 2023 compared with $4 billion in fiscal 2022. The rising spending and losses are expected to keep consolidated margins under pressure.
Also, Disney has an extremely leveraged balance sheet portraying that it is lending more money to grow business in a highly fragmented market. Total borrowings were $48.37 billion as of Oct 1, 2022, compared with $46.6 billion as of Jul 2, 2022. Disney’s debt balance compares unfavorably with cash, cash equivalents and its current marketable investment securities balance of $11.62 billion.
All of this impacted the share price of Disney quite adversely. In the year-to-date period, its shares fell 36.2% compared with the Zacks Media Conglomerates industry’s decline of 33.7%.
Amid this, the release of the new Avatar movie in China is welcome news for the company. This will create a new revenue source for the company and help increase its top line in the coming quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+ and is spending huge capital to bring out original content to fight against stiff competition in an extremely saturated market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report To read this article on Zacks.com click here. The Walt Disney’s DIS latest movie in the Avatar franchise is set to release in China along with the rest of the world on Dec 16. | Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+ and is spending huge capital to bring out original content to fight against stiff competition in an extremely saturated market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report To read this article on Zacks.com click here. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report To read this article on Zacks.com click here. Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+ and is spending huge capital to bring out original content to fight against stiff competition in an extremely saturated market. The Walt Disney Company Price and Consensus The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote Further, this will allow Disney, which currently carries a Zacks Rank #3 (Hold), to diversify its income source into high-growth markets and economies, which will fund its key growth drivers like Disney+. | Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+ and is spending huge capital to bring out original content to fight against stiff competition in an extremely saturated market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report To read this article on Zacks.com click here. The first Avatar movie released in 2009 grossed nearly $2.9 billion worldwide, with $259 million coming from China, making it the highest-grossing movie of all time. | b858017f-c54c-4369-806f-f388624128ef |
18310.0 | 2022-11-24 00:00:00 UTC | More than 20,000 new hires have left Apple supplier Foxconn's Zhengzhou plant in China -Foxconn source | AAPL | https://www.nasdaq.com/articles/more-than-20000-new-hires-have-left-apple-supplier-foxconns-zhengzhou-plant-in-china-0 | nan | nan | By Yimou Lee
TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday.
The person said the departures would complicate the company's previous target of resuming full production by the end of November, following worker unrest that rocked production at the world's largest iPhone factory.
Foxconn declined to comment.
The worker departures come after the Taiwanese firm offered on Thursday 10,000 yuan ($1,396) to employees who wanted to resign and leave the chaos-hit plant.
It had apologised for committing a pay-related "technical error" when hiring new recruits, which workers say was a factor that led to protests involving clashes with security personnel.
Videos posted on Chinese social media on Friday showed crowds and long lines of luggage-laden workers queuing for buses. "It's time to go home," said one of the posters.
The labour unrest at the Zhengzhou plant that began on Wednesday marked rare scenes of open dissent in China which workers say was fuelled claims of overdue pay and frustration over severe COVID-19 restrictions.
A second Foxconn source familiar with the matter said some new hires had left the campus but did not elaborate on how many. The person said the departures had no impact on current production, as the new staff still needed to take training courses before working online.
The unrest comes at a time when China is logging record numbers of COVID-19 infections and grappling with more and more lockdowns that have fuelled frustration among citizens across the country. But it has also exposed communication problems and a mistrust of Foxconn management among some staff.
Foxconn launched a hiring drive earlier this month promising bonuses and higher salaries after it had to enact measures to curb the spread of COVID-19 in October. The curbs forced the company to isolate many employees and the plant's conditions prompted several to flee.
($1 = 7.1616 Chinese yuan renminbi)
(Reporting By Yimou Lee; Additional reporting by Brenda Goh; Editing by Kim Coghill)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Yimou Lee TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. It had apologised for committing a pay-related "technical error" when hiring new recruits, which workers say was a factor that led to protests involving clashes with security personnel. The labour unrest at the Zhengzhou plant that began on Wednesday marked rare scenes of open dissent in China which workers say was fuelled claims of overdue pay and frustration over severe COVID-19 restrictions. | By Yimou Lee TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. A second Foxconn source familiar with the matter said some new hires had left the campus but did not elaborate on how many. ($1 = 7.1616 Chinese yuan renminbi) (Reporting By Yimou Lee; Additional reporting by Brenda Goh; Editing by Kim Coghill) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Yimou Lee TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departures would complicate the company's previous target of resuming full production by the end of November, following worker unrest that rocked production at the world's largest iPhone factory. The labour unrest at the Zhengzhou plant that began on Wednesday marked rare scenes of open dissent in China which workers say was fuelled claims of overdue pay and frustration over severe COVID-19 restrictions. | By Yimou Lee TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departures would complicate the company's previous target of resuming full production by the end of November, following worker unrest that rocked production at the world's largest iPhone factory. The unrest comes at a time when China is logging record numbers of COVID-19 infections and grappling with more and more lockdowns that have fuelled frustration among citizens across the country. | 1b4bf600-fe1f-4f31-b217-0975bfa5bbdc |
18311.0 | 2022-11-24 00:00:00 UTC | Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-russell-1000-growth-etf-iwf-be-on-your-investing-radar-4 | nan | nan | Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $61.36 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.78%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 44.30% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.75% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.
The ETF has lost about -25.11% so far this year and is down about -23.98% in the last one year (as of 11/24/2022). In the past 52-week period, it has traded between $207.03 and $309.52.
The ETF has a beta of 1.07 and standard deviation of 28.26% for the trailing three-year period, making it a medium risk choice in the space. With about 524 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 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, IWF 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 Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $71.98 billion in assets, Invesco QQQ has $162.66 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.75% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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. It has amassed assets over $61.36 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market. | Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 12.75% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. | Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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 12.75% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.75% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): 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. Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. | b6f90744-80a7-4f7a-a8b5-5f2082acba31 |
18312.0 | 2022-11-24 00:00:00 UTC | More than 20,000 new hires have left Apple supplier Foxconn's Zhengzhou plant in China -Foxconn source | AAPL | https://www.nasdaq.com/articles/more-than-20000-new-hires-have-left-apple-supplier-foxconns-zhengzhou-plant-in-china | nan | nan | TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday.
The person said the departure was set to complicate the company's previous target to resume full production by the end of November, following worker unrest that rocked production of the world's largest iPhone factory.
(Reporting By Yimou Lee)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departure was set to complicate the company's previous target to resume full production by the end of November, following worker unrest that rocked production of the world's largest iPhone factory. (Reporting By Yimou Lee) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departure was set to complicate the company's previous target to resume full production by the end of November, following worker unrest that rocked production of the world's largest iPhone factory. (Reporting By Yimou Lee) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departure was set to complicate the company's previous target to resume full production by the end of November, following worker unrest that rocked production of the world's largest iPhone factory. (Reporting By Yimou Lee) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 25 (Reuters) - More than 20,000 employees, most of them were new hires not yet working on the production line, have left Apple AAPL.O supplier Foxconn's 2317.TW Zhengzhou plant in China, a Foxconn source familiar with the matter told Reuters on Friday. The person said the departure was set to complicate the company's previous target to resume full production by the end of November, following worker unrest that rocked production of the world's largest iPhone factory. (Reporting By Yimou Lee) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 612b2492-68b8-4543-8d0a-a5812deb6730 |
18313.0 | 2022-11-24 00:00:00 UTC | Foxconn is stuck between rock and hard place | AAPL | https://www.nasdaq.com/articles/foxconn-is-stuck-between-rock-and-hard-place | nan | nan | Reuters
Reuters
HONG KONG (Reuters Breakingviews) - The $45 billion top Apple supplier Foxconn is trying to resolve its problems in China with cash. Financial fixes can only do so much to tackle a problem stemming from Beijing’s zero-Covid policy.
Hon Hai Precision Industry, better known as Foxconn, offered a rare apology on Thursday for what it said was a “technical error” relating to the hiring of new employees after violent protests erupted at its Zhengzhou factory that produces most of the world’s iPhones. Workers demanded bonuses to be paid without delay and, in another unusual move, Foxconn is now offering incentives exceeding a month’s wage to those among its 200,000 workforce at the site who want to leave. It quadrupled daily bonuses earlier this month to lure new hires after staff fled. Workers have been upset after being forced to live in difficult conditions designed to stamp out Covid-19 infections.
Analysts at Wuhan-based Tianfeng Securities hint at the practical problems to resolving the mess. On a field trip to Zhengzhou this week, they say the city’s partial lockdown meant they had to walk over 10 miles on foot to the chaos-hit factory. In every way, manufacturers in China face a long and bumpy road to recovery if they try to please both their workers and Beijing. (By Yawen Chen)
Follow @Breakingviews on Twitter
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(Editing by Una Galani and Thomas Shum)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Hon Hai Precision Industry, better known as Foxconn, offered a rare apology on Thursday for what it said was a “technical error” relating to the hiring of new employees after violent protests erupted at its Zhengzhou factory that produces most of the world’s iPhones. Workers demanded bonuses to be paid without delay and, in another unusual move, Foxconn is now offering incentives exceeding a month’s wage to those among its 200,000 workforce at the site who want to leave. (By Yawen Chen) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: ABB takes valid detour around hairy IPO markets Italy’s Meloni will dodge EU collision on budget Messy money manager merger goes from bad to worse Ticketmaster shares spotlight with Taylor Swift Rio swaps wild goose chase for white-knuckle ride (Editing by Una Galani and Thomas Shum) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Reuters Reuters HONG KONG (Reuters Breakingviews) - The $45 billion top Apple supplier Foxconn is trying to resolve its problems in China with cash. Hon Hai Precision Industry, better known as Foxconn, offered a rare apology on Thursday for what it said was a “technical error” relating to the hiring of new employees after violent protests erupted at its Zhengzhou factory that produces most of the world’s iPhones. | HONG KONG (Reuters Breakingviews) - The $45 billion top Apple supplier Foxconn is trying to resolve its problems in China with cash. Hon Hai Precision Industry, better known as Foxconn, offered a rare apology on Thursday for what it said was a “technical error” relating to the hiring of new employees after violent protests erupted at its Zhengzhou factory that produces most of the world’s iPhones. Workers demanded bonuses to be paid without delay and, in another unusual move, Foxconn is now offering incentives exceeding a month’s wage to those among its 200,000 workforce at the site who want to leave. | HONG KONG (Reuters Breakingviews) - The $45 billion top Apple supplier Foxconn is trying to resolve its problems in China with cash. Financial fixes can only do so much to tackle a problem stemming from Beijing’s zero-Covid policy. Hon Hai Precision Industry, better known as Foxconn, offered a rare apology on Thursday for what it said was a “technical error” relating to the hiring of new employees after violent protests erupted at its Zhengzhou factory that produces most of the world’s iPhones. | 9a1dd558-c7b0-43ac-b5dc-a946d98b43b6 |
18314.0 | 2022-11-24 00:00:00 UTC | Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-4 | nan | nan | Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Wisdomtree. DGRW has been able to amass assets over $7.58 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. DGRW, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for DGRW are 0.28%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.04%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For DGRW, it has heaviest allocation in the Information Technology sector --about 21% of the portfolio --while Consumer Staples and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.25% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT).
DGRW's top 10 holdings account for about 34.19% of its total assets under management.
Performance and Risk
So far this year, DGRW has lost about -3.58%, and was up about 0.23% in the last one year (as of 11/24/2022). During this past 52-week period, the fund has traded between $53.91 and $66.20.
DGRW has a beta of 0.89 and standard deviation of 22.50% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.76 billion in assets, Vanguard Dividend Appreciation ETF has $66.36 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.25% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): 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 Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): 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 Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.25% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): 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 Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.25% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.25% of the fund's total assets, followed by Johnson & Johnson (JNJ) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): 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 Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market. | 371bb99d-fb55-43cb-b17a-2132cf04e94d |
18315.0 | 2022-11-23 00:00:00 UTC | Paramount (PARA) to Stream Top Gun: Maverick on Paramount+ | AAPL | https://www.nasdaq.com/articles/paramount-para-to-stream-top-gun%3A-maverick-on-paramount | nan | nan | Paramount Global PARA recently announced that it will be streaming Top Gun: Maverick on Paramount+ from Dec 22 in the United States, Canada, Australia, Germany, Switzerland, Austria, Italy, the U.K. and Latin America. In South Korea and France, it will be available from 2023.
Top Gun: Maverick had a blockbuster performance across theatres as it remained in the top five on domestic box office charts for 14 of the 15 weeks since release in America.
The film also set a holiday record with its $160.5 million debut and became Tom Cruise’s first movie to surpass $100 million in a single weekend, as well as his first to cross $1 billion in worldwide ticket sales.
The movie gained traction and received huge support from fans on the big screen and the same is anticipated as it now heads towards its OTT launch.
Paramount+ Aids Growth
Paramount has been focused on setting a strong pipeline of movies and shows for its viewers on the streaming platform.
The company recently unveiled its plans to celebrate the 50th anniversary of hip hop music and culture, for which Paramount+ will offer 50 of the most iconic episodes of MTV Entertainment’s original series Yo! MTV Raps for the first time since it premiered and episodes from the home-makeover series, Hip Hop My House.
Paramount+ also announced the revival of the popular FBI drama, Criminal Minds. This is expected to fuel its fan base, which will pay even bigger returns after adding 4.6 million subscribers in the third quarter of 2022 and gaining 95% in revenues year over year.
Paramount Global Price and Consensus
Paramount Global price-consensus-chart | Paramount Global Quote
Paramount also entered a new multi-year distribution agreement with Virgin Media, under which, Paramount+ will debut on Virgin TV in 2023 and Pluto TV will be more widely distributed on Virgin TV 360 and stream services.
Besides expanding the content library, Paramount+ has also been expanding its footprints globally. It has plans to introduce Paramount+ in Germany, Austria and Switzerland and in France with Canal+ this year.
What Lies Ahead for Paramount?
Despite the wide expansion, Paramount faces certain headwinds. Advertisers continue to deal with macroeconomic challenges like inflation, higher interest rates and unfavourable forex with the U.S. dollar strengthening. This has led to cutbacks in their spending and has hindered the company’s top-line growth.
Paramount is facing stiff competition from the likes of Disney DIS and Apple AAPL in the streaming market, which is currently dominated by Netflix NFLX.
Netflix reported better-than-expected third-quarter 2022 subscriber numbers. It gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users.
Disney lost 37.9% shares year to date. Disney+ added 12.1 million subscribers in fourth-quarter fiscal 2022.
Both Netflix and Disney are set to launch their ad-tier subscriptions by the end of this year. These low-cost subscription plans are expected to further increase competition for Paramount.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Paramount shares have outperformed Disney and Netflix on a year-to-date basis, while underperforming Apple.
This Zacks Rank #5 (Strong Sell) company has lost 36.5% of its shares year to date compared with the Zacks Consumer Discretionary space, which fell 35.2% in the same period.
While Apple shares are down 15.4%, Disney and Netflix have dropped 37.9% and 52.4%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Paramount is facing stiff competition from the likes of Disney DIS and Apple AAPL in the streaming market, which is currently dominated by Netflix NFLX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Paramount Global PARA recently announced that it will be streaming Top Gun: Maverick on Paramount+ from Dec 22 in the United States, Canada, Australia, Germany, Switzerland, Austria, Italy, the U.K. and Latin America. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Paramount is facing stiff competition from the likes of Disney DIS and Apple AAPL in the streaming market, which is currently dominated by Netflix NFLX. Paramount Global PARA recently announced that it will be streaming Top Gun: Maverick on Paramount+ from Dec 22 in the United States, Canada, Australia, Germany, Switzerland, Austria, Italy, the U.K. and Latin America. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Paramount is facing stiff competition from the likes of Disney DIS and Apple AAPL in the streaming market, which is currently dominated by Netflix NFLX. Paramount Global Price and Consensus Paramount Global price-consensus-chart | Paramount Global Quote Paramount also entered a new multi-year distribution agreement with Virgin Media, under which, Paramount+ will debut on Virgin TV in 2023 and Pluto TV will be more widely distributed on Virgin TV 360 and stream services. | Paramount is facing stiff competition from the likes of Disney DIS and Apple AAPL in the streaming market, which is currently dominated by Netflix NFLX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. It has plans to introduce Paramount+ in Germany, Austria and Switzerland and in France with Canal+ this year. | 72e3ffcc-62c6-401d-9e6f-5da5ab936ba6 |
18316.0 | 2022-11-23 00:00:00 UTC | 7 Deeply Undervalued Stocks That Can Make You a Millionaire by 2025 | AAPL | https://www.nasdaq.com/articles/7-deeply-undervalued-stocks-that-can-make-you-a-millionaire-by-2025 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A market downturn will always be the best time to shop for undervalued stocks, and 2022 is no different. With the S&P500 down by almost 18% year-to-date, investors should take advantage of this once-in-a-generation opportunity and snap up some oversold stocks before the economy’s gears start turning again. Many solid businesses are changing hands at hefty discounts in this difficult environment, with spooked investors retreating into more defensive assets.
However, some of these are businesses with robust fundamentals and will stay relevant for years, if not decades, into the future. Investors that buy the shares of these heavily-discounted businesses will be the ones to reap the rewards when the economy inevitably roars back. It can’t be a coincidence that some of the most successful and respected investors are contrarians who bought when everyone was selling.
Of course, it is impossible to predict when the market will bottom. It can still go down from here. But if you are looking to hold for the long-term, buying oversold stocks is guaranteed to pay dividends, and short-term losses should not worry you.
As most forecasts expect, the Federal Reserve will pivot next year and u-turn its monetary policy in 2024. The following seven deeply undervalued stocks are set to take advantage of the ensuing bull market.
GOOG Alphabet $98.82
CROX Crocs $96.63
NFLX Netflix $291.50
META Meta Platforms $112.24
AAPL Apple $151.07
MSFT Microsoft $247.58
SHOP Shopify $36.77
Alphabet (GOOG)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOG) is down more than 33% year-to-date and is starting to become deeply-undervalued at this level. The company is going through a difficult time due to declining advertisement revenue and broader economic pressures. Accordingly, its earnings decline has led to a correction, perhaps an overdone one, as its top line continues to grow.
Almost all companies have seen earnings compression due to inflation and economic turmoil, and so has Alphabet. However, I expect the company’s earnings to recover due to layoffs and positive GDP growth. As the economy grows, businesses will increase their advertisement spending, positively impacting Alphabet’s bottom line.
Moreover, the company’s fundamentals are very solid and diverse. Alphabet sells much more than software nowadays, and the company won’t fade out of relevancy anytime soon. Thus, investors should take advantage of the current downturn.
One should also note that Alphabet’s net income grew as much as 166.2% year-over-year post-COVID. The current decline is only natural since the profits have to return more sustainable levels in the near-term.
Crocs (CROX)
Source: Wannee_photographer / Shutterstock.com
Crocs (NASDAQ:CROX) is a footwear company that is popular for selling foam clogs. Crocs are massively popular among Gen Z, and I see the brand being much more profitable in the future, especially in developing countries where Crocs has much more headroom for growth.
CROX stock had a steep correction earlier this year, declining more than 73% from its peak. When the stock was down 70%-plus, I wrote the following:
“Crocs remains among the most popular brands for teens despite the company’s recent downturn. Crocs’ recent earnings report was unsatisfactory due to its net income decline. However, its P/E ratio remains low, and the company’s high revenue growth can still make it profitable.”
While my anticipations have now come true, with the stock up 68% since, Crocs can still go higher. The company’s sales in developing countries are still very low, and I see a lot more growth to come. Thus, CROX remains one of the deeply undervalued stocks to buy, in my view.
Netflix (NFLX)
Source: xalien / Shutterstock
Like Alphabet, the tech selloff hit Netflix (NASDAQ:NFLX) quite hard. The company had to compete with its 2021 metrics to appease investors, resulting in NFLX nosediving 73%% below its peak within six months. However, investors are soon realizing that Netflix is performing much better than its peers. The platform has retained most of its subscribers from the pandemic era, and its financials are doing much better despite the decline.
For example, Netflix posted revenue of $5.5 billion in Q4 2019, which is now almost $8 billion and still growing despite headwinds. Over the trailing 12 months, the company’s net income has gone from $1.9 billion to over $5 billion. Moreover, Netflix’s subscriber count stands at 223 million, up from 167 million. Perhaps the only significant metric for Netflix that’s below Q4 2019 levels is its stock price.
Furthermore, Netflix is still cutting costs and plans to increase its profitability through ads. It is also getting more strict with password sharing, which can also increase its revenue over time. Investors recognize the opportunity, and NFLX stock has crept up 72% from its lowest point this year. Even then, this stock has more upside as it remains well below pre-pandemic figures.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
While Meta Platforms (NASDAQ:META) is seen by many as a falling knife due to its heavy investment in the metaverse, investors need to look deeper. Sure, only a few people are excited about the metaverse, but the company is much more than that. Meta owns Facebook, Messenger, Instagram, and WhatsApp. I don’t see a valuation of $295 billion as justified for a company owning so many popular platforms.
Moreover, the metaverse project is far from unsustainable. So far in 2022, Meta made $32 billion in operating profits from the “Family of Apps,” while it spent $9.4 billion on Reality Labs. Thus, the company is also far from being unprofitable.
Additionally, Meta has announced layoffs, much like other tech companies. That should help its bottom line stabilize until advertising revenue picks up again.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) has a solid business that will remain relevant for the foreseeable future. It is also much more resilient than other tech companies as it continues to expand its workforce despite the market downturn. While most other undervalued stocks in the tech industry heavily rely on advertising revenue, Apple does not. As a result, the impact of declining ad revenue has been minimal for Apple.
In addition, higher-income folks make up the company’s primary customer base. They are not as vulnerable to high inflation, and as a result, Apple continues to see its sales increase. The company beat estimates with revenue growing 8.1% year-over-year this past quarter and net income rising 0.8% compared to last year. These metrics certainly justify its current premium price-earnings ratio of 24.5-times.
Investors in this market find stability and growth prospects compelling. Apple has both. It has shown exceptional resilience among FAANG stocks, and its sales have a lot of room for growth. Apple’s market share is still low outside the U.S. and Europe, and these fast-growing economies could become major markets for Apple products over the long-term.
Microsoft (MSFT)
Source: rafapress / Shutterstock.com
Microsoft (NASDAQ:MSFT) is another one of the undervalued stocks I think will remain relevant in the long run. I argue that the company’s products are too entrenched in people’s everyday lives, and it is now almost impossible for white-collar businesses to run without Microsoft products. That guarantees the company an inelastic demand for a long time.
Of course, profit margins have taken a hit, much like most other companies. However, the current downturn presents a very compelling buying opportunity. When margins recover in line with the broader economy, a strong move to the upside is only a matter of time.
Microsoft’s top line grew 10.6% year-over-year to $50.1 billion, mainly driven by its cloud segment, which is now Microsoft’s top source of revenue. Azure and other cloud services grew 42% in constant currency terms. Thus, when its bottom line starts to recover, I see investors willing to pay more of a premium for MSFT stock.
Shopify (SHOP)
Source: Burdun Iliya / Shutterstock.com
It’s an understatement that 2022 has been a devastating year for e-commerce companies. For Shopify (NYSE:SHOP), this has certainly been true, with the company’s stock price plummeting more than 70% from its peak. Shopify has suffered due to logistical issues and high inflation. However, those issues are not permanent, and the stock can be a multibagger in the long run.
It’s easy to see Shopify as among the best undervalued stocks, when compared to its pre-pandemic metrics. The e-commerce company’s financials are simply retreating to a more natural growth trend. Thus, comparing Shopify to its 2021 financials will give investors daunting numbers, painting it as a falling business. However, investors should realize the long-term opportunity for SHOP stock remains robust.
I believe SHOP stock will surge much higher once the company becomes profitable. That doesn’t seem very far away from this feat, with losses narrowing. Thus, this is definitely one of the best undervalued stocks to buy right now.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.
The post 7 Deeply Undervalued Stocks That Can Make You a Millionaire by 2025 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. | GOOG Alphabet $98.82 CROX Crocs $96.63 NFLX Netflix $291.50 META Meta Platforms $112.24 AAPL Apple $151.07 MSFT Microsoft $247.58 SHOP Shopify $36.77 Alphabet (GOOG) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG) is down more than 33% year-to-date and is starting to become deeply-undervalued at this level. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has a solid business that will remain relevant for the foreseeable future. Many solid businesses are changing hands at hefty discounts in this difficult environment, with spooked investors retreating into more defensive assets. | GOOG Alphabet $98.82 CROX Crocs $96.63 NFLX Netflix $291.50 META Meta Platforms $112.24 AAPL Apple $151.07 MSFT Microsoft $247.58 SHOP Shopify $36.77 Alphabet (GOOG) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG) is down more than 33% year-to-date and is starting to become deeply-undervalued at this level. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has a solid business that will remain relevant for the foreseeable future. As the economy grows, businesses will increase their advertisement spending, positively impacting Alphabet’s bottom line. | GOOG Alphabet $98.82 CROX Crocs $96.63 NFLX Netflix $291.50 META Meta Platforms $112.24 AAPL Apple $151.07 MSFT Microsoft $247.58 SHOP Shopify $36.77 Alphabet (GOOG) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG) is down more than 33% year-to-date and is starting to become deeply-undervalued at this level. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has a solid business that will remain relevant for the foreseeable future. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A market downturn will always be the best time to shop for undervalued stocks, and 2022 is no different. | GOOG Alphabet $98.82 CROX Crocs $96.63 NFLX Netflix $291.50 META Meta Platforms $112.24 AAPL Apple $151.07 MSFT Microsoft $247.58 SHOP Shopify $36.77 Alphabet (GOOG) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG) is down more than 33% year-to-date and is starting to become deeply-undervalued at this level. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has a solid business that will remain relevant for the foreseeable future. Thus, CROX remains one of the deeply undervalued stocks to buy, in my view. | a6298430-9a3d-43e4-883e-54246da30450 |
18317.0 | 2022-11-23 00:00:00 UTC | US STOCKS-Nasdaq rises on boost from growth stocks ahead of Fed minutes | AAPL | https://www.nasdaq.com/articles/us-stocks-nasdaq-rises-on-boost-from-growth-stocks-ahead-of-fed-minutes | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Growth stocks bounce as Treasury yields drop
Tesla jumps as Citigroup upgrades
Nordstrom falls on trimming profit forecast
Fed minutes from November meeting at 2 p.m. ET
Indexes: Nasdaq up 0.54%, Dow flat, S&P up 0.25%
Adds comments, updates prices through out
By Shreyashi Sanyal and Ankika Biswas
Nov 23 (Reuters) - The Nasdaq led gains among major Wall Street indexes on Wednesday, as growth stocks rose after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting.
The minutes, due at 2 p.m. ET, could show how deep any emerging disagreement has begun to run at the Fed as it ends the push to "front-load" rate hikes and begins feeling the way in smaller steps to an eventual stopping point.
Heavyweight stocks, including Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O, rose between 0.1% and 0.9%.
Tesla Inc TSLA.O jumped 5.6% after Citigroup upgraded the electric-vehicle maker's stock to "neutral" from a "sell" rating.
Data showing a more-than-expected rise in Americans filing for unemployment benefits last week helped bring down the yield on the benchmark 10-year Treasury note US10YT=RR.
Meanwhile, U.S. business activity contracted for a fifth straight month in November, while consumer sentiment ticked higher. New home sales rose more than expected in October.
The disparate data bolstered expectations of a 50-basis point rate increase at the Fed's next meeting in December. FEDWATCH
"It's a perverse move in the markets, that bad news is good news," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"Then the next step to that is maybe the Fed stops raising rates faster than what they have been saying, and that's really what is fueling the market."
Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes.
Trading volume is likely to be thin heading into the Thanksgiving holiday on Thursday, with the U.S. stock market open for a half-session on Friday.
Deere & Co DE.N jumped 6.0% to lead the gains on S&P 500 on reporting a higher-than-expected quarterly profit.
Nordstrom Inc JWN.N fell 5.4% as the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers.
Gloomy forecasts from a slew of retailers including Dollar TreeDLTR.O and Target CorpTGT.N indicate inflation's hold over consumer spending, especially heading into the all important holiday season.
The S&P 500 energy .SPNY sector index fell 1.9% tracking lower oil prices after the Group of Seven nations looked at a price cap on Russian oil. [O/R]
Autodesk Inc ADSK.O slipped 5.3% after cutting forecasts for annual billing and free cash flow.
Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the NYSE and by a 1.29-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 76 new highs and 97 new lows.
(Reporting by Shreyashi Sanyal and Ankika Biswas; Editing by Shounak Dasgupta, Arun Koyyur and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET Indexes: Nasdaq up 0.54%, Dow flat, S&P up 0.25% Adds comments, updates prices through out By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - The Nasdaq led gains among major Wall Street indexes on Wednesday, as growth stocks rose after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. ET, could show how deep any emerging disagreement has begun to run at the Fed as it ends the push to "front-load" rate hikes and begins feeling the way in smaller steps to an eventual stopping point. Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Growth stocks bounce as Treasury yields drop Tesla jumps as Citigroup upgrades Nordstrom falls on trimming profit forecast Fed minutes from November meeting at 2 p.m. ET Indexes: Nasdaq up 0.54%, Dow flat, S&P up 0.25% Adds comments, updates prices through out By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - The Nasdaq led gains among major Wall Street indexes on Wednesday, as growth stocks rose after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. The S&P 500 energy .SPNY sector index fell 1.9% tracking lower oil prices after the Group of Seven nations looked at a price cap on Russian oil. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Growth stocks bounce as Treasury yields drop Tesla jumps as Citigroup upgrades Nordstrom falls on trimming profit forecast Fed minutes from November meeting at 2 p.m. ET Indexes: Nasdaq up 0.54%, Dow flat, S&P up 0.25% Adds comments, updates prices through out By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - The Nasdaq led gains among major Wall Street indexes on Wednesday, as growth stocks rose after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Growth stocks bounce as Treasury yields drop Tesla jumps as Citigroup upgrades Nordstrom falls on trimming profit forecast Fed minutes from November meeting at 2 p.m. The disparate data bolstered expectations of a 50-basis point rate increase at the Fed's next meeting in December. Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes. | 3957609a-8755-48d1-9607-d6dbe622dbae |
18318.0 | 2022-11-23 00:00:00 UTC | Apple supplier Foxconn apologises for hiring blunder at COVID-hit China plant | AAPL | https://www.nasdaq.com/articles/apple-supplier-foxconn-apologises-for-hiring-blunder-at-covid-hit-china-plant | nan | nan | Adds comments from Foxconn, details on protests under control
TAIPEI, Nov 24 (Reuters) - Apple's major supplier Foxconn 2317.TW said on Thursday a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest.
Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions.
Workers said on videos circulated on social media that they had been informed that Foxconn intended to delay bonus payments. Some workers also complained they were forced to share dormitories with colleagues who had tested positive for COVID.
"Our team has been looking into the matter and discovered a technical error occurred during the onboarding process," Foxconn said in a statement.
"We apologize for an input error in the computer system and guarantee that the actual pay is the same as agreed and the official recruitment posters."
The largest protests had died down by Thursday and the company was communicating with employees engaged in smaller protests, a Foxconn source familiar with the matter told Reuters.
The Taiwanese company said it would try to solve concerns and meet worker demands, with "corresponding care subsidies" offered to those who want to return to their hometowns.
The Zhengzhou plant employs more than 200,000 people to make Apple Inc AAPL.O devices including the iPhone 14 Pro and Pro Max.
The person said the company had reached "initial agreements" with employees to resolve the dispute and production at the plant continued on Thursday.
(Reporting By Yimou Lee; Editing by Sandra Maler and Stephen Coates)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Zhengzhou plant employs more than 200,000 people to make Apple Inc AAPL.O devices including the iPhone 14 Pro and Pro Max. Adds comments from Foxconn, details on protests under control TAIPEI, Nov 24 (Reuters) - Apple's major supplier Foxconn 2317.TW said on Thursday a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest. Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions. | The Zhengzhou plant employs more than 200,000 people to make Apple Inc AAPL.O devices including the iPhone 14 Pro and Pro Max. Adds comments from Foxconn, details on protests under control TAIPEI, Nov 24 (Reuters) - Apple's major supplier Foxconn 2317.TW said on Thursday a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest. Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions. | The Zhengzhou plant employs more than 200,000 people to make Apple Inc AAPL.O devices including the iPhone 14 Pro and Pro Max. Adds comments from Foxconn, details on protests under control TAIPEI, Nov 24 (Reuters) - Apple's major supplier Foxconn 2317.TW said on Thursday a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest. Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions. | The Zhengzhou plant employs more than 200,000 people to make Apple Inc AAPL.O devices including the iPhone 14 Pro and Pro Max. Adds comments from Foxconn, details on protests under control TAIPEI, Nov 24 (Reuters) - Apple's major supplier Foxconn 2317.TW said on Thursday a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest. Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions. | 2264eaf5-3ad7-4214-bfa8-e6665e6f7d2d |
18319.0 | 2022-11-23 00:00:00 UTC | Apple says it has staff on site at Foxconn Zhengzhou facility | AAPL | https://www.nasdaq.com/articles/apple-says-it-has-staff-on-site-at-foxconn-zhengzhou-facility | nan | nan | SHANGHAI, Nov 24 (Reuters) - Apple AAPL.O said on Thursday it has team members on the ground at the Foxconn 2317.TW Zhengzhou iPhone manufacturing facility, which was hit by worker protests in recent days.
"We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou facility. We are reviewing the situation and working closely with Foxconn to ensure their employees' concerns are addressed," the company said.
(Reporting by Brenda Goh; Editing by Muralikumar Anantharaman)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 24 (Reuters) - Apple AAPL.O said on Thursday it has team members on the ground at the Foxconn 2317.TW Zhengzhou iPhone manufacturing facility, which was hit by worker protests in recent days. "We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou facility. We are reviewing the situation and working closely with Foxconn to ensure their employees' concerns are addressed," the company said. | SHANGHAI, Nov 24 (Reuters) - Apple AAPL.O said on Thursday it has team members on the ground at the Foxconn 2317.TW Zhengzhou iPhone manufacturing facility, which was hit by worker protests in recent days. "We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou facility. (Reporting by Brenda Goh; Editing by Muralikumar Anantharaman) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 24 (Reuters) - Apple AAPL.O said on Thursday it has team members on the ground at the Foxconn 2317.TW Zhengzhou iPhone manufacturing facility, which was hit by worker protests in recent days. "We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou facility. (Reporting by Brenda Goh; Editing by Muralikumar Anantharaman) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 24 (Reuters) - Apple AAPL.O said on Thursday it has team members on the ground at the Foxconn 2317.TW Zhengzhou iPhone manufacturing facility, which was hit by worker protests in recent days. "We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou facility. We are reviewing the situation and working closely with Foxconn to ensure their employees' concerns are addressed," the company said. | 2b2a99f4-866b-49ff-9967-46b93b1ab120 |
18320.0 | 2022-11-23 00:00:00 UTC | 7 Index Funds to Buy to Retire a Millionaire | AAPL | https://www.nasdaq.com/articles/7-index-funds-to-buy-to-retire-a-millionaire | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recently, Barron’s published a thought-provoking op-ed which triumphantly declared that stocks have already bottomed, which might not be the positive catalyst for index funds, as you might think it is. After all, one of the key advantages of this broad-stroke investment strategy is to mitigate volatility. Through multiple bets via a benchmark indicator, investors are less likely to suffer catastrophic losses.
Among the central points of the aforementioned op-ed centered on inflation; namely, the trajectory of rising prices may have peaked, which would imply a relaxing of the Federal Reserve’s hawkish policy. That would be great for individual wagers, which if correct would likely draw better rewards than index funds to buy. But here’s the thing – no one really knows for sure what may transpire next. Even the confident Barron’s article left room for doubt. Therefore, index funds to buy remain incredibly relevant, if not more so right now.
SPY SPDR S&P 500 ETF Trust $402.42
QQQ Invesco QQQ Trust $288.82
MDY SPDR S&P MidCap 400 ETF $465.10
IWO iShares Russell 2000 Growth ETF $227.00
VFIAX Vanguard 500 Index Fund $370.33
VEIEX Vanguard Emerging Markets $24.43
VSMSX Vanguard S&P Small-Cap 600 $374.90
SPDR S&P 500 ETF Trust (SPY)
Source: Funtap / Shutterstock
A venerable name among index funds to buy, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) generally corresponds to the price and yield performance of the benchmark S&P 500. On a year-to-date basis, SPY dropped a little over 16% of equity value, almost exactly the same as the S&P. Notably, though, in the trailing month, the SPY exchange-traded fund gained 5.5%, reflecting a possible momentum shift.
Fundamentally, the SPDR S&P 500 ETF focuses mostly on U.S.-based blue chips. Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). These stocks represent 6.84%, 5.39% and 2.5% of the SPY’s holdings, respectively. Sector-wise, the SPY mostly covers the technology sector with a 23.73% weighting, followed by healthcare and financial services at 15.24% and 13.85%, respectively. On a final note, the expense ratio for the SPY pings at 0.09%. This compares very favorably to the category average of 0.41%.
Invesco QQQ Trust (QQQ)
Source: Shutterstock
While the tech sector delivers the most innovative businesses to investors, it also features some of the highest-risk profiles in the market. Still, those with a patient outlook may want to consider the Invesco QQQ Trust (NASDAQ:QQQ). Per its prospectus, it generally corresponds to the price and yield performance of the Nasdaq 100 index. Since the start of this year, QQQ declined nearly 29%.
At the same time, QQQ gained nearly 3% in the trailing month, reflecting a rise in enthusiasm for growth-oriented investments. Still, individual names can be risky during this ambiguous environment, thereby making QQQ an ideal play among index funds to buy. Through the QQQ, you can gain balanced exposure to Apple, Microsoft and Amazon – its top three holdings. As well, you can acquire intriguing discounts such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA).
Obviously, tech represents the lion’s share of QQQ’s weighting at 48.23%. However, it also involves communication services and consumer cyclicals at weightings of 15.25% and 14.14%, respectively. Finally, the Invesco tech ETF features an expense ratio of 0.20%, below the category average of 0.56%.
SPDR S&P MidCap 400 ETF (MDY)
Source: Dmitry Demidovich / Shutterstock
While large caps usually offer the most stable investment opportunities among index funds to buy, they can also be boring. For those investors that want a little extra kick in their portfolio but without going purely speculative, the SPDR S&P MidCap 400 ETF (NYSEARCA:MDY) could be just right. Per the ETF’s prospectus, the MDY corresponds to the price and yield performance of the S&P MidCap 400.
Since the beginning of the year, MDY dropped 10.5% of market value, which is rather surprising. Ordinarily, you’d expect the more stable large-cap index funds to buy to outperform during market volatility. In the trailing month, MDY gained 9.5%, reflecting strong near-term momentum.
The ETF’s top three holdings are Steel Dynamics (NASDAQ:STLD), First Solar (NASDAQ:FSLR) and First Horizon (NYSE:FHN). Primarily, MDY’s weighting focuses on the industrials at 18.52%, followed by financial services and consumer cyclical at 15.54% and 14.26%, respectively. Finally, MDY features an expense ratio of 0.22%, slipping under the category average of 0.41%.
iShares Russell 2000 Growth ETF (IWO)
Source: SWKStock / Shutterstock
Investors can’t live on bread-and-butter investments alone but must venture out into the wilderness of high-growth opportunities on occasion. Fortunately, in this day and age, investors enjoy ample and diverse selections among index funds to buy. In particular, those that want to roll the dice a bit should check out the iShares Russell 2000 Growth ETF (NYSEARCA:IWO). Per its prospectus, the IWO fund tracks the investment results of the Russell 2000 Growth Index.
The aforementioned index measures the performance of small-cap stocks. Indeed, the top three holdings of IWO feature lesser-known enterprises: ShockWave Medical (NASDAQ:SWAV), Matador Resources (NYSE:MTDR) and Emcor Group (NYSE:EME).
Mostly, the iShares Russell 2000 targets the healthcare segment at a 21.81% weighting, followed by technology (20.72%) and industrials (17.35%). Geographically, the IWO is mostly geared toward U.S. companies with a 98% weighting. Finally, the IWO fund features an expense ratio of 0.23%, significantly below the category average of 0.56%.
Vanguard 500 Index Fund (VFIAX)
Source: Shutterstock
Although ETFs garnered much popularity as index funds to buy, traditional mutual funds deliver their own advantages. For instance, the latter offers a wider variety of offerings and investment strategies. As well, mutual funds often facilitate superior support services.
Regarding the Vanguard 500 Index Fund (MUTF:VFIAX), this investment tracks the S&P 500. Currently, the VFIAX fund dropped 16% YTD. However, in the trailing month, it’s up nearly 6%. The Vanguard 500’s top three funds are identical to the venerable SPY: Apple, Microsoft and Amazon. In terms of sector weighting, the VFIAX primarily targets tech (24.69%), followed by healthcare (14.16%) and financial services (12.96%).
Finally, the VFIAX features a net expense ratio of 0.14%, below the category average of 0.87%. As well, its management fee is 0.13%, which sits below the category average of 0.5%.
Vanguard Emerging Markets (VEIEX)
Source: Shutterstock
Usually, financial advisors will direct their clients to U.S.-based investments. Owning the world’s reserve currency and (so far) the top economy brings with it incredible privileges. Still, the U.S. is a mature market. For those seeking more robust upside – in exchange for a higher-risk profile – the Vanguard Emerging Markets (MUTF:VEIEX) may be an intriguing alternative.
Per the fund’s prospectus, VEIEX closely tracks the MSCI Emerging Market Index. Since the start of the year, the fund lost over 22% of market value. However, in the trailing month, it gained over 9%, possibly reflecting a sentiment shift. Its top three holdings are Taiwan Semiconductor (NYSE:TSM), Tencent (OTCMKTS:TCEHY) and Alibaba (NYSE:BABA).
Currently, this Vanguard fund’s top weighting concentrates on financial services at 21.09%, followed by technology (15.87%) and consumer cyclical (13.76%). Finally, VEIEX features a net expense ratio of 0.29%, well below the category average of 1.26%. As well, its management fee is 0.27%, below the category average of 0.88%.
Vanguard S&P Small-Cap 600 (VSMSX)
Source: Shutterstock
While slow-and-steady investments in blue-chip enterprises may represent the surest way to wealth, it’s also time consuming. For those that want to quicken the pace in their index funds to buy, the Vanguard S&P Small-Cap 600 (MUTF:VSMSX) may provide an attractive alternative.
Since the January opener, VSMSX declined a bit over 12%, which again represents a relatively robust performance. In the trailing month, the mutual fund gained over 8%, demonstrating a return of bullish sentiment. According to its prospectus, the Vanguard S&P Small-Cap seeks to track the performance of the S&P SmallCap 600 index.
Presently, VSMSX’s top three holdings are Agree Realty (NYSE:ADC), ExlService (NASDAQ:EXLS) and Lantheus (NASDAQ:LNTH). Primarily, the fund targets the industrials sector with a 15.63% weighting, followed by tech (13.57%) and consumer cyclical (12.31%). Lastly, the VSMSX fund features a rock-bottom net expense ratio of 0.08%, well below the category average of 1.06%. Also, its management fee is 0.07%, below the category average of 0.69%.
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.
The post 7 Index Funds to Buy to Retire a Millionaire 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. | Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Among the central points of the aforementioned op-ed centered on inflation; namely, the trajectory of rising prices may have peaked, which would imply a relaxing of the Federal Reserve’s hawkish policy. SPDR S&P MidCap 400 ETF (MDY) Source: Dmitry Demidovich / Shutterstock While large caps usually offer the most stable investment opportunities among index funds to buy, they can also be boring. | Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). SPY SPDR S&P 500 ETF Trust $402.42 QQQ Invesco QQQ Trust $288.82 MDY SPDR S&P MidCap 400 ETF $465.10 IWO iShares Russell 2000 Growth ETF $227.00 VFIAX Vanguard 500 Index Fund $370.33 VEIEX Vanguard Emerging Markets $24.43 VSMSX Vanguard S&P Small-Cap 600 $374.90 SPDR S&P 500 ETF Trust (SPY) Source: Funtap / Shutterstock A venerable name among index funds to buy, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) generally corresponds to the price and yield performance of the benchmark S&P 500. Invesco QQQ Trust (QQQ) Source: Shutterstock While the tech sector delivers the most innovative businesses to investors, it also features some of the highest-risk profiles in the market. | Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). SPY SPDR S&P 500 ETF Trust $402.42 QQQ Invesco QQQ Trust $288.82 MDY SPDR S&P MidCap 400 ETF $465.10 IWO iShares Russell 2000 Growth ETF $227.00 VFIAX Vanguard 500 Index Fund $370.33 VEIEX Vanguard Emerging Markets $24.43 VSMSX Vanguard S&P Small-Cap 600 $374.90 SPDR S&P 500 ETF Trust (SPY) Source: Funtap / Shutterstock A venerable name among index funds to buy, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) generally corresponds to the price and yield performance of the benchmark S&P 500. SPDR S&P MidCap 400 ETF (MDY) Source: Dmitry Demidovich / Shutterstock While large caps usually offer the most stable investment opportunities among index funds to buy, they can also be boring. | Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Therefore, index funds to buy remain incredibly relevant, if not more so right now. SPY SPDR S&P 500 ETF Trust $402.42 QQQ Invesco QQQ Trust $288.82 MDY SPDR S&P MidCap 400 ETF $465.10 IWO iShares Russell 2000 Growth ETF $227.00 VFIAX Vanguard 500 Index Fund $370.33 VEIEX Vanguard Emerging Markets $24.43 VSMSX Vanguard S&P Small-Cap 600 $374.90 SPDR S&P 500 ETF Trust (SPY) Source: Funtap / Shutterstock A venerable name among index funds to buy, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) generally corresponds to the price and yield performance of the benchmark S&P 500. | 3e51df43-573b-4293-b895-93b5b5a73427 |
18321.0 | 2022-11-23 00:00:00 UTC | Berkshire Hathaway says Warren Buffett donates shares to family charities | AAPL | https://www.nasdaq.com/articles/berkshire-hathaway-says-warren-buffett-donates-shares-to-family-charities | nan | nan | Nov 23 (Reuters) - Berkshire Hathaway Inc BRKa.N said Warren Buffett has donated more of his fortune to four family charities, without disclosing whether the billionaire chairman made a new donation to the Bill & Melinda Gates Foundation.
According to a regulatory filing, Buffett on Wednesday donated another 2.4 million of the conglomerate's Class B shares, worth about $759 million based on their closing price.
Buffett donated 1.5 million shares to the Susan Thompson Buffett Foundation. Named for his late first wife, the foundation funds college scholarships to students from Nebraska, according to its website.
Another 900,000 shares were split evenly among charities run by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation.
Buffett has since 2006 donated more than half of his Berkshire shares, worth more than $46 billion at the time of the donations.
More than three-quarters have gone to the Gates Foundation, still one of the world's largest private charitable foundations despite last year's divorce of its namesake co-founders.
Berkshire and the Gates Foundation did not immediately respond to requests for comment.
Following the latest donations, Buffett still owns 15.5% of Berkshire's stock and controls 31.4% of its voting power.
Both percentages rise as the Omaha, Nebraska-based company repurchases its own shares from other investors.
Buffett is still worth $110.2 billion, ranking fifth worldwide, Forbes magazine said.
Berkshire owns dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O, Bank of America Corp BAC.N and Occidental Petroleum Corp OXY.N. Buffett has run the company since 1965.
According the Buffett family foundation websites, the Howard G. Buffett Foundation works to alleviate hunger, mitigate conflicts and improve public safety around the world. The Sherwood Foundation supports nonprofit organizations in Nebraska; the Novo Foundation aims to support communities,
(Reporting by Jonathan Stempel in New York)
((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. | Berkshire owns dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O, Bank of America Corp BAC.N and Occidental Petroleum Corp OXY.N. Named for his late first wife, the foundation funds college scholarships to students from Nebraska, according to its website. Following the latest donations, Buffett still owns 15.5% of Berkshire's stock and controls 31.4% of its voting power. | Berkshire owns dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O, Bank of America Corp BAC.N and Occidental Petroleum Corp OXY.N. Buffett donated 1.5 million shares to the Susan Thompson Buffett Foundation. Another 900,000 shares were split evenly among charities run by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation. | Berkshire owns dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O, Bank of America Corp BAC.N and Occidental Petroleum Corp OXY.N. Buffett donated 1.5 million shares to the Susan Thompson Buffett Foundation. Another 900,000 shares were split evenly among charities run by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation. | Berkshire owns dozens of businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc AAPL.O, Bank of America Corp BAC.N and Occidental Petroleum Corp OXY.N. Another 900,000 shares were split evenly among charities run by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation. Buffett has since 2006 donated more than half of his Berkshire shares, worth more than $46 billion at the time of the donations. | 642a1806-b4f6-4e81-b302-516eea82b0a0 |
18322.0 | 2022-11-23 00:00:00 UTC | Larger protests under control at Foxconn's major iPhone factory in China - source | AAPL | https://www.nasdaq.com/articles/larger-protests-under-control-at-foxconns-major-iphone-factory-in-china-source | nan | nan | TAIPEI, Nov 24 (Reuters) - Larger protests at Foxconn's 2317.TW flagship iPhone plant in China were under control and the company continued to communicate with employees engaged in smaller protests, a source said on Thursday.
Hundreds of workers joined protests at Foxconn's major iPhone plant China's Zhengzhou this week, with some men smashing surveillance cameras and windows, footage uploaded on social media showed.
(Reporting By Yimou Lee; Editing by Muralikumar Anantharaman)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 24 (Reuters) - Larger protests at Foxconn's 2317.TW flagship iPhone plant in China were under control and the company continued to communicate with employees engaged in smaller protests, a source said on Thursday. Hundreds of workers joined protests at Foxconn's major iPhone plant China's Zhengzhou this week, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. (Reporting By Yimou Lee; Editing by Muralikumar Anantharaman) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 24 (Reuters) - Larger protests at Foxconn's 2317.TW flagship iPhone plant in China were under control and the company continued to communicate with employees engaged in smaller protests, a source said on Thursday. Hundreds of workers joined protests at Foxconn's major iPhone plant China's Zhengzhou this week, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. (Reporting By Yimou Lee; Editing by Muralikumar Anantharaman) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 24 (Reuters) - Larger protests at Foxconn's 2317.TW flagship iPhone plant in China were under control and the company continued to communicate with employees engaged in smaller protests, a source said on Thursday. Hundreds of workers joined protests at Foxconn's major iPhone plant China's Zhengzhou this week, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. (Reporting By Yimou Lee; Editing by Muralikumar Anantharaman) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TAIPEI, Nov 24 (Reuters) - Larger protests at Foxconn's 2317.TW flagship iPhone plant in China were under control and the company continued to communicate with employees engaged in smaller protests, a source said on Thursday. Hundreds of workers joined protests at Foxconn's major iPhone plant China's Zhengzhou this week, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. (Reporting By Yimou Lee; Editing by Muralikumar Anantharaman) ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | b009e6a3-0083-4398-8f65-a87462b780af |
18323.0 | 2022-11-23 00:00:00 UTC | Olympic Steel and Kinetik have been highlighted as Zacks Bull and Bear of the Day | AAPL | https://www.nasdaq.com/articles/olympic-steel-and-kinetik-have-been-highlighted-as-zacks-bull-and-bear-of-the-day | nan | nan | For Immediate Release
Chicago, IL – November 23, 2022 – Zacks Equity Research shares Olympic Steel ZEUS as the Bull of the Day and Kinetik KNTK as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Disney DIS, Netflix NFLX and Apple AAPL.
Here is a synopsis of all five stocks:
Bull of the Day:
Markets are rejoicing as inflationary data finally cools. It has yet to cool enough to calm down the Fed, but at least they have stepped down some of their hawkish rhetoric. It can make it seem like the dartboard approach to picking stocks is going to work again into the end of the year. Let’s not get too excited out there folks. But you can be excited about the fact that stocks seem to have bottomed.
One way to make sure you don’t get caught on the wrong side when the market retreats a bit is by finding stocks with the strongest earnings trends. As easy way is by scrubbing names with the Zacks Rank. Stocks in the good graces of our Zacks Rank have the best earnings trends.
One such stock is today’s Bull of the Day, Olympic Steel. Olympic Steel, Inc. processes, distributes, and storage metal products in the United States and internationally. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products.
The stock is currently a Zacks Rank #1 (Strong Buy) in the Steel – Producers industry. The current year has been an absolute monster of a year for the stock. Our Zacks Consensus Estimate is calling for $7.45 EPS for the stock for 2022. That’s up from $7.32 sixty days ago. It’s this recent upside move in estimates that has the stock in the good graces of our Zacks Rank. Next year’s number is up from $1.80 to $1.96. Note the large contraction year-over-year. That is less of a condemnation of next year than it is an incredible year this year.
Bear of the Day:
Energy markets have been insane this year. A huge spike in demand as the world crawled out of its COVID-induced lockdown, put tons of pressure on prices. Disruptions stemming from war in Europe did not help things along either. However, recently it seems like prices are coming back down to Earth. The expectations for the future have reeled in as well. This is helping normalize this sector which had been a runaway winner this year.
That’s a word to the wise for what might be on the horizon as the calendar turns over to 2023. The Zacks Rank, a system which sorts out stocks with the strongest earnings trends from those with the weakest, is flashing some warning signs. One stock flashing a warning sign is today’s Bear of the Day.
I’m talking about Zacks Rank #5 (Strong Sell) Kinetik. Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.
The reason for the unfavorable rank is that earnings are moving in the wrong direction. Over the last 30 days, analysts have been cutting their earnings estimate numbers for both the current year and next year. The negative moves have dropped our Zacks Consensus Estimates for the current year from $3.25 to $2.04 while next year’s number is off from $3.09 to $2.61.
The Oil and Gas – Field Services industry is in the Top 10% of our Zacks Industry Rank. That being said, there are a handful of names in this industry which are in the good graces of our Zacks Rank.
Additional content:
Disney Brings Back CEO Bob Iger, Shares Soar
Disney recently announced the appointment of Robert A. Iger, popularly known as Bob Iger, as CEO, effective immediately.
Bob Iger replaces Bob Chapek, following the latter's two-year stint. The reappointment of Bob Iger as the CEO has bought a spree of excitement among investors as share prices have been surging ever since the news broke out on Nov 20 Shares jumped 6.3% to close at $97.58 on Nov 21.
The lingering impact of the COVID, raging inflation and rising interest rates do not bode well for Disney's consumer-oriented businesses. Shares have declined more than 37% year-to-date.
Disney has been struggling in its streaming division with the increased cost of production and delayed releases lately.
However, with Bob Iger taking charge once again, investors are expected to gain back their lost confidence in the company's prospects.
Bob Iger had actively been involved in launching the launch of Disney+ in 2019. His expertise and experience of more than four decades are likely to help the company create an efficient and cost-effective structure for the streaming platform.
Where's Disney's Streaming Division Heading?
Disney has been heavily investing in its streaming services to launch new movies and shows to gain traction. This has aided subscriber growth as Disney+ added more than 12 million global subscribers in the fourth quarter of fiscal 2022.
However, Disney's direct-to-consumer division reported an operating loss of nearly $1.5 billion in the fourth-quarter fiscal 2022, which doubled year-over-year. This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+'s ARPU by 5%.
Disney+ also faces significant competition from Netflix, which has a strong pipeline of content and has reached 223 million subscribers worldwide to date. A saturated streaming market with the presence of services from the likes of Apple is creating headwind for Disney+.
Streaming market leader, Netflix, reported better-than-expected third-quarter 2022 subscriber numbers. The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix added 4.38 million paid subscribers in the year-ago quarter.
Apple's streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Nevertheless, Disney is focusing on the realignment of cost, including meaningful rationalization of marketing spending and optimization of content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement.
The company expects Disney+ to reach profitability by 2024. It is also counting on releases such as Black Panther: Wakanda Forever, and Avatar: The Way of Water to fuel its subscriber acquisition.
The Zacks Rank #3 (Hold) company is also about to launch a cheaper, ad-supported subscription offering for Disney+ to attract even more viewers and diversify its revenue stream. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The ad-supported version will launch on Dec 8 for $7.99 a month, while its basic ad-free subscription jumps to $10.99.
ESPN+, the sports streaming platform of Disney, has also been taking steps to boost its top line.
It renewed the Major League Baseball sports rights deal through 2028 and entered a long-term partnership with the National Football League, where it has agreed on a five-year rights deal with the NFL to broadcast the league's Monday night Wild Card playoff game through the 2025 season.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report
Kinetik Holdings Inc. (KNTK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition, Zacks Equity Research provides analysis on Disney DIS, Netflix NFLX and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report Kinetik Holdings Inc. (KNTK) : Free Stock Analysis Report To read this article on Zacks.com click here. This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+'s ARPU by 5%. | In addition, Zacks Equity Research provides analysis on Disney DIS, Netflix NFLX and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report Kinetik Holdings Inc. (KNTK) : Free Stock Analysis Report To read this article on Zacks.com click here. Additional content: Disney Brings Back CEO Bob Iger, Shares Soar Disney recently announced the appointment of Robert A. Iger, popularly known as Bob Iger, as CEO, effective immediately. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report Kinetik Holdings Inc. (KNTK) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Disney DIS, Netflix NFLX and Apple AAPL. Additional content: Disney Brings Back CEO Bob Iger, Shares Soar Disney recently announced the appointment of Robert A. Iger, popularly known as Bob Iger, as CEO, effective immediately. | In addition, Zacks Equity Research provides analysis on Disney DIS, Netflix NFLX and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report Kinetik Holdings Inc. (KNTK) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s this recent upside move in estimates that has the stock in the good graces of our Zacks Rank. | 8f35ba97-ee70-405e-87c9-bde546e0dad7 |
18324.0 | 2022-11-23 00:00:00 UTC | US STOCKS-Wall St set to dip at open ahead of Fed minutes, Apple falls | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-dip-at-open-ahead-of-fed-minutes-apple-falls | nan | nan | By Shreyashi Sanyal and Ankika Biswas
Nov 23 (Reuters) - Wall Street's main indexes were set to open slightly lower on Wednesday as Apple shares fell, while investors awaited the release of minutes from the Federal Reserve's November meeting for a clearer picture of its monetary tightening policy.
Recent statements from Fed officials, including Cleveland President Loretta Mester and Kansas City President Esther George, have offered mixed clues about the future path of interest rate hikes, but have reiterated the central bank's resolve to stamp out inflation.
The minutes, expected at 2 p.m. ET, may show just how deep any emerging disagreement has begun to run at the Fed as it ends the push to "front-load" rate increases and begins feeling the way in smaller steps to an eventual stopping point.
"We will get the latest FOMC minutes today ... do not expect to hear anything new," said Kenny Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida. "We know what's going to happen, so sit tight."
Traders are now widely placing their bets on a 50-basis point rate increase at the central bank's next meeting in December. FEDWATCH
The benchmark S&P 500 index .SPX closed at its highest level in 2-1/2 months on Tuesday after a sales forecast by Best Buy Co Inc BBY.Neased concerns that high inflation would lead to a dismal holiday shopping season.
In contrast, shares of Nordstrom Inc JWN.N fell 8.3% in premarket trading after the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers.
Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, some signs of cooling inflation and hopes of smaller increments in the Fed's rate hikes.
Trading volume is likely to be thin heading into the Thanksgiving holiday on Thursday, with the U.S. stock market open for a half-session on Friday.
Apple Inc AAPL.O shares slipped 0.7% after hundreds of workers joined protests at Foxconn's 2317.TW flagship iPhone plant in China, while a source told Reuters that the unrest did not affect production at the plant.
Other growth stocks rose including, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O rose between 0.1% and 2.1%.
Data showed the number of Americans filing for unemployment benefits rose more than expected last week, but it likely does not suggest a material shift in labor market conditions, which remain tight.
At 8:44 a.m. ET, Dow e-minis 1YMcv1 were down 51 points, or 0.15%, S&P 500 e-minis EScv1 were down 5 points, or 0.12%, and Nasdaq 100 e-minis NQcv1 were down 6.75 points, or 0.06%.
HP Inc HPQ.N shares rose 2.2% as the PC maker said it planned to cut up to 6,000 jobs by the end of fiscal 2025.
Deere & Co DE.N gained 3.4% as the farm equipment maker reported a higher-than-expected quarterly profit on strong sales accelerated by price hikes.
(Reporting by Shreyashi Sanyal and Ankika Biswas; Additional reporting by Shubham Batra and Sruthi Shankar; Editing by Anil D'Silva and Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc AAPL.O shares slipped 0.7% after hundreds of workers joined protests at Foxconn's 2317.TW flagship iPhone plant in China, while a source told Reuters that the unrest did not affect production at the plant. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes were set to open slightly lower on Wednesday as Apple shares fell, while investors awaited the release of minutes from the Federal Reserve's November meeting for a clearer picture of its monetary tightening policy. FEDWATCH The benchmark S&P 500 index .SPX closed at its highest level in 2-1/2 months on Tuesday after a sales forecast by Best Buy Co Inc BBY.Neased concerns that high inflation would lead to a dismal holiday shopping season. | Apple Inc AAPL.O shares slipped 0.7% after hundreds of workers joined protests at Foxconn's 2317.TW flagship iPhone plant in China, while a source told Reuters that the unrest did not affect production at the plant. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes were set to open slightly lower on Wednesday as Apple shares fell, while investors awaited the release of minutes from the Federal Reserve's November meeting for a clearer picture of its monetary tightening policy. Traders are now widely placing their bets on a 50-basis point rate increase at the central bank's next meeting in December. | Apple Inc AAPL.O shares slipped 0.7% after hundreds of workers joined protests at Foxconn's 2317.TW flagship iPhone plant in China, while a source told Reuters that the unrest did not affect production at the plant. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes were set to open slightly lower on Wednesday as Apple shares fell, while investors awaited the release of minutes from the Federal Reserve's November meeting for a clearer picture of its monetary tightening policy. Recent statements from Fed officials, including Cleveland President Loretta Mester and Kansas City President Esther George, have offered mixed clues about the future path of interest rate hikes, but have reiterated the central bank's resolve to stamp out inflation. | Apple Inc AAPL.O shares slipped 0.7% after hundreds of workers joined protests at Foxconn's 2317.TW flagship iPhone plant in China, while a source told Reuters that the unrest did not affect production at the plant. The minutes, expected at 2 p.m. Traders are now widely placing their bets on a 50-basis point rate increase at the central bank's next meeting in December. | f7663d5a-3b61-4822-88f7-2180434c3b1d |
18325.0 | 2022-11-23 00:00:00 UTC | Pre-Market Most Active for Nov 23, 2022 : TQQQ, SQQQ, TSLA, NIO, SOFI, BABA, QQQ, CVNA, AAPL, CS, JWN, BP | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-nov-23-2022-%3A-tqqq-sqqq-tsla-nio-sofi-baba-qqq-cvna-aapl-cs-jwn | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 3.37 to 11,728.21. The total Pre-Market volume is currently 19,786,958 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.03 at $22.10, with 3,306,625 shares traded. This represents a 35.42% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.13 at $45.19, with 1,990,366 shares traded. This represents a 60.53% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +3.68 at $173.59, with 1,836,040 shares traded. TSLA's current last sale is 56.36% of the target price of $308.
NIO Inc. (NIO) is +0.21 at $10.22, with 649,851 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
SoFi Technologies, Inc. (SOFI) is +0.04 at $4.68, with 594,589 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $-0.09. , following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is +2.23 at $78.22, with 517,916 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.1825 at $286.13, with 461,571 shares traded. This represents a 12.54% increase from its 52 Week Low.
Carvana Co. (CVNA) is +0.48 at $7.28, with 455,005 shares traded. CVNA's current last sale is 26% of the target price of $28.
Apple Inc. (AAPL) is -1.07 at $149.11, with 413,692 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Credit Suisse Group (CS) is -0.11 at $3.98, with 384,869 shares traded. CS's current last sale is 66.33% of the target price of $6.
Nordstrom, Inc. (JWN) is -1.92 at $20.73, with 338,127 shares traded. JWN's current last sale is 94.23% of the target price of $22.
BP p.l.c. (BP) is +0.1 at $34.99, with 270,007 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is -1.07 at $149.11, with 413,692 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for NIO is in the "buy range". | Apple Inc. (AAPL) is -1.07 at $149.11, with 413,692 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. | Apple Inc. (AAPL) is -1.07 at $149.11, with 413,692 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 19,786,958 shares traded. | Apple Inc. (AAPL) is -1.07 at $149.11, with 413,692 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session: | 0cfa4c1d-18bd-47f7-a5c5-8632cb4946af |
18326.0 | 2022-11-23 00:00:00 UTC | Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-4 | nan | nan | Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $13.92 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
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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.94%.
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 45.60% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 53.38% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has lost about -26.03% so far this year and is down about -24.82% in the last one year (as of 11/23/2022). In the past 52-week period, it has traded between $49.14 and $73.48.
The ETF has a beta of 1.05 and standard deviation of 28.04% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 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, SPYG is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $71.22 billion in assets, Invesco QQQ has $161.05 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $13.92 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space. | 570077a1-37bc-40fa-a5f2-edc3931fe57f |
18327.0 | 2022-11-23 00:00:00 UTC | UK Probes Apple And Google's Control Over Web Browsing | AAPL | https://www.nasdaq.com/articles/uk-probes-apple-and-googles-control-over-web-browsing | nan | nan | (RTTNews) - The U.K. Government's Competition and Markets Authority or CMA has initiated an investigation into tech majors Apple and Google's duopoly on mobile ecosystems.
The authority said it will conduct a fuller investigation into the way that Apple and Google dominate the mobile browser market and how Apple restricts cloud gaming through its App Store.
The probe, which was launched after receiving widespread support for its earlier published proposals, aims to support UK tech and consumers.
According to CMA, the market investigation will consider various concerns as well as whether new rules are needed to drive better outcomes. It will improve competition and lead to greater choice for consumers and better-quality products.
In a statement, the agency noted that its Mobile Ecosystem Market Study report had found that Apple and Google have an effective control on mobile ecosystems, which allows them to exercise a stranglehold over operating systems, app stores and web browsers on mobile devices.
The CMA noted that Google and Apple powered 97% of all mobile web browsing that took place in the U.K. In 2021. Any restrictions on these browser engines can have a major impact on users' experiences, it noted.
In the country, there are already more than 800,000 users of cloud gaming services Computer games, but restrictions on their distribution on mobile devices could hamper growth in this sector, meaning UK gamers miss out.
The authority had consulted on launching a market investigation alongside its Mobile Ecosystem Market Study report, and its responses now reveal substantial support for a detailed investigation from browser vendors, web developers, and cloud gaming service providers. According to them, the status quo is harming their businesses, holding back innovation, and adding unnecessary costs.
Web developers have also complained that Apple's restrictions lead to added costs and frustration as they have to deal with bugs and glitches when building web pages. They have no choice but to create bespoke mobile apps when a website might be sufficient.
According to CMA, these restrictions limit choice and may make it more difficult to bring innovative new apps to the hands of UK consumers.
Sarah Cardell, interim Chief Executive of the CMA, said, "Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google. … We plan to investigate whether the concerns we have heard are justified and, if so, identify steps to improve competition and innovation in these sectors."
Meanwhile, Apple and Google have argued that restrictions are needed to protect users.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The U.K. Government's Competition and Markets Authority or CMA has initiated an investigation into tech majors Apple and Google's duopoly on mobile ecosystems. According to CMA, these restrictions limit choice and may make it more difficult to bring innovative new apps to the hands of UK consumers. Sarah Cardell, interim Chief Executive of the CMA, said, "Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google. | (RTTNews) - The U.K. Government's Competition and Markets Authority or CMA has initiated an investigation into tech majors Apple and Google's duopoly on mobile ecosystems. The authority said it will conduct a fuller investigation into the way that Apple and Google dominate the mobile browser market and how Apple restricts cloud gaming through its App Store. The authority had consulted on launching a market investigation alongside its Mobile Ecosystem Market Study report, and its responses now reveal substantial support for a detailed investigation from browser vendors, web developers, and cloud gaming service providers. | The authority said it will conduct a fuller investigation into the way that Apple and Google dominate the mobile browser market and how Apple restricts cloud gaming through its App Store. In a statement, the agency noted that its Mobile Ecosystem Market Study report had found that Apple and Google have an effective control on mobile ecosystems, which allows them to exercise a stranglehold over operating systems, app stores and web browsers on mobile devices. The authority had consulted on launching a market investigation alongside its Mobile Ecosystem Market Study report, and its responses now reveal substantial support for a detailed investigation from browser vendors, web developers, and cloud gaming service providers. | (RTTNews) - The U.K. Government's Competition and Markets Authority or CMA has initiated an investigation into tech majors Apple and Google's duopoly on mobile ecosystems. The authority said it will conduct a fuller investigation into the way that Apple and Google dominate the mobile browser market and how Apple restricts cloud gaming through its App Store. The authority had consulted on launching a market investigation alongside its Mobile Ecosystem Market Study report, and its responses now reveal substantial support for a detailed investigation from browser vendors, web developers, and cloud gaming service providers. | 40bb10ee-84d8-4036-af40-6e4ac9ef8928 |
18328.0 | 2022-11-23 00:00:00 UTC | Here Are All 19 Stocks Warren Buffett Has Bought Since 2022 Began | AAPL | https://www.nasdaq.com/articles/here-are-all-19-stocks-warren-buffett-has-bought-since-2022-began | nan | nan | Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing. Since he took the reins in 1965, Berkshire Hathaway's Class A shares (BRK.A) have generated a 3,641,613% return, which is 120 times greater than the benchmark S&P 500, including dividends paid, over the same time frame (through Dec. 31, 2021).
Whereas the 2022 bear market has led to a lot of nail-biting among Wall Street professionals and everyday investors, the Oracle of Omaha has used this downturn as an opportunity to deploy tens of billions of dollars of his company's war chest. Investors know this thanks to 13F filings and Berkshire's quarterly operating reports.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett has gone on a buying spree in 2022
A 13F is a filing with the Securities and Exchange Commission that allows investors a detailed look at what money managers with at least $100 million in assets under management bought and sold in the most recent quarter. Even though 13Fs are detailing buying and selling activity that's at least six weeks old, they can still clue investors into the stocks and trends that have intrigued successful money managers like Buffett.
According to three 13F filings and three quarterly reports since the beginning of the year, Berkshire has bought 19 stocks in 2022. The figure next to each company represents the aggregate number of shares purchased this year.
Occidental Petroleum (NYSE: OXY): 194,351,650 shares purchased
Chevron (NYSE: CVX): 127,114,282
HP (NYSE: HPQ): 104,476,035
Paramount Global (NASDAQ: PARA): 91,216,510
Taiwan Semiconductor Manufacturing (NYSE: TSM): 60,060,880
Citigroup (NYSE: C): 55,155,797
Activision Blizzard (NASDAQ: ATVI): 45,483,745
Ally Financial (NYSE: ALLY): 30,000,000
Celanese (NYSE: CE): 9,710,183
Apple (NASDAQ: AAPL): 7,666,765
Louisiana-Pacific (NYSE: LPX): 5,795,906
Formula One Group (NASDAQ: FWON.K): 5,603,705
Floor & Décor (NYSE: FND): 3,936,291
McKesson (NYSE: MCK): 3,198,344
RH (NYSE: RH): 543,453
Markel (NYSE: MKL): 467,611
Jefferies Financial (NYSE: JEF): 433,558
General Motors (NYSE: GM): 10,000,000 net shares sold (2,045,846 purchased in Q1, 9,168,488 sold in Q2, 2,877,359 sold in Q3)
Berkshire Hathaway: 6,818 BRK.A shares and 6,850,133 BRK.B shares
The Oracle of Omaha is betting big on energy
One of the most eye-popping shifts in buying activity this year has to be Buffett's focus on energy stocks. At no point this century, prior to 2022, had energy stocks accounted for more than 8.9% of Berkshire Hathaway's invested assets. As of the end of the third quarter, energy stocks made up 12.1% of the company's investment portfolio.
Just two stocks make up this gigantic energy bet: Chevron and Occidental Petroleum. Keep in mind Berkshire also owns $10 billion in preferred stock of Occidental, so Buffett's bet on the sector is actually a bit larger than 12.1% advertised by the company's 13F.
The logic behind this bet is that crude oil and natural gas prices will remain well above their historic averages for years to come. Since energy companies slashed capital investments across the board during the COVID-19 pandemic, boosting the supply of energy commodities to meet a sudden surge of demand could prove difficult. Russia's invasion of Ukraine in February 2022 is only complicating matters.
Chevron and Occidental are also integrated energy companies. In addition to high-margin drilling, they operate midstream and/or downstream assets, such as chemical plants or refineries. Being integrated helps these companies better navigate oil and natural gas price swings.
Image source: Getty Images.
Tech is a new-found love
The Oracle of Omaha and his team have never been big tech stock investors -- but that's beginning to change. Aside from adding to Apple, which made up 40% of Berkshire Hathaway's nearly $346 billion investment portfolio as of this past weekend, Buffett has overseen the purchase of more than 104 million shares of HP, over 45 million shares of Activision Blizzard, and north of 60 million shares of Taiwan Semiconductor (also known as TSMC) this year.
Why tech? First off, tech stocks have been hit hardest during the 2022 bear market. Buffett understands that tech has a history of outperforming during long-winded bull markets and may be setting his company up to benefit from the next lengthy expansion.
Second, the Taiwan Semiconductor buy can be viewed as an extension of Berkshire's big bet on Apple. TSMC is the exclusive provider of silicon processing chips used by Apple in its products. If Buffett is a firm believer that Apple's innovation will drive sales and profits higher, it only makes sense that one of its key chip suppliers will benefit, too.
And third, Buffett often can't turn down a good value when he sees one. Personal-computing and printing solutions company HP can be bought for roughly 7 times Wall Street's forecast earnings in 2022. Though HP isn't a fast-paced business like it once was, PC sales tend to be relatively predictable, which leads to steady cash-flow generation. HP has used its abundant cash flow to increase its dividend and buy back its common stock.
Dividend stocks are always popular
Something else you'll likely notice is that most of the 19 stocks Buffett and his investment team have purchased in 2022 pay a regular dividend. Over the next 12 months, Berkshire Hathaway is on pace to collect over $6 billion in dividend income.
Though income stocks took a back seat to growth stocks when interest rates were at or near historic lows, it's now the perfect time for dividend stocks to shine. Companies that regularly pay a dividend are usually profitable, time-tested, and have a knack for outperforming stocks that don't pay a dividend over multiple decades.
For instance, money-center bank Citigroup is parsing out an inflation-fighting 4.2% yield, as of last weekend. Even though bank stocks are cyclical, and therefore run the risk of higher loan delinquencies and charge-offs if the U.S. economy plunges into recession, the Fed's historic monetary policy shift is good news. With the nation's central bank rapidly increasing interest rates, banks with outstanding variable-rate loans should benefit in the form of higher net interest income.
A juicy payout could also be the reason Buffett and his team have piled into media stock Paramount Global. Paramount is currently paying a hearty 5.1% yield. To sustain this gargantuan dividend, Paramount will need its streaming subscriber count to continue climbing. It'll also need its future theatrical offerings to have at least some fraction of the success achieved by Top Gun: Maverick.
Buffett's own company is still his favorite stock
Last but not least -- if I haven't driven this point home countless times before -- there's no stock Buffett loves more than his own company, Berkshire Hathaway. Including the $1.04 billion worth of Class A shares purchased during the third quarter, Buffett and his right-hand man Charlie Munger have approved the repurchase of $63.1 billion worth of Berkshire Hathaway stock since July 2018.
Buying back Berkshire's common stock serves a multitude of purposes. For instance, reducing the number of shares outstanding helps existing shareholders become larger owners of the business.
To add to this point, buying back stock can help companies with steady or growing net income look more fundamentally attractive. If a company has fewer shares outstanding, this should lead to higher earnings per share.
And finally, it's a very clear message that Buffett is willing to bet big on the long-term outperformance of his company and investment portfolio. Most of the stocks in Berkshire's investment portfolio, as well as the roughly five dozen companies Berkshire has acquired, are cyclical. Since periods of economic expansion last considerably longer than downturns and recessions, Buffett's investment portfolio is nearly assured to build wealth over time.
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Citigroup and Ally are advertising partners of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Jefferies Financial Group Inc., Markel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends McKesson and RH and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Paramount Global (NASDAQ: PARA): 91,216,510 Taiwan Semiconductor Manufacturing (NYSE: TSM): 60,060,880 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 45,483,745 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,710,183 Apple (NASDAQ: AAPL): 7,666,765 Louisiana-Pacific (NYSE: LPX): 5,795,906 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Whereas the 2022 bear market has led to a lot of nail-biting among Wall Street professionals and everyday investors, the Oracle of Omaha has used this downturn as an opportunity to deploy tens of billions of dollars of his company's war chest. Even though bank stocks are cyclical, and therefore run the risk of higher loan delinquencies and charge-offs if the U.S. economy plunges into recession, the Fed's historic monetary policy shift is good news. | Paramount Global (NASDAQ: PARA): 91,216,510 Taiwan Semiconductor Manufacturing (NYSE: TSM): 60,060,880 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 45,483,745 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,710,183 Apple (NASDAQ: AAPL): 7,666,765 Louisiana-Pacific (NYSE: LPX): 5,795,906 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Jefferies Financial Group Inc., Markel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends McKesson and RH and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Paramount Global (NASDAQ: PARA): 91,216,510 Taiwan Semiconductor Manufacturing (NYSE: TSM): 60,060,880 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 45,483,745 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,710,183 Apple (NASDAQ: AAPL): 7,666,765 Louisiana-Pacific (NYSE: LPX): 5,795,906 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 Markel (NYSE: MKL): 467,611 Jefferies Financial (NYSE: JEF): 433,558 General Motors (NYSE: GM): 10,000,000 net shares sold (2,045,846 purchased in Q1, 9,168,488 sold in Q2, 2,877,359 sold in Q3) Berkshire Hathaway: 6,818 BRK.A shares and 6,850,133 BRK.B shares The Oracle of Omaha is betting big on energy One of the most eye-popping shifts in buying activity this year has to be Buffett's focus on energy stocks. Buffett's own company is still his favorite stock Last but not least -- if I haven't driven this point home countless times before -- there's no stock Buffett loves more than his own company, Berkshire Hathaway. | Paramount Global (NASDAQ: PARA): 91,216,510 Taiwan Semiconductor Manufacturing (NYSE: TSM): 60,060,880 Citigroup (NYSE: C): 55,155,797 Activision Blizzard (NASDAQ: ATVI): 45,483,745 Ally Financial (NYSE: ALLY): 30,000,000 Celanese (NYSE: CE): 9,710,183 Apple (NASDAQ: AAPL): 7,666,765 Louisiana-Pacific (NYSE: LPX): 5,795,906 Formula One Group (NASDAQ: FWON.K): 5,603,705 Floor & Décor (NYSE: FND): 3,936,291 McKesson (NYSE: MCK): 3,198,344 As of the end of the third quarter, energy stocks made up 12.1% of the company's investment portfolio. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! | 3fd35499-3485-45b8-a753-66b92dcca9cb |
18329.0 | 2022-11-23 00:00:00 UTC | US STOCKS-Growth stocks boost Wall Street ahead of Fed minutes | AAPL | https://www.nasdaq.com/articles/us-stocks-growth-stocks-boost-wall-street-ahead-of-fed-minutes | nan | nan | By Shreyashi Sanyal and Ankika Biswas
Nov 23 (Reuters) - Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting.
Heavyweight stocks including Apple Inc AAPL.O Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose between 0.4% and 0.7%.
Tesla Inc TSLA.O jumped 5.2%, outperforming its peers, after Citigroup upgraded the electric-vehicle maker's stock to "neutral" from a "sell" rating.
The stocks benefited from a drop in yield on the benchmark 10-year Treasury note US10YT=RR after a more-than-expected rise in Americans filing for unemployment benefits last week.
Meanwhile, U.S. business activity contracted for a fifth straight month in November while consumer sentiment ticked higher. New home sales rose more than expected in October.
The disparate data bolstered expectations of a 50-basis point rate increase at the Fed's next meeting in December. FEDWATCH
Investors now await details from latest rate-setting meeting, due at 2 p.m. ET, which could show how deep any emerging disagreement has begun to run at the Fed as it ends the push to "front-load" rate hikes and begins feeling the way in smaller steps to an eventual stopping point.
"For the most part, they're (investors) optimistic that the Fed members are probably going to show signs that the pace of rate hikes might decrease," said Brian Klimke, investment director at Cetera Investment Management LLC.
"The market is looking for clues of a pivot. They really want to see some sort of sign that the Fed understands that inflation might be easing."
Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes.
Trading volume is likely to be thin heading into the Thanksgiving holiday on Thursday, with the U.S. stock market open for a half-session on Friday.
At 10:23 a.m. ET, the Dow Jones Industrial Average .DJI was up 79.42 points, or 0.23%, at 34,177.52, the S&P 500 .SPX was up 16.28 points, or 0.41%, at 4,019.86, and the Nasdaq Composite .IXIC was up 88.81 points, or 0.79%, at 11,263.21.
Deere & Co DE.N jumped 7.1% to lead the gains on S&P 500 as the farm equipment maker reported a higher-than-expected quarterly profit on strong sales powered by price hikes.
Shares of Nordstrom Inc JWN.N fell 7.8% after the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers.
The S&P 500 energy .SPNY sector index fell 1.4% tracking lower oil prices after the Group of Seven nations looked at a price cap on Russian oil.
Autodesk Inc ADSK.O slipped 6.8% after the software and services provider guided for a lower-than-expected fourth-quarter revenue.
Advancing issues outnumbered decliners by a 1.71-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and no new low, while the Nasdaq recorded 53 new highs and 73 new lows.
(Reporting by Shreyashi Sanyal and Ankika Biswas; Additional reporting by Shubham Batra and Sruthi Shankar; Editing by Anil D'Silva, Shounak Dasgupta and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Heavyweight stocks including Apple Inc AAPL.O Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose between 0.4% and 0.7%. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. ET, which could show how deep any emerging disagreement has begun to run at the Fed as it ends the push to "front-load" rate hikes and begins feeling the way in smaller steps to an eventual stopping point. | Heavyweight stocks including Apple Inc AAPL.O Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose between 0.4% and 0.7%. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. Wall Street's three main indexes are on track for their second straight month of gains, riding on a better-than-feared earnings season, signs of cooling inflation and hopes of smaller rate hikes. | Heavyweight stocks including Apple Inc AAPL.O Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose between 0.4% and 0.7%. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. "For the most part, they're (investors) optimistic that the Fed members are probably going to show signs that the pace of rate hikes might decrease," said Brian Klimke, investment director at Cetera Investment Management LLC. | Heavyweight stocks including Apple Inc AAPL.O Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O rose between 0.4% and 0.7%. By Shreyashi Sanyal and Ankika Biswas Nov 23 (Reuters) - Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting. The disparate data bolstered expectations of a 50-basis point rate increase at the Fed's next meeting in December. | e2e83d16-580b-41e0-b2fc-4aa84c451880 |
18330.0 | 2022-11-23 00:00:00 UTC | Buy This Stock, Instead of That One | AAPL | https://www.nasdaq.com/articles/buy-this-stock-instead-of-that-one | nan | nan | (0:30) - Finding Alternative Stock Investments To Troubled Companies
(4:45) - Stocks To Keep On Your Radar
(25:00) - Episode Roundup: DIS, SONY, APPL, GOOGL, TSLA, RACE
Podcast@Zacks.com
Welcome to Episode #338 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss rejecting companies that may be struggling, or expensive, for those in the same industry that may not have the same problems.
It’s kind of like the stock version of buy this, but not that.
Widen your lens when considering what companies to invest in. You might be surprised at some hidden gems and better buying opportunities.
Buy This Stock, Not That One
1. The Walt Disney Co. DIS and Sony SONY
Disney is in the headlines in 2022 thanks to the change in CEO back to Bob Iger, who led the company for over a decade.
Shares of Disney have plunged 39% year-to-date but aren’t cheap, with a forward P/E of 23. Disney’s Fiscal 2023 earnings estimates have been cut in the last 90 days, pushing the Zacks Consensus down to $4.20 from $6.50.
What about investing in Sony instead? Sony also has a big entertainment business with music, movies and gaming. Instead of participating in the streaming wars, Sony smartly decided to sell its movie content to others.
Shares of Sony are also down big in 2022, falling 36%. It’s cheaper than Disney, however, with a forward P/E of 14.9.
Should investors be taking a second look at Sony?
2. Apple AAPL and Alphabet GOOGL
Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway’s equity portfolio.
But even with Apple shares down 16% year-to-date, it’s still not cheap, with a forward P/E of 23.7.
Earnings of Apple are expected to be up just 2.5% this fiscal year and only 8% next year. Analysts were also cutting Apple estimates over the last 60 days.
But maybe Alphabet is a better bet if you’re looking to buy a hardware and content platform company? Alphabet owns powerhouse YouTube, which is making a big push into Apple’s key podcast category. It’s also a big player in music.
Alphabet shares have fallen 33.6% year-to-date and are slightly cheaper than Apple, with a forward P/E of 20.4.
However, Alphabet is a Zacks Rank #4 (Sell), whereas Apple is a #3 (Hold).
Is Alphabet a cheaper alternative to Apple in 2022?
3. Tesla, Inc. TSLA
Tesla has fans both in cars and technology but year-to-date, Tesla shares are down 52%.
Could this be a buying opportunity? Tesla shares are still pricey, with a forward P/E of 41.4. However, Tesla earnings are expected to be up 79% in 2022 and another 30.5% in 2023. Few companies have such a bullish outlook in the face of a China slowdown and a possible global recession.
Is there an alternative to Tesla in either cars or in its technology for those who want a value?
What Else Do You Need to Know About Buying This Stock Instead of That One?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of GOOGL in her own personal portfolio.]
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway’s equity portfolio. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. This week, Tracey is going solo to discuss rejecting companies that may be struggling, or expensive, for those in the same industry that may not have the same problems. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway’s equity portfolio. (0:30) - Finding Alternative Stock Investments To Troubled Companies (4:45) - Stocks To Keep On Your Radar (25:00) - Episode Roundup: DIS, SONY, APPL, GOOGL, TSLA, RACE Podcast@Zacks.com Welcome to Episode #338 of the Zacks Market Edge Podcast. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway’s equity portfolio. (0:30) - Finding Alternative Stock Investments To Troubled Companies (4:45) - Stocks To Keep On Your Radar (25:00) - Episode Roundup: DIS, SONY, APPL, GOOGL, TSLA, RACE Podcast@Zacks.com Welcome to Episode #338 of the Zacks Market Edge Podcast. | Apple AAPL and Alphabet GOOGL Apple is one of the most popular stocks on the market, with it even being the largest holding in Berkshire Hathaway’s equity portfolio. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Buy This Stock, Not That One 1. | d1d05159-e440-4b02-b6f3-37fca8fb0635 |
18331.0 | 2022-11-22 00:00:00 UTC | IPhone Pro models scarce in stores this holiday - Best Buy | AAPL | https://www.nasdaq.com/articles/iphone-pro-models-scarce-in-stores-this-holiday-best-buy | nan | nan | By Uday Sampath Kumar and Hilary Russ
Nov 22 (Reuters) - High-end iPhones will be in short supply at stores this holiday season, Best Buy Co Inc BBY.N said on Tuesday, following a warning from Apple Inc AAPL.O this month that China's zero-COVID policy was squeezing production at a key factory.
The supply issues are expected to significantly hurt the premium iPhone 14 Pro and iPhone 14 Pro Max models, which start at nearly $1,000.
"One of the places where we're seeing a bit of (inventory) pressure is in those higher-end iconic iPhone devices," Best Buy boss Corie Barry said on a media call.
Analysts have flagged that inventory of iPhones at Apple stores around the Black Friday shopping season were down from a year earlier, and it was taking longer to replenish stocks.
IPhones draw customers to Best Buy stores, especially during the holiday season, and often trigger impulse buying, and Apple fans waiting for the latest devices could push out sales into the next quarter.
A Best Buy store in Bronx, New York, that Reuters visited did not have any iPhone Pro models available. A store supervisor, Michael Phillips, said it takes at least two weeks for models to reach after orders are placed.
"We lose a lot of customers because of that," Phillips said. For people who want the Pro Max, "you're not going to settle for something that doesn't have the specs you want."
Best Buy did not respond to a request for comment on this.
Demand for high-end smartphones has helped Apple emerge relatively unscathed even as consumers cut spending amid surging inflation and interest rates.
"Across consumers, we can also see that savings are being drawn down and credit usage is going up," Barry said. "Value clearly matters to everyone."
Wedbush analyst Dan Ives estimates 8 million iPhone 14 units will be sold over the Black Friday weekend, about 2 million fewer than iPhone 13s a year ago, as many Apple stores have 25% fewer iPhones in their inventories than a year earlier.
"IPhone sales may get pushed to the March quarter and out of the December period," Thomas Forte, analyst at D.A. Davidson said.
Earlier this month, Apple warned of delays in shipments of its flagship product following a significant production cut at Foxconn's 2317.TW Zhengzhou plant due to China's strict COVID-19 policy.
Apple did not respond to a request for comment on this story.
Best Buy's Barry said the company had factored the expected loss in sales due to the shortage of the premium iPhones into its holiday quarter forecast.
Still, Best Buy on Tuesday forecast a smaller drop in annual sales than it had previously estimated.
(Reporting by Uday Sampath in Bengaluru and Hilary Russ in New York; additional reporting by Supantha Mukherjee in Stockholm, and Siddharth Cavale and Doyinsola Oladipo in New York; Editing by Anil D'Silva and Sayantani Ghosh)
((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Uday Sampath Kumar and Hilary Russ Nov 22 (Reuters) - High-end iPhones will be in short supply at stores this holiday season, Best Buy Co Inc BBY.N said on Tuesday, following a warning from Apple Inc AAPL.O this month that China's zero-COVID policy was squeezing production at a key factory. Analysts have flagged that inventory of iPhones at Apple stores around the Black Friday shopping season were down from a year earlier, and it was taking longer to replenish stocks. Demand for high-end smartphones has helped Apple emerge relatively unscathed even as consumers cut spending amid surging inflation and interest rates. | By Uday Sampath Kumar and Hilary Russ Nov 22 (Reuters) - High-end iPhones will be in short supply at stores this holiday season, Best Buy Co Inc BBY.N said on Tuesday, following a warning from Apple Inc AAPL.O this month that China's zero-COVID policy was squeezing production at a key factory. The supply issues are expected to significantly hurt the premium iPhone 14 Pro and iPhone 14 Pro Max models, which start at nearly $1,000. Wedbush analyst Dan Ives estimates 8 million iPhone 14 units will be sold over the Black Friday weekend, about 2 million fewer than iPhone 13s a year ago, as many Apple stores have 25% fewer iPhones in their inventories than a year earlier. | By Uday Sampath Kumar and Hilary Russ Nov 22 (Reuters) - High-end iPhones will be in short supply at stores this holiday season, Best Buy Co Inc BBY.N said on Tuesday, following a warning from Apple Inc AAPL.O this month that China's zero-COVID policy was squeezing production at a key factory. IPhones draw customers to Best Buy stores, especially during the holiday season, and often trigger impulse buying, and Apple fans waiting for the latest devices could push out sales into the next quarter. Wedbush analyst Dan Ives estimates 8 million iPhone 14 units will be sold over the Black Friday weekend, about 2 million fewer than iPhone 13s a year ago, as many Apple stores have 25% fewer iPhones in their inventories than a year earlier. | By Uday Sampath Kumar and Hilary Russ Nov 22 (Reuters) - High-end iPhones will be in short supply at stores this holiday season, Best Buy Co Inc BBY.N said on Tuesday, following a warning from Apple Inc AAPL.O this month that China's zero-COVID policy was squeezing production at a key factory. IPhones draw customers to Best Buy stores, especially during the holiday season, and often trigger impulse buying, and Apple fans waiting for the latest devices could push out sales into the next quarter. Best Buy's Barry said the company had factored the expected loss in sales due to the shortage of the premium iPhones into its holiday quarter forecast. | ffdcdedb-09ce-4e93-b1fa-5608589fea40 |
18332.0 | 2022-11-22 00:00:00 UTC | Meta Platforms (META) Developing Network Clocks for Metaverse | AAPL | https://www.nasdaq.com/articles/meta-platforms-meta-developing-network-clocks-for-metaverse | nan | nan | Meta Platforms META recently announced that it is deploying Precision Time Protocol (PTP) across its data centers to sync their computer networks to nanoseconds.
The deployment of PTP reflects Meta Platforms’ strategy to invest in technologies that will help develop a better experience across its family of apps, generating the majority of its revenues. In the third quarter, family of apps generated 99% of its total revenues.
The PTP will offer better timing accuracy, benefiting all of Meta’s technologies, from messaging on its social media platforms to playing games with people internationally. This will provide a better user experience and help retain users amidst stiff competition.
The deployment of PTP will also help synchronization of Graphics Processing Units (GPUs) across its data centers. This will be crucial for growing META’s Artificial Intelligence (AI) capabilities, upon which the company is heavily banking its revenue growth and building the metaverse.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Growing AI Capabilities to Build Metaverse
Mark Zuckerberg’s bold ambition to restructure Meta Platforms as a company primarily operating in the metaverse has faced various challenges. The company is facing its worst downfall in many years, negatively impacting its revenue growth from its advertisement business segment.
META’s top-line growth in the third quarter was affected by geopolitical tensions like the Russia-Ukraine war, which reduced its monthly active users across its family of apps, namely Facebook and Instagram.
Rising inflation also hurt the ad spending budgets of enterprises, which weighed on the ad revenues of the company in the last reported quarter.
Meta Platforms’ ad revenue business is also facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Meta Platforms’ advertisement revenues decreased 3.7% year over year to $27.24 billion in the third quarter, and it expects these factors to hurt advertising growth in the fourth quarter of 2022.
These reasons have impacted the stock negatively as it pummeled 67.4% in the year-to-date period compared with the Zacks Computer and Technology Sector’s fall of 32.2% in the same period.
However, to turn back the tide and regrow its advertising revenues, Meta Platforms, which currently carries a Zacks Rank #3 (Hold), is investing heavily in AI and Machine Learning (ML) to support the ads infrastructure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One of the most important factors contributing to Meta Platforms’ AI technology growth is its partnerships with PyTorch foundation co-founders NVIDIA NVDA and Advanced Micro Devices AMD to develop and architect the required networking system and AI models for the metaverse.
AMD has collaborated with META as an ecosystem partner to build a Metaverse-ready radio access unit (RAN). AMD’s radio chip Xilinx Zynq UltraScale RFSoC will be utilized to develop multiple Evenstar radio units (RU) to expand 4G/5G mobile network infrastructure, which is crucial for the metaverse.
Meta Platforms has collaborated with NVIDIA to build an AI research supercomputer, helping META AI researchers to build different AI models crucial for creating the metaverse.
AI and ML are crucial for the company as these will help it drive operation growth. As such, the company is making strategic investments in new technologies and building partnerships to develop the metaverse.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meta Platforms’ ad revenue business is also facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report The deployment of PTP reflects Meta Platforms’ strategy to invest in technologies that will help develop a better experience across its family of apps, generating the majority of its revenues. | Meta Platforms’ ad revenue business is also facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta Growing AI Capabilities to Build Metaverse Mark Zuckerberg’s bold ambition to restructure Meta Platforms as a company primarily operating in the metaverse has faced various challenges. | Meta Platforms’ ad revenue business is also facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta Growing AI Capabilities to Build Metaverse Mark Zuckerberg’s bold ambition to restructure Meta Platforms as a company primarily operating in the metaverse has faced various challenges. | Meta Platforms’ ad revenue business is also facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report The deployment of PTP reflects Meta Platforms’ strategy to invest in technologies that will help develop a better experience across its family of apps, generating the majority of its revenues. | 95679ffc-c28f-4d69-ae23-259ecd6c9d6f |
18333.0 | 2022-11-22 00:00:00 UTC | DELL Q3 Earnings Beat Estimates, Lower PC Sales Hurt Revenues | AAPL | https://www.nasdaq.com/articles/dell-q3-earnings-beat-estimates-lower-pc-sales-hurt-revenues | nan | nan | Dell Technologies DELL reported third-quarter fiscal 2023 non-GAAP earnings of $2.30 per share, beating the Zacks Consensus Estimate by 43.75%. The bottom line jumped 39% year over year.
Revenues, on a non-GAAP basis, decreased 6% year over year to $24.72 billion but beat the consensus mark by 0.99%.
Product revenues decreased 10% year over year to $18.4 billion. Services revenues rose 6% year over year to $5.78 billion.
Dell shares were down 2.07% in after-hours trading following the results. Shares have fallen 26.9% year to date compared with the Zacks Computer & Technology sector’s decline of 32.2%.
Dell Technologies Inc. Price, Consensus and EPS Surprise
Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote
The company suffered from lower PC shipments in the reported quarter. It witnessed weak PC demand and slowing infrastructure demand, which was partially offset by strong growth in storage.
Dell’s fiscal 2024 view is also not encouraging. The company expects top-line growth to suffer from lower IT spending, which is expected to remain weak due to slowing economic growth, inflation, rising interest rates and currency pressure.
Top-Line Detail
Infrastructure Solutions Group (“ISG”) revenues were up 12% year over year to $9.63 billion.
The upside can be attributed to a 14% increase in servers and networking revenues that totaled $5.2 billion. Storage revenues grew 11% year over year to $4.43 billion.
Client Solutions Group (“CSG”) revenues were $13.78 billion, down 17% year over year. Commercial revenues declined 13% year over year to $10.75 billion. Consumer revenues were down 29% to $3.03 billion.
CSG revenues were hurt by lower PC shipments. Per IDC Worldwide Quarterly Personal Computing Device Tracker for the third quarter of 2022, Dell’s market share declined to 16.1% from 17.4% in the year-ago quarter. Per IDC data, Lenovo LNVGY continued to dominate in terms of market share and PC shipment, trailed by HP HPQ and DELL.
However, Lenovo and HP both lost market share. Apple AAPL and Asus both gained market share. While Lenovo’s market share came down to 22.7% from 23.1% in the year-ago quarter, HP was 17.1% compared with the year-ago quarter’s 20.2%.
Meanwhile, Apple’s share increased from the year-ago quarter’s 8.2% to 13.5%. In terms of PC shipments, Apple gained 40.2% year over year, while Lenovo, HP and Dell were down 16.1%, 27.8% and 21.2%, respectively.
Operating Details
Dell’s fiscal third-quarter non-GAAP gross profit increased 2% year over year to $5.87 billion. The gross margin expanded 200 basis points (bps) year over year to 23.7%.
SG&A expenses declined 15% year over year to $3.27 billion. Research and development expenses were up 4% year over year to $677 million in the reported quarter.
Non-GAAP operating expenses decreased 8% year over year to $3.49 billion. Operating expenses, as a percentage of revenues, declined 20 bps on a year-over-year basis to 14.1%.
The non-GAAP operating income was $2.38 billion, up 22% year over year. The operating margin expanded 220 bps year over year to 9.6%.
The ISG segment’s operating income increased 54% year over year to $1.37 billion. Meanwhile, the CSG segment’s operating income was $1.06 billion, down 7% year over year.
Balance Sheet
As of Oct 28, 2022, DELL had $6.44 billion in cash and long-term investments. Debt was $27.33 billion as of Oct 28, 2022.
This Zacks Rank #4 (Sell) company returned $847 million to its shareholders through a combination of share repurchases and dividends.
Guidance
For the fourth quarter of fiscal 2023, Dell expects revenues between $23 billion and $24 billion, down 16% at the mid-point, with ISG roughly flat. The company expects roughly 500 bps negative impact on revenues.
Moreover, operating expenses are expected to increase $150 million sequentially in the fiscal fourth quarter.
Dell expects earnings in the range of $1.50 to $1.80 per share, down 4% at the midpoint for the fiscal fourth quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL and Asus both gained market share. Apple Inc. (AAPL): Free Stock Analysis Report Per IDC data, Lenovo LNVGY continued to dominate in terms of market share and PC shipment, trailed by HP HPQ and DELL. | Apple AAPL and Asus both gained market share. Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies DELL reported third-quarter fiscal 2023 non-GAAP earnings of $2.30 per share, beating the Zacks Consensus Estimate by 43.75%. | Apple AAPL and Asus both gained market share. Apple Inc. (AAPL): Free Stock Analysis Report Commercial revenues declined 13% year over year to $10.75 billion. | Apple AAPL and Asus both gained market share. Apple Inc. (AAPL): Free Stock Analysis Report In terms of PC shipments, Apple gained 40.2% year over year, while Lenovo, HP and Dell were down 16.1%, 27.8% and 21.2%, respectively. | f0d2b75f-8945-4caa-82ff-7656326a4d94 |
18334.0 | 2022-11-22 00:00:00 UTC | Disney (DIS) Brings Back Bob Iger as the CEO, Shares Surge | AAPL | https://www.nasdaq.com/articles/disney-dis-brings-back-bob-iger-as-the-ceo-shares-surge | nan | nan | Disney DIS recently announced the appointment of Robert A. Iger, popularly known as Bob Iger, as CEO, effective immediately.
Bob Iger replaces Bob Chapek, following the latter’s two-year stint. The reappointment of Bob Iger as the CEO has bought a spree of excitement among investors as share prices have been surging ever since the news broke out on Nov 20 Shares jumped 6.3% to close at $97.58 on Nov 21.
The lingering impact of the COVID, raging inflation and rising interest rates do not bode well for Disney’s consumer-oriented businesses. Shares have declined more than 37% year-to-date.
Disney has been struggling in its streaming division with the increased cost of production and delayed releases lately.
However, with Bob Iger taking charge once again, investors are expected to gain back their lost confidence in the company’s prospects.
Bob Iger had actively been involved in launching the launch of Disney+ in 2019. His expertise and experience of more than four decades are likely to help the company create an efficient and cost-effective structure for the streaming platform.
Where is Disney’s Streaming Division Heading To?
Disney has been heavily investing in its streaming services to launch new movies and shows to gain traction. This has aided subscriber growth as Disney+ added more than 12 million global subscribers in the fourth quarter of fiscal 2022.
However, Disney’s direct-to-consumer division reported an operating loss of nearly $1.5 billion in the fourth-quarter fiscal 2022, that doubled year-over-year. This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+’s ARPU by 5%.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney+ also faces significant competition from Netflix NFLX, which has a strong pipeline of content and has reached 223 million subscribers worldwide to date. A saturated streaming market with the presence of services from the likes of Apple AAPL and Comcast CMCSA is creating headwind for Disney+.
Streaming market leader, Netflix, reported better-than-expected third-quarter 2022 subscriber numbers. The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix added 4.38 million paid subscribers in the year-ago quarter.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock had more than 15 million paid subscribers in the United States at the end of third-quarter 2022. Moreover, Peacock had approximately 14 million bundled and free users, totaling around 30 million monthly active accounts.
Nevertheless, Disney is focusing on the realignment of cost, including meaningful rationalization of marketing spending and optimization of content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement.
The company expects Disney+ to reach profitability by 2024. It is also counting on releases such as Black Panther: Wakanda Forever, and Avatar: The Way of Water to fuel its subscriber acquisition.
The Zacks Rank #3 (Hold) company is also about to launch a cheaper, ad-supported subscription offering for Disney+ to attract even more viewers and diversify its revenue stream. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The ad-supported version will launch on Dec 8 for $7.99 a month, while its basic ad-free subscription jumps to $10.99.
ESPN+, the sports streaming platform of Disney, has also been taking steps to boost its top line.
It renewed the Major League Baseball sports rights deal through 2028 and entered a long-term partnership with the National Football League, where it has agreed on a five-year rights deal with the NFL to broadcast the league’s Monday night Wild Card playoff game through the 2025 season.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A saturated streaming market with the presence of services from the likes of Apple AAPL and Comcast CMCSA is creating headwind for Disney+. Apple Inc. (AAPL): Free Stock Analysis Report This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+’s ARPU by 5%. | Apple Inc. (AAPL): Free Stock Analysis Report A saturated streaming market with the presence of services from the likes of Apple AAPL and Comcast CMCSA is creating headwind for Disney+. The Walt Disney Company Price and Consensus The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote Disney+ also faces significant competition from Netflix NFLX, which has a strong pipeline of content and has reached 223 million subscribers worldwide to date. | A saturated streaming market with the presence of services from the likes of Apple AAPL and Comcast CMCSA is creating headwind for Disney+. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company Price and Consensus The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote Disney+ also faces significant competition from Netflix NFLX, which has a strong pipeline of content and has reached 223 million subscribers worldwide to date. | A saturated streaming market with the presence of services from the likes of Apple AAPL and Comcast CMCSA is creating headwind for Disney+. Apple Inc. (AAPL): Free Stock Analysis Report Disney has been struggling in its streaming division with the increased cost of production and delayed releases lately. | 31c41d21-f85d-4123-90f0-2ff9312304cf |
18335.0 | 2022-11-22 00:00:00 UTC | Why Taiwan Semiconductor Manufacturing Was Rising Today | AAPL | https://www.nasdaq.com/articles/why-taiwan-semiconductor-manufacturing-was-rising-today | nan | nan | What happened
Shares of foundry giant and new Warren Buffett holding Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM) were rising today, up as much as 4% before settling in to an above-market 2.8% gain as of 2:38 p.m. EST.
There wasn't much company-specific news today; however, a key executive departure at rival Intel (NASDAQ: INTC) may indicate Intel's ambitious plans to catch up with TSMC in leading-edge production may have hit a setback. Intel's loss would could be TSMC's gain.
So what
Last night, Intel announced that Randhir Thakur, the executive who was leading Intel's plan to establish itself as a leading foundry for other semiconductor designers, was leaving the company. In an emailed statement to Bloomberg, Intel said Thakur "has decided to step down from his position to pursue opportunities outside the company."
That's certainly concerning for Intel, which is in the midst of an ambitious plan to build out a rival foundry ecosystem to compete with TSMC on the leading edge of semiconductor production. Until recently, Intel had only manufactured its own chips; however, with TSMC surpassing Intel on leading-edge technology a few years ago and continuing to extend that advantage, new Intel CEO Pat Gelsinger has changed the company's strategy to become a foundry for other companies as well. It's possible the cumulative knowledge TSMC has gained by serving a diverse set of third-party chip design customers played a part in its technological success, so Gelsinger's new strategy makes sense.
However, the strategy is turning out to be much easier said than done. Producing semiconductors on the leading edge is becoming more and more difficult with each node, so catching up won't be easy, from either a financial or technological perspective. Intel's main source of cash, its dominant PC processor business, has fallen off a cliff this year, as the PC market is seeing the largest year-over-year decline in recent history. Meanwhile, Intel's production of its latest data center processor, Sapphire Rapids, has been delayed into next year, even as competitors -- which are TSMC customers -- have introduced their new chips this fall.
Now, with the head of Intel's third-party foundry business departing, uncertainty is only growing.
Of course, this change in leadership doesn't mean Intel will fail in its ambitions. In fact, Intel is up 1.8% today, about in-line with the broader semiconductor index.
Still, the departure clouds Intel's outlook and seems to only reinforce TSMC's leadership. Hence, why TSMC is outpacing both Intel and the broader tech index today after yesterday's pullback.
Now what
Taiwan Semiconductor stock bounced about 10% higher after last week's news that Warren Buffett had taken a large stake in the dominant foundry and key Apple supplier. However, the stock still trades at just 15 times earnings and is down 34% over the past 12 months.
If in fact today's news is an indication, TSMC's lead over rivals Intel and Samsung is widening, not narrowing. It's just another reason to own this wide-moat dividend stock.
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Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of foundry giant and new Warren Buffett holding Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM) were rising today, up as much as 4% before settling in to an above-market 2.8% gain as of 2:38 p.m. EST. It's possible the cumulative knowledge TSMC has gained by serving a diverse set of third-party chip design customers played a part in its technological success, so Gelsinger's new strategy makes sense. Now what Taiwan Semiconductor stock bounced about 10% higher after last week's news that Warren Buffett had taken a large stake in the dominant foundry and key Apple supplier. | There wasn't much company-specific news today; however, a key executive departure at rival Intel (NASDAQ: INTC) may indicate Intel's ambitious plans to catch up with TSMC in leading-edge production may have hit a setback. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. | So what Last night, Intel announced that Randhir Thakur, the executive who was leading Intel's plan to establish itself as a leading foundry for other semiconductor designers, was leaving the company. Until recently, Intel had only manufactured its own chips; however, with TSMC surpassing Intel on leading-edge technology a few years ago and continuing to extend that advantage, new Intel CEO Pat Gelsinger has changed the company's strategy to become a foundry for other companies as well. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. | Until recently, Intel had only manufactured its own chips; however, with TSMC surpassing Intel on leading-edge technology a few years ago and continuing to extend that advantage, new Intel CEO Pat Gelsinger has changed the company's strategy to become a foundry for other companies as well. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing and has the following options: short January 2023 $210 calls on Apple. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing. | e05b006a-1e06-4d85-bf1e-d95d8fbe640e |
18336.0 | 2022-11-22 00:00:00 UTC | Foxconn's Zhengzhou plant hit by fresh worker unrest, social media livestreams show | AAPL | https://www.nasdaq.com/articles/foxconns-zhengzhou-plant-hit-by-fresh-worker-unrest-social-media-livestreams-show | nan | nan | SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live over the Kuaishou platform showed on Wednesday.
The videos showed over a hundred people clustered outside and coming face to face with dozens of hazmat suited officials, who they said were the police. Some showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised.
Reuters was not immediately able to verify the authenticity of the videos. Foxconn did not immediately respond to a request for comment.
(Reporting by Brenda Goh and Beijing Newsroom; Additional reporting by David Kirton in Shenzhen and Yimou Lee in Taipei; Editing by Muralikumar Anantharaman)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live over the Kuaishou platform showed on Wednesday. Some showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. (Reporting by Brenda Goh and Beijing Newsroom; Additional reporting by David Kirton in Shenzhen and Yimou Lee in Taipei; Editing by Muralikumar Anantharaman) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live over the Kuaishou platform showed on Wednesday. The videos showed over a hundred people clustered outside and coming face to face with dozens of hazmat suited officials, who they said were the police. Some showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. | SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live over the Kuaishou platform showed on Wednesday. The videos showed over a hundred people clustered outside and coming face to face with dozens of hazmat suited officials, who they said were the police. (Reporting by Brenda Goh and Beijing Newsroom; Additional reporting by David Kirton in Shenzhen and Yimou Lee in Taipei; Editing by Muralikumar Anantharaman) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live over the Kuaishou platform showed on Wednesday. The videos showed over a hundred people clustered outside and coming face to face with dozens of hazmat suited officials, who they said were the police. Some showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. | 5282fc8d-3fe6-4e19-bfe1-b8d23d4af6dd |
18337.0 | 2022-11-22 00:00:00 UTC | Apple Inc supplier Foxconn's China plant hit by fresh worker unrest-social media | AAPL | https://www.nasdaq.com/articles/apple-inc-supplier-foxconns-china-plant-hit-by-fresh-worker-unrest-social-media | nan | nan | Adds background and details
SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial Chinese city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live on the Kuaishou short video platform showed on Wednesday.
The videos showed more than a hundred people clustered outside and coming face to face with dozens of hazmat-suited officials, who they said were police. Some videos showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised.
Reuters was not immediately able to verify the authenticity of the videos. Foxconn did not immediately respond to a request for comment.
The Zhengzhou plant is the world's largest iPhone factory with some 200,000 workers.
Since late Ocober, many workers have fled - their escapes captured on social media - as frustration mounted over how COVID cases were handled and over the treatment of employees, including what they said were insufficient provisions of food.
In a bid to restore production, the manufacturer began a drive to convince workers to stay and to recruit more staff, promising higher per-hour salaries and bonuses.
It has maintained so-called closed-loop operations at the plant - a system in which staff live and work on-site isolated from the wider world - due to the COVID situation in Zhengzhou.
The curbs and discontent have hit production, prompting Apple Inc to say earlier this month that it expected lower shipments of premium iPhone 14 models.
(Reporting by Brenda Goh and Beijing Newsroom; Additional reporting by David Kirton in Shenzhen and Yimou Lee in Taipei; Editing by Muralikumar Anantharaman and Edmund Klamann)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | Adds background and details SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial Chinese city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live on the Kuaishou short video platform showed on Wednesday. Since late Ocober, many workers have fled - their escapes captured on social media - as frustration mounted over how COVID cases were handled and over the treatment of employees, including what they said were insufficient provisions of food. It has maintained so-called closed-loop operations at the plant - a system in which staff live and work on-site isolated from the wider world - due to the COVID situation in Zhengzhou. | Adds background and details SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial Chinese city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live on the Kuaishou short video platform showed on Wednesday. Some videos showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. The Zhengzhou plant is the world's largest iPhone factory with some 200,000 workers. | Adds background and details SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial Chinese city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live on the Kuaishou short video platform showed on Wednesday. Some videos showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. (Reporting by Brenda Goh and Beijing Newsroom; Additional reporting by David Kirton in Shenzhen and Yimou Lee in Taipei; Editing by Muralikumar Anantharaman and Edmund Klamann) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | Adds background and details SHANGHAI, Nov 23 (Reuters) - People describing themselves as Foxconn workers pulled down barriers and argued with hazmat-suited authorities at a COVID-hit plant in the industrial Chinese city of Zhengzhou that belongs to the Apple Inc AAPL.O supplier, scenes broadcast live on the Kuaishou short video platform showed on Wednesday. The videos showed more than a hundred people clustered outside and coming face to face with dozens of hazmat-suited officials, who they said were police. Some videos showed workers complaining about the food they had been provided while others said they had not been paid bonuses as promised. | 58b00d55-efc9-447f-a5bb-d39c7209295f |
18338.0 | 2022-11-22 00:00:00 UTC | Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-5 | nan | nan | If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $635.58 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.89%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 22.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 28.07% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF has lost about -14.54% so far this year and is down about -11.48% in the last one year (as of 11/22/2022). In the past 52-week period, it has traded between $38.39 and $50.92.
The ETF has a beta of 1.01 and standard deviation of 24.78% for the trailing three-year period, making it a medium risk choice in the space. With about 502 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap 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, EPS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.35 billion in assets, Vanguard Value ETF has $105.41 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007. | 5cbce161-8fcf-4d8b-9c89-b2def3ec46ce |
18339.0 | 2022-11-22 00:00:00 UTC | US STOCKS-Wall Street rises on gains in Walgreens, Best Buy | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-rises-on-gains-in-walgreens-best-buy | nan | nan | By Ankika Biswas and Shreyashi Sanyal
Nov 22 (Reuters) - Wall Street's main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China.
Dow component .DJI Walgreens Boots Alliance Inc WBA.O rose 1.9% after Cowen & Co upgraded the drug distributor stock, citing its healthcare services business push.
Best Buy Co Inc BBY.N soared 9.4%, rising the most among S&P 500 .SPX components after forecasting a smaller-than-expected drop in annual sales.
The retailer said top-end iPhone 14 models could be in short supply during the holiday season. Earlier this month, Apple Inc AAPL.O lowered shipment forecast for its premium models due to lower production at supplier Foxconn's Zhengzhou factory, which has been hit by lockdowns in China.
Shares of Apple dipped 0.1%, weighing on the tech-heavy Nasdaq index .IXIC.
Markets were cautious as China strengthened its fight against COVID-19 with Beijing shutting parks, malls and museums, while other cities resumed mass testing.
"The markets are moved by China again. Dynamic zero COVID again," said Thomas Hayes, chairman at Great Hill Capital in New York.
U.S.-listed shares of Chinese companies including Pinduoduo Inc PDD.O, Bilibili Inc BILI.O and JD.com Inc JD.O slipped between 2.4% and 2.8%.
However, Hayes said there was a little bit of relief in risk markets, thanks to a drop in the dollar =USD and the yield on the 10-year Treasury note US10YT=RR.
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI was up 267.99 points, or 0.80%, at 33,968.27, the S&P 500 .SPX was up 19.71 points, or 0.50%, at 3,969.65, and the Nasdaq Composite .IXIC was up 1.11 points, or 0.01%, at 11,025.62.
Energy .SPNY led gains among the 11 major S&P 500 sector indexes, bouncing off four-week lows by adding 2%. O/R
Tesla Inc TSLA.O shares attempted to recoup some declines, rising 0.9%, after falling 6.8% in the previous session.
Investors will keep a watch on remarks by St. Louis President James Bullard and Kansas City President Esther George, while awaiting minutes from the Fed's November meeting on Wednesday for clarity on the monetary policy tightening path.
In the previous session, markets took comfort from Cleveland Federal Reserve President Loretta Mester supporting a smaller rate hike in December and San Francisco Fed President Mary Daly stressing the need to be careful to avoid a "painful downturn".
Among other stocks, Medtronic Plc MDT.N slipped 6.7% as the medical device company lowered its full-year profit outlook, while Zoom Video Communications ZM.O dropped 7.9% after cutting its annual revenue forecast.
Analysts expect thin trading volumes as markets will be shut on Thursday for Thanksgiving holiday and will remain open for half day on Friday.
Advancing issues outnumbered decliners by a 2.70-to-1 ratio on the NYSE and by a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and two new lows, while the Nasdaq recorded 49 new highs and 122 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Medha Singh and Shubham Batra; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this month, Apple Inc AAPL.O lowered shipment forecast for its premium models due to lower production at supplier Foxconn's Zhengzhou factory, which has been hit by lockdowns in China. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. Dow component .DJI Walgreens Boots Alliance Inc WBA.O rose 1.9% after Cowen & Co upgraded the drug distributor stock, citing its healthcare services business push. | Earlier this month, Apple Inc AAPL.O lowered shipment forecast for its premium models due to lower production at supplier Foxconn's Zhengzhou factory, which has been hit by lockdowns in China. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. The S&P index recorded 19 new 52-week highs and two new lows, while the Nasdaq recorded 49 new highs and 122 new lows. | Earlier this month, Apple Inc AAPL.O lowered shipment forecast for its premium models due to lower production at supplier Foxconn's Zhengzhou factory, which has been hit by lockdowns in China. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. In the previous session, markets took comfort from Cleveland Federal Reserve President Loretta Mester supporting a smaller rate hike in December and San Francisco Fed President Mary Daly stressing the need to be careful to avoid a "painful downturn". | Earlier this month, Apple Inc AAPL.O lowered shipment forecast for its premium models due to lower production at supplier Foxconn's Zhengzhou factory, which has been hit by lockdowns in China. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. In the previous session, markets took comfort from Cleveland Federal Reserve President Loretta Mester supporting a smaller rate hike in December and San Francisco Fed President Mary Daly stressing the need to be careful to avoid a "painful downturn". | e865c413-9ba9-4f56-be33-17abc5458433 |
18340.0 | 2022-11-22 00:00:00 UTC | Notable Tuesday Option Activity: AAPL, OXY, MAR | AAPL | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-aapl-oxy-mar | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 580,725 contracts has been traded thus far today, a contract volume which is representative of approximately 58.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.8% of AAPL's average daily trading volume over the past month, of 92.5 million shares. Especially high volume was seen for the $150 strike call option expiring November 25, 2022, with 55,125 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange:
Occidental Petroleum Corp (Symbol: OXY) options are showing a volume of 88,710 contracts thus far today. That number of contracts represents approximately 8.9 million underlying shares, working out to a sizeable 56.1% of OXY's average daily trading volume over the past month, of 15.8 million shares. Particularly high volume was seen for the $72 strike call option expiring November 25, 2022, with 4,894 contracts trading so far today, representing approximately 489,400 underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $72 strike highlighted in orange:
And Marriott International, Inc. (Symbol: MAR) saw options trading volume of 11,364 contracts, representing approximately 1.1 million underlying shares or approximately 53.5% of MAR's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $180 strike call option expiring January 20, 2023, with 1,349 contracts trading so far today, representing approximately 134,900 underlying shares of MAR. Below is a chart showing MAR's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for AAPL options, OXY options, or MAR options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $150 strike call option expiring November 25, 2022, with 55,125 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 580,725 contracts has been traded thus far today, a contract volume which is representative of approximately 58.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.8% of AAPL's average daily trading volume over the past month, of 92.5 million shares. | Especially high volume was seen for the $150 strike call option expiring November 25, 2022, with 55,125 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: Occidental Petroleum Corp (Symbol: OXY) options are showing a volume of 88,710 contracts thus far today. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 580,725 contracts has been traded thus far today, a contract volume which is representative of approximately 58.1 million underlying shares (given that every 1 contract represents 100 underlying shares). | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 580,725 contracts has been traded thus far today, a contract volume which is representative of approximately 58.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $150 strike call option expiring November 25, 2022, with 55,125 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. That number works out to 62.8% of AAPL's average daily trading volume over the past month, of 92.5 million shares. | Especially high volume was seen for the $150 strike call option expiring November 25, 2022, with 55,125 contracts trading so far today, representing approximately 5.5 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 580,725 contracts has been traded thus far today, a contract volume which is representative of approximately 58.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.8% of AAPL's average daily trading volume over the past month, of 92.5 million shares. | c0d0cef1-1063-41cb-bc37-63996a113c7a |
18341.0 | 2022-11-22 00:00:00 UTC | US STOCKS-Wall St set to open higher on gains in Walgreens, Best Buy | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-on-gains-in-walgreens-best-buy | nan | nan | By Ankika Biswas and Shreyashi Sanyal
Nov 22 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, with gains in shares of Walgreens and Best Buy helping investors assuage worries around the economic fallout of stricter COVID-19 curbs in China.
Leading gains among S&P 500 .SPX components trading before the bell, Best Buy Co Inc BBY.N jumped 9.1% after forecasting a smaller-than-expected drop in annual sales ahead of the crucial holiday season.
Dow component .DJI Walgreens Boots Alliance Inc WBA.O rose 1.7% after Cowen & Co upgraded the drug distributor stock, citing its healthcare services business push.
Markets, however, remained cautious as China strengthened its fight against COVID-19 with Beijing shutting parks, malls and museums, while other cities resumed mass testing.
"The markets are moved by China again. Dynamic zero COVID again," said Thomas Hayes, chairman at Great Hill Capital in New York.
Hayes said there was a little bit of relief in risk markets, with the dollar and yield on the 10-year Treasury note lower.
"You're going to see tech and semis getting a bid," he said.
Shares of chipmaker Advanced Micro Devices Inc AMD.O rose 1.0%, while Apple Inc AAPL.O added 0.4%.
Tesla Inc TSLA.O shares attempted to recoup some declines, rising 1.5%, after falling 6.8% in the previous session when the electric-vehicle maker said it will recall vehicles in the United States.
Meanwhile, U.S.-listed shares of Chinese companies including Pinduoduo Inc PDD.O, Bilibili Inc BILI.O and JD.com Inc JD.O slipped between 1.8% and 2.8%.
At 8:54 a.m. ET, Dow e-minis 1YMcv1 were up 148 points, or 0.44%, S&P 500 e-minis EScv1 were up 19.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were up 46 points, or 0.4%.
Wall Street's main indexes ended lower on Monday, although comments from Cleveland Federal Reserve President Loretta Mester, supporting a smaller rate hike in December helped pare those declines.
San Francisco Fed President Mary Daly also stressed on Monday the need to be careful to avoid a "painful downturn".
Investors will keep a watch on remarks by St. Louis President James Bullard and Kansas City President Esther George, while awaiting minutes from the Fed's November meeting on Wednesday for clarity on the monetary policy tightening path.
Among other stocks, Medtronic Plc MDT.N slipped 4.7% after the medical device company lowered its full-year profit outlook, while Zoom Video Communications ZM.O dropped 7% after cutting its annual revenue forecast.
Analysts expect thin trading volumes as markets will be shut on Thursday for Thanksgiving holiday and will remain open for half day on Friday.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Medha Singh and Shubham Batra; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of chipmaker Advanced Micro Devices Inc AMD.O rose 1.0%, while Apple Inc AAPL.O added 0.4%. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, with gains in shares of Walgreens and Best Buy helping investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. Wall Street's main indexes ended lower on Monday, although comments from Cleveland Federal Reserve President Loretta Mester, supporting a smaller rate hike in December helped pare those declines. | Shares of chipmaker Advanced Micro Devices Inc AMD.O rose 1.0%, while Apple Inc AAPL.O added 0.4%. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, with gains in shares of Walgreens and Best Buy helping investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. ET, Dow e-minis 1YMcv1 were up 148 points, or 0.44%, S&P 500 e-minis EScv1 were up 19.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were up 46 points, or 0.4%. | Shares of chipmaker Advanced Micro Devices Inc AMD.O rose 1.0%, while Apple Inc AAPL.O added 0.4%. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, with gains in shares of Walgreens and Best Buy helping investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. Wall Street's main indexes ended lower on Monday, although comments from Cleveland Federal Reserve President Loretta Mester, supporting a smaller rate hike in December helped pare those declines. | Shares of chipmaker Advanced Micro Devices Inc AMD.O rose 1.0%, while Apple Inc AAPL.O added 0.4%. By Ankika Biswas and Shreyashi Sanyal Nov 22 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, with gains in shares of Walgreens and Best Buy helping investors assuage worries around the economic fallout of stricter COVID-19 curbs in China. Markets, however, remained cautious as China strengthened its fight against COVID-19 with Beijing shutting parks, malls and museums, while other cities resumed mass testing. | 0443e0e0-5c61-4016-8d03-6aaa5be8cc29 |
18342.0 | 2022-11-22 00:00:00 UTC | UK investigating Apple, Google's mobile browser dominance | AAPL | https://www.nasdaq.com/articles/uk-investigating-apple-googles-mobile-browser-dominance | nan | nan | Nov 22 (Reuters) - Britain's competition watchdog said on Tuesday it had launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli)
((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nov 22 (Reuters) - Britain's competition watchdog said on Tuesday it had launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. (Reporting by Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nov 22 (Reuters) - Britain's competition watchdog said on Tuesday it had launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. (Reporting by Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nov 22 (Reuters) - Britain's competition watchdog said on Tuesday it had launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. (Reporting by Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nov 22 (Reuters) - Britain's competition watchdog said on Tuesday it had launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. (Reporting by Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | b3a74f03-61b0-443e-97fe-8a30084ee341 |
18343.0 | 2022-11-22 00:00:00 UTC | 3 Warren Buffett Stocks That Could Set You Up for Life | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-could-set-you-up-for-life | nan | nan | We'd all love to have Warren Buffett's investing track record -- increasing the value of our stocks by an annual average of about 20% over more than 50 years. You're probably not going to achieve quite that, but there are still ways you can invest kind of like the super-investor.
For starters, you might buy shares of his company, Berkshire Hathaway. It's not likely to grow quite as rapidly in the future as it has in the past, though, due to its massive size. Another option is to invest in some of the same companies that Berkshire Hathaway has invested in.
Here are three of the conglomerate's major stock holdings. Note that it's not necessarily Buffett himself who has decided to buy them, as he has two investing lieutenants, Ted Weschler and Todd Combs, who also call many shots.
1. Apple
Buffett long avoided tech stocks such as Apple (NASDAQ: AAPL), and he has said that the Apple buy was not his idea. He's certainly pleased with it, though -- as it's estimated that his cost basis in the stock is around $37.17 per share, and shares were recently trading around $150 apiece. Indeed, Berkshire recently owned nearly 5.5% of Apple -- which translates to a stake worth around $134 billion of a company recently worth $2.4 trillion!
Should you invest in Apple? It's hard to argue against the growth stock. All signs point to the company sticking around for a long time and continuing to innovate, as it does so well. It's enormous, but it can still grow at a respectable clip. In its fourth quarter, Apple posted revenue up 8% year over year to $90 billion, and up 8% from fiscal 2021 to fiscal 2022. It doesn't seem too overvalued at recent levels, either, with a price-to-earnings (P/E) ratio of 24.7, close to its five-year average of 24.1.
2. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) is a newcomer to the Berkshire Hathaway portfolio, and since semiconductors are not one of the industries that Buffett knows best, this is likely another purchase by his carefully handpicked lieutenants. According to the latest report, it's already the 10th largest holding (Apple is by far the biggest), with a total value recently near $5 billion, representing about 1.16% of the company.
There are many semiconductor companies out there, but Taiwan Semiconductor is one of the few that actually manufactures them, instead of just designing them -- and it's the world's largest contract chipmaker. That has helped give it fat -- and generally increasing -- profit margins. In its second quarter, revenue surged 43.5% year over year, while net income and earnings per share soared 76%.
Shares were recently down 43% from their 52-week high and appear quite attractively priced, with a recent P/E ratio of 14.9, well below the five-year average of 23.5. Do remember that the company is cyclical -- and Taiwan-based, so it does carry some risks from its neighbor China.
3. Amazon
Amazon.com (NASDAQ: AMZN) is also a Berkshire Hathaway holding -- though not a huge one, at around 1% of Amazon. That's still a big stake, worth around $1 billion recently. It's easy to see why Buffett, or one or both of his lieutenants, would like Amazon. Not only does it have the dominant e-commerce destination, it has other valuable assets, such as its Amazon Web Services (AWS) cloud computing business. AWS also dominates in market share -- though it faces powerful competition.
The company's third-quarter report disappointed many investors, with a slowing growth rate due in part to inflation and rising interest rates. But the growth rates were only slowing to approximately pre-pandemic rates, and revenue still grew 15% year over year -- not too shabby for a company with a recent market value of $980 billion. Its long-term growth potential remains.
Amazon's shares were recently down 50% from their 52-week high, and appear attractively priced, with a recent forward-looking P/E ratio of 47, well below the five-year average of 75.
These are just a few of Buffett's and Berkshire's many stock holdings that you might consider for berths in your own portfolio. Each or all of them might help set you up for life, if they perform up to their potential.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Selena Maranjian has positions in Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Buffett long avoided tech stocks such as Apple (NASDAQ: AAPL), and he has said that the Apple buy was not his idea. Note that it's not necessarily Buffett himself who has decided to buy them, as he has two investing lieutenants, Ted Weschler and Todd Combs, who also call many shots. Not only does it have the dominant e-commerce destination, it has other valuable assets, such as its Amazon Web Services (AWS) cloud computing business. | Apple Buffett long avoided tech stocks such as Apple (NASDAQ: AAPL), and he has said that the Apple buy was not his idea. The company's third-quarter report disappointed many investors, with a slowing growth rate due in part to inflation and rising interest rates. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. | Apple Buffett long avoided tech stocks such as Apple (NASDAQ: AAPL), and he has said that the Apple buy was not his idea. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Apple Buffett long avoided tech stocks such as Apple (NASDAQ: AAPL), and he has said that the Apple buy was not his idea. We'd all love to have Warren Buffett's investing track record -- increasing the value of our stocks by an annual average of about 20% over more than 50 years. That's right -- they think these 10 stocks are even better buys. | 05a5b0a3-f608-4cbd-a022-4d35448831a8 |
18344.0 | 2022-11-22 00:00:00 UTC | UK begins investigation into Apple, Google's mobile browser dominance | AAPL | https://www.nasdaq.com/articles/uk-begins-investigation-into-apple-googles-mobile-browser-dominance | nan | nan | Adds Apple response, CMA comment, details
Nov 22 (Reuters) - Britain's competition watchdog has launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe.
The Competition and Markets Authority (CMA) said on Tuesday responses to its consultation from June revealed "substantial support" for a fuller investigation into the matter and how iPhone-maker Apple restricts cloud gaming through its app store.
"Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google," said Sarah Cardell, interim chief executive of the CMA, in a statement.
"We plan to investigate whether the concerns we have heard are justified and, if so, identify steps to improve competition and innovation in these sectors."
In response to the CMA's June plans, Google had said it would continue to work with the watchdog.
Apple said on Tuesday it would "constructively" engage with the CMA to explain how its approach "promotes competition and choice, while ensuring consumers' privacy and security are protected."
Google did not immediately respond to Reuters' request for comment on the latest developments.
(Reporting by Pushkala Aripaka in Bengaluru and Paul Sandle in London; Editing by Shinjini Ganguli)
((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds Apple response, CMA comment, details Nov 22 (Reuters) - Britain's competition watchdog has launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. The Competition and Markets Authority (CMA) said on Tuesday responses to its consultation from June revealed "substantial support" for a fuller investigation into the matter and how iPhone-maker Apple restricts cloud gaming through its app store. "Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google," said Sarah Cardell, interim chief executive of the CMA, in a statement. | Adds Apple response, CMA comment, details Nov 22 (Reuters) - Britain's competition watchdog has launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. The Competition and Markets Authority (CMA) said on Tuesday responses to its consultation from June revealed "substantial support" for a fuller investigation into the matter and how iPhone-maker Apple restricts cloud gaming through its app store. In response to the CMA's June plans, Google had said it would continue to work with the watchdog. | Adds Apple response, CMA comment, details Nov 22 (Reuters) - Britain's competition watchdog has launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. The Competition and Markets Authority (CMA) said on Tuesday responses to its consultation from June revealed "substantial support" for a fuller investigation into the matter and how iPhone-maker Apple restricts cloud gaming through its app store. "Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google," said Sarah Cardell, interim chief executive of the CMA, in a statement. | Adds Apple response, CMA comment, details Nov 22 (Reuters) - Britain's competition watchdog has launched an in-depth investigation into the market dominance of Apple AAPL.O and Google's GOOGL.O mobile browsers, months after the regulator began considering a probe. "Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google," said Sarah Cardell, interim chief executive of the CMA, in a statement. In response to the CMA's June plans, Google had said it would continue to work with the watchdog. | d14ad531-204d-4db2-83b1-23334233ce35 |
18345.0 | 2022-11-22 00:00:00 UTC | 'Boomerang CEOs' don't always work out; Disney hopes this one bucks trend | AAPL | https://www.nasdaq.com/articles/boomerang-ceos-dont-always-work-out-disney-hopes-this-one-bucks-trend | nan | nan | By David Randall
NEW YORK, Nov 22 (Reuters) - Can Walt Disney Co DIS.N bank on another hit sequel?
That appears to be the hope behind the company's surprise decision to bring back former chief executive Bob Iger to replace Bob Chapek. The decision was largely cheered by Wall Street, with Disney's stock gaining more than 6% on Monday to cut its loss to 37% for the year to date.
The move is effective immediately.
During his first tenure from 2005 to 2020, Disney's annualised shareholder returns were more than 14%, well above its rival Comcast Corp CMCSA.O and the broader stock market, and in total in that period the stock rose more than 400%.
Yet analysts and some investors say that a returning CEO repeating their past success is not a given, and the decision to once again hand them the reins may be a sign that a company's culture is sputtering.
"From a governance perspective it's a big red flag," said Brian Frank, whose Frank Funds has owned Disney on and off in the past and currently does not have a position in the company, viewing its valuation as too high. "This is one of the highest- quality companies in the world with the best brands in the world but it shows to me that they're bad at succession planning."
Disney did not return a request for comment for this story.
GAME-CHANGER OR DUD?
Overall, the stock performance of companies led by CEOs who returned for another stint in their former position - so-called boomerang CEOs - was 10.1% lower during their tenures than companies led by chief executives who had not had the job before, according to a 2020 study published in the MIT Sloan Management Review by Christopher Bingham, Bradley Hendricks, Travis Howell, and Kalin Kolev.
Chief among the factors for the poor performance of repeat CEOs were if the executive was a company founder, if they worked in a dynamic or fast-changing industry, and if the company had neglected succession planning, the study found.
Shares of Xerox fell 60% in the year after Paul Allaire returned as CEO in 2000 as the company was unable to adapt to new digital technologies, the study found. Shares of Procter & Gamble Co PG.N, meanwhile, rose about 3% during A.G. Lafley's two-year second stint as CEO, while the broad S&P 500 index rose about 26% over the same time.
Xerox declined comment and P&G did not respond to a request for comment.
Yet there are reasons to think that Disney may have made the right decision in bringing back Iger, Bingham said.
"There might be more reason for optimism relative to some of these other boomerang CEOs as Iger was not the founder, was not gone for too long, and is coming back in with a plan to help succession," he said in an email to Reuters.
Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Jobs famously resumed his position as CEO in 1997 when Apple was near collapse and remade it into the world's most valued company by the time he stepped down again in 2011.
Howard Schultz, who built the Starbucks Corp SBUX.O franchise, was also successful in his second stint. Shares rose more than 1,000% in his tenure between 2008 and 2017.
Starbucks did not comment on this story, but directed Reuters to its earnings results that topped expectations after Schultz’s third term as CEO.
“I think this is a game-changer," said Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, about Disney. Link has owned the stock in the past and is bullish on the name. "This reminds me very much of Starbucks 2.0 or 3.0 with Howard Schultz returning to Starbucks,” Link said. “I think the only thing [Iger] is not great at is finding a successor.”
While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones.
"Iger may have dodged a bullet because the time period when Chapek was CEO was not ideal with the pandemic shutdown of the parks and the shutdown of movie production," Heger said. "But it's not an enviable position to come back in to because there are so many different challenges across the business and industry."
Disney brings back Bob Iger as CEO in surprise move to boost growth
BREAKINGVIEWS-Disney offers an Iger solution to an Iger problem
TIMELINE-Disney's Bob Iger returns to lead post-pandemic revamp
(Reporting by David Randall in New York Editing by Megan Davies and Matthew Lewis)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.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. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Shares of Xerox fell 60% in the year after Paul Allaire returned as CEO in 2000 as the company was unable to adapt to new digital technologies, the study found. "There might be more reason for optimism relative to some of these other boomerang CEOs as Iger was not the founder, was not gone for too long, and is coming back in with a plan to help succession," he said in an email to Reuters. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. That appears to be the hope behind the company's surprise decision to bring back former chief executive Bob Iger to replace Bob Chapek. “I think the only thing [Iger] is not great at is finding a successor.” While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Overall, the stock performance of companies led by CEOs who returned for another stint in their former position - so-called boomerang CEOs - was 10.1% lower during their tenures than companies led by chief executives who had not had the job before, according to a 2020 study published in the MIT Sloan Management Review by Christopher Bingham, Bradley Hendricks, Travis Howell, and Kalin Kolev. “I think the only thing [Iger] is not great at is finding a successor.” While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Chief among the factors for the poor performance of repeat CEOs were if the executive was a company founder, if they worked in a dynamic or fast-changing industry, and if the company had neglected succession planning, the study found. Starbucks did not comment on this story, but directed Reuters to its earnings results that topped expectations after Schultz’s third term as CEO. | 19de56d0-bc9b-41af-a2ae-8f8ddd32e011 |
18346.0 | 2022-11-22 00:00:00 UTC | Better Buy: Apple or Microsoft | AAPL | https://www.nasdaq.com/articles/better-buy%3A-apple-or-microsoft | nan | nan | In today's video we will look at two Technology giants, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which stock is the better buy right now.
Both of these companies combine for over 12% weighting within the S&P 500 and both companies are very well run, but only one of these stocks is the clear buy right now.
Check out this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of Nov. 18, 2022. The video was published on Nov. 21, 2022.
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See the 10 stocks
*Stock Advisor returns as of November 7, 2022
Mark Roussin, CPA has positions in Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
Mark Roussin 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. | In today's video we will look at two Technology giants, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which stock is the better buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. | In today's video we will look at two Technology giants, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which stock is the better buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Microsoft. | In today's video we will look at two Technology giants, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which stock is the better buy right now. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Mark Roussin, CPA has positions in Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In today's video we will look at two Technology giants, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which stock is the better buy right now. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Mark Roussin, CPA has positions in Microsoft. | c7008591-6f16-45b2-8554-aa341692f055 |
18347.0 | 2022-11-22 00:00:00 UTC | 'Boomerang CEOs' don't always work out; Disney hopes this one bucks trend | AAPL | https://www.nasdaq.com/articles/boomerang-ceos-dont-always-work-out-disney-hopes-this-one-bucks-trend-0 | nan | nan | By David Randall
NEW YORK, Nov 22 (Reuters) - Can Walt Disney Co DIS.N bank on another hit sequel?
That appears to be the hope behind the company's surprise decision to bring back former chief executive Bob Iger to replace Bob Chapek. The decision was largely cheered by Wall Street, with Disney's stock gaining more than 6% on Monday to cut its loss to 37% for the year to date.
The move is effective immediately.
During his first tenure from 2005 to 2020, Disney's annualised shareholder returns were more than 14%, well above its rival Comcast Corp CMCSA.O and the broader stock market, and in total in that period the stock rose more than 400%.
Yet analysts and some investors say that a returning CEO repeating their past success is not a given, and the decision to once again hand them the reins may be a sign that a company's culture is sputtering.
"From a governance perspective it's a big red flag," said Brian Frank, whose Frank Funds has owned Disney on and off in the past and currently does not have a position in the company, viewing its valuation as too high. "This is one of the highest- quality companies in the world with the best brands in the world but it shows to me that they're bad at succession planning."
Disney did not return a request for comment for this story.
GAME-CHANGER OR DUD?
Overall, the stock performance of companies led by CEOs who returned for another stint in their former position - so-called boomerang CEOs - was 10.1% lower during their tenures than companies led by chief executives who had not had the job before, according to a 2020 study published in the MIT Sloan Management Review by Christopher Bingham, Bradley Hendricks, Travis Howell, and Kalin Kolev.
Chief among the factors for the poor performance of repeat CEOs were if the executive was a company founder, if they worked in a dynamic or fast-changing industry, and if the company had neglected succession planning, the study found.
Shares of Xerox fell 60% in the year after Paul Allaire returned as CEO in 2000 as the company was unable to adapt to new digital technologies, the study found. Shares of Procter & Gamble Co PG.N, meanwhile, rose about 3% during A.G. Lafley's two-year second stint as CEO, while the broad S&P 500 index rose about 26% over the same time.
Xerox declined comment and P&G did not respond to a request for comment.
Yet there are reasons to think that Disney may have made the right decision in bringing back Iger, Bingham said.
"There might be more reason for optimism relative to some of these other boomerang CEOs as Iger was not the founder, was not gone for too long, and is coming back in with a plan to help succession," he said in an email to Reuters.
Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Jobs famously resumed his position as CEO in 1997 when Apple was near collapse and remade it into the world's most valued company by the time he stepped down again in 2011.
Howard Schultz, who built the Starbucks Corp SBUX.O franchise, was also successful in his second stint. Shares rose more than 1,000% in his tenure between 2008 and 2017.
Starbucks did not comment on this story, but directed Reuters to its earnings results that topped expectations after Schultz’s third term as CEO.
“I think this is a game-changer," said Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, about Disney. Link has owned the stock in the past and is bullish on the name. "This reminds me very much of Starbucks 2.0 or 3.0 with Howard Schultz returning to Starbucks,” Link said. “I think the only thing [Iger] is not great at is finding a successor.”
While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones.
"Iger may have dodged a bullet because the time period when Chapek was CEO was not ideal with the pandemic shutdown of the parks and the shutdown of movie production," Heger said. "But it's not an enviable position to come back in to because there are so many different challenges across the business and industry."
Disney brings back Bob Iger as CEO in surprise move to boost growth
BREAKINGVIEWS-Disney offers an Iger solution to an Iger problem
TIMELINE-Disney's Bob Iger returns to lead post-pandemic revamp
(Reporting by David Randall in New York Editing by Megan Davies and Matthew Lewis)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.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. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Shares of Xerox fell 60% in the year after Paul Allaire returned as CEO in 2000 as the company was unable to adapt to new digital technologies, the study found. "There might be more reason for optimism relative to some of these other boomerang CEOs as Iger was not the founder, was not gone for too long, and is coming back in with a plan to help succession," he said in an email to Reuters. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. That appears to be the hope behind the company's surprise decision to bring back former chief executive Bob Iger to replace Bob Chapek. “I think the only thing [Iger] is not great at is finding a successor.” While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Overall, the stock performance of companies led by CEOs who returned for another stint in their former position - so-called boomerang CEOs - was 10.1% lower during their tenures than companies led by chief executives who had not had the job before, according to a 2020 study published in the MIT Sloan Management Review by Christopher Bingham, Bradley Hendricks, Travis Howell, and Kalin Kolev. “I think the only thing [Iger] is not great at is finding a successor.” While Wall Street is cheering Iger's return, Disney's long-term success will rest on whether he can successfully turn the company's streaming business profitable while managing the decline of its traditional television business and a likely slowdown in its parks division if the economy falls into a recession, said David Heger, an analyst at Edward Jones. | Apple Inc's AAPL.O Steve Jobs is perhaps the best-case scenario of a chief executive returning to their previous company. Chief among the factors for the poor performance of repeat CEOs were if the executive was a company founder, if they worked in a dynamic or fast-changing industry, and if the company had neglected succession planning, the study found. Starbucks did not comment on this story, but directed Reuters to its earnings results that topped expectations after Schultz’s third term as CEO. | 68e291c6-7a4d-4e65-bec5-b25a7f784547 |
18348.0 | 2022-11-22 00:00:00 UTC | Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-3 | nan | nan | The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 sponsored by John Hancock. It has amassed assets over $736.02 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
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.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.24%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
JHML's heaviest allocation is in the Information Technology sector, which is about 22.60% of the portfolio. Its Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
JHML's top 10 holdings account for about 16.6% of its total assets under management.
Performance and Risk
The ETF has lost about -14.33% and is down about -12.72% so far this year and in the past one year (as of 11/22/2022), respectively. JHML has traded between $45.43 and $59.70 during this last 52-week period.
JHML has a beta of 1.01 and standard deviation of 25.10% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 780 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $301.18 billion in assets, SPDR S&P 500 ETF has $375.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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 Blend.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market. | aa0549c3-a65b-4a10-8da8-2c48473d3997 |
18349.0 | 2022-11-22 00:00:00 UTC | Is Now the Right Time to Buy Netflix's Stock? | AAPL | https://www.nasdaq.com/articles/is-now-the-right-time-to-buy-netflixs-stock | nan | nan | Netflix's (NASDAQ: NFLX) business has certainly hit a rough patch, and that's reflected in the stock price. In late 2021, the shares were at nearly $700 but now sell for about 40% of that level.
The company's once-bright growth prospects have seemingly waned due to a variety of reasons, including increased streaming competition from the likes of Apple and Walt Disney. To its credit, management hasn't stood still and has taken steps to outdo these other services.
Will these be enough to increase Netflix's revenue and profitability growth? It's an opportune time to dive into Netflix's fundamentals to see if it's time to buy the shares or take a pass.
Image source: Getty Images.
Subscriber count
Netflix lost subscribers for a couple of straight quarters. It ended 2021 with 221.8 million paid streaming subscribers, which fell to 220.7 million at the end of June. This reversed course in the third quarter, which ended with 223.1 million. Management expects to finish 2022 with 227.6 million subscribers.
Starting in 2023, the company plans to charge account holders extra fees for sharing passwords, which could result in a short-term gain of additional subscribers.
Although Netflix's revenue grew by 5.9% to $7.9 billion, operating expenses outpaced that rate, and the company's operating income shrank by 12.6% to $1.5 billion. Its operating margin contracted by 4.1 percentage points to 19.3%, but management blamed this almost entirely on foreign-currency translations.
Nonetheless, while it's easy to feel pleased by third-quarter results and the optimistic view on subscriber count, the road ahead seems bumpy.
Offering an inferior service
Netflix has been regularly raising prices, including earlier this year. At that time, it increased the monthly rate by $1 to $1.50. In response to pushback, the company has been rolling out a lower-priced, ad-supported subscription.
This plan will have 20% to 40% lower prices than non-ad subscriptions. However, viewers will have the inconvenience of watching commercials. New movies will only have ads at the start of the show, but subscribers will also have to endure them during older content.
Additionally, subscribers to the ad-supported service won't have access to the full lineup of content. It's true that many other streaming services, like Disney's Hulu and Disney+, Warner Bros. Discovery, and Apple either offer or are contemplating a lower-priced ad service. However, that means the competition for cost-conscious viewers and, hence, ad dollars has intensified.
Rich valuation
While Netflix's sharp stock drop this year has caused the price-to-earnings ratio (P/E) to fall to 26 from 60, it remains higher than the S&P 500's 21. Given Netflix's slowing revenue growth and more intense competition, that seems like an expensive valuation.
While it's tempting to invest in Netflix, the once high-flying stock has fallen to Earth. It's hard to imagine the company resuming that kind of growth as viewers face many choices of high-quality content. Diminishing the viewer's experience doesn't seem like the answer.
For those who are contemplating an investment in Netflix's stock, I advise taking a pass.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's once-bright growth prospects have seemingly waned due to a variety of reasons, including increased streaming competition from the likes of Apple and Walt Disney. Starting in 2023, the company plans to charge account holders extra fees for sharing passwords, which could result in a short-term gain of additional subscribers. Nonetheless, while it's easy to feel pleased by third-quarter results and the optimistic view on subscriber count, the road ahead seems bumpy. | The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | 10 stocks we like better than Netflix When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Lawrence Rothman, CFA has no position in any of the stocks mentioned. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | Management expects to finish 2022 with 227.6 million subscribers. Discovery, and Apple either offer or are contemplating a lower-priced ad service. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. | 8f6122e6-a40d-4873-a26d-d8c9b1ddf2fd |
18350.0 | 2022-11-21 00:00:00 UTC | Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-5 | nan | nan | If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $3.62 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
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.55%.
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 29.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.48% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 33.08% 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 lost about -17.90% so far this year and is down about -16.42% in the last one year (as of 11/21/2022). In the past 52-week period, it has traded between $124.31 and $169.35.
The ETF has a beta of 1 and standard deviation of 25.25% 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 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 good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $302.21 billion in assets, SPDR S&P 500 ETF has $378.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR S&P 500 ETF (SPY): ETF Research Reports
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.48% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $3.62 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.48% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.48% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.48% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007. | 637e4f85-1369-4afc-a78c-9bcb0da1fca9 |
18351.0 | 2022-11-21 00:00:00 UTC | After Hours Most Active for Nov 21, 2022 : BEKE, BAC, INFY, EXPD, CSX, AAPL, PAGP, TCOM, AMZN, XPEV, EW, YUMC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-21-2022-%3A-beke-bac-infy-expd-csx-aapl-pagp-tcom-amzn-xpev | nan | nan | The NASDAQ 100 After Hours Indicator is up 1.58 to 11,555.03. The total After hours volume is currently 87,762,287 shares traded.
The following are the most active stocks for the after hours session:
KE Holdings Inc (BEKE) is unchanged at $14.71, with 4,926,528 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $37.31, with 3,755,643 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Infosys Limited (INFY) is unchanged at $19.30, with 3,091,408 shares traded. INFY's current last sale is 96.5% of the target price of $20.
Expeditors International of Washington, Inc. (EXPD) is unchanged at $113.55, with 2,947,122 shares traded. EXPD's current last sale is 117.06% of the target price of $97.
CSX Corporation (CSX) is unchanged at $31.29, with 2,744,398 shares traded. CSX's current last sale is 94.82% of the target price of $33.
Apple Inc. (AAPL) is +0.09 at $148.10, with 2,407,856 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Plains GP Holdings, L.P. (PAGP) is unchanged at $12.74, with 2,233,747 shares traded. As reported by Zacks, the current mean recommendation for PAGP is in the "buy range".
Trip.com Group Limited (TCOM) is unchanged at $27.50, with 2,215,005 shares traded. As reported by Zacks, the current mean recommendation for TCOM is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $92.46, with 2,209,771 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
XPeng Inc. (XPEV) is +0.05 at $7.37, with 2,138,426 shares traded. XPEV's current last sale is 33.81% of the target price of $21.8.
Edwards Lifesciences Corporation (EW) is unchanged at $74.10, with 2,078,449 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
Yum China Holdings, Inc. (YUMC) is unchanged at $52.32, with 1,944,395 shares traded. As reported by Zacks, the current mean recommendation for YUMC is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.09 at $148.10, with 2,407,856 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Bank of America Corporation (BAC) is unchanged at $37.31, with 3,755,643 shares traded. | Apple Inc. (AAPL) is +0.09 at $148.10, with 2,407,856 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for BEKE is in the "buy range". | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.09 at $148.10, with 2,407,856 shares traded. CSX Corporation (CSX) is unchanged at $31.29, with 2,744,398 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.09 at $148.10, with 2,407,856 shares traded. The NASDAQ 100 After Hours Indicator is up 1.58 to 11,555.03. | f7414197-62a4-49ae-aaee-9c2efa918200 |
18352.0 | 2022-11-21 00:00:00 UTC | Carl Icahn holds short position in GameStop - Bloomberg News | AAPL | https://www.nasdaq.com/articles/carl-icahn-holds-short-position-in-gamestop-bloomberg-news | nan | nan | Nov 21 (Reuters) - Activist investor Carl Icahn has a sizeable short position in video game retailer GameStop Corp GME.N, Bloomberg News reported on Monday, citing sources familiar with the matter.
GameStop, which is among the so-called "meme stocks", was popular among retail investors during the pandemic in what came to be known as the "short squeeze".
Short-sellers borrow shares and sell them, seeking to profit by returning them after buying the stock back at a lower price.
Icahn began shorting the stock around January 2021, the report added but did not provide details of the size of Icahn's position.
The stock, which has lost nearly a third of its value so far this year, fell about 9% on Monday.
Short interest in GameStop's stock is very high, with 17.53% of the company's outstanding shares shorted as of Oct. 31, according to Refinitiv data. In comparison, short interests in Apple Inc AAPL.O, the world's largest public company, and Tesla Inc TSLA.O, the world's most valuable auto maker, are 0.65% and is 2.43%, respectively, according to Refinitiv data.
In September, GameStop announced a partnership with Sam Bankman-Fried's FTX US to increase its presence in the cryptocurrency space even as analysts said the partnership was "unlikely to yield meaningful revenue or profit".
Earlier this month, FTX filed for bankruptcy protection in the U.S. in the biggest crypto industry blow up till date.
The retailer executed a four-for-one stock split this year, the stock rose a split-adjusted high of over $120 in Jan. 2021.
Icahn Enterprises did not immediately respond to a Reuters request for comment.
(Reporting by Akash Sriram and Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In comparison, short interests in Apple Inc AAPL.O, the world's largest public company, and Tesla Inc TSLA.O, the world's most valuable auto maker, are 0.65% and is 2.43%, respectively, according to Refinitiv data. Nov 21 (Reuters) - Activist investor Carl Icahn has a sizeable short position in video game retailer GameStop Corp GME.N, Bloomberg News reported on Monday, citing sources familiar with the matter. Short-sellers borrow shares and sell them, seeking to profit by returning them after buying the stock back at a lower price. | In comparison, short interests in Apple Inc AAPL.O, the world's largest public company, and Tesla Inc TSLA.O, the world's most valuable auto maker, are 0.65% and is 2.43%, respectively, according to Refinitiv data. Nov 21 (Reuters) - Activist investor Carl Icahn has a sizeable short position in video game retailer GameStop Corp GME.N, Bloomberg News reported on Monday, citing sources familiar with the matter. Icahn began shorting the stock around January 2021, the report added but did not provide details of the size of Icahn's position. | In comparison, short interests in Apple Inc AAPL.O, the world's largest public company, and Tesla Inc TSLA.O, the world's most valuable auto maker, are 0.65% and is 2.43%, respectively, according to Refinitiv data. Nov 21 (Reuters) - Activist investor Carl Icahn has a sizeable short position in video game retailer GameStop Corp GME.N, Bloomberg News reported on Monday, citing sources familiar with the matter. Icahn began shorting the stock around January 2021, the report added but did not provide details of the size of Icahn's position. | In comparison, short interests in Apple Inc AAPL.O, the world's largest public company, and Tesla Inc TSLA.O, the world's most valuable auto maker, are 0.65% and is 2.43%, respectively, according to Refinitiv data. Icahn began shorting the stock around January 2021, the report added but did not provide details of the size of Icahn's position. Short interest in GameStop's stock is very high, with 17.53% of the company's outstanding shares shorted as of Oct. 31, according to Refinitiv data. | e8ed4d20-430b-4bd6-8e4b-bdd6c3d15d34 |
18353.0 | 2022-11-21 00:00:00 UTC | Disney Minus: The 1 Number Behind Iger's Return, and Why His Encore is No Sure Blockbuster | AAPL | https://www.nasdaq.com/articles/disney-minus%3A-the-1-number-behind-igers-return-and-why-his-encore-is-no-sure-blockbuster | nan | nan | Walt Disney (NYSE: DIS) caught the investing world off-guard over the weekend, with Bob Chapek out as CEO, and the legend he replaced, Bob Iger, back in charge. In this video, Motley Fool contributor Jason Hall breaks things down, makes the case for Disney as a winning investment, and explains why investors should reset their expectations going forward. The reality is, Iger has a harder job in front of him than the last time he was CEO.
*Stock prices used were the morning prices of Nov. 21, 2022. The video was published on Nov. 21, 2022.
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Jason Hall has positions in Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this video, Motley Fool contributor Jason Hall breaks things down, makes the case for Disney as a winning investment, and explains why investors should reset their expectations going forward. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel. | In this video, Motley Fool contributor Jason Hall breaks things down, makes the case for Disney as a winning investment, and explains why investors should reset their expectations going forward. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | In this video, Motley Fool contributor Jason Hall breaks things down, makes the case for Disney as a winning investment, and explains why investors should reset their expectations going forward. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jason Hall has positions in Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | In this video, Motley Fool contributor Jason Hall breaks things down, makes the case for Disney as a winning investment, and explains why investors should reset their expectations going forward. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jason Hall has positions in Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. | 2299da93-5b19-4277-a56e-aefdeb9b432e |
18354.0 | 2022-11-21 00:00:00 UTC | SPY, SDD: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/spy-sdd%3A-big-etf-inflows | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,900,000 units, or a 1.9% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 2%, and Microsoft is higher by about 0.2%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort SmallCap600, which added 50,000 units, for a 37.3% increase in outstanding units.
VIDEO: SPY, SDD: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in morning trading today Apple is off about 2%, and Microsoft is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort SmallCap600, which added 50,000 units, for a 37.3% increase in outstanding units. VIDEO: SPY, SDD: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,900,000 units, or a 1.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort SmallCap600, which added 50,000 units, for a 37.3% increase in outstanding units. VIDEO: SPY, SDD: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,900,000 units, or a 1.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort SmallCap600, which added 50,000 units, for a 37.3% increase in outstanding units. VIDEO: SPY, SDD: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 17,900,000 units, or a 1.9% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 2%, and Microsoft is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares UltraShort SmallCap600, which added 50,000 units, for a 37.3% increase in outstanding units. | dd549768-b31d-47bf-baae-8046e5bde89b |
18355.0 | 2022-11-21 00:00:00 UTC | Why Apple Stock Traded Lower on Monday | AAPL | https://www.nasdaq.com/articles/why-apple-stock-traded-lower-on-monday | nan | nan | What happened
Shares of Apple (NASDAQ: AAPL) traded lower on Monday, slipping as much as 2.4%. When the market closed for the day, the stock was still down 2.2%.
The major market indexes were all lower today, which no doubt helped fuel the stock's decline. Another factor weighing on the tech giant was deteriorating conditions in China.
Numerous media reports suggest that the country is suffering its worst COVID-19 outbreak in months, with tens of thousands of new infections. This could further delay the availability of some of Apple's most popular iPhones during the important holiday season.
So what
China reported a new surge of COVID-19 cases, stoking fears the country's strict "zero-COVID" policy will stay in place for a while longer. While reports vary, the country reported at least two deaths and as many as 26,824 new infections on Sunday, which marks the sixth consecutive day of more than 20,000 and the highest number of daily infections in more than seven months.
This comes just weeks after reports the Chinese government was considering an easing of its strict pandemic-related restrictions designed to slow the spread of the disease. Beijing, China's capital city, has already started to institute new lockdowns in several districts, closing schools, shops, and restaurants.
Now what
Earlier this month, Apple took the unusual step of issuing a press release regarding operations at the assembly plant in Zhengzhou, China. The company said the facility, which works primarily on the iPhone 14 Pro and iPhone 14 Pro Max models, "is currently operating at significantly reduced capacity," due to COVID-19 restrictions. As a result, Apple said it expects "lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products."
This latest outbreak will only exacerbate the issue, which will likely weigh on holiday sales during Apple's fiscal 2023 first quarter, which will end in late December.
For shareholders, this is only a speed bump in the long-term growth story of one of technology's biggest companies. It could mean, however, that the holiday quarter will be a little less merry for Apple investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Apple (NASDAQ: AAPL) traded lower on Monday, slipping as much as 2.4%. So what China reported a new surge of COVID-19 cases, stoking fears the country's strict "zero-COVID" policy will stay in place for a while longer. Now what Earlier this month, Apple took the unusual step of issuing a press release regarding operations at the assembly plant in Zhengzhou, China. | What happened Shares of Apple (NASDAQ: AAPL) traded lower on Monday, slipping as much as 2.4%. The company said the facility, which works primarily on the iPhone 14 Pro and iPhone 14 Pro Max models, "is currently operating at significantly reduced capacity," due to COVID-19 restrictions. As a result, Apple said it expects "lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products." | What happened Shares of Apple (NASDAQ: AAPL) traded lower on Monday, slipping as much as 2.4%. As a result, Apple said it expects "lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products." See the 10 stocks *Stock Advisor returns as of November 7, 2022 Danny Vena has positions in Apple. | What happened Shares of Apple (NASDAQ: AAPL) traded lower on Monday, slipping as much as 2.4%. When the market closed for the day, the stock was still down 2.2%. So what China reported a new surge of COVID-19 cases, stoking fears the country's strict "zero-COVID" policy will stay in place for a while longer. | 1f3cd1d6-5618-4b28-8342-21342e81f8e4 |
18356.0 | 2022-11-21 00:00:00 UTC | 3 Stocks to Avoid This Week | AAPL | https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-53 | nan | nan | Last week was a letdown for investors long the market after a strong rally the week before. The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge.
The S&P 500 experienced only a 0.7% move lower. I was right. I have been correct in 36 of the past 57 weeks, or 63% of the time.
Now let's look at the week ahead. I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Image source: Getty Images.
1. Best Buy
Best Buy's revival a few years ago was a thing of beauty. Now we're seeing that the last major consumer-electronics superstore chain still standing is on wobbly legs.
The retailer reports fresh financials on Tuesday morning, and it won't be pretty. Analysts see revenue clocking in 13% lower than the prior-year's fiscal third quarter. Its profit is expected to be cut in half.
The near-term outlook is uninspiring. Wall Street pros see revenue slipping 11% for the current holiday quarter, as well as the entire fiscal 2023 year that ends in January. Profitability should take a bigger hit. If you're buying Best Buy for that chunky 4.9% yield, that's a dicey proposition when its bottom line is going the wrong way.
Rising costs and the inability of a brick-and-mortar chain to compete on price with bare-boned online merchants are making life hard for Best Buy, again. Now we have a potentially dimming economy setting back demand for consumer electronics.
To be fair, Best Buy's renaissance wasn't that exciting. You have to go back to fiscal 2009 -- 14 years -- to find the last time that this chain delivered top-line gains in the double digits.
2. Luckin Coffee
If you were to construct the perfect stock to avoid in a lab, it would probably look a lot like Luckin Coffee. It's a China-based company at a time when most investors outside of the country are steering clear of the market as geopolitical tensions and anti-capitalism fervor rise.
Let's also not forget that Luckin Coffee is a stock that -- like its hot java -- already burned investors before. You surely remember the accounting scandal of 2020.
Have you checked on Luckin Coffee stock lately? The stock is a 20-bagger off its C-suite drama low. The shares ended this past week within 0.5% of a new two-year high, nearly quadrupling from this-year's springtime bottom. We'll get an update on how it's brewing when it pours a cup of third-quarter results on Tuesday.
Luckin Coffee has done a commendable job turning things around. After years of losses, it was profitable in 2021. Revenue continued to grow.
However, Luckin Coffee's top-line gains have decelerated for four consecutive quarters. It also posted a loss in its previous quarter.
With the Chinese economy slowing as a result of the COVID-19 crisis and alienating international trade partners, it's hard to get excited about Luckin Coffee. It may seem like a low-priced indulgence, but it's a luxury that consumers will avoid if they need to save their money for more-pressing expenses.
3. Apple
Let's wrap-up this-week's list by picking on the country's most valuable company by market cap. I'm a longtime fan and investor in Apple, but I can see why it's a scary stock to hold heading into this particular holiday shopping season. The economy is on iffy footing, credit card debit is rising, and Apple isn't going to be immune from consumers steering clear of big-ticket purchases this season.
Apple held up well when most tech stocks got slammed earlier this year, but the class act of Cupertino is finally proving mortal. It doesn't help that its annual refresh of popular products wasn't overly impressive. With money already tight, it's easy to see consumers ride this year out and see what Apple springs on us in 2023.
Analysts aren't excited. They see revenue and earnings per share rising a mere 3% and 2%, respectively, for the new fiscal year.
It's going to be a bumpy road for some of these investments. If you're looking for safe stocks, you aren't likely to find them in Best Buy, Luckin Coffee, and Apple this week.
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Rick Munarriz has positions in Apple. The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. Rising costs and the inability of a brick-and-mortar chain to compete on price with bare-boned online merchants are making life hard for Best Buy, again. It's a China-based company at a time when most investors outside of the country are steering clear of the market as geopolitical tensions and anti-capitalism fervor rise. | I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. You have to go back to fiscal 2009 -- 14 years -- to find the last time that this chain delivered top-line gains in the double digits. The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. | I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. If you're looking for safe stocks, you aren't likely to find them in Best Buy, Luckin Coffee, and Apple this week. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Best Buy wasn't one of them! | I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. If you're looking for safe stocks, you aren't likely to find them in Best Buy, Luckin Coffee, and Apple this week. That's right -- they think these 10 stocks are even better buys. | 87c0545e-2010-42dc-ac99-196865be05a8 |
18357.0 | 2022-11-21 00:00:00 UTC | The Safest and Riskiest FAANG Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/the-safest-and-riskiest-faang-stocks-to-buy-right-now | nan | nan | The bigger they are, the harder they fall. We've seen the old adage play out in the stock market this year. Some of the worst-performing stocks are tech giants.
In particular, most of the so-called FAANG stocks (which isn't really the best acronym anymore) have plunged much more than the S&P 500. Some of these high-profile stocks appear to be in stronger positions than others after their steep declines. Here are the safest and the riskiest FAANG stocks to buy right now.
The safest
There's a good argument to be made that Apple (NASDAQ: AAPL) ranks as the safest among the FAANG stocks. After all, it's the only member of the group that's outperforming the S&P 500 this year -- albeit by only a tiny margin.
Apple's business continues to hum along, largely unaffected by the macroeconomic uncertainty. The company reported solid revenue and earnings growth in its fiscal 2022 fourth-quarter results last month. Its services business enjoyed a record quarter.
This doesn't mean that Apple couldn't stumble, though. Reasons to be cautious about the stock over the near term include the strong U.S. dollar (because the company makes a big chunk of its revenue in international markets) and the possibility of a recession. But Apple probably deserves the nod as the safest FAANG stock, for now.
However, I think that a strong case could also be made in favor of either Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Amazon (NASDAQ: AMZN) as the safest FAANG stock. The arguments for each of these tech giants are basically the same.
First, both stocks are cheaper than they've been in quite a while. Alphabet stock remains near what can rightfully be called a once-in-a-decade buying opportunity. The same is true for Amazon, with the current sell-off being the greatest for the stock since the Great Recession of late 2007 through mid-2009.
Second, Alphabet's and Amazon's financial positions are rock solid. Their growth is slowing right now, but both companies will be able to easily weather the storm.
Third, the headwinds for Alphabet and Amazon are only temporary, while their long-term prospects are still very good. Alphabet's dominance in search won't disappear. Amazon's e-commerce business will rebound as economic conditions improve. Both should enjoy exceptional growth with their cloud hosting units.
The riskiest
That leaves Meta Platforms (NASDAQ: META) and Netflix (NASDAQ: NFLX) to battle head-to-head as the riskiest FAANG stock. There's a clear "winner" in this category, in my view.
Meta has fallen the most this year, by far, of the five FAANG stocks, and for good reason. The company's advertising business on Facebook and its other social media apps are struggling. At the same time, Meta is spending massively on developing its metaverse platform.
If Meta wasn't making such a huge bet on the metaverse, I don't think it would be the riskiest FAANG stock. On the other hand, if this bet pays off, Meta just might become the biggest of the group over the long term. Such gigantic gambles dramatically increase risk.
What about Netflix? It was the worst-performing FAANG stock for much of the year. However, the company's turnaround has become evident in the second half of 2022.
Probably the biggest factor behind this reversal is that Netflix attracted more subscribers with new content. The latest season of Stranger Things was a huge hit. So was Monster: The Jeffrey Dahmer Story, among others. Netflix's new ad-supported tier could provide a further boost.
Still, Netflix faces intense competition in the streaming market. It doesn't enjoy a moat like Apple, Alphabet, and Amazon do. Meta is riskier, but Netflix isn't totally out of the woods just yet.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet (A shares), Amazon, Apple, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The safest There's a good argument to be made that Apple (NASDAQ: AAPL) ranks as the safest among the FAANG stocks. The company reported solid revenue and earnings growth in its fiscal 2022 fourth-quarter results last month. Reasons to be cautious about the stock over the near term include the strong U.S. dollar (because the company makes a big chunk of its revenue in international markets) and the possibility of a recession. | The safest There's a good argument to be made that Apple (NASDAQ: AAPL) ranks as the safest among the FAANG stocks. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. | The safest There's a good argument to be made that Apple (NASDAQ: AAPL) ranks as the safest among the FAANG stocks. The riskiest That leaves Meta Platforms (NASDAQ: META) and Netflix (NASDAQ: NFLX) to battle head-to-head as the riskiest FAANG stock. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | The safest There's a good argument to be made that Apple (NASDAQ: AAPL) ranks as the safest among the FAANG stocks. If Meta wasn't making such a huge bet on the metaverse, I don't think it would be the riskiest FAANG stock. It doesn't enjoy a moat like Apple, Alphabet, and Amazon do. | bd85c0de-92c3-42e3-bb2e-bed4313d28a2 |
18358.0 | 2022-11-21 00:00:00 UTC | 89% of Warren Buffett's Portfolio Is Invested in These 12 Stocks | AAPL | https://www.nasdaq.com/articles/89-of-warren-buffetts-portfolio-is-invested-in-these-12-stocks | nan | nan | Warren Buffett has overseen some truly jaw-dropping investment gains since becoming CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) more than 57 years ago. Berkshire's Class A shares (BRK.A) have gained more than 3,600,000% since the beginning of 1965 (through Dec. 31, 2021). This is a 120 times greater total return than the broad-based S&P 500, including dividends paid, over the same time frame.
While Buffett's well-documented willingness to hold his investments for many years, if not decades, is a big reason for his success, an oft-overlooked factor that's been responsible for the Oracle of Omaha's outperformance is portfolio concentration. In Buffett's view, diversification is only necessary if you don't know what you're doing.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
This belief is certainly reflected in Berkshire Hathaway's investment portfolio. Despite having stakes in around four dozen securities, just 12 stocks account for 89% of the company's $347.2 billion in invested assets as of Nov. 15, 2022. Take note that the following percentages also include shares owned by Warren Buffett's "secret" portfolio, New England Asset Management.
1. Apple: 39.6% of invested assets
For years, tech stock Apple (NASDAQ: AAPL) has far and away been the top holding for Buffett's company. Apple has an incredibly loyal customer base and has primarily used innovation, not pricing power, to grow its sales and profits. With CEO Tim Cook spearheading a multiyear transition that'll see his company focus on high-margin subscription services and Apple repurchasing a whopping $554 billion worth of its common stock over the past decade, all the appropriate boxes have been checked for the Oracle of Omaha.
2. Bank of America: 11.2%
I'd argue there isn't an industry Buffett prefers to invest in more than bank stocks. Money-center giant Bank of America (NYSE: BAC) sits atop the pack. Buffett's fascination with Bank of America likely has to do with its interest-rate sensitivity. As the Federal Reserve aggressively raises interest rates to combat historically high inflation, BofA's outstanding variable-rate loans should bring in billions of dollars in added interest income each year. Like Apple, it also has a shareholder-friendly capital-return program.
3. Chevron 9.2%
Warren Buffett and his secret portfolio have piled into oil stock Chevron (NYSE: CVX) since 2022 began. Persistent issues with the global energy supply chain tied to the COVID-19 pandemic and Russia's invasion of Ukraine should provide a sustained lift to energy commodity prices. What's more, Chevron is an integrated energy company, which means it's well positioned, with its pipelines, chemical plants, and refineries, to take advantage of any weakness in crude oil or natural gas prices.
4. Coca-Cola: 7%
Beverage stock Coca-Cola (NYSE: KO) is Berkshire Hathaway's longest continuously held stock (34 years). Though it's not the growth story it once was, Coca-Cola continues to benefit from superior marketing and customer engagement, as well as geographic diversity. With the exception of Cuba, North Korea, and Russia, Coke is operating in every other country right now. This enables it to generate predictable cash flow in developed countries while also boosting its organic growth potential in faster-growing emerging markets.
5. American Express: 6.7%
Credit-services provider American Express (NYSE: AXP) is Buffett's second-longest-held stock (29 years). AmEx is a company that benefits immensely from sustained periods of expansion. It's able to generate revenue from merchant fees and collect interest income and fees from its cardholders. It's also been quite successful in courting affluent clientele. People with higher incomes are less likely to alter their spending habits or fail to pay their bills during minor economic downturns.
Image source: Getty Images.
6. Occidental Petroleum: 4.2%
In addition to building a large stake in Chevron, Buffett and his team have gobbled up shares of oil and gas stock Occidental Petroleum (NYSE: OXY). Occidental has a lot of upstream drilling exposure, meaning it'll be able to generate boatloads of operating cash flow if oil and gas prices remain elevated. Over the last five quarters, Occidental has reduced its net debt by $14.9 billion. But similar to Chevron, Occidental is also an integrated energy company and, therefore, has some level of hedges in place if oil and gas prices decline.
7. Kraft Heinz: 3.5%
Packaged foods company Kraft Heinz (NASDAQ: KHC) may be the Oracle of Omaha's most disappointing current investment. Although Kraft enjoyed a modest organic growth resurgence during the pandemic as people chose to eat at home more often, the company's balance sheet remains weighed down by a lot of goodwill (i.e., overpaying for previous acquisitions) and a sizable debt position. This makes reinvesting in its businesses difficult.
8. Moody's: 2.1%
Credit-ratings agency Moody's (NYSE: MCO) is another longtime holding (21 years) of Berkshire Hathaway. An extended period of low lending rates since 2008 kept Moody's credit division busy assessing the quality of newly issued/outstanding debt. But with lending rates climbing, it's Moody's Analytics that'll be picking up the slack. The risk management and research tools offered by Moody's Analytics should come in handy for businesses during an uncertain economic environment.
9. Taiwan Semiconductor Manufacturing Company: 1.4%
The newest addition and biggest buy during the third quarter for Warren Buffett's company is semiconductor stock Taiwan Semiconductor Manufacturing Company (NYSE: TSM), or TSMC. Buffett buying tech stocks is a rare event. But the important connection here is that TSMC is the sole supplier of the silicon processors Apple uses in all of its products. If Buffett loves Apple, it's only logical that he should be very optimistic about its key chip supplier.
10. BYD: 1.3%
Bet you didn't realize that China-based electric vehicle (EV) manufacturer BYD (OTC: BYDD.F) was a top 10 holding for Buffett. By 2035, the China Society of Automotive Engineers predicts that more than 50% of all new vehicle sales in the country will run on alternative energy (virtually all of which will be EVs). Perhaps most impressive, BYD outsold EV kingpin Tesla in the second quarter, with more than 354,000 EVs shipped. There's little question that the Oracle of Omaha snagged a winning investment with BYD.
11. Activision Blizzard: 1.3%
Although Warren Buffett is known for his long-term investing prowess, he's made no secret that his company's stake in gaming stock Activision Blizzard (NASDAQ: ATVI) is entirely for arbitrage purposes. Microsoft (NASDAQ: MSFT) made an all-cash offer of $95/share to acquire Activision in January. If the deal were to be complete, Activision would deliver 29% upside from where it closed on Nov. 15. However, with regulators looking into the deal, it's no certainty that Microsoft will increase its gaming industry exposure or be able to further its metaverse ambitions.
12. HP: 1.1%
Last but not least is personal computing (PC) and printing solutions specialist HP (NYSE: HPQ). Even though HP's best growth days are in the rearview mirror, PC sales generate highly predictable cash flow, which has allowed the company to increase its dividend, as well as repurchase more than $1 billion worth of its common stock for eight consecutive quarters (and counting). With a forward-year price-to-earnings ratio of less than eight, there would appear to be a relatively safe floor beneath HP stock.
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Bank of America and American Express 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 Activision Blizzard, Apple, BYD, Berkshire Hathaway (B shares), HP, Microsoft, Moody's, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: 39.6% of invested assets For years, tech stock Apple (NASDAQ: AAPL) has far and away been the top holding for Buffett's company. With CEO Tim Cook spearheading a multiyear transition that'll see his company focus on high-margin subscription services and Apple repurchasing a whopping $554 billion worth of its common stock over the past decade, all the appropriate boxes have been checked for the Oracle of Omaha. Although Kraft enjoyed a modest organic growth resurgence during the pandemic as people chose to eat at home more often, the company's balance sheet remains weighed down by a lot of goodwill (i.e., overpaying for previous acquisitions) and a sizable debt position. | Apple: 39.6% of invested assets For years, tech stock Apple (NASDAQ: AAPL) has far and away been the top holding for Buffett's company. Taiwan Semiconductor Manufacturing Company: 1.4% The newest addition and biggest buy during the third quarter for Warren Buffett's company is semiconductor stock Taiwan Semiconductor Manufacturing Company (NYSE: TSM), or TSMC. The Motley Fool has positions in and recommends Activision Blizzard, Apple, BYD, Berkshire Hathaway (B shares), HP, Microsoft, Moody's, Taiwan Semiconductor Manufacturing, and Tesla. | Apple: 39.6% of invested assets For years, tech stock Apple (NASDAQ: AAPL) has far and away been the top holding for Buffett's company. Taiwan Semiconductor Manufacturing Company: 1.4% The newest addition and biggest buy during the third quarter for Warren Buffett's company is semiconductor stock Taiwan Semiconductor Manufacturing Company (NYSE: TSM), or TSMC. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Apple: 39.6% of invested assets For years, tech stock Apple (NASDAQ: AAPL) has far and away been the top holding for Buffett's company. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Activision Blizzard, Apple, BYD, Berkshire Hathaway (B shares), HP, Microsoft, Moody's, Taiwan Semiconductor Manufacturing, and Tesla. | 962490ff-4065-437a-b0e9-dfb5457c1a09 |
18359.0 | 2022-11-21 00:00:00 UTC | 7 Must-Own Safe Havens as Market Selloff Accelerates | AAPL | https://www.nasdaq.com/articles/7-must-own-safe-havens-as-market-selloff-accelerates | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Safe haven investments are a great way to lower risk over the long haul. Companies with consistent revenue and earnings tend to be more stable and help significantly lower risk during volatile market conditions. They are a great way to diversify your portfolio and protect your investments during market turbulence. You can find safe havens by looking for companies with a history of consistent growth, strong financials, and a history of paying dividends.
Given the current market conditions, investors must carefully monitor their exposure to risk and make sure that their portfolios are diversified. The stock market has taken a hammering this year, and several high-value stocks have plunged to record lows. Many safe havens are now trading at reasonable valuations and can allow investors to marginalize their risk in the current downturn. With that said, let’s look at seven safe havens you should gain exposure to in the current market downturn.
Symbol Company Price
KO Coca-Cola $61.14
JPM JPMorgan Chase $133.84
JNJ Johnson & Johnson $176.20
AAPL Apple $151.29
KHC Kraft Heinz $38.10
SQM Sociedad Quimica Y Minera $90.23
MMI Marcus & Millichap $36.20
Coca-Cola (KO)
Source: monticello / Shutterstock
Some stocks are more reliable than others, and few companies are more reliable than Coca-Cola (NYSE:KO). Its products are in demand regardless of season or economic conditions. Hence, it’s ideal for those looking for more stability in their portfolio. And while its share price may not always rise rapidly, it is unlikely to drop dramatically either.
Perhaps its greatest strength is its pricing power, which is especially relevant in the current inflationary environment. Moreover, the firm has a fortress of a balance sheet, with more than $10 billion in its cash till. The diversity of its product offerings has helped its revenue and earnings growth, reducing dependency on its flagship carbonated beverages. More importantly, it’s a dividend king for investors, having increased its payout for the last 59 consecutive years.
JPMorgan Chase (JPM)
Source: Daryl L / Shutterstock.com
JPMorgan Chase (NYSE:JPM) is the largest bank in the world, and its third-quarter earnings report demonstrates the company’s strength. JPMorgan reports that consumers and businesses are holding up remarkably well despite the challenges. This is good news for investors, as the current market downturn is unlikely to impact the bank’s stellar dividend profile. It yields nearly 3%, which should keep them ahead of long-term inflation.
JPM boasts a wide moat built from technical efficiency, effective capital expenditure management, and cost advantages. It maintains an integrated set of financial franchises that operate powerful product lines providing massive scope and scale for the business. Moreover, the firm is poised to benefit from rising interest rates, making it a sound investment in the financial space. JPM stock is well-positioned to weather any challenges that may arise in the future.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Johnson & Johnson (NYSE:JNJ) is the world’s largest pharma business offering investors a growing dividend and healthy incremental upside. Its company has grown its top line by single-digit margins over the past several years, making it one of the most stable businesses in its niche. Sales of its coronavirus vaccine and related products brought in a ton of money for the firm, positioning it incredibly well for the future.
In ushering in the next era of growth for the business, JNJ is focused on picking up other pharma companies. Moreover, it’s focused on spinning off its consumer business and growing sales from its pharmaceutical division to a spectacular $60 billion by 2025. Given its track record in the past, I would bet on JNJ to continue growing its business at a healthy pace for the foreseeable future. Also, the stock yields a robust 2.75% dividend yield, which makes it a stellar investment in the space.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) sits at the Mount Rushmore of tech companies, with a market cap of over $2.2 trillion. With iconic products like the iPhone, iPad, and MacBook, Apple has cemented itself as a leader in the tech industry. Thanks to its innovative products, strong brand loyalty, and incredible marketing efforts, there’s no doubt that Apple remains the pick of the tech stocks at this time.
While its competitors have faltered in the current economic environment, the tech giant continues to post extraordinary results. It generated a record $90.1 billion in sales last quarter, with iPhone sales jumping almost 10% year-over-year. Hence, AAPL is an ideal choice for investors for its stability in an otherwise volatile market. Also, it offers a dividend of 23 cents which its management continues to grow at a healthy pace each year. With multiple growth catalysts in motion in fintech, streaming, advertising, and whatnot, AAPL stock is a no-brainer investment.
Kraft Heinz (KHC)
Source: Casimiro PT / Shutterstock.com
Kraft Heinz (NASDAQ:KHC) is an ideal investment for those looking for safe consumer staples stocks. The company owns several recognizable brands, including HP Brands, Jell-O, Oscar Mayer, and others. These brands have strong pricing power, which enables Kraft Heinz to continue growing its dividend even in tough economic times. In addition, the company has a history of conservative financial management, which has helped it weather periods of market turmoil.
Though it faces substantial headwinds, its business has proven to be remarkably resilient, exhibiting strong pricing power. Moreover, its EBITDA and net income margins are at a stellar 19.1% and 4.7% for the trailing-twelve months. Hence, Kraft Heinz is an attractive investment for risk-averse investors seeking exposure to the consumer staples sector.
Sociedad Quimica Y Minera (SQM)
Source: madamF / Shutterstock.com
Sociedad Quimica Y Minera (NYSE:SQM) is a Chilean mining giant involved in producing potassium, lithium, and other chemicals and minerals. Its lithium segment, in particular, has witnessed robust demand on the back of the rampant growth in the electric vehicles industry. The low-cost producer has increased its output at a superb pace to position itself as a juggernaut in the space. Also, it offers a generous 6.6% dividend yield to investors.
2022 has been an incredible year for the business, where lithium prices have risen rapidly to new heights. Consequently, SQM and its peers have posted record earnings in recent quarters. SQM recently posted its third quarter results, where its sales increased by a whopping 347.4% from the prior-year period. Moreover, net income for the nine months that ended in September shot up by 944%. Hence, the firm is in a pole position to benefit from the strength in the lithium market for years to come.
Marcus & Millichap (MMI)
Source: tokar / Shutterstock
Marcus & Millichap (NYSE:MMI) is a leading real estate and mortgage brokerage firm that has witnessed tremendous growth in the last five years. It operates a profitable enterprise, and its robust competitive positioning has helped improve its financial metrics across the board. The firm is a trusted partner for multiple high-value clients, positioned for continued growth and success.
The company derives the bulk of its sales from real estate brokerage commissions. Moreover, it has four main segments based on property values, the most popular of which has been its private client segment. The segment covers properties priced between $1 million and $10 million, with remarkably high asset turnover rates.
Furthermore, the firm has an effective shareholder rewards program. It recently announced plans to buy back shares up to $70 million in value.
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.
The post 7 Must-Own Safe Havens as Market Selloff Accelerates 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. | Symbol Company Price KO Coca-Cola $61.14 JPM JPMorgan Chase $133.84 JNJ Johnson & Johnson $176.20 AAPL Apple $151.29 KHC Kraft Heinz $38.10 SQM Sociedad Quimica Y Minera $90.23 MMI Marcus & Millichap $36.20 Coca-Cola (KO) Source: monticello / Shutterstock Some stocks are more reliable than others, and few companies are more reliable than Coca-Cola (NYSE:KO). Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) sits at the Mount Rushmore of tech companies, with a market cap of over $2.2 trillion. Hence, AAPL is an ideal choice for investors for its stability in an otherwise volatile market. | Symbol Company Price KO Coca-Cola $61.14 JPM JPMorgan Chase $133.84 JNJ Johnson & Johnson $176.20 AAPL Apple $151.29 KHC Kraft Heinz $38.10 SQM Sociedad Quimica Y Minera $90.23 MMI Marcus & Millichap $36.20 Coca-Cola (KO) Source: monticello / Shutterstock Some stocks are more reliable than others, and few companies are more reliable than Coca-Cola (NYSE:KO). Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) sits at the Mount Rushmore of tech companies, with a market cap of over $2.2 trillion. Hence, AAPL is an ideal choice for investors for its stability in an otherwise volatile market. | Symbol Company Price KO Coca-Cola $61.14 JPM JPMorgan Chase $133.84 JNJ Johnson & Johnson $176.20 AAPL Apple $151.29 KHC Kraft Heinz $38.10 SQM Sociedad Quimica Y Minera $90.23 MMI Marcus & Millichap $36.20 Coca-Cola (KO) Source: monticello / Shutterstock Some stocks are more reliable than others, and few companies are more reliable than Coca-Cola (NYSE:KO). Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) sits at the Mount Rushmore of tech companies, with a market cap of over $2.2 trillion. Hence, AAPL is an ideal choice for investors for its stability in an otherwise volatile market. | Symbol Company Price KO Coca-Cola $61.14 JPM JPMorgan Chase $133.84 JNJ Johnson & Johnson $176.20 AAPL Apple $151.29 KHC Kraft Heinz $38.10 SQM Sociedad Quimica Y Minera $90.23 MMI Marcus & Millichap $36.20 Coca-Cola (KO) Source: monticello / Shutterstock Some stocks are more reliable than others, and few companies are more reliable than Coca-Cola (NYSE:KO). Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) sits at the Mount Rushmore of tech companies, with a market cap of over $2.2 trillion. Hence, AAPL is an ideal choice for investors for its stability in an otherwise volatile market. | 44ba7204-458d-4a19-927a-5380a77f457a |
18360.0 | 2022-11-21 00:00:00 UTC | Should Invesco QQQ (QQQ) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-invesco-qqq-qqq-be-on-your-investing-radar-4 | nan | nan | Launched on 03/10/1999, the Invesco QQQ (QQQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $160.91 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.69%.
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 51.90% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 52.93% of total assets under management.
Performance and Risk
QQQ seeks to match the performance of the NASDAQ-100 Index before fees and expenses. The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
The ETF has lost about -28.72% so far this year and is down about -28.61% in the last one year (as of 11/21/2022). In the past 52-week period, it has traded between $260.49 and $403.48.
The ETF has a beta of 1.09 and standard deviation of 29.28% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco QQQ carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQ is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. While iShares Russell 1000 Growth ETF has $60.27 billion in assets, Vanguard Growth ETF has $70.93 billion. IWF has an expense ratio of 0.18% and VUG charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $160.91 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco QQQ carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 03/10/1999, the Invesco QQQ (QQQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market. | 9d292960-1487-4bf1-8dd0-06c54b042e71 |
18361.0 | 2022-11-20 00:00:00 UTC | TSMC planning advanced chip production in Arizona, says company's founder | AAPL | https://www.nasdaq.com/articles/tsmc-planning-advanced-chip-production-in-arizona-says-companys-founder | nan | nan | By Sarah Wu
TAIPEI, Nov 21 (Reuters) - Taiwanese chipmaker TSMC is planning to produce chips with advanced 3-nanometre technology at its new factory in the U.S. state of Arizona but the plans are not completely finalised yet, the company's founder Morris Chang said on Monday.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona.
Last year, Reuters reported TSMC's plans to build more chipmaking factories in Arizona, including discussions about whether its next plant should be more advanced which could make chips with 3-nanometer technology compared to the slower, less-efficient 5-nanometer chips that will be churned out when the facility begins production.
Chang, speaking to reporters in Taipei after returning from the APEC summit in Thailand, said the 3-nanometre plant would be located at the same Arizona site as the 5-nanometre plant.
"Three-nanometre, TSMC right now has a plan, but it has not been completely finalised," said Chang, who has retired from TSMC but remains influential in the company and the broader chip industry.
"It has almost been finalised - in the same Arizona site, phase two. Five-nanometre is phase one, 3-nanometre is phase two."
TSMC, Asia's most valuable listed company, declined to comment.
The company is holding a "tool-in" ceremony in Arizona on Dec. 6.
Chang said he would be attending, along with TSMC customers and suppliers and U.S. Commerce Secretary Gina Raimondo.
Chang added that U.S. President Joe Biden has also been invited, but that he didn't know if he would be going.
(Reporting by Sarah Wu and Ben Blanchard; Editing by Edmund Klamann and Muralikumar Anantharaman)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. By Sarah Wu TAIPEI, Nov 21 (Reuters) - Taiwanese chipmaker TSMC is planning to produce chips with advanced 3-nanometre technology at its new factory in the U.S. state of Arizona but the plans are not completely finalised yet, the company's founder Morris Chang said on Monday. Last year, Reuters reported TSMC's plans to build more chipmaking factories in Arizona, including discussions about whether its next plant should be more advanced which could make chips with 3-nanometer technology compared to the slower, less-efficient 5-nanometer chips that will be churned out when the facility begins production. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. By Sarah Wu TAIPEI, Nov 21 (Reuters) - Taiwanese chipmaker TSMC is planning to produce chips with advanced 3-nanometre technology at its new factory in the U.S. state of Arizona but the plans are not completely finalised yet, the company's founder Morris Chang said on Monday. Last year, Reuters reported TSMC's plans to build more chipmaking factories in Arizona, including discussions about whether its next plant should be more advanced which could make chips with 3-nanometer technology compared to the slower, less-efficient 5-nanometer chips that will be churned out when the facility begins production. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. By Sarah Wu TAIPEI, Nov 21 (Reuters) - Taiwanese chipmaker TSMC is planning to produce chips with advanced 3-nanometre technology at its new factory in the U.S. state of Arizona but the plans are not completely finalised yet, the company's founder Morris Chang said on Monday. Last year, Reuters reported TSMC's plans to build more chipmaking factories in Arizona, including discussions about whether its next plant should be more advanced which could make chips with 3-nanometer technology compared to the slower, less-efficient 5-nanometer chips that will be churned out when the facility begins production. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. "Three-nanometre, TSMC right now has a plan, but it has not been completely finalised," said Chang, who has retired from TSMC but remains influential in the company and the broader chip industry. "It has almost been finalised - in the same Arizona site, phase two. | 1887b954-9912-43c9-bb6f-bf450b41b603 |
18362.0 | 2022-11-20 00:00:00 UTC | 7 Top-Rated Large-Cap Stocks to Buy and Hold | AAPL | https://www.nasdaq.com/articles/7-top-rated-large-cap-stocks-to-buy-and-hold-1 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Large-cap stocks are always great to have in a portfolio. These companies are some of the biggest and best-known stocks in the market. That makes finding the best large-cap stocks a worthy exercise.
Of course, in this market, it can be a challenge to identify the best large-cap stocks. With the Dow Jones Industrial Average down more than 16% and other major indices down more than that, you just can’t throw darts at a board to find your winners.
For this list, I use my Portfolio Grader exclusive tool to find the best large-cap stocks to buy and hold.
The Portfolio Grader assigns stocks a letter grade based on fundamentals such as sales growth and operating margin. And its factors in buying pressure and other quantitative factors that help predict a stock’s future performance.
Here are seven large-cap stocks to buy and hold that get strong ratings from the Portfolio Grader.
ELV Elevance Health $495.32
WMT Walmart $150.23
AAPL Apple $151.29
RTX Raytheon Technologies $95.36
QCOM Qualcomm $123.85
MELI MercadoLibre $962.08
JNJ Johnson & Johnson $176.20
Elevance Health (ELV)
Source: Valeri Potapova / Shutterstock.com
Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. All and all, it’s one of the top-rated large-cap stocks to make a long-term holding.
Although it’s still moving higher, as the market pulls back, ELV stock trades at a favorable valuation (15x forward earnings). It can easily sustain this earnings multiple, as it’s expected to continue growing its earnings per share by around 12.8% next year, and by about 13.6% in 2024.
Elevance could continue to climb, in tandem with increased EPS. Its current forward yield of 1.05% may seem tiny, yet in time, it could grow to become mighty. Its low payout ratio (15.7%) leaves ample room for dividend growth.
This stock earns an “A” rating in my Portfolio Grader.
Walmart (WMT)
Source: Sundry Photography / Shutterstock.com
With about 10,500 stores and clubs around the world, Walmart (NYSE:WMT) is one of the biggest retailers on the planet. It’s one of the most successful.
WMT stock is down about 7% on the year. That’s nothing to get excited about until you consider that competitor Target (NYSE:TGT) is down 32% so far this year. Walmart’s biggest competitor in the e-commerce space, Amazon (NASDAQ:AMZN) is down 33% on the year.
After a rough first quarter in which Walmart both failed to meet expectations and lowered its full-year guidance, Walmart is enjoying a bit of a resurgence. Q2 results was better than anticipated, beating expectations on both the top and bottom lines.
Walmart reaffirmed its outlook for the rest of the year, which should give investors some confidence.
Walmart stock has a “B” rating in the Portfolio Grader.
Apple (AAPL)
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If you want to talk about a large-cap stock to buy and hold, they don’t get much bigger than Apple (NASDAQ:AAPL), which carries a market capitalization of $2.3 trillion.
The smartphone maker recently rolled out its iPhone 14 – smartly priced at an affordable $799 – as well as new versions of its Airpods Pro and Apple Watch.
Apple is a great stock because it’s a great company that continues to churn out products that are in high demand.
Apple has more than a 55% share of the U.S. smartphone market. Its annual rollout of upgraded smartphones and other products has become a must-watch event for both Wall Street and Apple fans.
Granted, AAPL stock has been a disappointment so far this year, down nearly 19% in 2022, but the company is doing a credible job of managing expectations.
Apple gets a “B” rating in the Portfolio Grader.
Raytheon Technologies (RTX)
Source: JHVEPhoto / Shutterstock.com
Defense company Raytheon Technologies (NYSE:RTX) is having a solid year in the scheme of things.
While most of the market is in the red, defense conglomerates like Raytheon are managing to hold their own – and even gain a little in stock price.
Raytheon, the parent of Collins Aerospace and Pratt & Whitney, is a missiles and defense manufacturer.
It partnered with Lockheed Martin (NYSE:LMT) to make Javelin anti-tank missiles that Ukraine is using to defend itself from Russian forces. It also makes the Stinger anti-aircraft missiles that Ukraine is using in the conflict.
The need for military equipment high – and will likely keep contractors like Raytheon busy.
RTX stock has a “B” rating in the Portfolio Grader.
Qualcomm (QCOM)
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Qualcomm (NASDAQ:QCOM) is in an enviable position as the nation converts to 5G technology.
Qualcomm actually owns several patents that are critical to the manufacturing of semiconductors that make 5G wireless technology possible.
The fifth-generation mobile network is a great place to invest. It provides higher multi-gigabit peak data speeds and better reliability to give mobile users the same streaming experience as someone using an ultra-fast wired connection.
That has a lot of great applications, including for the growth of smart cities, improved streaming video, better virtual meetings and medical appointments, and even improved experiences for virtual reality, sports betting and gaming.
QCOM stock is killing it in its earnings reports. For the third quarter, revenue of $10.93 billion beat expectations of $10.85 billion, and EPS of $2.96 was better than expectations for $2.87.
QCOM stock has a rosy future and carries a “B” rating in the Portfolio Grader.
MercadoLibre (MELI)
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When you think of MercadoLibre (NASDAQ:MELI), you can probably think about Amazon, but in Latin America.
MercadoLibre operates the largest e-commerce and digital payments systems in Latin America, operating in 18 countries. Its platforms include Mercado Libre, Mercado Pago (a digital payments platform) and a Mercado credit service.
Like Amazon, MercadoLibre has had a rough 2022, down nearly 40%. Even taking those losses into account, MELI stock has five-year growth of 248%, which is much better than the 138% growth of AMZN stock over the same period.
With the stock price down big but revenue continuing to roll in, MELI appears to be a compelling buy. It has a “B” rating in the Portfolio Grader.
Johnson & Johnson (JNJ)
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Founded in 1886, Johnson & Johnson (NYSE:JNJ) makes consumer packaged goods, pharmaceuticals, medical devices, and more.
All of those products are must-haves for consumers – which means that even when inflation is up and discretionary income is squeezed, people will need to buy JNJ products first. And that’s just one reason why JNJ, with a market capitalization of $441 billion, is outperforming the market. JNJ is down only 2% in 2022.
Earnings are solid as well, with Q3 revenue of $23.79 billion better than analysts’ expectations of $23.43 billion. EPS of $2.55 was 6 cents per share better than analysts’ expectations.
On top of that, JNJ provides a solid dividend yield of 2.7%. That helps push JNJ to a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held AAPL stock.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ELV Elevance Health $495.32 WMT Walmart $150.23 AAPL Apple $151.29 RTX Raytheon Technologies $95.36 QCOM Qualcomm $123.85 MELI MercadoLibre $962.08 JNJ Johnson & Johnson $176.20 Elevance Health (ELV) Source: Valeri Potapova / Shutterstock.com Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If you want to talk about a large-cap stock to buy and hold, they don’t get much bigger than Apple (NASDAQ:AAPL), which carries a market capitalization of $2.3 trillion. Granted, AAPL stock has been a disappointment so far this year, down nearly 19% in 2022, but the company is doing a credible job of managing expectations. | ELV Elevance Health $495.32 WMT Walmart $150.23 AAPL Apple $151.29 RTX Raytheon Technologies $95.36 QCOM Qualcomm $123.85 MELI MercadoLibre $962.08 JNJ Johnson & Johnson $176.20 Elevance Health (ELV) Source: Valeri Potapova / Shutterstock.com Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If you want to talk about a large-cap stock to buy and hold, they don’t get much bigger than Apple (NASDAQ:AAPL), which carries a market capitalization of $2.3 trillion. Granted, AAPL stock has been a disappointment so far this year, down nearly 19% in 2022, but the company is doing a credible job of managing expectations. | ELV Elevance Health $495.32 WMT Walmart $150.23 AAPL Apple $151.29 RTX Raytheon Technologies $95.36 QCOM Qualcomm $123.85 MELI MercadoLibre $962.08 JNJ Johnson & Johnson $176.20 Elevance Health (ELV) Source: Valeri Potapova / Shutterstock.com Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If you want to talk about a large-cap stock to buy and hold, they don’t get much bigger than Apple (NASDAQ:AAPL), which carries a market capitalization of $2.3 trillion. Granted, AAPL stock has been a disappointment so far this year, down nearly 19% in 2022, but the company is doing a credible job of managing expectations. | ELV Elevance Health $495.32 WMT Walmart $150.23 AAPL Apple $151.29 RTX Raytheon Technologies $95.36 QCOM Qualcomm $123.85 MELI MercadoLibre $962.08 JNJ Johnson & Johnson $176.20 Elevance Health (ELV) Source: Valeri Potapova / Shutterstock.com Formerly known as Anthem, Elevance Health (NYSE:ELV) is the largest for-profit company providing health insurance under the Blue Cross Blue Shield brand. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If you want to talk about a large-cap stock to buy and hold, they don’t get much bigger than Apple (NASDAQ:AAPL), which carries a market capitalization of $2.3 trillion. Granted, AAPL stock has been a disappointment so far this year, down nearly 19% in 2022, but the company is doing a credible job of managing expectations. | 916fa068-16a7-405d-9afc-e0d3342b10e1 |
18363.0 | 2022-11-20 00:00:00 UTC | 3 Robinhood Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/3-robinhood-stocks-to-buy-and-hold-forever-4 | nan | nan | In much of 2020 and 2021, a mention of "Robinhood stocks" may have conjured up images of meme stocks that were making insane -- and mostly short-lived -- gains in the market.
Now investors that use the Robinhood Markets (NASDAQ: HOOD) online trading platform appear to be shifting their focus to more stable companies, likely as the broad market sell-off of the past year caused many investors to take a more cautious approach to where they put their remaining money.
For investors looking for a few great companies to give further consideration to from the current list of most popular stocks among Robinhood users, look no further than Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). These three Robinhood stocks are worth consideration as buy-and-hold-forever investments.
Image source: Getty Images.
1. Tesla is leading the shift to EVs
There's no getting around the fact that Tesla's stock took a turn for the worst in 2022. The electric vehicle (EV) maker's share price has tumbled roughly 49% since the start of the year as some investors have left the once red-hot EV market. And there are certainly some hurdles Tesla faces. Supply chain issues, rising material costs, and CEO Elon Musk's current focus on his newly acquired Twitter purchase are all affecting Tesla's near-term share price.
But zoom out and you'll see a clearer picture of the company. Tesla is still the leading EV manufacturer in the world, and in the third quarter (ending Sept. 30), the company's production continued chugging along -- rising 42% year over year to 343,830 vehicles produced.
Tesla is on track for a 2 million-vehicle production run rate in 2023, which helps it take another step toward achieving Musk's goal of producing 20 million vehicles per year by 2030. Earnings are moving in the right direction as well, as non-GAAP (adjusted) earnings per share climbed 69% in the quarter to $1.05.
Tesla's stock isn't cheap, with shares trading at about 55 times the company's earnings. But the current price is far less expensive than the stock's P/E ratio of 344 this time last year.
Investors will need to be patient with some of the EV industry's current volatility. But with Tesla already an electric vehicle leader, production continuing to ramp up, and the company expanding its profits, this EV stock still looks like a good long-term buy.
2. Amazon still has a lot of irons in the fire
Another popular stock with the Robinhood crowd is Amazon and its massive e-commerce business. Like many other stocks this year, Amazon's share price took a significant hit, sliding 43.8% in 2022.
But don't let the short-term deep drop steer you away from the company's long-term opportunity. In addition to being a leading e-commerce juggernaut, the company's Amazon Web Services (AWS) is a leading cloud computing platform. AWS brings the vast majority of Amazon's profits, and in the third quarter (ending on Sept. 30) the segment's operating income rose 10% year over year to $5.4 billion.
And last but not least, Amazon also has a rapidly expanding advertising business that is now the third-largest in the digital ad space, behind just Alphabet's Google and Meta Platforms.
Amazon's ad revenue spiked 25% year over year in the most recent quarter to $9.5 billion. Considering that the U.S. digital advertising market will reach $315 billion market by 2025 -- up from $240 billion this year -- Amazon could continue to capture more revenue as it expands.
Like Tesla, Amazon's price-to-earnings ratio of 86 isn't cheap, but with the company's current lead in e-commerce and cloud computing, and its expanding advertising segment, there's still plenty of room for Amazon to grow.
3. Apple is still a tech winner
Apple may not be as exciting of an investment as Tesla or Amazon, but if you're looking for some stability in your portfolio it's still a great investment. Sure, Apple's stock slid a bit over the past year -- it's down 1.3% over the past 12 months -- but it hasn't experienced the large 15.6% decline of the S&P 500 over the same timeframe.
The lack of volatility may be what initially draws some Robinhood investors to Apple's stock, but it's the company's consistent growth that keeps them there. In the company's fourth quarter (ended on Sept. 24) Apple's sales increased 8% from the year-ago quarter to $90.1 billion, and earnings increased 4% to $1.29 per share. Strong demand for Apple's iPhone gave the company's results a boost, with the segment's sales increasing 10% from the year-ago quarter to $42.6 billion.
And there could be more iPhone growth in the coming years as more consumers switch to 5G phones. Apple already holds 29% of the global 5G smartphone market right now as this space grows into a nearly $668 billion market by 2030.
With Apple's shares trading at just 24 times the company's earnings, down from 27 times earnings at this time last year, investors can buy Apple's stock at a discount right now.
Remember to hold these stocks for years
Tech and EV stocks are especially volatile right now, so if you buy these stocks you're likely to see some share price swings in the near term. But being a long-term investor means holding stocks for five years or longer to let them grow and ride out the short-term volatility.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For investors looking for a few great companies to give further consideration to from the current list of most popular stocks among Robinhood users, look no further than Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). Supply chain issues, rising material costs, and CEO Elon Musk's current focus on his newly acquired Twitter purchase are all affecting Tesla's near-term share price. Tesla is on track for a 2 million-vehicle production run rate in 2023, which helps it take another step toward achieving Musk's goal of producing 20 million vehicles per year by 2030. | For investors looking for a few great companies to give further consideration to from the current list of most popular stocks among Robinhood users, look no further than Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). Like Tesla, Amazon's price-to-earnings ratio of 86 isn't cheap, but with the company's current lead in e-commerce and cloud computing, and its expanding advertising segment, there's still plenty of room for Amazon to grow. With Apple's shares trading at just 24 times the company's earnings, down from 27 times earnings at this time last year, investors can buy Apple's stock at a discount right now. | For investors looking for a few great companies to give further consideration to from the current list of most popular stocks among Robinhood users, look no further than Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). With Apple's shares trading at just 24 times the company's earnings, down from 27 times earnings at this time last year, investors can buy Apple's stock at a discount right now. Remember to hold these stocks for years Tech and EV stocks are especially volatile right now, so if you buy these stocks you're likely to see some share price swings in the near term. | For investors looking for a few great companies to give further consideration to from the current list of most popular stocks among Robinhood users, look no further than Tesla (NASDAQ: TSLA), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). Remember to hold these stocks for years Tech and EV stocks are especially volatile right now, so if you buy these stocks you're likely to see some share price swings in the near term. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Tesla. | cbf99602-6f9b-41aa-bc53-164bbfc3d138 |
18364.0 | 2022-11-20 00:00:00 UTC | My Top FAANG Stock For 2023 -- and It Isn't Even Close | AAPL | https://www.nasdaq.com/articles/my-top-faang-stock-for-2023-and-it-isnt-even-close | nan | nan | Long-time investors are no doubt familiar with the fabled FAANG stocks, which have been some of the most disruptive and wealth-generating companies of the past 10 years:
Facebook parent Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which rebranded as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)
Every company on this list is the undisputed leader in its field. Meta Platforms has transformed how consumers interact with social media. Apple has the world's best-selling smartphone. Amazon is the undisputed leader in U.S. e-commerce. Netflix pioneered the field of streaming video. And Google became a verb for its dominance of internet search. As a result, these stocks have generated life-changing gains for investors, ranging from 412% to 2,540% -- even after the recent market decline.
Data by YCharts.
Furthermore, the recent bear market has pummeled technology stocks, with the Nasdaq Composite down a whopping 30% from last year's high. Some of the FAANG stocks have been hit even harder, with these tech titans shedding between 18% and 70% of their value.
With the FAANG stocks each selling at multiyear lows, which of the group is tops to buy for 2023? For my money, Amazon is ripe for the picking. Here's why.
The death of e-commerce has been greatly exaggerated
No conversation about Amazon is possible without discussing the 800-pound gorilla in the room -- e-commerce. After the lockdown-induced growth spurt of 2020, digital retail has experienced rapid deceleration, reverting to historical averages. Investors with a "what have you done for me lately" mindset are convinced that its best days are in the rearview mirror.
Amazon's recent results seemed to confirm investors' worst fears. In the third quarter, net sales of $127 billion grew 15% year over year, a far cry from the 38% growth Amazon generated in 2020.
Yet, it's important to put that slowing growth in context. We're in the throes of the worst economic downturn since 2009. Consumers are having to scale back spending in the face of near 40-year high inflation and rising interest rates. Given time, the economy will no doubt recover -- it always does.
Overall, e-commerce growth is stalled, but once the economy recovers, so too will consumer spending. The global e-commerce market is slated to grow from $3.3 trillion this year to $5.4 trillion in 2026, representing 27% of all retail, according to estimates calculated by Morgan Stanley. Amazon commanded 38% of online sales in the U.S. for the first half of 2022 -- more than its next 14 rivals combined. This shows that the company is well positioned to benefit from the inevitable rebound of consumer spending and the continuing growth of e-commerce.
Head in the clouds
Digital retail isn't the only area that Amazon dominates. The company pioneered cloud computing and is still the industry powerhouse, with a market share of 32%, well ahead of Microsoft Azure and Google Cloud, which account for 22% and 9%, respectively, according to Canalys.
AWS has held up remarkably well so far this year, particularly given the state of the economy, as revenue grew 32% year over year in the first nine months of 2022. Some businesses are reining in spending, but a vast opportunity remains. Cloud computing is expected to grow severalfold this decade, climbing from $380 billion in 2021 to $1.6 trillion by 2030. As the undisputed leader in the space, Amazon will no doubt benefit from this ongoing trend.
That's not all
If that weren't enough, over the past several years, Amazon has ascended the ranks to become a digital advertising powerhouse. Not only is Amazon the No. 3 provider of online advertising (behind Alphabet and Meta Platforms), but it also continues to grow much more quickly than its chief rivals.
In the third quarter, Amazon's advertising services revenue grew 25% year over year, outpacing the results by Alphabet, which grew 2%, and Meta Platforms which declined 4%, during the same period.
The fine print
Just to be clear, I'm not badmouthing any of the FAANG companies. I own each and every one of these stocks. As a group, and as of this writing, they represent 29% of my total personal wealth. It's also important to note that I didn't "back up the truck" on any of these, but rather made several modest investments over the past decade and let the companies do the heavy lifting from there.
That said, Amazon represents an amazing opportunity for investors with the resources and patience to see it through. The stock is currently selling for its cheapest valuation since 2015. A reasonable price-to-sales ratio is generally between 1 and 2, a bar Amazon clears with ease, selling for just 1.7 times next year's sales -- making it the cheapest of all the FAANG stocks.
Given its strong position in three growth industries, its vast opportunity, its history of strong growth -- even amid economic headwinds -- and its cheapest valuation in years, Amazon has earned its spot as my top FAANG stock for 2023.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet (A shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Long-time investors are no doubt familiar with the fabled FAANG stocks, which have been some of the most disruptive and wealth-generating companies of the past 10 years: Facebook parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which rebranded as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Every company on this list is the undisputed leader in its field. 3 provider of online advertising (behind Alphabet and Meta Platforms), but it also continues to grow much more quickly than its chief rivals. It's also important to note that I didn't "back up the truck" on any of these, but rather made several modest investments over the past decade and let the companies do the heavy lifting from there. | Long-time investors are no doubt familiar with the fabled FAANG stocks, which have been some of the most disruptive and wealth-generating companies of the past 10 years: Facebook parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which rebranded as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Every company on this list is the undisputed leader in its field. In the third quarter, Amazon's advertising services revenue grew 25% year over year, outpacing the results by Alphabet, which grew 2%, and Meta Platforms which declined 4%, during the same period. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. | Long-time investors are no doubt familiar with the fabled FAANG stocks, which have been some of the most disruptive and wealth-generating companies of the past 10 years: Facebook parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which rebranded as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Every company on this list is the undisputed leader in its field. Given its strong position in three growth industries, its vast opportunity, its history of strong growth -- even amid economic headwinds -- and its cheapest valuation in years, Amazon has earned its spot as my top FAANG stock for 2023. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | Long-time investors are no doubt familiar with the fabled FAANG stocks, which have been some of the most disruptive and wealth-generating companies of the past 10 years: Facebook parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which rebranded as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Every company on this list is the undisputed leader in its field. Head in the clouds Digital retail isn't the only area that Amazon dominates. Not only is Amazon the No. | 7fadb393-da9c-45c3-8dd1-a137f2df39c0 |
18365.0 | 2022-11-20 00:00:00 UTC | What Warren Buffett Wants From Tech Stocks | AAPL | https://www.nasdaq.com/articles/what-warren-buffett-wants-from-tech-stocks | nan | nan | Even well into his 90s, Warren Buffett still commands the respect of the investing community. Many investors watch the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) leader's every move when it comes to stock market decisions, and Buffett is never shy about making aggressive moves when it suits him.
The most recent disclosures from Berkshire regarding its stock portfolio included a new position in a tech stock, Taiwan Semiconductor Manufacturing (NYSE: TSM). Over the years, Buffett has at times expressed a reluctance to invest in tech stocks, considering the industry to be outside his circle of maximum competence as an investor.
Nevertheless, Taiwan Semi isn't the first tech stock to make Berkshire's portfolio, and it's clear from his past choices that there are certain attributes Buffett seeks out in adding technology-focused companies to the list. Those same things can help you when you're looking to invest in unfamiliar waters, whether it's in technology or other types of stocks.
1. Industry leadership
Buffett has typically chosen tech stocks that have already become leaders in their respective industries. The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. From iPhones and Apple Watches to Mac computers and various tablets, Apple is a favorite among its customers and always has people watching for its latest product releases.
This trait is evident in other companies in the Berkshire portfolio. HP (NYSE: HPQ) has long been the industry leader in computer printers, while Activision Blizzard (NASDAQ: ATVI) is one of a handful of top players in the video game industry.
Taiwan Semi meets that bill as well, with a commanding market share over 50% in the semiconductor foundry market. The vast majority of cutting-edge chips get made by Taiwan Semi, and that trend appears likely to continue as chip designers more frequently turn to the foundry specialist for production rather than making costly provisions to make chips in-house.
2. Good value
Buffett is the quintessential value investor, sticking to his guns even when the style goes out of favor. With a current valuation of around 15 times trailing earnings, Taiwan Semi fits the mold of Buffett-held tech stocks.
Apple's valuation has expanded dramatically since Buffett's initial purchases, but when he started his position, the tech leader traded at much lower earnings multiples. Meanwhile, HP also trades at rock-bottom levels by traditional valuation metrics, as investors anticipate a drop in earnings following pandemic-spurred purchases of printers and other equipment. Activision is somewhat of a special case, given its pending potential acquisition by Microsoft (NASDAQ: MSFT), but that still makes it a value play of sorts.
3. Growth prospects
Despite looking for value, Buffett also wants companies that have growth potential. Taiwan Semi looks prepared to keep extending its competitive advantages and serving an even wider array of semiconductor clients. Apple has also managed to keep growing with innovative new offerings and updated product lines on existing favorites.
Of course, sometimes Buffett gets things wrong. His past ownership of IBM (NYSE: IBM) hinged on the pioneering computer company's ability to use its strong brand and financial resources to find new niches for leadership, but IBM largely failed to restore its business to its former glory. That eventually led many to see Buffett's purchase of Big Blue as a big mistake.
Expanding your horizons
When you consider looking beyond your core area of expertise for investing ideas, it doesn't hurt to look for these three favorable characteristics. Regardless of whether you're talking about tech or a completely different sector, looking for an attractive combination of current value and future growth always makes sense, and you'll often find the most stable and secure businesses among the current leaders of a promising industry.
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Dan Caplinger has positions in Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. Nevertheless, Taiwan Semi isn't the first tech stock to make Berkshire's portfolio, and it's clear from his past choices that there are certain attributes Buffett seeks out in adding technology-focused companies to the list. Apple's valuation has expanded dramatically since Buffett's initial purchases, but when he started his position, the tech leader traded at much lower earnings multiples. | The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. Many investors watch the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) leader's every move when it comes to stock market decisions, and Buffett is never shy about making aggressive moves when it suits him. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Microsoft, and Taiwan Semiconductor Manufacturing. | The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. The most recent disclosures from Berkshire regarding its stock portfolio included a new position in a tech stock, Taiwan Semiconductor Manufacturing (NYSE: TSM). Nevertheless, Taiwan Semi isn't the first tech stock to make Berkshire's portfolio, and it's clear from his past choices that there are certain attributes Buffett seeks out in adding technology-focused companies to the list. | The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. The most recent disclosures from Berkshire regarding its stock portfolio included a new position in a tech stock, Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semi meets that bill as well, with a commanding market share over 50% in the semiconductor foundry market. | f96ea2b6-2225-4346-9ad7-f39447cf376b |
18366.0 | 2022-11-19 00:00:00 UTC | 2 Top Advertising Technology Stocks to Buy Now | AAPL | https://www.nasdaq.com/articles/2-top-advertising-technology-stocks-to-buy-now | nan | nan | The massive global advertising industry is still expanding, and digital ads are gobbling up market share. However, a number of snags held up progress this year. Amidst heightened economic uncertainty, many brands are tapping the brakes on marketing. And Apple's privacy updates -- which allow users to opt out of app activity tracking -- have lowered the value of digital ads on the lucrative iOS operating system.
Nevertheless, digital advertising technology will continue to advance for many years to come. Two particular standouts this year that are shaking off industry woes are The Trade Desk (NASDAQ: TTD) and DoubleVerify (NYSE: DV). Here's why they're both a great buy right now.
The Trade Desk: Really in a league all its own
The Trade Desk has been a best-in-class player in the advertising ecosystem for years. A demand-side platform that helps marketers purchase ads from publishers, the company champions the "open internet." It doesn't compete with its customers in the way that Alphabet's Google and other internet and media conglomerates do.
In addition, many of its ad marketplace and software solutions are open source, allowing marketing agencies and the brands they represent to build their own proprietary systems atop The Trade Desk's platform.
The company's strategy is showing its merits via financial outperformance. While many ad software companies have been hit hard in 2022, The Trade Desk is still going strong. Revenue in Q3 was up 31% year over year, compounding the 39% year-over-year increase in the same period of 2021.
Granted, not all was perfect. Stock-based compensation has jumped significantly this year, particularly surrounding executive pay packages. Stock-based comp was a drag on earnings per share (EPS) last quarter as it totaled $121 million (compared to $34.5 million last year). Resulting EPS was $0.03, down from $0.12 a year prior.
Nevertheless, The Trade Desk remains highly profitable. Free cash flow has been a robust $339 million so far in 2022, good for a very healthy free cash flow profit margin of 31%. And the balance sheet remains in tip-top condition as well, with $1.32 billion in cash and short-term investments and zero debt as of the end of September.
Shares trade for a premium 52 times trailing-12-month free cash flow as of this writing, but the premium is deserved in my opinion, given The Trade Desk's resilient growth story.
DoubleVerify: High growth and high profit
DoubleVerify is a unique play on the digital ad industry. Most stocks in this space represent ownership of either a buy-side (like The Trade Desk) or a sell-side platform (which works with publishers, such as Magnite). But DoubleVerify is neither. Instead, it's a subscription software-as-a-service (SaaS) business that provides ad measurement and analytics tools for brands and agencies.
The shares fell sharply through the first half of 2022, which is not surprising considering this is still a fresh IPO stock (from early 2021) and given that the bear market has been especially hard on high-growth tech companies. But DoubleVerify seems to have found a bottom as shares have been rallying in the second half of this year. At times, the stock has even been outperforming the S&P 500 so far in 2022.
That outperformance is for good reason, too, as the Q3 earnings update demonstrated. Revenue was up 35% year over year to $112 million in spite of weakness in some areas of its software suite as ad activity pulled back -- especially in Europe, where war and an energy crisis are weighing on that region. Net income was up 30% to $10.3 million though EPS was up only 20% due to dilution from stock-based compensation ($31 million through the first nine months of 2022).
Nevertheless, even at this early stage of its existence, DoubleVerify has proven it can be a highly profitable business. Free cash flow has dipped this year as the company invests in new capabilities for its software suite ($30.7 million compared to $52.9 million last year), but the net income increase is impressive. Many small software businesses have been punished by the bear market due to their complete inability to turn the corner from loss-generating to cash-positive operations.
The shares trade for 86 times trailing-12-month earnings and about 32 times trailing-12-month free cash flow. Again, it's a premium price, but DoubleVerify has earned it given its solid growth and positive progress on profits in the face of a difficult economic environment. I continue to nibble on shares of DoubleVerify and The Trade Desk after both companies' Q3 earnings updates.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Nicholas Rossolillo has positions in Alphabet (C shares), Apple, DoubleVerify Holdings, Inc., and The Trade Desk. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, DoubleVerify Holdings, Inc., Magnite, Inc, and The Trade Desk. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And Apple's privacy updates -- which allow users to opt out of app activity tracking -- have lowered the value of digital ads on the lucrative iOS operating system. In addition, many of its ad marketplace and software solutions are open source, allowing marketing agencies and the brands they represent to build their own proprietary systems atop The Trade Desk's platform. The shares fell sharply through the first half of 2022, which is not surprising considering this is still a fresh IPO stock (from early 2021) and given that the bear market has been especially hard on high-growth tech companies. | Free cash flow has dipped this year as the company invests in new capabilities for its software suite ($30.7 million compared to $52.9 million last year), but the net income increase is impressive. The shares trade for 86 times trailing-12-month earnings and about 32 times trailing-12-month free cash flow. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, DoubleVerify Holdings, Inc., Magnite, Inc, and The Trade Desk. | Shares trade for a premium 52 times trailing-12-month free cash flow as of this writing, but the premium is deserved in my opinion, given The Trade Desk's resilient growth story. Free cash flow has dipped this year as the company invests in new capabilities for its software suite ($30.7 million compared to $52.9 million last year), but the net income increase is impressive. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, DoubleVerify Holdings, Inc., Magnite, Inc, and The Trade Desk. | Free cash flow has dipped this year as the company invests in new capabilities for its software suite ($30.7 million compared to $52.9 million last year), but the net income increase is impressive. I continue to nibble on shares of DoubleVerify and The Trade Desk after both companies' Q3 earnings updates. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, DoubleVerify Holdings, Inc., Magnite, Inc, and The Trade Desk. | 0332b1b8-1860-4754-ac59-a01d628fb5cf |
18367.0 | 2022-11-19 00:00:00 UTC | 5 Signs You May Have a Recession-Proof Stock | AAPL | https://www.nasdaq.com/articles/5-signs-you-may-have-a-recession-proof-stock | nan | nan | There's no such thing as a risk-free stock, but some businesses are better equipped to handle recessions than others. In recessions, some types of businesses are more likely to remain profitable and even keep growing, no matter how bad the economy gets.
Here are five things to look for when assessing a company's ability to weather an economic storm. If a stock you're looking at meets all or most of these criteria, you might have a recession-proof stock (or as close to it as you can get).
1. The business sells things people need
Not all recession-proof businesses fall into this category, but the vast majority do. Recession-proof businesses sell things people need, as opposed to things people (or businesses) want.
Here are a few examples. Utilities like Dominion Energy (NYSE: D) provide services people need, no matter how bad the economy gets. The same can be said for auto insurance companies like Progressive (NYSE: PGR). Drugstores like CVS Health (NYSE: CVS) not only sell things people need, but also provide them in a timely manner.
2. Pricing power
Businesses that have exceptional pricing power tend to have higher consumer demand (especially for discretionary products), and also tend to have better margins than their competitors. Brand strength allows Coca-Cola (NYSE: KO) to charge more for its products than competing brands, for example. Apple (NASDAQ: AAPL) has an extremely loyal customer base that allows it to increase prices with little affect on demand.
3. A market with few big players
It's tough to find true monopolies (outside of utilities), but businesses that have only one or two major players in their industry tend to perform very well during tough times. Visa (NYSE: V) and Mastercard (NYSE: MA) are excellent examples. The two have an effective duopoly on payment processing in the U.S. and get a percentage every time someone swipes one of their cards.
4. Profitability and earnings growth, no matter what
Recession-proof businesses make money, no matter what. Utilities are a good example. Discount retailers are another category that can be recession-proof and can even gain sales during bad times.
Take Walmart (NYSE: WMT), for example. When the U.S. financial system was on the brink of collapse in 2008, Walmart had one of its best years ever.
A strong balance sheet also ties into this. It's difficult to turn a profit in bad times if your company is drowning in debt, but a low leverage ratio combined with lots of cash on the balance sheet can be almost as important to recession resistance as the business itself.
5. Long-term tailwinds
Finally, there are some trends that are more powerful than any recession. E-commerce is a great example. Just 15% of U.S. retail sales currently come from e-commerce, and this has been steadily growing for years. Even if a recession comes, e-commerce companies that meet some of the other criteria on this list are likely to be just fine in the long run.
Recession-proof doesn't mean risk-free
One important distinction to make is that just because a stock is recession-resistant or recession-proof doesn't necessarily mean it's risk-free or even low risk. For one thing, stock prices fluctuate significantly over time, and it's not uncommon for even the most stable companies to decline by 25% or more in a bear market for reasons having little to do with the underlying businesses.
Some recession-resistant businesses rely on borrowed money (especially true with real estate stocks) and are vulnerable to higher borrowing costs. Many essential businesses have competition risk and regulatory risk, and many could be disrupted by e-commerce.
The point is that recession-resistant stocks aren't guaranteed winners. It's still important to evaluate the entire business before investing and be prepared for market fluctuations.
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Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Mastercard, Visa, and Walmart Inc. The Motley Fool recommends CVS Health, CVS Health Corporation, Dominion Energy, Inc, and Progressive and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) has an extremely loyal customer base that allows it to increase prices with little affect on demand. It's difficult to turn a profit in bad times if your company is drowning in debt, but a low leverage ratio combined with lots of cash on the balance sheet can be almost as important to recession resistance as the business itself. For one thing, stock prices fluctuate significantly over time, and it's not uncommon for even the most stable companies to decline by 25% or more in a bear market for reasons having little to do with the underlying businesses. | Apple (NASDAQ: AAPL) has an extremely loyal customer base that allows it to increase prices with little affect on demand. Utilities like Dominion Energy (NYSE: D) provide services people need, no matter how bad the economy gets. The Motley Fool has positions in and recommends Apple, Mastercard, Visa, and Walmart Inc. | Apple (NASDAQ: AAPL) has an extremely loyal customer base that allows it to increase prices with little affect on demand. Recession-proof businesses sell things people need, as opposed to things people (or businesses) want. For one thing, stock prices fluctuate significantly over time, and it's not uncommon for even the most stable companies to decline by 25% or more in a bear market for reasons having little to do with the underlying businesses. | Apple (NASDAQ: AAPL) has an extremely loyal customer base that allows it to increase prices with little affect on demand. Pricing power Businesses that have exceptional pricing power tend to have higher consumer demand (especially for discretionary products), and also tend to have better margins than their competitors. Visa (NYSE: V) and Mastercard (NYSE: MA) are excellent examples. | 6c6dce16-8ef6-455d-ae34-a2d6bfab7633 |
18368.0 | 2022-11-19 00:00:00 UTC | 4 High-Yield Dividends to Buy Today | AAPL | https://www.nasdaq.com/articles/4-high-yield-dividends-to-buy-today | nan | nan | High-dividend yields can power your portfolio for decades, though there are some dividends the market doesn't appreciate right now. In the video below, Travis Hoium covers why Verizon (NYSE: VZ), EPR Properties (NYSE: EPR), NextEra Energy Partners (NYSE: NEP), and Simon Property Group (NYSE: SPG) are top high-yield dividends today.
*Stock prices used were end-of-day prices of Nov. 18, 2022. The video was published on Nov. 19, 2022.
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Travis Hoium is an affiliate for The Motley Fool and may be compensated for promoting his 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. | High-dividend yields can power your portfolio for decades, though there are some dividends the market doesn't appreciate right now. 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 EPR Properties wasn't one of them! | In the video below, Travis Hoium covers why Verizon (NYSE: VZ), EPR Properties (NYSE: EPR), NextEra Energy Partners (NYSE: NEP), and Simon Property Group (NYSE: SPG) are top high-yield dividends today. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Travis Hoium has positions in Apple, NextEra Energy Partners, Topgolf Callaway Brands Corp., Verizon Communications, and Walt Disney. The Motley Fool recommends EPR Properties, Simon Property Group, Topgolf Callaway Brands Corp., and Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | In the video below, Travis Hoium covers why Verizon (NYSE: VZ), EPR Properties (NYSE: EPR), NextEra Energy Partners (NYSE: NEP), and Simon Property Group (NYSE: SPG) are top high-yield dividends today. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Travis Hoium has positions in Apple, NextEra Energy Partners, Topgolf Callaway Brands Corp., Verizon Communications, and Walt Disney. The Motley Fool recommends EPR Properties, Simon Property Group, Topgolf Callaway Brands Corp., and Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 Travis Hoium has positions in Apple, NextEra Energy Partners, Topgolf Callaway Brands Corp., Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. His opinions remain his own and are unaffected by The Motley Fool. | 4b5ff38f-e75e-4cd0-9f76-91fa77efe9da |
18369.0 | 2022-11-18 00:00:00 UTC | Should You Buy Netflix Hand Over Fist for 2023? | AAPL | https://www.nasdaq.com/articles/should-you-buy-netflix-hand-over-fist-for-2023 | nan | nan | It's no secret that 2022 has been a rough year for Netflix (NASDAQ: NFLX).
The video-streaming veteran saw slowing subscriber growth that escalated into losing a million customers in the second quarter. Netflix's management had to come up with some new ideas. Now, the company is cracking down on password-sharing subscribers and providing an ad-supported service for the most price-sensitive demographic.
Due to this heart-pounding drama, Netflix shares crashed hard in the first half of the year. The stock has staged an impressive comeback in recent months, trading 81% above the lows of early May, but we're not talking about a full recovery. Whether you look at year-to-date moves, 52-week price changes, or the separation from 52-week highs, Netflix ranks among the worst-performing stocks on the market. In all three cases, Netflix ranks in the bottom 20 performers among the 503 components of the S&P 500 market index.
As we march toward the new year, curious investors want to know one thing about Netflix: Is the streaming specialist's stock set up to crush the market and make a lot of money in 2023, or should we expect the bearish trend to dominate next year's market action?
Why you might want to leave Netflix shares alone
Netflix bears can present a few reasonable arguments.
That 81% rebound from the bottom of the trough is too large to ignore. Whatever good news that might lie ahead must already be priced into the stock.
The stalled subscriber growth is a massive shift from the nonstop rally of recent years. Losing that momentum at the drop of a hat shows that there must be something wrong with the business.
The reasons for the slower growth are unclear, but the potential culprits include the price increases of 2021, the plethora of media-streaming rivals, and market saturation in an era of tight consumer budgets. Facing just one of these brutal headwinds would be tricky enough, but Netflix has to manage these challenges all at once.
If your Netflix analysis points to one or more of these bullet points, you won't want to own the stock right now. At the very least, you're not drooling over the prospect of buying Netflix shares near the end of 2022. From this point of view, Netflix has a lot to prove and you'd prefer to invest your hard-earned cash elsewhere until further notice.
Why you should buy Netflix hand over fist
The critical points above don't look very scary from the other side of the fence.
If Netflix stock was worth more than $680 per share a year ago, no law of physics, mathematics, or mass psychology would stop share prices from reaching that level again. As long as the business runs well, Netflix stock could double over the next 12 months.
Yes, the lack of massive subscriber growth is new to Netflix. However, the company is already adjusting to this state of affairs, and management has refocused the growth engines to target long-term revenue growth and robust profits instead. This strategy shift feels like Netflix is evolving its business model, not slapping a panic button.
Netflix has faced groups of multiple business challenges many times before, and always found effective remedies in the end. This situation is no different. If the last round of price increases was too much for an increasingly price-sensitive consumer market, the company could wait a few years before going any further. Speaking of price increases, chief competitors Amazon Prime (NASDAQ: AMZN), Disney+ (NYSE: DIS), and Apple TV+ (NASDAQ: AAPL) are all raising their subscription fees these days. That groundswell of higher prices seems to give Netflix more breathing room.
In this light, Netflix looks ready to take on 2023 with a tweaked business plan. We will soon find out how effective the anti-sharing measures and ad-supported subscription plans are in the real world. And the newfound spotlight on profitable growth should result in more robust cash flows and bottom-line earnings in 2023 and beyond. The Netflix bears of yesteryear used to ask for exactly that type of strategy adjustment. As a result, the arrival of stronger profit streams can drive valuation ratios and share prices much higher over time.
Final verdict: Yes, Netflix is a no-brainer buy right now
Netflix stands at a crossroads right now, stepping away from the ideas that took the company this far and exploring new growth-promoting plans for the next stage. I haven't even mentioned potential game-changers like the nascent video game service, the vast opportunity in online services taking eyeballs away from traditional media outlets, or the improving digital payment systems in developing nations.
Just one of these big ideas would be promising enough, but Netflix stands to benefit from all of them. Ergo, Netflix is set up for tremendous long-term gains from the low point in 2022 -- and the stock is still on fire sale. So right now, wise investors should buy Netflix stock hand over fist.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Amazon, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Speaking of price increases, chief competitors Amazon Prime (NASDAQ: AMZN), Disney+ (NYSE: DIS), and Apple TV+ (NASDAQ: AAPL) are all raising their subscription fees these days. The stock has staged an impressive comeback in recent months, trading 81% above the lows of early May, but we're not talking about a full recovery. The reasons for the slower growth are unclear, but the potential culprits include the price increases of 2021, the plethora of media-streaming rivals, and market saturation in an era of tight consumer budgets. | Speaking of price increases, chief competitors Amazon Prime (NASDAQ: AMZN), Disney+ (NYSE: DIS), and Apple TV+ (NASDAQ: AAPL) are all raising their subscription fees these days. So right now, wise investors should buy Netflix stock hand over fist. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Walt Disney. | Speaking of price increases, chief competitors Amazon Prime (NASDAQ: AMZN), Disney+ (NYSE: DIS), and Apple TV+ (NASDAQ: AAPL) are all raising their subscription fees these days. As we march toward the new year, curious investors want to know one thing about Netflix: Is the streaming specialist's stock set up to crush the market and make a lot of money in 2023, or should we expect the bearish trend to dominate next year's market action? Why you might want to leave Netflix shares alone Netflix bears can present a few reasonable arguments. | Speaking of price increases, chief competitors Amazon Prime (NASDAQ: AMZN), Disney+ (NYSE: DIS), and Apple TV+ (NASDAQ: AAPL) are all raising their subscription fees these days. If the last round of price increases was too much for an increasingly price-sensitive consumer market, the company could wait a few years before going any further. That's right -- they think these 10 stocks are even better buys. | 68f468f7-2003-4b6f-8da4-43aa0959b8ec |
18370.0 | 2022-11-18 00:00:00 UTC | Google sets rules for HQ guest speakers after row over Indian historian -emails | AAPL | https://www.nasdaq.com/articles/google-sets-rules-for-hq-guest-speakers-after-row-over-indian-historian-emails | nan | nan | By Paresh Dave
OAKLAND, Calif., Nov 18 (Reuters) - Alphabet Inc's GOOGL.O Google this week introduced rules for inviting guest speakers to its offices, days after it canceled a talk by an Indian historian who has disparaged marginalized groups and their concerns, according to company emails seen by Reuters.
The policy released Thursday is Google's latest effort to preserve an open culture while addressing divisions that have emerged as its workforce has grown.
Workers at Google and other big tech companies in recent years have clashed and protested over politics and racial and gender equity. Also, Alphabet, Apple Inc AAPL.O and Amazon.com Inc AMZN.O all face union organizing drives whose demands include that the companies adopt progressive policies.
The Google speaker rules, seen by Reuters, cite risk to the brand from certain talks and asks workers to "consider whether there's a business reason for hosting the speaker and if the event directly supports our company goals."
It calls for avoiding topics that could be "disruptive or undermine Google's culture of belonging" and reiterates that speakers are barred from advocacy of political candidates and ballot measures.
"We've always been proud to host external speakers at Google, as they provide great opportunities for learning and connection for our employees," Google spokesman Ryan Lamont told Reuters. The updated process will "ensure these events are useful and contribute to a productive work environment."
An email introducing the policy to managers said it unifies and clarifies a patchwork of guidelines.
Greater scrutiny threatens the free-flowing, university-like culture Google has prized since its inception. But a workplace viewed as more inviting could attract a more diverse workforce that might help Google develop products with broader appeal.
In recent years, internal disputes spilling into public view led Google to increase content moderation on workplace message boards and cut the frequency of company-wide meetings.
Rivals such as Meta Platforms Inc META.O also have policies for inviting speakers.
At Google, speakers have included then-U.S. presidential candidate Barack Obama, celebrity chef Ayesha Curry and former basketball star Kareem Abdul-Jabbar.
RILED UP
Disputes over speakers have roiled Google since at least April, when it said internal rancor prompted it to cancel a talk on India's socioreligious caste system by author Thenmozhi Soundararajan, who advocates for people disadvantaged by caste prejudice.
Members of an internal Hindu group had complained about Soundararajan, describing her rhetoric as inflammatory, a charge she calls bigoted.
At least one of the critics suggested inviting for balance Rajiv Malhotra, according to an internal message. Malhotra, a tech entrepreneur turned self-described contrarian author, has labeled activists such as Soundararajan as "snakes" and criticized affirmative action policies that promote lower caste groups.
The Hindu group at Google eventually scheduled Malhotra to speak about India's positive global influence, according to an invitation. But organizers canceled Nov. 10, the day before the planned talk at Google offices in Silicon Valley, according to a follow-up announcement.
Some workers complained to senior management about Malhotra, according to a message soliciting complaints. A linked document organized by Alphabet Workers Union, an employee group that has been petitioning Google to name caste in its non-discrimination policies, noted Malhotra had described homosexuality as a medical condition and Islam as a destructive force.
Malhotra told Reuters he supports marginalized communities but opposes "politicizing of bias in ways that divide societies and make them vulnerable to foreign colonization."
Allowing his speech after canceling Soundararajan's would have amounted to a contradictory standard, according to messages between employees.
The new speaker policy states that workers "must submit a proposal and have it approved" by a "cross-functional" review team. Requests are due at least 12 weeks before an event.
"Await a response before making contact with the speaker and/or their representative," it says. "Failure to follow this process is a violation of Google policies."
(Reporting by Paresh Dave; Editing by Kenneth Li and David Gregorio)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, Alphabet, Apple Inc AAPL.O and Amazon.com Inc AMZN.O all face union organizing drives whose demands include that the companies adopt progressive policies. In recent years, internal disputes spilling into public view led Google to increase content moderation on workplace message boards and cut the frequency of company-wide meetings. Malhotra, a tech entrepreneur turned self-described contrarian author, has labeled activists such as Soundararajan as "snakes" and criticized affirmative action policies that promote lower caste groups. | Also, Alphabet, Apple Inc AAPL.O and Amazon.com Inc AMZN.O all face union organizing drives whose demands include that the companies adopt progressive policies. By Paresh Dave OAKLAND, Calif., Nov 18 (Reuters) - Alphabet Inc's GOOGL.O Google this week introduced rules for inviting guest speakers to its offices, days after it canceled a talk by an Indian historian who has disparaged marginalized groups and their concerns, according to company emails seen by Reuters. A linked document organized by Alphabet Workers Union, an employee group that has been petitioning Google to name caste in its non-discrimination policies, noted Malhotra had described homosexuality as a medical condition and Islam as a destructive force. | Also, Alphabet, Apple Inc AAPL.O and Amazon.com Inc AMZN.O all face union organizing drives whose demands include that the companies adopt progressive policies. By Paresh Dave OAKLAND, Calif., Nov 18 (Reuters) - Alphabet Inc's GOOGL.O Google this week introduced rules for inviting guest speakers to its offices, days after it canceled a talk by an Indian historian who has disparaged marginalized groups and their concerns, according to company emails seen by Reuters. The Google speaker rules, seen by Reuters, cite risk to the brand from certain talks and asks workers to "consider whether there's a business reason for hosting the speaker and if the event directly supports our company goals." | Also, Alphabet, Apple Inc AAPL.O and Amazon.com Inc AMZN.O all face union organizing drives whose demands include that the companies adopt progressive policies. By Paresh Dave OAKLAND, Calif., Nov 18 (Reuters) - Alphabet Inc's GOOGL.O Google this week introduced rules for inviting guest speakers to its offices, days after it canceled a talk by an Indian historian who has disparaged marginalized groups and their concerns, according to company emails seen by Reuters. The updated process will "ensure these events are useful and contribute to a productive work environment." | 81fd8800-48ad-4ae6-8175-470df48dff50 |
18371.0 | 2022-11-18 00:00:00 UTC | These S&P 500 Companies Generate Substantial Cash | AAPL | https://www.nasdaq.com/articles/these-sp-500-companies-generate-substantial-cash | nan | nan | Investors love to target companies with strong free cash flow.
In its simplest form, free cash flow is the total cash a company holds onto after paying for operating costs and any capital expenditures.
Free cash flow speaks volumes about a company’s financial health, but in what ways?
A high free cash flow allows for more growth opportunities, a higher potential for share buybacks, stable dividend payouts, and the ability to wipe out any debt with ease.
Simply put, it’s easy to see why it’s such a vital metric.
Generally, companies that display free cash flow strength are well-established and carry highly-successful business operations, undoubtedly perks that any investor looks for.
Three companies that generate substantial cash – Visa V, UnitedHealth Group UNH, and Exxon Mobil XOM – could all be considerations for investors that seek free cash flow strength.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Exxon Mobil
Exxon Mobil is a U.S.-based oil and gas entity, one of the world's largest publicly traded energy companies.
Analysts have taken a bullish stance on XOM’s near-term earnings outlook as of late, helping land the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
In its latest quarter, XOM’s free cash flow came in at a steep $18.3 billion, reflecting a 5.5% sequential uptick and an even more impressive 100% Y/Y uptick.
The company’s free cash flow has recovered nicely from 2020 lows, as we can see in the chart below.
Image Source: Zacks Investment Research
Further, XOM carries an inspiring growth profile, with earnings forecasted to climb 160% on top of 48% Y/Y revenue growth in FY22.
Still, the growth slows down in FY23, with earnings and revenue indicated to decrease by 22% and 9.7%, respectively. This is shown in the chart below.
Image Source: Zacks Investment Research
Visa
Visa is a payments technology company that provides transaction processing services (primarily authorization, clearing, and settlement) to financial institutions and merchant clients.
Visa reported free cash flow of $5.6 billion in its latest quarter, penciling in an 11% sequential uptick and a solid 48% Y/Y change.
Image Source: Zacks Investment Research
The company’s annual dividend currently yields 0.8%, a few ticks below its Zacks Business Services sector average of roughly 1%.
While the yield may be lower than its sector’s average, Visa’s 15% five-year annualized dividend growth rate helps to pick up the slack in a big way.
Image Source: Zacks Investment Research
For the cherry on top, V has consistently impressed with its quarterly results, exceeding earnings and revenue expectations in 11 consecutive quarters.
In its latest release, V exceeded earnings expectations by 3.8% and revenue estimates by 3.1%. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
UnitedHealth
UnitedHealth provides a wide range of healthcare products and services, including health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
Over the last several months, analysts have been bullish in their earnings outlook regarding UNH’s current and next fiscal year, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
In its latest print, UNH’s free cash flow was reported at a sizable $17.8 billion, reflecting a massive 180% sequential uptick and a 150% Y/Y increase.
Image Source: Zacks Investment Research
UnitedHealth’s current annual dividend yield of 1.3% is below its Zacks Medical sector average. Still, similar to Visa, UNH’s 17.5% five-year annualized dividend growth rate makes up for the shortfall.
Image Source: Zacks Investment Research
Other Noteworthy Cash Generators
Now, for those seeking exposure to tech, several companies within the realm also have inspiring free cash flow, including the legendary Microsoft MSFT and everybody’s favorite, Apple AAPL.
In Apple’s latest release, free cash flow came in at $20.8 billion, reflecting a 22.7% Y/Y uptick.
And in Microsoft’s latest print, free cash flow was reported at $16.9 billion, representing a 9% Y/Y decline.
Bottom Line
A company displaying free cash flow strength has freedom for growth opportunities, can consistently shell out dividends, and wipe out debt easily.
And when investors are scouting for potential investments, it’s undoubtedly a metric worth paying serious attention to.
For those seeking companies with strong free cash flow, all three stocks above – Visa V, UnitedHealth Group UNH, and Exxon Mobil XOM – could be considered.
Now, for those seeking exposure to tech, Apple AAPL and Microsoft MSFT also generate substantial cash, providing additional options for investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Other Noteworthy Cash Generators Now, for those seeking exposure to tech, several companies within the realm also have inspiring free cash flow, including the legendary Microsoft MSFT and everybody’s favorite, Apple AAPL. Now, for those seeking exposure to tech, Apple AAPL and Microsoft MSFT also generate substantial cash, providing additional options for investors. Apple Inc. (AAPL): Free Stock Analysis Report | Image Source: Zacks Investment Research Other Noteworthy Cash Generators Now, for those seeking exposure to tech, several companies within the realm also have inspiring free cash flow, including the legendary Microsoft MSFT and everybody’s favorite, Apple AAPL. Now, for those seeking exposure to tech, Apple AAPL and Microsoft MSFT also generate substantial cash, providing additional options for investors. Apple Inc. (AAPL): Free Stock Analysis Report | Image Source: Zacks Investment Research Other Noteworthy Cash Generators Now, for those seeking exposure to tech, several companies within the realm also have inspiring free cash flow, including the legendary Microsoft MSFT and everybody’s favorite, Apple AAPL. Now, for those seeking exposure to tech, Apple AAPL and Microsoft MSFT also generate substantial cash, providing additional options for investors. Apple Inc. (AAPL): Free Stock Analysis Report | Image Source: Zacks Investment Research Other Noteworthy Cash Generators Now, for those seeking exposure to tech, several companies within the realm also have inspiring free cash flow, including the legendary Microsoft MSFT and everybody’s favorite, Apple AAPL. Now, for those seeking exposure to tech, Apple AAPL and Microsoft MSFT also generate substantial cash, providing additional options for investors. Apple Inc. (AAPL): Free Stock Analysis Report | 0b0bcfe4-632e-4315-a072-57765c57f0f9 |
18372.0 | 2022-11-18 00:00:00 UTC | Ticketmaster shares spotlight with Taylor Swift | AAPL | https://www.nasdaq.com/articles/ticketmaster-shares-spotlight-with-taylor-swift | nan | nan | Reuters
Reuters
NEW YORK (Reuters Breakingviews) - Ticketmaster has a pretty bad seat for the Taylor Swift show. The company owned by $17 billion Live Nation Entertainment canceled plans to hawk general admission to the pop star’s “Eras” tour – her first in five years – after a surge in pre-sale demand crashed its systems. The mess has attracted an audience of lawmakers booing Live Nation’s market power. It also risks tempting Swift to turn the spotlight on Ticketmaster.
In 2010, U.S. trustbusters allowed Ticketmaster to merge with Live Nation and create one of the largest event businesses in the world. It attached certain conditions banning the company from pushing venues around, but the Department of Justice said in 2019 that Live Nation broke its promises. Legislators including Minnesota Democratic Senator Amy Klobuchar are pushing for an encore review of the deal.
Pearl Jam and Bruce Springsteen tried unsuccessfully to weaken Ticketmaster, but Swift might be able to move the needle. She pulled her catalog off Spotify arguing that streaming crushed the industry’s economics and took on Apple, prompting it to pay artists royalties during free trials for its music streaming service. Taylor Swift and Uncle Sam would be a formidable duo. (By Jennifer Saba)
Follow @Breakingviews on Twitter
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BHP’s shinier $6 bln OZ bid stays within reality
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(Editing by Jeffrey Goldfarb and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company owned by $17 billion Live Nation Entertainment canceled plans to hawk general admission to the pop star’s “Eras” tour – her first in five years – after a surge in pre-sale demand crashed its systems. It attached certain conditions banning the company from pushing venues around, but the Department of Justice said in 2019 that Live Nation broke its promises. (By Jennifer Saba) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: Rio swaps wild goose chase for white-knuckle ride BHP’s shinier $6 bln OZ bid stays within reality China reopening hope puts wind in Alibaba sails No China is no fix for Britain’s industrial woes Target is hurting more than American consumers (Editing by Jeffrey Goldfarb and Amanda Gomez) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Reuters Reuters NEW YORK (Reuters Breakingviews) - Ticketmaster has a pretty bad seat for the Taylor Swift show. The mess has attracted an audience of lawmakers booing Live Nation’s market power. | NEW YORK (Reuters Breakingviews) - Ticketmaster has a pretty bad seat for the Taylor Swift show. The company owned by $17 billion Live Nation Entertainment canceled plans to hawk general admission to the pop star’s “Eras” tour – her first in five years – after a surge in pre-sale demand crashed its systems. (By Jennifer Saba) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: Rio swaps wild goose chase for white-knuckle ride BHP’s shinier $6 bln OZ bid stays within reality China reopening hope puts wind in Alibaba sails No China is no fix for Britain’s industrial woes Target is hurting more than American consumers (Editing by Jeffrey Goldfarb and Amanda Gomez) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NEW YORK (Reuters Breakingviews) - Ticketmaster has a pretty bad seat for the Taylor Swift show. The company owned by $17 billion Live Nation Entertainment canceled plans to hawk general admission to the pop star’s “Eras” tour – her first in five years – after a surge in pre-sale demand crashed its systems. The mess has attracted an audience of lawmakers booing Live Nation’s market power. | 71fe060f-ed40-414f-b441-f42fdbc266a0 |
18373.0 | 2022-11-18 00:00:00 UTC | Got $5,000? These 2 Stocks Could Be Bargain Buys in 2023 | AAPL | https://www.nasdaq.com/articles/got-%245000-these-2-stocks-could-be-bargain-buys-in-2023 | nan | nan | With the year soon coming to an end, now is an excellent time to consider your investment goals for 2023. After a stock market sell-off this year, many stocks will ring in the new year at bargain prices. Companies across multiple industries have suffered significant dips in their shares over the last year as consumer spending has slowed. But that doesn't mean they don't have excellent potential in the long term.
Warner Bros. Discovery (NASDAQ: WBD) and Netflix (NASDAQ: NFLX) have each suffered because of declines in the entertainment industry and are selling at bargain prices. As a result, an investment of $5,000 could see substantial gains over the coming years with 2023 an excellent time to buy.
1. Warner Bros. Discovery
As one of the hardest-hit stocks, Warner Bros. Discovery shares have fallen 56% since April, when the company officially entered the market with the merger between Warner Media and Discovery. The entertainment company is home to popular brands such as Harry Potter, Game of Thrones, and the DC superheroes, but is in a transition that will require patience from investors.
Warner Bros. has failed to impress investors this year. Most recently, third-quarter revenue declined 11% year over year to $9.82 billion, which contributed to its net loss of $2.3 billion. The weak results for the quarter stemmed primarily from macroeconomic headwinds facing its three core segments: networks, studios, and direct-to-consumer.
Despite its struggles this year, Warner Bros. Discovery's price-to-earnings (P/E) ratio is just over 13, suggesting its financials aren't in as much trouble as its stock price would have you think. And the company's stock has an average 12-month price target of $20.74, or 83% above its current price of $11.33. That means a $5,000 investment in Warner Bros. could be worth $9,150 in a year's time.
With multiple DC films set to be released in 2023, the highly anticipated multi-console launch of its Harry Potter-themed video game Hogwarts Legacy in February, and the coming merger of its streamers HBO Max and Discovery+, Warner Bros. Discovery could start as a bargain but provide significant gains for those willing to wait.
2. Netflix
As a founding member of the streaming industry, Netflix enjoyed over a decade of dominance and profound growth. In fact, despite steep declines in 2022, the stock has still risen 60% over the last five years.
The company has undergone a transformative year as its reign at the top of the industry has been challenged by the introduction of such heavy hitters as Walt Disney's Disney+, HBO Max, and Apple TV+. As a result, Netflix lost over a million subscribers in the first half of the year, which has sent its shares falling 48% year to date.
But it has made significant progress in the latter half of the year, adding 2.4 million new memberships in the third quarter and bringing in $7.9 billion in revenue, a year-over-year rise of 5.9%. Net income during the quarter also hit $1.3 billion as subscriptions skyrocketed.
Additionally, Netflix has shifted its business to maximize profits. Recent and coming reforms, such as introducing a low-priced ad-supported tier and cracking down on password-sharing, are positive steps toward raising its average revenue per subscription and attracting budget-conscious members.
Moreover, on Nov. 15 Bank of America double-upgraded its recommendation on Netflix stock from sell to buy with a price target of $370, implying a rise of 20%. The bank cited the company's expansion of its subscription tiers and its venture into advertising for the expected growth.
The upgrade, along with Netflix's P/E of about 28, make the company's stock an absolute bargain and an excellent choice for an investment of $5,000 in 2023.
10 stocks we like better than Warner Bros. Discovery, Inc.
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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 Apple, Netflix, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With multiple DC films set to be released in 2023, the highly anticipated multi-console launch of its Harry Potter-themed video game Hogwarts Legacy in February, and the coming merger of its streamers HBO Max and Discovery+, Warner Bros. The company has undergone a transformative year as its reign at the top of the industry has been challenged by the introduction of such heavy hitters as Walt Disney's Disney+, HBO Max, and Apple TV+. Recent and coming reforms, such as introducing a low-priced ad-supported tier and cracking down on password-sharing, are positive steps toward raising its average revenue per subscription and attracting budget-conscious members. | Discovery (NASDAQ: WBD) and Netflix (NASDAQ: NFLX) have each suffered because of declines in the entertainment industry and are selling at bargain prices. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | After a stock market sell-off this year, many stocks will ring in the new year at bargain prices. Discovery As one of the hardest-hit stocks, Warner Bros. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | After a stock market sell-off this year, many stocks will ring in the new year at bargain prices. Discovery (NASDAQ: WBD) and Netflix (NASDAQ: NFLX) have each suffered because of declines in the entertainment industry and are selling at bargain prices. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. | 9de943aa-305e-4eb1-ab88-a4d329b35704 |
18374.0 | 2022-11-18 00:00:00 UTC | Italy court rejects Google's appeal against watchdog fine, accepts Apple's one | AAPL | https://www.nasdaq.com/articles/italy-court-rejects-googles-appeal-against-watchdog-fine-accepts-apples-one | nan | nan | MILAN, Nov 18 (Reuters) - An Italian administrative court on Friday rejected an appeal by Alphabet's Google GOOGL.O against a decision by Italy's antitrust authority to fine the group, but accepted iPhone maker Apple's AAPL.O appeal against the watchdog's ruling.
Last year, Italy's antitrust regulator fined Google and Apple 10 million euros ($10.36 million) each, claiming that the two tech groups had not provided "clear and immediate information" on how they collect and use the data of those who access their services.
Both Google and Apple had no immediate comment.
($1 = 0.9655 euros)
(Andrea Mandalà and Elvira Pollina, editing Federico Maccioni)
((andrea.mandala@thomsonreuters.com; +390680307738;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MILAN, Nov 18 (Reuters) - An Italian administrative court on Friday rejected an appeal by Alphabet's Google GOOGL.O against a decision by Italy's antitrust authority to fine the group, but accepted iPhone maker Apple's AAPL.O appeal against the watchdog's ruling. Last year, Italy's antitrust regulator fined Google and Apple 10 million euros ($10.36 million) each, claiming that the two tech groups had not provided "clear and immediate information" on how they collect and use the data of those who access their services. ($1 = 0.9655 euros) (Andrea Mandalà and Elvira Pollina, editing Federico Maccioni) ((andrea.mandala@thomsonreuters.com; +390680307738;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MILAN, Nov 18 (Reuters) - An Italian administrative court on Friday rejected an appeal by Alphabet's Google GOOGL.O against a decision by Italy's antitrust authority to fine the group, but accepted iPhone maker Apple's AAPL.O appeal against the watchdog's ruling. Last year, Italy's antitrust regulator fined Google and Apple 10 million euros ($10.36 million) each, claiming that the two tech groups had not provided "clear and immediate information" on how they collect and use the data of those who access their services. ($1 = 0.9655 euros) (Andrea Mandalà and Elvira Pollina, editing Federico Maccioni) ((andrea.mandala@thomsonreuters.com; +390680307738;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MILAN, Nov 18 (Reuters) - An Italian administrative court on Friday rejected an appeal by Alphabet's Google GOOGL.O against a decision by Italy's antitrust authority to fine the group, but accepted iPhone maker Apple's AAPL.O appeal against the watchdog's ruling. Last year, Italy's antitrust regulator fined Google and Apple 10 million euros ($10.36 million) each, claiming that the two tech groups had not provided "clear and immediate information" on how they collect and use the data of those who access their services. ($1 = 0.9655 euros) (Andrea Mandalà and Elvira Pollina, editing Federico Maccioni) ((andrea.mandala@thomsonreuters.com; +390680307738;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MILAN, Nov 18 (Reuters) - An Italian administrative court on Friday rejected an appeal by Alphabet's Google GOOGL.O against a decision by Italy's antitrust authority to fine the group, but accepted iPhone maker Apple's AAPL.O appeal against the watchdog's ruling. Last year, Italy's antitrust regulator fined Google and Apple 10 million euros ($10.36 million) each, claiming that the two tech groups had not provided "clear and immediate information" on how they collect and use the data of those who access their services. Both Google and Apple had no immediate comment. | 3466de6d-930a-449c-8f9a-3a6be6ef5a60 |
18375.0 | 2022-11-18 00:00:00 UTC | Target Stock Just Plunged. Is it Still a Smart Buy? | AAPL | https://www.nasdaq.com/articles/target-stock-just-plunged.-is-it-still-a-smart-buy | nan | nan | Target (NYSE: TGT) stock got hammered on Wednesday. The big-box retailer badly missed earnings expectations for its fiscal third quarter as demand weakened for discretionary products and it was forced to mark down prices in its effort to clear its excess inventory. The stock finished the trading session down 13%.
While its revenue rose 3% -- in line with estimates -- Target's adjusted earnings per share plunged from $3.03 in the year-ago quarter to $1.54 this time, well short of analysts' consensus estimate of $2.13. Gross margin fell by 330 basis points to 24.7% as the company said it's also struggling with theft. On the earnings call, CFO Michael Fiddelke said that theft -- or "shrinkage," as it's known in the industry -- was expected to wipe out $600 million in profit for the company this year.
For the period, which ended Oct. 29, selling, general, and administrative costs also rose faster than sales due in part to higher wages and increased costs for benefits. As a result, Target's operating margin in the quarter was halved from 7.8% in the prior-year period to 3.9%.
Even worse, management expects the fourth quarter's results to be even weaker. It's guiding for comparable sales to decline by a low-single-digit percentage, compared to the 2.7% increase in the third quarter, and it foresees the company's operating margin slipping to just 3%.
It's not all bad
It's clear why Target's stock price fell by a double-digit percentage after investors saw the Q3 report. It missed both its own guidance and analysts' estimates by wide margins -- but Target is not a broken company. Most of the challenges it's facing are temporary, and there were even some bright spots in the quarter, including its execution on key strategic goals.
For example, Target said it gained unit share -- a measure of market share based on volume rather than dollar value -- in all five of its core merchandise categories. That shows it actually outperformed the retail industry even though its results were disappointing. It's also a sign that Target's challenges are primarily at the macroeconomic level, and not the results of poor execution in the business. Similarly, Amazon has forecast unusually slow growth for its fourth quarter, and Walmart reported declining sales in the general merchandise category.
Additionally, Target's comparable sales in its own brands increased by more than 5% -- twice the growth rate of the overall business. The retailer has at least 10 of its own brands that each produces at least $1 billion in annual sales, and management sees them as a strategic priority. That's because they deliver higher margins than name brands and help generate customer loyalty because they aren't available anywhere else.
Finally, the retailer continued to expand its shop-in-store partnerships with brands like Apple, Walt Disney, and Ulta Beauty. Those deals help it differentiate itself from its competitors and show that it's an attractive partner for top brands.
A temporary setback
If macroeconomic headwinds persist, the next few quarters are likely to be ugly for Target, but the competitive advantages that have made the stock an outperformer over the last few years haven't gone away.
It's one of only three national multi-category retailers in the U.S. -- along with Walmart and Costco Wholesale -- and it has carved out its brand with a focus on "cheap chic" products, a broad geographic footprint that covers urban, suburban, and rural areas, and a growing small-format store concept. It has also leveraged its stores to support its e-commerce business in a cost-effective way, and its owned brand portfolio has grown to more than $30 billion in annual revenue.
Analysts are likely to slash their earnings estimates for Target, but it reported adjusted earnings per share of $13.56 last year, giving it the equivalent of a price-to-earnings ratio of less than 12.
The company may not get back to that level of profitability for a couple of years, but even $10 in EPS next year would make the stock a good deal after this latest share price slide, especially for a Dividend Aristocrat that currently yields 2.8%.
Target expects to have its inventory levels fully normalized by the beginning of the next fiscal year, and demand for discretionary products will eventually rebound once the macroeconomic headwinds lift.
This company, and this stock, are still good bets to outperform over the long term.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon, Apple, Target, and Walmart Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The big-box retailer badly missed earnings expectations for its fiscal third quarter as demand weakened for discretionary products and it was forced to mark down prices in its effort to clear its excess inventory. It's one of only three national multi-category retailers in the U.S. -- along with Walmart and Costco Wholesale -- and it has carved out its brand with a focus on "cheap chic" products, a broad geographic footprint that covers urban, suburban, and rural areas, and a growing small-format store concept. Target expects to have its inventory levels fully normalized by the beginning of the next fiscal year, and demand for discretionary products will eventually rebound once the macroeconomic headwinds lift. | The big-box retailer badly missed earnings expectations for its fiscal third quarter as demand weakened for discretionary products and it was forced to mark down prices in its effort to clear its excess inventory. Similarly, Amazon has forecast unusually slow growth for its fourth quarter, and Walmart reported declining sales in the general merchandise category. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | A temporary setback If macroeconomic headwinds persist, the next few quarters are likely to be ugly for Target, but the competitive advantages that have made the stock an outperformer over the last few years haven't gone away. 10 stocks we like better than Target When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | That shows it actually outperformed the retail industry even though its results were disappointing. Additionally, Target's comparable sales in its own brands increased by more than 5% -- twice the growth rate of the overall business. The Motley Fool has positions in and recommends Amazon, Apple, Target, and Walmart Inc. | 888336d9-10b7-4298-a520-02001c305560 |
18376.0 | 2022-11-18 00:00:00 UTC | SPYG, AAPL, MSFT, GOOG: ETF Inflow Alert | AAPL | https://www.nasdaq.com/articles/spyg-aapl-msft-goog%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $760.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 244,150,000 to 258,400,000). Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Alphabet Inc (Symbol: GOOG) is relatively unchanged. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $53.30. 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 ».
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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 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Alphabet Inc (Symbol: GOOG) is relatively unchanged. 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. | Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Alphabet Inc (Symbol: GOOG) is relatively unchanged. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $53.30. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Alphabet Inc (Symbol: GOOG) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $760.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 244,150,000 to 258,400,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $53.30. | Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is down about 0.2%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Alphabet Inc (Symbol: GOOG) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $760.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 244,150,000 to 258,400,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | 5ab45f2c-8bb4-4ce9-a5bb-d1c3a9f91e23 |
18377.0 | 2022-11-18 00:00:00 UTC | 3 Must-Own Stocks for 2023 (and Beyond) | AAPL | https://www.nasdaq.com/articles/3-must-own-stocks-for-2023-and-beyond | nan | nan | The bear market of 2022 hammered the tech sector. The Nasdaq lost almost 30% of its value during the year, and a few tech stocks fell by more than 75%.
Nonetheless, the severity of that downturn and a slowing of interest rate increases could renew interest in tech stocks in 2023. With that possibility, investors could see outsize gains in Apple (NASDAQ: AAPL), Airbnb (NASDAQ: ABNB), and Sea Limited (NYSE: SE).
An incredible return on equity is yet another reason to own this American giant
Jake Lerch (Apple): With the end of the year drawing near, it's time to think about the future. Specifically, what stocks are worth owning and why. For me, one stock that remains a must-own going into 2023 is Apple.
The list of reasons to own Apple is long, but let's start with this: Apple's return on equity (ROE) is a staggering 175%. Meanwhile, the average ROE in 2021 for companies in the S&P 500 was 21.9%.
In short, return on equity measures management effectiveness. It answers the question, "How successful is a company's management team at creating profit with the equity provided by shareholders?"
Apple, starting with Steve Jobs and continuing under Tim Cook, has excelled at delivering magnificent ROE. Over the last 20 years, Apple's average ROE is an astounding 43% -- with a significant outperformance since 2020.
AAPL Return on Equity data by YCharts
But can the good times continue for Apple? I think they will. Not only are the company's iPhones great, but many people have grown up with them and developed strong brand loyalty in the process. It's hard to imagine a competitor seriously threatening Apple's smartphone market share anytime soon.
What's more, the company generates billions from the sale of its iPads, Mac computers, accessories, and services. It's just another reason why Apple is the largest American company today, with a market cap of over $2.3 trillion.
Despite all these positives, Apple hasn't been immune from this year's bear market. Shares are down 15% year to date. Smart investors should recognize that for the gift it is and scoop up shares today -- before they bounce back.
The travel revolution has only just begun
Justin Pope (Airbnb): Travel hasn't been the same since Airbnb rose to mainstream recognition; in fact, you might know someone who refers to any short-term rental property as an Airbnb -- the brand has become associated with the product. Airbnb is a platform where property owners can rent out their lodgings for travelers to book through Airbnb's website or app.
The company's financial performance remains strong; revenue grew 29% year over year in the third quarter and has totaled $8 billion over the past four quarters. Airbnb is a digital platform, which makes the business very profitable; it's converted $3.2 billion of that trailing 12-month revenue, or 40%, into free cash flow. That's cash profits for share repurchases or adding to its existing $9.6 billion cash position.
ABNB Revenue (TTM) data by YCharts
Airbnb's guests booked 99.7 million nights and experiences in the third quarter, a 25% increase from the prior year; that's a lot, but there is room for that number to grow over the coming years. Consider that Airbnb is a global company operating in North America, Europe, the Middle East, and the Asia-Pacific region. Airbnb can grow from several factors, including vacation rentals taking share from traditional lodgings like hotels, and the global population becoming more mobile. Active listings increased 15% year over year in Q3; investors should track how lodging supply grows over the coming years, as it could signal the direction of Airbnb's bookings growth.
The stock has fallen 49% from its high and trades at a price-to-sales (P/S) ratio of 8. That's a big difference from the P/S of more than 30 it commanded last year. The stock is even cheaper than it sounds because its $9.6 billion cash position represents a whopping 15% of the company's $63 billion market cap. Analysts believe Airbnb's revenue will grow by 10% or more annually for several years. Then you consider the company's high free cash flow conversion rate (40% is excellent), and it seems that long-term investors looking for a winner next year and beyond could do very well with Airbnb.
The Southeast Asian juggernaut that could seem unlimited
Will Healy (Sea Limited): Sea Limited has emerged as one of the more prominent companies in gaming, e-commerce, and fintech. The Singapore-based conglomerate began as its gaming subsidiary Garena, which has become best known for its battle royale game Free Fire.
It has also ventured into e-commerce with Shopee. In time, it became the No. 1 shopping app in Southeast Asia. Now, Shopee has ventured into Latin American and European markets, a move that should raise Sea's profile.
Also, like its peer in Latin America, MercadoLibre, it also operates a growing fintech segment called Sea Money. It offers payment, financing, and digital banking services. Since many of its markets primarily use cash, Sea Money adds synergies to Shopee and Garena.
Now, Sea's financials are giving investors a reason to take a second look at the stock. Investors reacted positively to its Q3 report as the company reported revenue of $3.2 billion, a 17% increase year over year.
Moreover, e-commerce, which made up about 59% of Q3 revenue, increased by 32%. That compares well to Amazon, which experienced shrinking e-commerce revenue outside of North America in its latest quarter. Digital financial services, which claims around 10% of revenue, logged 147% revenue growth over the last year. This indicates fintech will become a huge growth driver for Sea stock.
Still, Sea faces some concerns. In Q3, the company did not provide payment volume figures, something it included in the second-quarter report. That may mean Sea Money is not prospering to the extent a 147% revenue growth rate would indicate. Additionally, digital entertainment, which is Sea's gaming segment, experienced a revenue decline of 1% year over year. An emergence out of lockdown may explain that lower usage.
But despite those minor disappointments, investors reacted well to the earnings news. Sea stock surged 36% higher in the next trading session.
That spike may serve as a catalyst for a stock that is still comparatively inexpensive. The internet company's stock has fallen by more than 70% over the previous 12 months. And while its valuation has come off record lows, the sales multiple of around three makes it significantly cheaper than MercadoLibre at a P/S ratio of 5. Such a valuation and Sea's rapid growth could prompt investors to buy more Sea Limited despite its post-earnings surge.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Airbnb, Inc. and Amazon. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in MercadoLibre and Sea Limited. The Motley Fool has positions in and recommends Airbnb, Inc., Amazon, Apple, MercadoLibre, and Sea Limited. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With that possibility, investors could see outsize gains in Apple (NASDAQ: AAPL), Airbnb (NASDAQ: ABNB), and Sea Limited (NYSE: SE). AAPL Return on Equity data by YCharts But can the good times continue for Apple? An incredible return on equity is yet another reason to own this American giant Jake Lerch (Apple): With the end of the year drawing near, it's time to think about the future. | With that possibility, investors could see outsize gains in Apple (NASDAQ: AAPL), Airbnb (NASDAQ: ABNB), and Sea Limited (NYSE: SE). AAPL Return on Equity data by YCharts But can the good times continue for Apple? Also, like its peer in Latin America, MercadoLibre, it also operates a growing fintech segment called Sea Money. | With that possibility, investors could see outsize gains in Apple (NASDAQ: AAPL), Airbnb (NASDAQ: ABNB), and Sea Limited (NYSE: SE). AAPL Return on Equity data by YCharts But can the good times continue for Apple? Active listings increased 15% year over year in Q3; investors should track how lodging supply grows over the coming years, as it could signal the direction of Airbnb's bookings growth. | With that possibility, investors could see outsize gains in Apple (NASDAQ: AAPL), Airbnb (NASDAQ: ABNB), and Sea Limited (NYSE: SE). AAPL Return on Equity data by YCharts But can the good times continue for Apple? The Southeast Asian juggernaut that could seem unlimited Will Healy (Sea Limited): Sea Limited has emerged as one of the more prominent companies in gaming, e-commerce, and fintech. | 0900d2c2-9c79-4024-9065-524aee8c03ed |
18378.0 | 2022-11-18 00:00:00 UTC | How Warren Buffett Made a Bet on Apple Without Buying More Apple Stock | AAPL | https://www.nasdaq.com/articles/how-warren-buffett-made-a-bet-on-apple-without-buying-more-apple-stock | nan | nan | Apple (NASDAQ: AAPL) is by far the largest investment in Warren Buffett's Berkshire Hathaway portfolio. His 895 million shares mean that 39% of the portfolio's value is in Apple stock.
Although Apple is one of Buffett's biggest winners, such a significant position may appear to counter the investment strategy of Buffett and his team, which leaned toward more diversification. So, it's ironic that this investment has further increased. The question for investors is whether the strategy will work for Buffett and for Apple shareholders looking to follow his lead.
How Berkshire's Apple investment increased
Berkshire's 13F filing following third-quarter 2022 earnings revealed a surprising purchase -- 60 million shares of Taiwan Semiconductor (NYSE: TSM). TSMC manufactures chips for the most prominent semiconductor companies, including Apple.
According to estimates from Bloomberg and DigiTimes, TSMC relied on Apple for more than 25% of its revenue in 2021. This makes Apple TSMC's largest client. That is also a large enough share that TSMC stock could easily rise and fall with the fortunes of Apple.
It also shows how critical TSMC is to Apple. The chips it makes go into critical Apple products such as the iPhone, iPad, and Mac computers, making the chipmaker an indispensable part of Apple's business.
Why this is a wise strategy
The TSMC purchase amounts to "concentrated diversification." It benefits Berkshire because it diversifies Buffett's portfolio while exposing itself more deeply to Apple. Since over 25% of TSMC's business involves Apple, that means just under 75% does not. Many of TSMC's other clients -- which include Advanced Micro Devices, Broadcom, Nvidia, and Qualcomm -- lead niches within the semiconductor industry.
Moreover, Buffett likes market leaders, and TSMC fits that description. According to TrendForce, TSMC produces slightly more than half of the world's semiconductors. That dominance comes largely from maintaining technical leads over companies like Intel and Samsung. That fact means that its segment-leading clients, including Apple, will likely continue to turn to TSMC.
Investors will also like that TSMC holds the potential as a profitable stand-alone investment. Its revenue in the first nine months of 2022 of $56 billion grew 43% compared with the same period in 2021. Also, its nearly $25 billion in net income left it plenty of cash to invest in the business and pay investors like Buffett more than $7 billion in dividends.
Buffett and his team also bought this stock at a lower valuation than Apple. During Q3, when Berkshire purchased five lots of shares, TSMC traded at a P/E ratio ranging from 12 to 18. In comparison, Apple sold for between 22 times and 28 times earnings, an added factor that may have led to the purchase of TSMC shares.
Should Apple investors follow such a lead?
Investors with significant Apple holdings could further concentrate by adding TSMC shares. At a 14 P/E ratio, it remains a cheaper chip stock than Apple and trades near levels where Buffett's company bought TSMC shares.
However, investors should not expect this strategy to work most of the time. Even if one can understand a company's suppliers well, it is not typical for a related company to offer a low valuation and considerable growth potential.
Nonetheless, the TSMC purchase looks like a wise strategy in Buffett's case, and shareholders in Apple, TSMC, and Berkshire Hathaway should profit as a result.
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Will Healy has positions in Advanced Micro Devices, Berkshire Hathaway (B shares), Intel, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway (B shares), Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom Ltd and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) is by far the largest investment in Warren Buffett's Berkshire Hathaway portfolio. Many of TSMC's other clients -- which include Advanced Micro Devices, Broadcom, Nvidia, and Qualcomm -- lead niches within the semiconductor industry. At a 14 P/E ratio, it remains a cheaper chip stock than Apple and trades near levels where Buffett's company bought TSMC shares. | Apple (NASDAQ: AAPL) is by far the largest investment in Warren Buffett's Berkshire Hathaway portfolio. How Berkshire's Apple investment increased Berkshire's 13F filing following third-quarter 2022 earnings revealed a surprising purchase -- 60 million shares of Taiwan Semiconductor (NYSE: TSM). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway (B shares), Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. | Apple (NASDAQ: AAPL) is by far the largest investment in Warren Buffett's Berkshire Hathaway portfolio. At a 14 P/E ratio, it remains a cheaper chip stock than Apple and trades near levels where Buffett's company bought TSMC shares. Nonetheless, the TSMC purchase looks like a wise strategy in Buffett's case, and shareholders in Apple, TSMC, and Berkshire Hathaway should profit as a result. | Apple (NASDAQ: AAPL) is by far the largest investment in Warren Buffett's Berkshire Hathaway portfolio. His 895 million shares mean that 39% of the portfolio's value is in Apple stock. Should Apple investors follow such a lead? | 1f1fd531-8de8-4df2-8de1-15904d6ebeb2 |
18379.0 | 2022-11-18 00:00:00 UTC | Dell Technologies (DELL) to Post Q3 Earnings: What's in Store? | AAPL | https://www.nasdaq.com/articles/dell-technologies-dell-to-post-q3-earnings%3A-whats-in-store-0 | nan | nan | Dell Technologies DELL is set to report its third-quarter fiscal 2023 results on Nov 21.
Dell expects fiscal third-quarter revenues in the range of $23.8-$25 billion, suggesting an 8% decline on a year-over-year basis at the midpoint. Earnings are expected between $1.53 and $1.79 per share, flat on a year-over-year basis at the midpoint.
The Zacks Consensus Estimate for revenues is pegged at $24.34 billion, suggesting 14.3% growth from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings is pegged at $1.59 per share, indicating a 32.91% decline from the year-ago quarter’s figure. The consensus estimate for earnings has declined 1.2% in the past 30 days.
Dell's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one. The company delivered a trailing four-quarter earnings surprise of 6.58% on average.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Let's see how things have shaped up for DELL before this announcement.
Factors to Watch
Although the global chip shortage and supply-chain constraints are leading to unpredictability in the technology sector, Dell is expected to have benefited from the ongoing digital transformation and strong demand environment in the to-be-reported quarter.
However, unfavorable foreign exchange is expected to have been a headwind.
Dell is expected to have benefited from strong growth in servers and networking revenues in the to-be-reported quarter. IT spending is now expected to be higher for servers and networking, as well as storage solutions. This is expected to have benefited Infrastructure Solutions Group revenues in the to-be-reported quarter.
Nevertheless, Client Solutions Group revenues are expected to have suffered from a declining PC demand, both in the customer and enterprise business segments.
Per Gartner, worldwide PC shipments in the third quarter of 2022 witnessed a year-over-year decrease of 19.5%, reaching 68 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.
This Zacks Rank #5 (Strong Sell) company shipped 12.021 million units, witnessing a 21.1% year-over-year decline in the third quarter of 2022, per the Gartner report.
Lenovo, HP and Apple shipped 17.114 million, 12.706 million and 5.795 million units, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Factors to Watch Although the global chip shortage and supply-chain constraints are leading to unpredictability in the technology sector, Dell is expected to have benefited from the ongoing digital transformation and strong demand environment in the to-be-reported quarter. | Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for revenues is pegged at $24.34 billion, suggesting 14.3% growth from the figure reported in the year-ago quarter. | Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies Inc. Price and EPS Surprise Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote Let's see how things have shaped up for DELL before this announcement. | Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report This Zacks Rank #5 (Strong Sell) company shipped 12.021 million units, witnessing a 21.1% year-over-year decline in the third quarter of 2022, per the Gartner report. | 47935525-0a99-47fd-80ef-110bbf7ad86a |
18380.0 | 2022-11-18 00:00:00 UTC | Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-4 | nan | nan | A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $5.93 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. PRF is managed by Invesco. PRF, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.39% for PRF, making it on par with most peer products in the space.
PRF's 12-month trailing dividend yield is 1.97%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
PRF's heaviest allocation is in the Financials sector, which is about 19.10% of the portfolio. Its Healthcare and Information Technology round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.37% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL).
The top 10 holdings account for about 15.76% of total assets under management.
Performance and Risk
The ETF has lost about -7.11% so far this year and is down about -4.96% in the last one year (as of 11/18/2022). In the past 52-week period, it has traded between $138.77 and $175.48.
PRF has a beta of 1.01 and standard deviation of 25.43% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1008 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $53.96 billion in assets, Vanguard Value ETF has $104.39 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL): 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. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.37% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.37% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.37% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Apple Inc. (AAPL): Free Stock Analysis Report Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 2.37% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Apple Inc (AAPL). A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market. | d5d28af5-86ef-436d-badb-8316376a02b0 |
18381.0 | 2022-11-18 00:00:00 UTC | Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-core-dividend-growth-etf-dgro-a-strong-etf-right-now-3 | nan | nan | The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $24.10 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DGRO is managed by Blackrock. Before fees and expenses, DGRO seeks to match the performance of the Morningstar US Dividend Growth Index.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for DGRO are 0.08%, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.26%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For DGRO, it has heaviest allocation in the Financials sector --about 20.90% of the portfolio --while Information Technology and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.19% of total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM).
Performance and Risk
The ETF has lost about -7.82% and is down about -4.62% so far this year and in the past one year (as of 11/18/2022), respectively. DGRO has traded between $44.47 and $56.06 during this last 52-week period.
DGRO has a beta of 0.91 and standard deviation of 24.33% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 418 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks S&P 500 DividendAristocrats Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. ProShares S&P 500 Dividend Aristocrats ETF has $10.99 billion in assets, Vanguard Dividend Appreciation ETF has $64.60 billion. NOBL has an expense ratio of 0.35% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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.
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iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.19% of total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.19% of total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.19% of total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM). Apple Inc. (AAPL): Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks S&P 500 DividendAristocrats Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.19% of total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market. | db7b2886-8382-4a76-9f0e-aeb6dee465ac |
18382.0 | 2022-11-18 00:00:00 UTC | Why Holiday Slowdown Won’t Send AAPL Stock Plunging | AAPL | https://www.nasdaq.com/articles/why-holiday-slowdown-wont-send-aapl-stock-plunging | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As discussed previously, Apple (NASDAQ:AAPL) stock has held up very well compared to other FAANG stocks. Unlike other major mega-cap tech stocks, AAPL stock hasn’t been knocked lower by a poorly-received earnings release. In fact, investors responded positively to its most recent quarterly earnings report on Oct 27.
In contrast to Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META), Apple has yet to announce a big wave of layoffs. Instead, as InvestorPlace’s Samuel O’Brient reported Nov. 16, the company has confirmed it’s still hiring.
But while lately the iPhone maker has remained resilient, there’s something currently in play that may have some worried about AAPL’s performance in the near term: the impact of macro headwinds on sales during the current quarter.
However, while many signs point to more muted results this holiday season, don’t expect it to send this stock plunging like its peers. Here’s why.
AAPL Apple $150.72
What a Holiday Slowdown Means for AAPL Stock
In the company’s fiscal fourth-quarter results (year ending Sept. 24), Apple reported 8% revenue growth, and earnings per share growth of 4% compared to the prior year’s quarter. Although not exactly earth-shattering, these were stellar numbers compared to the quarterly figures released by Apple’s fellow FAANG members.
This quarter, though, which coincides with the holiday shopping season, could bring an even more muted performance. At least, that’s a growing view amongst the sell-side community. Citing production hiccups caused by the Covid-related shutdown of Apple’s iPhone assembler in China, more and more analysts are walking back their forecasts.
With this new concern, atop existing concerns, such as inflationary pressures and the global economic slowdown, it may prove difficult for the company to report year-over-year revenue/earnings growth during the December quarter. Much less, deliver the level of growth reported last quarter.
Still, if you think this will cause AAPL stock to experience a sell-off on par with that of AMZN, GOOG, and META, think otherwise. The market is aware that Fiscal 2023 will be a transitory year. More importantly, these current challenges will clear up relatively sooner than the issues affecting other tech firms.
How Apple Can Hold on (and Grow) From Here
At today’s prices, Apple stock trades for around 24 times trailing twelve-month earnings. To some, this may appear pricey, given the potential for growth deceleration, plus the fact that, with rising interest rates, even the most high-quality of stocks have moved down to valuations under 20 times earnings.
However, it’s possible that AAPL stock can maintain this valuation, throughout the current rough patch. Although the market has its concerns, it’s well aware that this company is much better-positioned to bounce back from the in-progress downturn than its peers.
While Alphabet and Meta may be still struggling to get earnings back to pandemic-era highs in 2024, FY2024 earnings forecasts call for Apple to report earnings of $6.83 per share, well above the $6.11 per share reported this fiscal year, and the $5.61 in EPS reported during FY21.
With less uncertainty over future results, it’s doubtful investors will push AAPL stock much lower than it currently stands today. From there, as the recovery takes shape, and the anticipated re-acceleration of earnings growth begins to appear in its results, shares will likely kick off a trip back toward their all-time high, and then onto new highs.
Bottom Line
Apple has a solid recovery path, but keep in mind that this stock’s future gains will likely come in far more gradually, compared to the preceding two years.
Having said that, shares could still produce worthwhile returns, with the stock rising in tandem with earnings growth.
Through new growth opportunities such as services, as well as new device markets such as AR/VR headsets, Apple has the potential to keep delivering the level of earnings growth necessary to drive above-average long-term price appreciation. Coupled with its dividend, this could produce more-than-satisfactory returns for your portfolio.
Likely to hold steady in the near-term, and to keep growing in the long-term, there’s little reason to exit AAPL stock if you already own it, and good reason to consider if you’ve yet to add it as a position.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, Louis Navellier had a long position in AAPL, AMZN, GOOG and META. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Why Holiday Slowdown Won’t Send AAPL Stock Plunging appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips As discussed previously, Apple (NASDAQ:AAPL) stock has held up very well compared to other FAANG stocks. Unlike other major mega-cap tech stocks, AAPL stock hasn’t been knocked lower by a poorly-received earnings release. But while lately the iPhone maker has remained resilient, there’s something currently in play that may have some worried about AAPL’s performance in the near term: the impact of macro headwinds on sales during the current quarter. | AAPL Apple $150.72 What a Holiday Slowdown Means for AAPL Stock In the company’s fiscal fourth-quarter results (year ending Sept. 24), Apple reported 8% revenue growth, and earnings per share growth of 4% compared to the prior year’s quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As discussed previously, Apple (NASDAQ:AAPL) stock has held up very well compared to other FAANG stocks. Unlike other major mega-cap tech stocks, AAPL stock hasn’t been knocked lower by a poorly-received earnings release. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips As discussed previously, Apple (NASDAQ:AAPL) stock has held up very well compared to other FAANG stocks. AAPL Apple $150.72 What a Holiday Slowdown Means for AAPL Stock In the company’s fiscal fourth-quarter results (year ending Sept. 24), Apple reported 8% revenue growth, and earnings per share growth of 4% compared to the prior year’s quarter. Unlike other major mega-cap tech stocks, AAPL stock hasn’t been knocked lower by a poorly-received earnings release. | AAPL Apple $150.72 What a Holiday Slowdown Means for AAPL Stock In the company’s fiscal fourth-quarter results (year ending Sept. 24), Apple reported 8% revenue growth, and earnings per share growth of 4% compared to the prior year’s quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As discussed previously, Apple (NASDAQ:AAPL) stock has held up very well compared to other FAANG stocks. Unlike other major mega-cap tech stocks, AAPL stock hasn’t been knocked lower by a poorly-received earnings release. | f662df05-d10d-4609-a08f-4e77bbe991aa |
18383.0 | 2022-11-18 00:00:00 UTC | Is The Trade Desk Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-the-trade-desk-stock-a-buy-now-1 | nan | nan | The Trade Desk (NASDAQ: TTD) posted a strong third-quarter earnings report on Nov. 9. The ad tech company's revenue rose 31% year over year to $395 million, which beat analysts' estimates by $8 million. Its adjusted net income improved 45% to $129 million, or $0.26 per share, which also cleared the consensus forecast by three cents.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 33% to $163 million, which boosted its adjusted EBITDA margin four percentage points sequentially and two percentage points year over year to 41%. The Trade Desk's stock rallied in response to those impressive headline numbers, but it still remains down more than 40% for the year.
Should investors capitalize on that pullback and accumulate more shares of this growth stock today?
Image source: Getty Images.
Why The Trade Desk continues to grow
The Trade Desk operates the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable ad agencies, advertisers, and trade desks to bid on programmatic ads. They sit at the opposite end of the ad supply chain as sell-side platforms (SSPs) like Magnite (NASDAQ: MGNI), which help publishers sell their own ad inventories.
Advertising giants like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google often bundle together DSPs, SSPs, and other advertising services in walled gardens. However, companies that don't want to tether themselves to those sticky and sprawling ecosystems -- especially those that directly compete against tech giants like Google in other markets -- often prefer to buy or sell their ads through independent platforms like The Trade Desk or Magnite.
The Trade Desk expects three main catalysts to propel its near-term growth: the adoption of Solimar, its new AI-powered platform to collect and analyze more first-party data for advertisers; OpenPath, a new feature that bypasses SSPs altogether and directly connects publishers to advertisers; and the ongoing expansion of the connected TV (CTV) advertising market as more streaming media platforms launch ad-supported tiers.
The Trade Desk's core business is still firing on all cylinders
The Trade Desk's revenue grew 26% in 2020 as pandemic-stricken companies purchased fewer ads. But its revenue surged 43% to $1.2 billion in 2021 as those headwinds dissipated. Its growth in revenue and adjusted EBITDA has also remained incredibly resilient over the past year, even as Google, Meta Platforms (NASDAQ: META), and other advertising giants grappled with inflation, competition, and Apple's (NASDAQ: AAPL) privacy changes on iOS.
METRIC
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Revenue Growth (YOY)
39%
24%
43%
35%
31%
Adj. EBITDA Growth (YOY)
59%
25%
70%
18%
33%
Adj. EBITDA Margin
39%
48%
38%
37%
41%
Data source: The Trade Desk. YOY = Year over year.
The Trade Desk resisted those headwinds for three simple reasons. First, its emphasis on gathering first-party data with its Unified ID Solution 2.0 initiative (which replaces third-party tracking cookies) and Solimar largely insulates it from Apple's privacy changes on iOS and Google's planned elimination of third-party cookies on Chrome.
Second, its platform continues to attract advertisers that don't want to lock themselves into the walled gardens at Google, Meta, and other advertising behemoths. Lastly, the CTV advertising market -- which it's heavily invested in -- continues to expand and gradually reduce its dependence on the saturated desktop and mobile advertising markets.
During the latest conference call, CEO Jeff Green said that "under the current operating conditions, we are significantly outpacing the market regardless of the macro environment." For the fourth quarter, it expects its revenue to rise "at least" 24% year over year to $490 million, and for its adjusted EBITDA to grow 20% to $229 million -- which implies its adjusted EBITDA margin will rise by six percentage points sequentially (but dip by a percentage point year over year) to 47%.
Is it the right time to buy The Trade Desk?
That fourth-quarter forecast suggests the company's revenue will rise 32% in 2022 as its adjusted EBITDA grows 30%. For 2023, analysts expect its revenue and adjusted EBITDA to increase 21% and 12%, respectively. Those forecasts seem easily achievable, considering how resilient The Trade Desk remained throughout the macro volatility over the past year.
The Trade Desk's near-term prospects look bright, but its stock also isn't cheap at 13 times next year's sales and 34 times its adjusted EBITDA. By comparison, Magnite -- which is growing a bit slower than The Trade Desk, but benefits from the same CTV tailwinds -- trades at less than 3 times next year's sales and 8 times its adjusted EBITDA. Therefore, The Trade Desk is reasonably valued (but not undervalued) relative to its growth rates. I believe it's still worth buying as a long-term play on the advertising market, but investors shouldn't expect it to surpass its all-time high from last November anytime soon.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet (A shares), Apple, Magnite, Inc, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Magnite, Inc, Meta Platforms, Inc., and The Trade Desk. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its growth in revenue and adjusted EBITDA has also remained incredibly resilient over the past year, even as Google, Meta Platforms (NASDAQ: META), and other advertising giants grappled with inflation, competition, and Apple's (NASDAQ: AAPL) privacy changes on iOS. However, companies that don't want to tether themselves to those sticky and sprawling ecosystems -- especially those that directly compete against tech giants like Google in other markets -- often prefer to buy or sell their ads through independent platforms like The Trade Desk or Magnite. During the latest conference call, CEO Jeff Green said that "under the current operating conditions, we are significantly outpacing the market regardless of the macro environment." | Its growth in revenue and adjusted EBITDA has also remained incredibly resilient over the past year, even as Google, Meta Platforms (NASDAQ: META), and other advertising giants grappled with inflation, competition, and Apple's (NASDAQ: AAPL) privacy changes on iOS. For the fourth quarter, it expects its revenue to rise "at least" 24% year over year to $490 million, and for its adjusted EBITDA to grow 20% to $229 million -- which implies its adjusted EBITDA margin will rise by six percentage points sequentially (but dip by a percentage point year over year) to 47%. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Magnite, Inc, Meta Platforms, Inc., and The Trade Desk. | Its growth in revenue and adjusted EBITDA has also remained incredibly resilient over the past year, even as Google, Meta Platforms (NASDAQ: META), and other advertising giants grappled with inflation, competition, and Apple's (NASDAQ: AAPL) privacy changes on iOS. The Trade Desk expects three main catalysts to propel its near-term growth: the adoption of Solimar, its new AI-powered platform to collect and analyze more first-party data for advertisers; OpenPath, a new feature that bypasses SSPs altogether and directly connects publishers to advertisers; and the ongoing expansion of the connected TV (CTV) advertising market as more streaming media platforms launch ad-supported tiers. For the fourth quarter, it expects its revenue to rise "at least" 24% year over year to $490 million, and for its adjusted EBITDA to grow 20% to $229 million -- which implies its adjusted EBITDA margin will rise by six percentage points sequentially (but dip by a percentage point year over year) to 47%. | Its growth in revenue and adjusted EBITDA has also remained incredibly resilient over the past year, even as Google, Meta Platforms (NASDAQ: META), and other advertising giants grappled with inflation, competition, and Apple's (NASDAQ: AAPL) privacy changes on iOS. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Magnite, Inc, Meta Platforms, Inc., and The Trade Desk. | 612bd84c-3454-4cf4-9ac2-5c94c9393f07 |
18384.0 | 2022-11-18 00:00:00 UTC | 10 Best Tech Stocks to Buy Now in November (High Conviction) | AAPL | https://www.nasdaq.com/articles/10-best-tech-stocks-to-buy-now-in-november-high-conviction | nan | nan | Today, I provide stock analysis on the 10 best tech stocks to buy now in November with significant long-term upside. I provide a blend of stocks, covering secular growth trends such as artificial intelligence, electric vehicles, the cloud, cybersecurity, big data, and more. These are the 10 best stocks to buy now.
*Stock prices used in the below video were during the trading day of Nov. 17, 2022. The video was published on Nov. 17, 2022.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric Cuka 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. | I provide a blend of stocks, covering secular growth trends such as artificial intelligence, electric vehicles, the cloud, cybersecurity, big data, and more. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. | Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Today, I provide stock analysis on the 10 best tech stocks to buy now in November with significant long-term upside. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. | These are the 10 best stocks to buy now. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. | a0d8905c-d521-4867-be03-817e4decf7c9 |
18385.0 | 2022-11-17 00:00:00 UTC | Should You Invest in the SPDR NYSE Technology ETF (XNTK)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-spdr-nyse-technology-etf-xntk-3 | nan | nan | The SPDR NYSE Technology ETF (XNTK) was launched on 09/25/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $396.94 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. XNTK seeks to match the performance of the NYSE Technology Index before fees and expenses.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
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 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 70.10% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG).
The top 10 holdings account for about 37.10% of total assets under management.
Performance and Risk
Year-to-date, the SPDR NYSE Technology ETF has lost about -37.62% so far, and is down about -40.23% over the last 12 months (as of 11/17/2022). XNTK has traded between $90.06 and $175.22 in this past 52-week period.
The ETF has a beta of 1.17 and standard deviation of 34.29% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology 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, XNTK is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.80 billion in assets, Vanguard Information Technology ETF has $41.08 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
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SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Booking Holdings Inc. (BKNG): 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. | Looking at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $396.94 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Looking at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Apple Inc. (AAPL): Free Stock Analysis Report See This Stock Now >> | 0abce45b-6c09-43c1-a006-cf4224715a6e |
18386.0 | 2022-11-17 00:00:00 UTC | 4 Charts That Show Why Apple Could Outperform the Markets in 2023 | AAPL | https://www.nasdaq.com/articles/4-charts-that-show-why-apple-could-outperform-the-markets-in-2023 | nan | nan | In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is "probably the best business I know in the world." Following this sentiment, Apple is the largest stock holding that Buffett's company, Berkshire Hathaway, has in its portfolio.
That's high praise from a well known and highly successful investor, but the tech giant's stock has been declining this year. While that might worry some investors, now could actually be an opportune time to add it to your portfolio. After all, the business's fundamentals are solid and impressive despite the adversity in the economy right now. Here are four charts that help illustrate why this is a fantastic stock for investors to buy and hold.
1. Revenue has continued to grow amid inflation
One thing that never ceases to amaze me over the years is that despite its products not being cheap or even changing all that much, consumers still are continually eager to buy Apple's iPhones and other products. The company's top line has generated impressive growth, even now, with inflation testing consumers' budgets.
AAPL Revenue (Quarterly YoY Growth) data by YCharts
This resilience in the business demonstrates the brand loyalty the company enjoys and why it could continue to do well next year, even if inflation doesn't go away. If not for the impact of foreign exchange, the company's growth rate last quarter (for the period ending Sept. 24) would have been in the double digits.
Some analysts are worried that Apple's sales will decline next year, especially with production issues in China impacting iPhone shipments. And while that could happen, based on Apple's track record, I wouldn't expect to see a huge drop in revenue. It's still likely to do better than other tech companies.
2. Free cash flow has been rising in recent years
Investors should always focus on free cash flow. That can tell investors how safe a dividend is and how likely it is that a company can afford to buy back shares (which has a bullish impact on the stock) or pursue growth opportunities. In Apple's case, free cash flow has been stellar.
AAPL Free Cash Flow (Quarterly) data by YCharts
3. High profit margin gives the company flexibility
Thanks to its high-priced products, Apple also rakes in some terrific profits, with its net margin normally at 20% or better of revenue.
AAPL Profit Margin (Quarterly) data by YCharts
Margins like these give the company the flexibility to battle inflation and absorb the impact of higher costs without necessarily passing that off to customers in the way of price increases.
4. Its earnings multiple is at a more reasonable valuation
Since the start of the year, shares of Apple have fallen 17%, which is about in line with the S&P 500's performance. Investors may want to consider buying the stock on the dip because, with respect to earnings, Apple is trading right around its five-year average, which may be a deal for this top growth stock.
AAPL PE Ratio data by YCharts
Apple's stock isn't trading at a huge discount by any means. But at the same time, investors could be waiting a long time if they expect a strong business like Apple's to fall much lower than where it is. A lower valuation could entice more investors to buy shares of Apple.
Apple is a safe stock to park your money in right now
A business with a strong cash position and brand loyalty, like Apple's, makes for a no-brainer type of investment. Although its yield of 0.6% isn't significant, between the buybacks and continued new iPhones, growth in Apple+, and the entire Apple ecosystem, there are plenty of reasons to be bullish on the company's future. Its fundamentals are sound and with a loyal fanbase, Apple is a safe stock to buy and hold for years.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AAPL Revenue (Quarterly YoY Growth) data by YCharts This resilience in the business demonstrates the brand loyalty the company enjoys and why it could continue to do well next year, even if inflation doesn't go away. In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is "probably the best business I know in the world." AAPL Free Cash Flow (Quarterly) data by YCharts 3. | AAPL Free Cash Flow (Quarterly) data by YCharts 3. AAPL Profit Margin (Quarterly) data by YCharts Margins like these give the company the flexibility to battle inflation and absorb the impact of higher costs without necessarily passing that off to customers in the way of price increases. In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is "probably the best business I know in the world." | In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is "probably the best business I know in the world." AAPL Revenue (Quarterly YoY Growth) data by YCharts This resilience in the business demonstrates the brand loyalty the company enjoys and why it could continue to do well next year, even if inflation doesn't go away. AAPL Free Cash Flow (Quarterly) data by YCharts 3. | AAPL Revenue (Quarterly YoY Growth) data by YCharts This resilience in the business demonstrates the brand loyalty the company enjoys and why it could continue to do well next year, even if inflation doesn't go away. In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is "probably the best business I know in the world." AAPL Free Cash Flow (Quarterly) data by YCharts 3. | e3e7dddb-e73e-4606-9113-3ff7607b7b53 |
18387.0 | 2022-11-17 00:00:00 UTC | After Hours Most Active for Nov 17, 2022 : AAPL, BEKE, CSCO, PYPL, LSCC, INTC, QQQ, PGRE, GPS, CRBG, JPM, FCPT | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-17-2022-%3A-aapl-beke-csco-pypl-lscc-intc-qqq-pgre-gps-crbg | nan | nan | The NASDAQ 100 After Hours Indicator is up 28.83 to 11,705.69. The total After hours volume is currently 84,702,818 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.25 at $150.97, with 7,427,124 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
KE Holdings Inc (BEKE) is +0.11 at $15.65, with 2,947,329 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Cisco Systems, Inc. (CSCO) is -0.09 at $46.50, with 2,722,237 shares traded. CSCO's current last sale is 89.42% of the target price of $52.
PayPal Holdings, Inc. (PYPL) is +0.3399 at $85.98, with 2,697,649 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.97. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Lattice Semiconductor Corporation (LSCC) is +0.01 at $66.56, with 2,570,777 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.38. As reported by Zacks, the current mean recommendation for LSCC is in the "buy range".
Intel Corporation (INTC) is +0.07 at $29.96, with 2,293,272 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.64. INTC's current last sale is 99.87% of the target price of $30.
Invesco QQQ Trust, Series 1 (QQQ) is +0.35 at $285.16, with 1,845,318 shares traded. This represents a 12.15% increase from its 52 Week Low.
Paramount Group, Inc. (PGRE) is unchanged at $6.23, with 1,520,635 shares traded. PGRE's current last sale is 77.88% of the target price of $8.
Gap, Inc. (The) (GPS) is +1.19 at $13.90, with 1,297,347 shares traded. GPS's current last sale is 139% of the target price of $10.
Corebridge Financial Inc. (CRBG) is -0.02 at $21.83, with 1,167,627 shares traded. As reported by Zacks, the current mean recommendation for CRBG is in the "buy range".
J P Morgan Chase & Co (JPM) is +0.05 at $132.59, with 1,164,919 shares traded. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
Four Corners Property Trust, Inc. (FCPT) is -0.24 at $26.50, with 1,149,874 shares traded. FCPT's current last sale is 96.36% of the target price of $27.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.25 at $150.97, with 7,427,124 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 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. | Apple Inc. (AAPL) is +0.25 at $150.97, with 7,427,124 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 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. | Apple Inc. (AAPL) is +0.25 at $150.97, with 7,427,124 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 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. | Apple Inc. (AAPL) is +0.25 at $150.97, with 7,427,124 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 28.83 to 11,705.69. | 2e1d5365-7407-4510-8bb8-3f16ccab7293 |
18388.0 | 2022-11-17 00:00:00 UTC | Better Buy After Earnings: Target (TGT) Vs. Walmart (WMT) Stock | AAPL | https://www.nasdaq.com/articles/better-buy-after-earnings%3A-target-tgt-vs.-walmart-wmt-stock | nan | nan | Shares of Target TGT dropped 13% Wednesday after the company was unable to beat expectations like Walmart WMT did the day before. Earnings from the two big retailers showed different pictures of how the challenging economic environment is affecting the two companies. Target’s dismal report highlighted a common narrative on the overall behavior of consumer spending.
Target and Walmart’s Q3 reports support the narrative that consumers are cutting back on spending and seeking savings. Target CEO Brian Cornell said that shopping behavior later in the quarter was impacted by inflation, rising interest rates, and economic uncertainty.
Image Source: Zacks Investment Research
Q3 & Consumer Spending
Target is widely considered among consumers shopping for mid-level to quality and premium goods across a wide range of consumer products. Target relies more on larger ticket/discretionary spending than Walmart, with TGT's emphasis on higher-end home décor, food, clothing, and electronics. Some of the higher-end products come through Target’s partnerships with Apple AAPL, Disney DIS, Levi’s LEVI, and Ulta Beauty ULTA.
Target stores also cater to their audience with premium amenities, including in-shop Starbucks SBUX at many locations. Common and popular consumer household products, food, and groceries are sold in both retail chains. However, Walmart seeks to provide products that can meet price guarantees, unlike many premium retail items and brands.
Walmart’s beat on both its top and bottom line during Q3 is a clear and somewhat expected indication that consumer demand is higher for Walmart’s lower price offerings. WMT beat EPS expectations by 13% at $1.50 and 3% on the top line, with sales at $152.81 billion up 8.7% YoY.
Target’s miss on its bottom line points to middle-class and higher-paying customers fading and looking for cheaper savings. TGT missed EPS expectations by 28% at $1.54 per share but revenue slightly topped expectations at 26.51 billion. This is an indication that the operating environment is tougher on Target in addition to not getting a push from its customer base.
Even though Target’s decisive inventory actions taken earlier in the year have the company more prepared for this holiday season, manament anticipates a single-digit sales decline. Walmart also said it improved on inventory levels during Q3 but is cautious of the holiday season as well.
Growth & Outlook
For TGT’s current fiscal year, earnings are now forecasted to drop -40% at $8.07 per share, with sales up 3% to $109.77 billion. Earnings are expected to stabilize and climb 49% in FY24 at $12.01 per share. Top line growth is also expected with FY24 sales projected to be up 3% to $113.78 billion.
Turning to WMT’s current fiscal year, earnings are projected to decline -7% at $5.99 per share, with sales up 5% to $605.08 billion. FY24 earnings are expected to rise 8% with sales up 3% at $623.83 billion.
Over the last five years, TGT has grown at a 23% growth rate. This outpaces WMT’s 8% and the S&P 500’s 13% growth rate.
Performance & Valuation
Over the last year, Walmart shares have acted somewhat defensive and recouped losses from earlier in the year. After their Q3 reports, WMT is now up +2% YTD to outperform TGT’s -29% and the benchmark. However, over the last decade, TGT’s total return has still beaten WMT.
Image Source: Zacks Investment Research
After the large drop following its Q3 release, TGT trades at a 19.2X forward earnings multiple and further below its decade-high of 26.8X. In comparison, WMT now trades at a 25.4X forward earnings multiple, solidly below its decade-high of 28.1X.
From a valuation standpoint, Target continues to look more attractive relative to Walmart and this would be expected after Wednesday’s decline. However, Target’s expected return to growth in its FY24 is even more critical as the company expects sales to be slightly down in Q4.
Image Source: Zacks Investment Research
Dividends
Both stocks have strong dividends, having increased them in each of the last five years. However, the TGT dividend trumps WMT. TGT offers investors a 2.78% annual dividend yield at $4.32 per share, which is considerably higher than WMT’s 1.51% at $2.24 per share.
WMT’s annual dividend yield is on par with its Retail Supermarkets Industry average of 1.62% but TGT’s dividend is above its Retail-Discount Stores Industry average of 1.04%.
Bottom Line
Both TGT and WMT still land a Zacks Rank #3 (Hold). The two omnichannel retailers have an important significance to American society, making them solid long-term investments despite economic uncertainty. The innovation of both companies still rectifies this with Target’s one-stop in-shop approach and Walmart’s push into healthcare.
Considering which stock to add to the portfolio still centers around investors’ risk tolerance and time horizon. Short term, WMT stock may continue to be less volatile than TGT and this has been especially true over the last year. However, TGT’s growth and dividend have trumped WMT and Target remains more attractive from a valuation standpoint.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Walmart Inc. (WMT): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some of the higher-end products come through Target’s partnerships with Apple AAPL, Disney DIS, Levi’s LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Target CEO Brian Cornell said that shopping behavior later in the quarter was impacted by inflation, rising interest rates, and economic uncertainty. | Some of the higher-end products come through Target’s partnerships with Apple AAPL, Disney DIS, Levi’s LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Q3 & Consumer Spending Target is widely considered among consumers shopping for mid-level to quality and premium goods across a wide range of consumer products. | Some of the higher-end products come through Target’s partnerships with Apple AAPL, Disney DIS, Levi’s LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Shares of Target TGT dropped 13% Wednesday after the company was unable to beat expectations like Walmart WMT did the day before. | Some of the higher-end products come through Target’s partnerships with Apple AAPL, Disney DIS, Levi’s LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Shares of Target TGT dropped 13% Wednesday after the company was unable to beat expectations like Walmart WMT did the day before. | b302e509-7a73-4351-8e4b-1bb2d878df45 |
18389.0 | 2022-11-17 00:00:00 UTC | Google agreed to pay $360 mln to Activision to stop competition, Epic Games alleges | AAPL | https://www.nasdaq.com/articles/google-agreed-to-pay-%24360-mln-to-activision-to-stop-competition-epic-games-alleges-0 | nan | nan | By Paresh Dave
OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's GOOGL.O Google has struck deals with at least 24 big app developers to stop them from competing with its Play Store, including an agreement to pay Activision Blizzard Inc ATVI.O about $360 million over three years, according to a court filing on Thursday.
Google also agreed in 2020 to pay Tencent Holdings Ltd's <0700.HK> Riot Games unit, which makes "League of Legends," $30 million over one year in a similar deal, the filing stated.
The financial details emerged in a newly unredacted copy of a lawsuit "Fortnite" video game maker Epic Games first filed against Google in 2020 over allegedly anticompetitive practices related to the search giant's Android and Play Store businesses.
Google, Activision and Riot did not immediately respond to requests for comment on the new filing. But Google has previously said the lawsuit is baseless and has taken business conversations out of context.
Epic last year mostly lost a similar case against Apple IncAAPL.O, the other leading app store provider. An appellate ruling in that case is expected next year.
The Google agreements with developers were described in earlier versions of the lawsuit, but the exact terms had not been revealed.
The deal with Activision was announced in January 2020, soon after it told Google it was considering launching its own app store. Google around the same time was forecasting billions of dollars in lost app store sales if developers fled to alternative systems.
Epic's lawsuit alleged that Google knew signing with Activision "effectively ensured that (Activision) would abandon its plans to launch a competing app store, and Google intended this result." The agreement increases prices and lowers quality of service, the lawsuit added.
(Reporting by Paresh Dave; editing by Jonathan Oatis and Richard Chang)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Epic last year mostly lost a similar case against Apple IncAAPL.O, the other leading app store provider. By Paresh Dave OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's GOOGL.O Google has struck deals with at least 24 big app developers to stop them from competing with its Play Store, including an agreement to pay Activision Blizzard Inc ATVI.O about $360 million over three years, according to a court filing on Thursday. Google also agreed in 2020 to pay Tencent Holdings Ltd's <0700.HK> Riot Games unit, which makes "League of Legends," $30 million over one year in a similar deal, the filing stated. | Epic last year mostly lost a similar case against Apple IncAAPL.O, the other leading app store provider. By Paresh Dave OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's GOOGL.O Google has struck deals with at least 24 big app developers to stop them from competing with its Play Store, including an agreement to pay Activision Blizzard Inc ATVI.O about $360 million over three years, according to a court filing on Thursday. The financial details emerged in a newly unredacted copy of a lawsuit "Fortnite" video game maker Epic Games first filed against Google in 2020 over allegedly anticompetitive practices related to the search giant's Android and Play Store businesses. | Epic last year mostly lost a similar case against Apple IncAAPL.O, the other leading app store provider. By Paresh Dave OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's GOOGL.O Google has struck deals with at least 24 big app developers to stop them from competing with its Play Store, including an agreement to pay Activision Blizzard Inc ATVI.O about $360 million over three years, according to a court filing on Thursday. The financial details emerged in a newly unredacted copy of a lawsuit "Fortnite" video game maker Epic Games first filed against Google in 2020 over allegedly anticompetitive practices related to the search giant's Android and Play Store businesses. | Epic last year mostly lost a similar case against Apple IncAAPL.O, the other leading app store provider. By Paresh Dave OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's GOOGL.O Google has struck deals with at least 24 big app developers to stop them from competing with its Play Store, including an agreement to pay Activision Blizzard Inc ATVI.O about $360 million over three years, according to a court filing on Thursday. Google also agreed in 2020 to pay Tencent Holdings Ltd's <0700.HK> Riot Games unit, which makes "League of Legends," $30 million over one year in a similar deal, the filing stated. | 6956a6cd-1129-4660-8d88-055134ccc7a1 |
18390.0 | 2022-11-17 00:00:00 UTC | US STOCKS-Wall St falls on mixed economic data, Fed official's hawkish view | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-falls-on-mixed-economic-data-fed-officials-hawkish-view | nan | nan | By Ankika Biswas and Amruta Khandekar
Nov 17 (Reuters) - U.S. stock indexes fell on Thursday as mixed economic data and hawkish comments from a Federal Reserve official fueled concerns that the central bank may not ease its aggressive policy tightening.
St. Louis Federal Reserve President James Bullard said rate hikes so far "have had only limited effects on observed inflation," and that the central bank needs to continue raising interest rates by at least another full percentage point.
Bullard's comments come as strong retail sales numbers on Wednesday stoked concerns that the Fed would keep raising borrowing costs, even as evidence of cooling inflation gives the central bank room to reduce the size of its rate hikes.
Several other Fed officials in recent days have also stressed the need to continue raising rates, albeit at a slower pace.
"The Fed is trying to make sure the market doesn't get too ahead of itself," said Tim Holland, chief investment officer at Orion Advisor Solutions.
"They're trying to walk this rhetorical tightrope where in between meetings and big data points, they're reminding the market that they're still tightening."
Traders are now pricing in 89% odds of a 50-basis-point rate hike from the Fed in December and see terminal rate at around 5% in June 2023. FEDWATCH
Data showed the number of Americans filing new claims for unemployment benefits fell last week, indicating a still tight labor market that allows Fed room for further tightening, denting market sentiment.
Wall Street closed lower on Wednesday as a grim outlook from Target Corp TGT.N sparked concerns about retailers heading into the crucial holiday season.
All major S&P 500 sectors traded lower on Thursday, with retail .SPXRT and consumer discretionary .SPLRCD falling 1.9% and 1.8%, respectively.
Shares of megacap tech and other growth companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O were down between 0.9% and 3%.
The S&P 500 .SPX has gained more than 6% from its October closing lows on hopes of a less hawkish Fed, though the index has logged steep losses so far this year on fears of a recession stemming from the hefty interest rate hikes.
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI was down 265.98 points, or 0.79%, at 33,287.85, the S&P 500 .SPX was down 45.82 points, or 1.16%, at 3,912.97, and the Nasdaq Composite .IXIC was down 140.01 points, or 1.25%, at 11,043.65.
Department store chain Macy's IncM.N gained 11.2% and personal care products retailer Bath & Body Works Inc BBWI.N surged 17.3% after the companies raised their annual profit forecasts.
Kohl's Corp KSS.N slipped 3.2% after it withdrew its 2022 sales and profit forecasts, blaming an uncertain economic outlook and the departure of top boss Michelle Gass.
Roku Inc's ROKU.O shares fell 3.3% as the streaming platform said it plans to cut 200 jobs.
Declining issues outnumbered advancers for a 6.58-to-1 ratio on the NYSE and for a 3.72-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and one new low, while the Nasdaq recorded 12 new highs and 101 new lows.
(Reporting by Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta, Shinjini Ganguli and Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of megacap tech and other growth companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O were down between 0.9% and 3%. By Ankika Biswas and Amruta Khandekar Nov 17 (Reuters) - U.S. stock indexes fell on Thursday as mixed economic data and hawkish comments from a Federal Reserve official fueled concerns that the central bank may not ease its aggressive policy tightening. Bullard's comments come as strong retail sales numbers on Wednesday stoked concerns that the Fed would keep raising borrowing costs, even as evidence of cooling inflation gives the central bank room to reduce the size of its rate hikes. | Shares of megacap tech and other growth companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O were down between 0.9% and 3%. By Ankika Biswas and Amruta Khandekar Nov 17 (Reuters) - U.S. stock indexes fell on Thursday as mixed economic data and hawkish comments from a Federal Reserve official fueled concerns that the central bank may not ease its aggressive policy tightening. St. Louis Federal Reserve President James Bullard said rate hikes so far "have had only limited effects on observed inflation," and that the central bank needs to continue raising interest rates by at least another full percentage point. | Shares of megacap tech and other growth companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O were down between 0.9% and 3%. By Ankika Biswas and Amruta Khandekar Nov 17 (Reuters) - U.S. stock indexes fell on Thursday as mixed economic data and hawkish comments from a Federal Reserve official fueled concerns that the central bank may not ease its aggressive policy tightening. St. Louis Federal Reserve President James Bullard said rate hikes so far "have had only limited effects on observed inflation," and that the central bank needs to continue raising interest rates by at least another full percentage point. | Shares of megacap tech and other growth companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O were down between 0.9% and 3%. St. Louis Federal Reserve President James Bullard said rate hikes so far "have had only limited effects on observed inflation," and that the central bank needs to continue raising interest rates by at least another full percentage point. Bullard's comments come as strong retail sales numbers on Wednesday stoked concerns that the Fed would keep raising borrowing costs, even as evidence of cooling inflation gives the central bank room to reduce the size of its rate hikes. | 6d1155cb-1c2e-4ee6-bbbc-da66ddd0f0ae |
18391.0 | 2022-11-17 00:00:00 UTC | Netflix's Competition Can't Stay Cheap Forever. Price Hikes Are Coming | AAPL | https://www.nasdaq.com/articles/netflixs-competition-cant-stay-cheap-forever.-price-hikes-are-coming | nan | nan | The cost of streaming is going up, and for once Netflix (NASDAQ: NFLX) isn't to blame.
The competition is finally starting to focus on becoming profitable after several years of keeping pricing low to grow their subscriber bases. That means price hikes. Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) have already announced price hikes, while Paramount (NASDAQ: PARA) and Warner Bros. Discovery (NASDAQ: WBD) have clearly stated intentions to do so next year.
The competitors' price hikes come at a time when Netflix is making it more affordable than ever to subscribe to its streaming service. That could be great news for Netflix and its investors.
Your streaming bill is going up
It was only a matter of time before media companies started raising the prices of their direct-to-consumer offerings. The market for streaming content has become more competitive as there's been a land grab for new original series and films.
Disney saw its budget balloon last year. Warner Bros. Discovery is working to get a handle on HBO Max's budget. Apple's budget seemingly has no limits as it focuses on sports and prestige programming. And Paramount raised its long-term budget by 20% earlier this year. Meanwhile, Netflix has managed to keep its cash content costs steady, and plans to keep them at their current level for the time being.
Combined with inflation and other macroeconomic headwinds, there's a growing pressure to raise prices. Disney has already done so on its streaming services in the past, and it'll push the Disney+ price to $10.99 per month after it introduces its ad-supported tier next month. Apple raised the price of Apple TV+ by $2 to $6.99 per month in October.
And more price hikes are coming. The head of streaming at Warner Bros. Discovery, Jean-Briac Parrette, said raising pricing on HBO Max in 2023 is an opportunity for the company. He also sees growing revenue per user internationally. The plan to merge Discovery+ with HBO Max could be when the price hike comes.
Likewise, Paramount's CFO Naveen Chopra expressed confidence in the company's ability to raise prices for Paramount+ and Showtime ahead. He noted pricing is moving higher across the industry, which gives the company room to increase prices itself.
Higher competitor prices are great for Netflix
Netflix has consistently raised its pricing over the last eight years, but it's recently started bumping into some resistance from consumers.
The increased price sensitivity among consumers corresponds with the launch of all the newer streaming services that came to market over the last few years. Those services are all losing money, Netflix estimates, in an effort to grow their subscriber bases. Management was keen to point this out in its third-quarter letter to shareholders: "They are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix's $5 to $6 billion annual operating profit."
As price hikes come to market, Netflix's pricing doesn't look nearly as expensive. In fact, Netflix's new Basic with Ads tier is priced below Disney+ and Hulu and could eventually become one of the least expensive options on the market if Netflix keeps the pricing steady. (Paramount+, Discovery+, and others are currently priced as low as $4.99 per month with ads.) Considering Netflix is in the early stages of selling advertisements, there's a lot of room to improve, and it could keep its pricing steady much longer than the competition.
Netflix's service is starting to look more and more like a value compared to other streaming services. And considering it's already very profitable and plans to keep its biggest expense -- content -- relatively stable, it has a lot of flexibility to keep its pricing stable. The price increases from its competitors could send more viewers back to Netflix, growing the subscriber base and bolstering revenue and free cash flow for investors.
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Adam Levy has positions in Apple, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) have already announced price hikes, while Paramount (NASDAQ: PARA) and Warner Bros. Likewise, Paramount's CFO Naveen Chopra expressed confidence in the company's ability to raise prices for Paramount+ and Showtime ahead. Considering Netflix is in the early stages of selling advertisements, there's a lot of room to improve, and it could keep its pricing steady much longer than the competition. | Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) have already announced price hikes, while Paramount (NASDAQ: PARA) and Warner Bros. Management was keen to point this out in its third-quarter letter to shareholders: "They are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix's $5 to $6 billion annual operating profit." The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. | Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) have already announced price hikes, while Paramount (NASDAQ: PARA) and Warner Bros. Higher competitor prices are great for Netflix Netflix has consistently raised its pricing over the last eight years, but it's recently started bumping into some resistance from consumers. As price hikes come to market, Netflix's pricing doesn't look nearly as expensive. | Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) have already announced price hikes, while Paramount (NASDAQ: PARA) and Warner Bros. The competitors' price hikes come at a time when Netflix is making it more affordable than ever to subscribe to its streaming service. As price hikes come to market, Netflix's pricing doesn't look nearly as expensive. | 429f02fc-8386-4d8e-98c4-73912061730e |
18392.0 | 2022-11-17 00:00:00 UTC | The 3 Best Blue-Chip Stocks to Buy Now | AAPL | https://www.nasdaq.com/articles/the-3-best-blue-chip-stocks-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When a bear market comes roaring, investors want to own the best blue-chip stocks. Believe it or not, there have been stocks recently hitting new 52-week and all-time highs. As hard as that seems to believe, it’s true.
Outside of tech and FAANG stocks, some names are actually doing pretty well.
As tempting as it is to buy a blue-chip stock like Microsoft (NASDAQ:MSFT) when it’s down 30% or more, there are other names that are worth focusing on, too. Some of those stocks are in the retail sector. Others are in the healthcare space.
Since this is a bear market, the selling pressure can pick up at any time. However, even in a bear market, it’s worth knowing which stocks are outperforming and worth pursuing. Let’s look at three of the best blue-chip stocks right now.
Ticker Company Current Price
SBUX Starbucks $96.30
CAH Cardinal Health $76.25
AMGN Amgen $286
Best Blue-Chip Stocks: Starbucks (SBUX)
Source: Grand Warszawski / Shutterstock.com
Starbucks (NASDAQ:SBUX) may not be the first stock that comes to mind when thinking of the best blue-chip stocks to buy. However, I want to go outside the box a bit, and I’m looking for a stock that has some momentum.
The stock recently hit its highest level since January, as investors continue to cheer the results and direction of Starbucks’ business. Analysts’ average estimates call for 11% revenue growth this year and next year, alongside 15% earnings growth in 2023 and a 17.5% increase in its profits next year.
In other words, Starbucks’ business and its stock price have momentum.
Trading at 28 times its earnings, it’s not exactly cheap, while its 2.2% dividend yield does not make it a great name for income investors. But interim CEO Howard Schultz said, “We saw accelerating demand for Starbucks coffee around the world in Q4 and throughout the year.”
And its management noted that its results were “gratifying” given the economic pressures in many parts of the world, as consumers continue to spend a great deal of money on Starbucks’ offerings. As anti-Covid measures in China continue to be eased, China, the company’s second-biggest market could give SBUX stock a big lift in 2023.
Best Blue-Chip Stocks: Cardinal Health (CAH)
Source: Shutterstock
Cardinal Health (NYSE:CAH) has been fascinating to watch. On Aug. 11, CAH stock dropped by roughly 3.5% at the open after the company reported its fiscal fourth-quarter earnings. But the shares subsequently exploded higher, ending the day up 5.5%. The rally sent Cardinal Health stock to its highest level since 2018, and it ultimately climbed much further.
On Nov. 4, it reported fiscal Q1 results which surpassed analysts’ average estimates on the top and bottom-lines. Analysts on average, expect CAH to deliver almost 10% revenue growth this year. While the mean estimates call for just 5.5% earnings growth during the current fiscal year, the average forecast calls for almost 20% profit growth in the following fiscal year.
Trading at just 15 times this year’s earnings, paying out a 2.7% dividend yield and showing strong technicals, Cardinal Health is worth keeping an eye on.
Amgen (AMGN)
Source: Shutterstock
Last but certainly not least, we have Amgen (NASDAQ:AMGN). Its dividend now yields just 2.6%, but that’s only because the stock has gone on a ballistic rise to new highs. Despite a mild pullback from the highs, Amgen stock has climbed 27% as it has rallied in five of the last six weeks.
Did I mention that this stock recently reached new, all-time highs?
Yes, it has been a runaway freight train. Sporting a one-year return of 54%, AMGN is trouncing the S&P 500, which is down 16.5% over the same stretch.
While investors may want to wait for AMGN to pull back again before buying it, keep some of the stock’s positives in mind. For instance, the shares trade at just 16 times Amgen’s earnings, and analysts, on average, are still looking for the company’s earnings and and revenue growth to rise this year and next year.
If the stock dips just below $260, it will trade for less than 15 times Amgen’s earnings and yield 3%.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post The 3 Best Blue-Chip Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock recently hit its highest level since January, as investors continue to cheer the results and direction of Starbucks’ business. Trading at 28 times its earnings, it’s not exactly cheap, while its 2.2% dividend yield does not make it a great name for income investors. Trading at just 15 times this year’s earnings, paying out a 2.7% dividend yield and showing strong technicals, Cardinal Health is worth keeping an eye on. | Ticker Company Current Price SBUX Starbucks $96.30 CAH Cardinal Health $76.25 AMGN Amgen $286 Best Blue-Chip Stocks: Starbucks (SBUX) Source: Grand Warszawski / Shutterstock.com Starbucks (NASDAQ:SBUX) may not be the first stock that comes to mind when thinking of the best blue-chip stocks to buy. Best Blue-Chip Stocks: Cardinal Health (CAH) Source: Shutterstock Cardinal Health (NYSE:CAH) has been fascinating to watch. While the mean estimates call for just 5.5% earnings growth during the current fiscal year, the average forecast calls for almost 20% profit growth in the following fiscal year. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips When a bear market comes roaring, investors want to own the best blue-chip stocks. Ticker Company Current Price SBUX Starbucks $96.30 CAH Cardinal Health $76.25 AMGN Amgen $286 Best Blue-Chip Stocks: Starbucks (SBUX) Source: Grand Warszawski / Shutterstock.com Starbucks (NASDAQ:SBUX) may not be the first stock that comes to mind when thinking of the best blue-chip stocks to buy. For instance, the shares trade at just 16 times Amgen’s earnings, and analysts, on average, are still looking for the company’s earnings and and revenue growth to rise this year and next year. | Ticker Company Current Price SBUX Starbucks $96.30 CAH Cardinal Health $76.25 AMGN Amgen $286 Best Blue-Chip Stocks: Starbucks (SBUX) Source: Grand Warszawski / Shutterstock.com Starbucks (NASDAQ:SBUX) may not be the first stock that comes to mind when thinking of the best blue-chip stocks to buy. For instance, the shares trade at just 16 times Amgen’s earnings, and analysts, on average, are still looking for the company’s earnings and and revenue growth to rise this year and next year. On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. | 8084d0c0-7e52-42dd-ab2c-c3b9fce63e34 |
18393.0 | 2022-11-17 00:00:00 UTC | 2 Top Warren Buffett Stocks to Buy Now and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-now-and-hold-forever | nan | nan | Warren Buffett is widely recognized as one of the best investors in history, and it's not hard to see why. His investment portfolio through Berkshire Hathaway was worth $306 billion at the end of the third quarter, and unrealized capital gains accounted for more than half of that sum. That success has inspired countless investors to follow in his footsteps.
With that in mind, two Buffett stocks currently stand out from the pack. The first is Amazon (NASDAQ: AMZN) and the second is a new addition to Berkshire's portfolio, chipmaker Taiwan Semiconductor Manufacturing (NYSE: TSM).
Here's what investors should know.
1. Amazon: A triple threat
Amazon operates the most-visited e-commerce marketplace in the world, and it will power nearly 40% of online retail sales in the U.S. this year, according to eMarketer. Better yet, the company has cemented its leadership with an extensive logistics business. It surpassed FedEx in U.S. delivery volume in 2020, and it is on pace to be the largest U.S. carrier in 2022. That affords the company tight control over shipping costs and delivery times.
Unfortunately, Amazon has struggled amid the unfavorable economy this year. Revenue jumped 15% to $127 billion in the third quarter, but high inflation drove operating expenses higher, causing earnings to drop 10% to $0.28 per diluted share. On the bright side, those headwinds are temporary, and investors have two good reasons to believe profitability will improve over time: cloud computing and digital advertising.
Amazon Web Services (AWS) has long been the market leader in cloud computing. Its first-mover status coupled with an unmatched capacity for innovation has helped it create a more extensive cloud-services portfolio than any other vendor. As a result, AWS generates twice as much revenue as its next closest competitor, Microsoft Azure. That bodes well. AWS consistently achieves an operating margin above 25% -- several times higher than its retail operating margin. That means Amazon as a whole should become increasingly profitable as AWS accounts for a larger portion of total revenue.
Meanwhile, Amazon has rapidly gained share in digital advertising, another high-margin industry. Its marketplace and Fire TV streaming platform both enjoy tremendous popularity among consumers, and that has made Amazon a valuable advertising partner to countless brands. In fact, eMarketer says Amazon will account for 6.5% of all digital ad spend worldwide this year, making it the fourth-largest advertiser on the planet.
Amazon is a key player in e-commerce, cloud computing, and digital advertising, three large and growing industries. That should give investors confidence in its ability to rebound as the economy normalizes. In the meantime, shares are trading at 2 times sales, a significant discount compared to the five-year average of 3.8 times sales. That's why this Buffett stock is a screaming buy.
2. Taiwan Semiconductor: The leading chipmaker
Taiwan Semiconductor is the largest chipmaker in the world with more than a dozen manufacturing facilities across Taiwan, China, and the United States. It produces chips for customers in several end markets, including smartphones, high-performance computing, the automotive sector, the Internet of Things, and consumer electronics.
Taiwan Semiconductor has long been on the cutting edge of process (chipmaking) technology, and its smooth transition into 5-nanometer chips in 2020 helped reinforce its leadership while Samsung struggled with production problems. Today, the company holds 56% market share in semiconductor foundry services, while Samsung ranks second with just 13% market share, according to Counterpoint Research.
Taiwan Semiconductor is a crucial link in the semiconductor supply chain, and that has translated into consistent demand over the years. That trend continued in the third quarter, as the company topped consensus estimates on the top and bottom lines. Revenue climbed 36% to $20.2 billion and earnings soared 66% to $1.79 per American depositary receipt (ADR).
Looking ahead, management expects fourth-quarter results to be less impressive, citing softness in consumer demand in the smartphone and PC end markets. But the long-term investment thesis remains intact. Taiwan Semiconductor serves customers at the forefront of several industries, including Apple in consumer electronics, Qualcomm in smartphone chips, and Nvidia in graphics and artificial intelligence. To that end, it should continue to benefit as those businesses grow.
With that in mind, shares currently trade at 5.8 times sales, a discount to the five-year average of 8.5 times sales. That's why this stock is worth buying.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), FedEx, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its marketplace and Fire TV streaming platform both enjoy tremendous popularity among consumers, and that has made Amazon a valuable advertising partner to countless brands. Taiwan Semiconductor has long been on the cutting edge of process (chipmaking) technology, and its smooth transition into 5-nanometer chips in 2020 helped reinforce its leadership while Samsung struggled with production problems. Taiwan Semiconductor serves customers at the forefront of several industries, including Apple in consumer electronics, Qualcomm in smartphone chips, and Nvidia in graphics and artificial intelligence. | Taiwan Semiconductor serves customers at the forefront of several industries, including Apple in consumer electronics, Qualcomm in smartphone chips, and Nvidia in graphics and artificial intelligence. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), FedEx, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), FedEx, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | His investment portfolio through Berkshire Hathaway was worth $306 billion at the end of the third quarter, and unrealized capital gains accounted for more than half of that sum. Here's what investors should know. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), FedEx, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. | a39294ef-5969-4ae0-9bbb-0104dae65ff7 |
18394.0 | 2022-11-17 00:00:00 UTC | Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-information-technology-index-etf-ftec-4 | nan | nan | Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $5.24 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
Costs
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
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 in the Information Technology sector--about 99.70% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 24.88% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA).
The top 10 holdings account for about 61.37% of total assets under management.
Performance and Risk
So far this year, FTEC has lost about -26.20%, and is down about -24.66% in the last one year (as of 11/17/2022). During this past 52-week period, the fund has traded between $88.99 and $137.67.
The ETF has a beta of 1.14 and standard deviation of 31.91% for the trailing three-year period, making it a medium risk choice in the space. With about 389 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology 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, FTEC is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.80 billion in assets, Vanguard Information Technology ETF has $41.08 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
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Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 24.88% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $5.24 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 24.88% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 24.88% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 24.88% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | ac6b23a6-1838-4e42-8a86-4f011c855e5f |
18395.0 | 2022-11-17 00:00:00 UTC | Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-4 | nan | nan | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.72 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 17.60% of the portfolio. Consumer Staples and Information Technology round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL).
The top 10 holdings account for about 26.94% of total assets under management.
Performance and Risk
DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses. The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
The ETF has lost about -3.65% so far this year and it's up approximately 0.14% in the last one year (as of 11/17/2022). In the past 52-week period, it has traded between $55.26 and $66.91.
The ETF has a beta of 0.90 and standard deviation of 23.53% for the trailing three-year period, making it a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DLN is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.47 billion in assets, Vanguard Value ETF has $104.38 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.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
See This Stock Now >>
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund launched on 06/16/2006. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a passively managed exchange traded fund launched on 06/16/2006. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. LargeCap Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. | 37f49fa5-5148-4d9d-9c0c-2989cfe815d1 |
18396.0 | 2022-11-17 00:00:00 UTC | PubMatic's Momentum Suddenly Slows -- Is It Time to Sell the Stock? | AAPL | https://www.nasdaq.com/articles/pubmatics-momentum-suddenly-slows-is-it-time-to-sell-the-stock | nan | nan | It should come as no surprise that PubMatic (NASDAQ: PUBM) experienced a sharp drop in its growth trajectory in the third quarter. With the global economic outlook getting murky and the U.S. Federal Reserve still hiking interest rates amid a clearly slowing business environment, the correct assumption was always that advertising activity was going to take a hit. Queue the music -- that's exactly what happened.
PubMatic's meager 11% growth rate in Q3 gave me pause, and it should give you pause too if you're a shareholder. But is it time to sell the stock and move on?
Growth slows, but earnings fall
Tiny PubMatic's revenue of $64.5 million in Q3 wasn't all bad. The company operates on the supply side of the digital advertising industry. It works primarily with media publishers selling ad slots, versus demand-side platforms like The Trade Desk that work with buyers of ads (marketers). Growth is growth, and many industry players have experienced even more abrupt slowdowns as of late.
However, ad activity has slowed dramatically in the second half of 2022, and the values of many ads have also fallen off a cliff because of Apple's user-tracking transparency changes. Now, iOS device users are given prompts asking them whether they want to allow each app to track their activity (data that marketers and publishers use to target audiences with relevant ads), and many of those users are opting out. Given that the iPhone now holds a more than 50% share of the U.S. smartphone market, that change has thrown the ad industry a vicious curve ball.
Thus, while PubMatic's 11% growth rate in Q3 (down from 27% in Q2) is concerning, it's consistent with what's happening in the digital ad space overall. But what is more of a concern is the significant drop in profitability that accompanied this cool-off. Across all metrics, PubMatic's profit margins declined significantly last quarter.
PUBMATIC PROFIT METRIC
Q3 2022
Q3 2022 PROFIT AS % OF REVENUE
Q3 2021 PROFIT AS % OF REVENUE
Net income
$3.33 million
5.2%
23.3%
Adjusted EBITDA
$25.3 million
39.3%
45.5%
Data source: PubMatic.
Infrastructure spending takes a bite out of profits... for now
What was the reason for PubMatic's declining profits? Unlike a lot of other digital ad technologists, PubMatic owns its own computing infrastructure, rather than renting it from a public cloud provider. The company continued spending on this hardware and related software during the quarter even as the ad industry hit the skids.
Through the first nine months of 2022, money spent on network and computing hardware has increased by 38% compared to a year ago to $128 million. Internal-use software development has gone up 34% to $40.9 million. Additionally, PubMatic acquired an AI ad start-up called Martin last quarter for $30.8 million.
PubMatic is still profitable, and it has a healthy balance sheet with $166 million in cash and short-term investments, and zero debt. However, investors should keep an eye on the pace of its investments, and watch for signs it can ramp its profit margins back up again.
Time to sell PubMatic stock?
If you're tempted to hit that sell button, consider first this significant statement the management made on its latest earnings call. After spending heavily on its infrastructure for the last three years, the company believes the time has come to focus on "optimizing our infrastructure and increasing utilization, which will allow us to materially reduce next year's [capital expenditure] spend." PubMatic will also begin slowing its rate of hiring.
All of that suggests that a big rebound in profitability is coming in 2023. And if you think the digital ad industry will also make a recovery starting next year (contingent on economic conditions getting a little better), PubMatic's revenue growth could accelerate again too. I'm not ready to sell this stock.
Nevertheless, it has been a rough year. Shares are down more than 50% so far in 2022, and trade for 21 times trailing-12-month earnings (or just under 19 times trailing-12-month free cash flow). Given that the outlook is for revenue to be up just 1% year over year in Q4, the stock isn't cheap.
But investing in small companies like PubMatic requires patience and some long-term vision. Among sell-side ad platforms, I like the strategy here. The investments the company made during difficult times could also pay off once the next economic uptick occurs. It could take some time for the computing hardware investments to pay off, but I still believe that patient PubMatic shareholders will be rewarded.
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Nicholas Rossolillo and his clients have positions in Apple, PubMatic, Inc., and The Trade Desk. The Motley Fool has positions in and recommends Apple, PubMatic, Inc., and The Trade Desk. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With the global economic outlook getting murky and the U.S. Federal Reserve still hiking interest rates amid a clearly slowing business environment, the correct assumption was always that advertising activity was going to take a hit. Given that the iPhone now holds a more than 50% share of the U.S. smartphone market, that change has thrown the ad industry a vicious curve ball. And if you think the digital ad industry will also make a recovery starting next year (contingent on economic conditions getting a little better), PubMatic's revenue growth could accelerate again too. | It works primarily with media publishers selling ad slots, versus demand-side platforms like The Trade Desk that work with buyers of ads (marketers). Across all metrics, PubMatic's profit margins declined significantly last quarter. The Motley Fool has positions in and recommends Apple, PubMatic, Inc., and The Trade Desk. | Time to sell PubMatic stock? And if you think the digital ad industry will also make a recovery starting next year (contingent on economic conditions getting a little better), PubMatic's revenue growth could accelerate again too. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Nicholas Rossolillo and his clients have positions in Apple, PubMatic, Inc., and The Trade Desk. | Thus, while PubMatic's 11% growth rate in Q3 (down from 27% in Q2) is concerning, it's consistent with what's happening in the digital ad space overall. Time to sell PubMatic stock? The investments the company made during difficult times could also pay off once the next economic uptick occurs. | 038efced-f051-4ed8-aa0c-2ca1fe372319 |
18397.0 | 2022-11-17 00:00:00 UTC | Foxconn hires over 100,000 workers for COVID-hit Chinese plant - Yicai | AAPL | https://www.nasdaq.com/articles/foxconn-hires-over-100000-workers-for-covid-hit-chinese-plant-yicai | nan | nan | SHANGHAI, Nov 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has hit a hiring target of 100,000 new workers for its Zhengzhou plant in China,financial newsoutlet Yicai reported on Thursday, a milestone that could ease production pressure at the COVID-hit site.
Yicai, citing an unidentified high-ranking staffer at the plant, said Foxconn had received more than 100,000 job applications so far and was ending its latest hiring drive.
Foxconn, formally known as Hon Hai Precision Industry, did not immediately respond to a request for comment.
The plant, the world's largest iPhone manufacturing facility, has since last month faced staff discontent over government mandated measures to curb the spread of COVID-19, which required the company to isolate many employees and prompted some to flee.
Apple last week lowered its forecast for shipments of the premium iPhone 14 model due to the situation. Reuters last month reported that Foxconn's production of iPhones at the Zhengzhou factory could slump by as much as 30% in November.
Earlier this month, Foxconn quadrupled bonuses for workers who stayed and also began a recruitment drive that advertised higher than usual salaries.
Some local authorities in Henan province urged retired soldiers and government workers to take on stints at the factory, which prior to the situation had about 200,000 workers.
(Reporting by Brenda Goh; Additional reporting by Yew Lun Tian and Ben Blanchard Editing by Mark Potter)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has hit a hiring target of 100,000 new workers for its Zhengzhou plant in China,financial newsoutlet Yicai reported on Thursday, a milestone that could ease production pressure at the COVID-hit site. Yicai, citing an unidentified high-ranking staffer at the plant, said Foxconn had received more than 100,000 job applications so far and was ending its latest hiring drive. The plant, the world's largest iPhone manufacturing facility, has since last month faced staff discontent over government mandated measures to curb the spread of COVID-19, which required the company to isolate many employees and prompted some to flee. | SHANGHAI, Nov 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has hit a hiring target of 100,000 new workers for its Zhengzhou plant in China,financial newsoutlet Yicai reported on Thursday, a milestone that could ease production pressure at the COVID-hit site. Yicai, citing an unidentified high-ranking staffer at the plant, said Foxconn had received more than 100,000 job applications so far and was ending its latest hiring drive. Reuters last month reported that Foxconn's production of iPhones at the Zhengzhou factory could slump by as much as 30% in November. | SHANGHAI, Nov 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has hit a hiring target of 100,000 new workers for its Zhengzhou plant in China,financial newsoutlet Yicai reported on Thursday, a milestone that could ease production pressure at the COVID-hit site. Reuters last month reported that Foxconn's production of iPhones at the Zhengzhou factory could slump by as much as 30% in November. (Reporting by Brenda Goh; Additional reporting by Yew Lun Tian and Ben Blanchard Editing by Mark Potter) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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. | SHANGHAI, Nov 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has hit a hiring target of 100,000 new workers for its Zhengzhou plant in China,financial newsoutlet Yicai reported on Thursday, a milestone that could ease production pressure at the COVID-hit site. Foxconn, formally known as Hon Hai Precision Industry, did not immediately respond to a request for comment. The plant, the world's largest iPhone manufacturing facility, has since last month faced staff discontent over government mandated measures to curb the spread of COVID-19, which required the company to isolate many employees and prompted some to flee. | cdaea84a-3958-4511-a3cc-376cde3277f6 |
18398.0 | 2022-11-17 00:00:00 UTC | 2 Unstoppable Stocks Set to Crush the Market (Again) in 2023 | AAPL | https://www.nasdaq.com/articles/2-unstoppable-stocks-set-to-crush-the-market-again-in-2023 | nan | nan | Inflation has run rampant in the U.S. during 2022, which has sent interest rates higher, consumers' disposable income tumbling, and investors trimming their exposure to the stock market.
As a result, the Nasdaq-100 technology index has declined by 28% this year, which isn't a hard mark to beat, but Apple (NASDAQ: AAPL) and Axcelis Technologies (NASDAQ: ACLS) have done so convincingly.
Apple stock has declined by 17% year to date, outperforming the Nasdaq-100 by 11%. Axcelis Technologies is in the green to the tune of 3%, beating the tech index by a whopping 31%.
Both stocks have positive catalysts working in their favor as we enter the new year, so here's why they could outperform yet again in 2023.
1. The economy could swing back in Apple's favor next year
Apple relies on consumer spending, so this has been one of the most difficult periods for its business in recent memory, yet the company has continued to generate growth. But according to the most recent Consumer Price Index data, inflation may have peaked in June when it reached a 40-year high, because it has been steadily coming down ever since.
If that trend continues, the consumer could be in much better shape at the turn of the new year, meaning Apple's business might be poised for a new phase of growth. The company just released a swath of new products, including the iPhone 14, the Apple Watch Ultra, and the next generation of its popular wireless headphones, AirPods.
These gave Apple's revenue a lift in the recent fourth quarter of fiscal 2022 (ended Sept. 24), capping off its fiscal year on a high note. Q4 smartphone revenue jumped 9.6% year over year, wearables increased 9.8%, and the Mac brand saw 25% growth, all of which marked an acceleration over the third quarter.
Overall, the company generated $394.8 billion in sales for the full year, which represented modest growth of 7.8% compared with fiscal 2021. Its services segment -- which includes Apple Music, Apple Pay, Apple News, and iCloud, to name a few -- grew at a much faster 14.1% clip. That factor is key because Apple's subscription-based revenue carries a higher profit margin than that of its hardware products.
This success sets up a strong first quarter of fiscal 2023, which could be buoyed by a couple of key tailwinds -- an inflation slowdown and the holidays, which is one of the most important periods of the year for any consumer-focused organization. For those reasons, Apple could enter calendar 2023 on the front foot.
There's one final positive that might keep Apple stock buoyed next year, and that's the amount of money the company is returning to shareholders. Apple paid out almost $15 billion in dividends during fiscal 2022. Additionally, it repurchased over $89 billion of its own stock, taking the total to $550 billion since 2013. Investors can expect more of the same in the new year.
2. Axcelis Technologies has the highest order backlog on record
Axcelis Technologies operates in the increasingly important semiconductor sector. The industry continues to grow in both value and scope. According to one estimate, it could be worth over $1.5 trillion per year by 2030. Axcelis doesn't manufacture any chips itself, but rather provides ion implantation equipment to some of the world's largest producers, which is a critical part of the fabrication process.
Its stock shot up and into the green this year after Axcelis reported a series of strong quarterly results, bucking the trend of the broader semiconductor sector. The industry has taken a breather in 2022 as supply has finally caught up with the shortages experienced during the pandemic in 2020 and 2021. That's now suppressing prices, which is hurting the performance of many chipmakers.
But not that of Axcelis. In the recent third quarter (ended Sept. 30), the company revealed it had a $1.1 billion order backlog. That's its highest in history, up from $869 million just one quarter ago.
Its revenue jumped 29% in Q3 to $229 million, but its profitability might be the real story. In the first nine months of 2022, Axcelis delivered $3.75 in earnings per share, which was a whopping 105% increase compared with the same period last year. Plus, like Apple, the company currently has an active stock buyback program worth $100 million to return some of its profits to shareholders.
The strong results have prompted Axcelis to increase its annual sales guidance to $885 million for 2022, up from its original estimate of $850 million at the beginning of this year. It's going to take several quarters to work through its massive order backlog, and considering that's still climbing, it's a safe bet the company will continue to experience strong financial results well into 2023.
Plus, to top things off, despite its stock outperforming the Nasdaq-100 this year, it still trades at a 33% discount to the index on a price-to-earnings multiple basis. All signs point to upside for Axcelis in 2023.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a result, the Nasdaq-100 technology index has declined by 28% this year, which isn't a hard mark to beat, but Apple (NASDAQ: AAPL) and Axcelis Technologies (NASDAQ: ACLS) have done so convincingly. Inflation has run rampant in the U.S. during 2022, which has sent interest rates higher, consumers' disposable income tumbling, and investors trimming their exposure to the stock market. This success sets up a strong first quarter of fiscal 2023, which could be buoyed by a couple of key tailwinds -- an inflation slowdown and the holidays, which is one of the most important periods of the year for any consumer-focused organization. | As a result, the Nasdaq-100 technology index has declined by 28% this year, which isn't a hard mark to beat, but Apple (NASDAQ: AAPL) and Axcelis Technologies (NASDAQ: ACLS) have done so convincingly. Axcelis Technologies has the highest order backlog on record Axcelis Technologies operates in the increasingly important semiconductor sector. In the recent third quarter (ended Sept. 30), the company revealed it had a $1.1 billion order backlog. | As a result, the Nasdaq-100 technology index has declined by 28% this year, which isn't a hard mark to beat, but Apple (NASDAQ: AAPL) and Axcelis Technologies (NASDAQ: ACLS) have done so convincingly. The economy could swing back in Apple's favor next year Apple relies on consumer spending, so this has been one of the most difficult periods for its business in recent memory, yet the company has continued to generate growth. There's one final positive that might keep Apple stock buoyed next year, and that's the amount of money the company is returning to shareholders. | As a result, the Nasdaq-100 technology index has declined by 28% this year, which isn't a hard mark to beat, but Apple (NASDAQ: AAPL) and Axcelis Technologies (NASDAQ: ACLS) have done so convincingly. Both stocks have positive catalysts working in their favor as we enter the new year, so here's why they could outperform yet again in 2023. Overall, the company generated $394.8 billion in sales for the full year, which represented modest growth of 7.8% compared with fiscal 2021. | 75123afd-562d-4d89-b566-1b6861a6754d |
18399.0 | 2022-11-17 00:00:00 UTC | FTX Customers Are Out Billions. Here's What That Means for Crypto Investors. | AAPL | https://www.nasdaq.com/articles/ftx-customers-are-out-billions.-heres-what-that-means-for-crypto-investors. | nan | nan | The biggest news in the financial world in the past two weeks has been the collapse of the previously renowned cryptocurrency exchange FTX. Founded by Sam Bankman-Fried in 2019, the exchange shot up in value after venture capitalists poured billions of dollars into the business. At one point, Bankman-Fried was valued at $16 billion, making him one of the wealthiest people in the world on paper. Now, Bankman-Fried is estimated to have a net worth of zero after FTX collapsed amid allegations that he may have transferred billions in customer funds to cover losses at his hedge fund Alameda Research. Customers who deposited funds at FTX may never get their money back.
Here's why the cryptocurrency exchange FTX imploded and what it means for both FTX customers and crypto investors.
What happened with FTX?
This story is still unfolding and extremely complicated, so here are the nuts and bolts. Bankman-Fried founded and owns two companies: FTX and Alameda Research. FTX is an offshore cryptocurrency exchange based in the Bahamas where people could buy and sell crypto tokens like Bitcoin or Ethereum. Alameda Research is a market-making hedge fund for cryptocurrencies.
According to The Wall Street Journal and other news outlets, FTX may have shifted as much as $10 billion in customer funds to Alameda Research to plug losses that occurred when the crypto markets started to crumble this spring. This move left FTX in a vulnerable position. Understanding this, Changpeng Zhao -- head of rival cryptocurrency exchange Binance, which also had an investment in FTX -- said he would be selling FTX's FTT cryptocurrency coins. This triggered a wave of customers trying to pull money out of FTX. Zhao then went to Bankman-Fried with a proposed buyout for FTX, most likely at a bargain price, but pulled out after looking at FTX's books.
FTX soon filed for bankruptcy with customers clamoring for withdrawals, which is not a surprising development after the reports of transfers of customer funds to Alameda Research. Because FTX is based in the Bahamas, where there's no insurance fund as there is in the U.S. for banks or stock brokerages, the thousands of people who deposited money at FTX will likely never get their funds back.
This is a sad day for investors who put large sums into cryptocurrencies via FTX. But there are safer ways to invest in cryptocurrencies that don't involve depositing money in offshore exchanges.
How to stay safe with crypto
The surest way to avoid a cryptocurrency implosion, of course, is to not put any money into these tokens in the first place. Cryptocurrencies -- unlike stocks -- are not ownership stakes in businesses that generate a profit. They therefore have little or no intrinsic or fundamental value for investors. This means they are much riskier to buy even when compared to speculative stocks, never mind blue-chip companies like Apple or Microsoft.
However, if you really want to dabble in crypto, I'd recommend avoiding offshore exchanges like FTX. Stick to publicly traded and audited exchanges like Coinbase Global or Robinhood Markets, which are under more stringent regulations because they are incorporated in the U.S. and have stocks themselves that are monitored by the Securities and Exchange Commission. Does wrongdoing in public and regulated markets take place in the U.S.? History has shown that it does and it will surely happen again. But the likelihood of this occurring is much lower at Coinbase, compared to an exchange in a location where there's no oversight.
Of course, just because an exchange is running on the up and up does not mean you will make money buying its listed securities. Still, cryptocurrencies are much riskier than stocks because they lack the financial fundamentals that give shares intrinsic value. Plus, there's no government backstop. That's something to keep in mind no matter where you decide to invest your savings.
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, Coinbase Global, Inc., Ethereum, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Founded by Sam Bankman-Fried in 2019, the exchange shot up in value after venture capitalists poured billions of dollars into the business. FTX is an offshore cryptocurrency exchange based in the Bahamas where people could buy and sell crypto tokens like Bitcoin or Ethereum. According to The Wall Street Journal and other news outlets, FTX may have shifted as much as $10 billion in customer funds to Alameda Research to plug losses that occurred when the crypto markets started to crumble this spring. | Now, Bankman-Fried is estimated to have a net worth of zero after FTX collapsed amid allegations that he may have transferred billions in customer funds to cover losses at his hedge fund Alameda Research. FTX is an offshore cryptocurrency exchange based in the Bahamas where people could buy and sell crypto tokens like Bitcoin or Ethereum. The Motley Fool has positions in and recommends Apple, Bitcoin, Coinbase Global, Inc., Ethereum, and Microsoft. | Here's why the cryptocurrency exchange FTX imploded and what it means for both FTX customers and crypto investors. Understanding this, Changpeng Zhao -- head of rival cryptocurrency exchange Binance, which also had an investment in FTX -- said he would be selling FTX's FTT cryptocurrency coins. Because FTX is based in the Bahamas, where there's no insurance fund as there is in the U.S. for banks or stock brokerages, the thousands of people who deposited money at FTX will likely never get their funds back. | Here's why the cryptocurrency exchange FTX imploded and what it means for both FTX customers and crypto investors. This means they are much riskier to buy even when compared to speculative stocks, never mind blue-chip companies like Apple or Microsoft. The Motley Fool has positions in and recommends Apple, Bitcoin, Coinbase Global, Inc., Ethereum, and Microsoft. | ea58513c-55e3-46dc-b058-578a62d688e2 |
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